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Cryptocurrency Ecosystem => Other Popular Cryptos / Coins => Avalanche AVAX Forum => Topic started by: MrSpasybo on January 07, 2024, 09:51:44 PM

Title: Grayscale adds AVAX to digital large cap fund
Post by: MrSpasybo on January 07, 2024, 09:51:44 PM
Grayscale, the world's largest digital asset manager, has added AVAX to its Digital Large Cap Fund:

Grayscale has restructured its portfolio, selling off parts of its current assets according to their respective weightings. The proceeds from these sales were used to acquire AVAX and XRP. It is important to note that MATIC, belonging to Polygon, was entirely eliminated from the Fund[1].

By including AVAX in the fund, Grayscale is giving AVAX token more legitimacy and visibility.

However, the move has not translated into positive price performance for AVAX token price: it has fallen from $50 and doesn't show any sign of recovery. This could be due to to profit-taking by investors who were anticipating the addition to the fund.

(https://www.tradingview.com/x/bxkL1oBV/)

Overall, in long term, I believe that the addition of AVAX to the Grayscale Digital Large Cap Fund is a positive development for AVAX token and Avalanche ecosystem. This will strengthen AVAX's position in the crypto market and help investors continue to believe in Avalance project development and the growth of AVAX token price in next 2024 cycle.

Are you invested in or interested in AVAX/Avalanche? Do you think this is important positive news for the boom of AVAX after BTC Spot ETF and BTC halving? Do you still believe in the potential and opportunities in Avalanche ecosystem in 2024-2025?

[1] Grayscale Adds Ripple’s XRP and Avalanche’s AVAX to Digital Large Cap Fund (https://beincrypto.com/grayscale-adds-xrp-avax/)
Title: Re: Grayscale adds AVAX to digital large cap fund
Post by: IyemRoker on January 16, 2024, 10:24:13 AM
Grayscale is indeed a large company that holds many cryptocurrency assets, this will be the latest breakthrough for Avalanche to increase its price.
Indirectly, Grayscale also increases the value of Avalanche so that it can attract various retail investors to buy more and take advantage of it in the long term.
But there are pluses and minuses when a cryptocurrency is owned by a company with a large supply of coins, it will be very dangerous when that 1 company releases Avalanche coins into the market directly, the price will dump badly.
Title: Re: Grayscale adds AVAX to digital large cap fund
Post by: MrSpasybo on January 17, 2024, 12:34:03 AM
Grayscale is indeed a large company that holds many cryptocurrency assets, this will be the latest breakthrough for Avalanche to increase its price.
Indirectly, Grayscale also increases the value of Avalanche so that it can attract various retail investors to buy more and take advantage of it in the long term.
But there are pluses and minuses when a cryptocurrency is owned by a company with a large supply of coins, it will be very dangerous when that 1 company releases Avalanche coins into the market directly, the price will dump badly.
I believe that Grayscale's event raised the level for AVAX: turning it into an asset with stored value. This will boost optimism in the market and drive AVAX's price to new highs in investor awareness and acceptance. This will help the Avalanche ecosystem have more users, more dapps and grow strongly. As a result, the AVAX token benefits and in case GrayScale sells AVAX to take profits in the future, the AVAX token price will still be supported and at a higher level than currently. We are in a growing market, not a zero-sum game 🚀🚀🚀
Title: Re: Grayscale adds AVAX to digital large cap fund
Post by: IyemRoker on January 17, 2024, 06:55:13 AM
We are in a growing market, not a zero-sum game
Zero-sum game?
What is the term friend?
I just heard it and that made me want to know what happened with this understanding.
Does it mean that this zero-sum game is manipulated from grayscale which can make Avalanche coins go up and down prices?
Or maybe zero-sum this game is a good game for Avalanche coins so that the price value rises?

I hope you continue to reply to this thread because I ask about the understanding of zero-sum games that might surely give value to Avalanche coins.
Title: Re: Grayscale adds AVAX to digital large cap fund
Post by: MrSpasybo on January 17, 2024, 07:26:09 PM
We are in a growing market, not a zero-sum game
Zero-sum game?
What is the term friend?
I just heard it and that made me want to know what happened with this understanding.
Does it mean that this zero-sum game is manipulated from grayscale which can make Avalanche coins go up and down prices?
Or maybe zero-sum this game is a good game for Avalanche coins so that the price value rises?

I hope you continue to reply to this Utas because I ask about the understanding of zero-sum games that might surely give value to Avalanche coins.
You can read the definition of Zero-sum game on Wikipedia: https://en.wikipedia.org/wiki/Zero-sum_game
Zero-sum game is a mathematical representation in game theory and economic theory of a situation that involves two sides, where the result is an advantage for one side and an equivalent loss for the other. In other words, player one's gain is equivalent to player two's loss, with the result that the net improvement in benefit of the game is zero.

However, let me explain how I use it.

For example: GrayScale bought 1M AVAX when 1 AVAX = $10. Buying action and market greed pushed the AVAX token price up and 1 AVAX = $100. Then, to take profit, GrayScale sold all 1M AVAX they had. According to symmetry theory, the selling action and market fear will push the AVAX token price down and 1 AVAX = $10 as at the beginning. Buy 1M tokens + sell 1M tokens = no impact and price stands still. We have a Zero-sum game.

However, a uptrending market doesn't work like that. When optimism takes over the market, despite the same reasons and events, greed has a greater impact than fear, and even though GrayScale sells 1M AVAX, the AVAX token price only drops to $60 instead of the original $10. Now Buy 1M tokens + sell 1M tokens = increase the price by $50 per AVAX token.
Title: Re: Grayscale adds AVAX to digital large cap fund
Post by: IyemRoker on January 18, 2024, 09:53:29 AM
For example: GrayScale bought 1M AVAX when 1 AVAX = $10. Buying action and market greed pushed the AVAX token price up and 1 AVAX = $100. Then, to take profit, GrayScale sold all 1M AVAX they had. According to symmetry theory, the selling action and market fear will push the AVAX token price down and 1 AVAX = $10 as at the beginning. Buy 1M tokens + sell 1M tokens = no impact and price stands still. We have a Zero-sum game.

However, a uptrending market doesn't work like that. When optimism takes over the market, despite the same reasons and events, greed has a greater impact than fear, and even though GrayScale sells 1M AVAX, the AVAX token price only drops to $60 instead of the original $10. Now Buy 1M tokens + sell 1M tokens = increase the price by $50 per AVAX token.
Ahhhhh, I see, this Zero-Sum Game discussion about Avalanche is starting to be understood a little.
*When Grayscale buys more AVAX Coins at 10 USD and sells them at 100 USD but no Dump occurs, this is called a "Zero-Sum Game", right?
*But if AVAX drops to 60 USD shortly after Grescale sells it, that's not a "Zero-Sum Game" because there is an effect of reducing the price of AVAX coins worth 40 USD, that's what it means, right?

And the influence of Grayscale when selling AVAX coins with such a large supply of value will definitely have a negative effect on all markets, the effect is a negative effect that causes the price of AVAX coins to "Dump", right?
Title: Re: Grayscale adds AVAX to digital large cap fund
Post by: MrSpasybo on January 19, 2024, 03:00:40 AM
For example: GrayScale bought 1M AVAX when 1 AVAX = $10. Buying action and market greed pushed the AVAX token price up and 1 AVAX = $100. Then, to take profit, GrayScale sold all 1M AVAX they had. According to symmetry theory, the selling action and market fear will push the AVAX token price down and 1 AVAX = $10 as at the beginning. Buy 1M tokens + sell 1M tokens = no impact and price stands still. We have a Zero-sum game.

However, a uptrending market doesn't work like that. When optimism takes over the market, despite the same reasons and events, greed has a greater impact than fear, and even though GrayScale sells 1M AVAX, the AVAX token price only drops to $60 instead of the original $10. Now Buy 1M tokens + sell 1M tokens = increase the price by $50 per AVAX token.
Ahhhhh, I see, this Zero-Sum Game discussion about Avalanche is starting to be understood a little.
*When Grayscale buys more AVAX Coins at 10 USD and sells them at 100 USD but no Dump occurs, this is called a "Zero-Sum Game", right?
*But if AVAX drops to 60 USD shortly after Grescale sells it, that's not a "Zero-Sum Game" because there is an effect of reducing the price of AVAX coins worth 40 USD, that's what it means, right?

And the influence of Grayscale when selling AVAX coins with such a large supply of value will definitely have a negative effect on all markets, the effect is a negative effect that causes the price of AVAX coins to "Dump", right?
There seems to be a slight misunderstanding here.
+ 1 AVAX = $10.
GrayScale buys 1M tokens => 1 AVAX = $100.
GrayScalse sells 1M tokens => 1 AVAX = $10 as initially.
=> We have a Zero-sum game, it seems that AVAX token does not receive any positive impact.

+ 1 AVAX = $10.
GrayScale buys 1M tokens => 1 AVAX = $100.
GrayScalse sells 1M tokens => 1 AVAX = $50 > $10 initially.
=> We don't have a Zero-sum game, AVAX token experienced a significant price increase of x5.
Title: Re: Grayscale adds AVAX to digital large cap fund
Post by: IyemRoker on January 22, 2024, 09:38:30 AM
+ 1 AVAX = $10.
GrayScale buys 1M tokens => 1 AVAX = $100.
GrayScalse sells 1M tokens => 1 AVAX = $10 as initially.
=> We have a Zero-sum game, it seems that AVAX token does not receive any positive impact.
"Zero-sum game" is maintaining or selling token at the time of purchase, right?
- Buy Avax at 10 USD
- Continue to go up to the price of 100 USD (but not selling it)
- The price of Avax dropped to the price of 10 USD and then immediately sell it, right like this, right?

The essence of the zero-sum game is to maintain the price and sell it at the same price when a dump occurs, right?
Or maybe I was wrong again with the learning of Zero-Sum Game? :'(
Title: Re: Grayscale adds AVAX to digital large cap fund
Post by: MrSpasybo on January 24, 2024, 04:33:50 PM
"Zero-sum game" is maintaining or selling token at the time of purchase, right?
- Buy Avax at 10 USD
- Continue to go up to the price of 100 USD (but not selling it)
- The price of Avax dropped to the price of 10 USD and then immediately sell it, right like this, right?

The essence of the zero-sum game is to maintain the price and sell it at the same price when a dump occurs, right?
Or maybe I was wrong again with the learning of Zero-Sum Game? :'(
I think this is really not important, we just need to know that GrayScale accepting AVAX into their fund has helped AVAX gain a very good position in the crypto market, and at the same time attract the attention from investors. This will help AVAX gain new cash flow and users in 2024, indirectly driving the price increase of AVAX tokens and bringing profits to investors who have trusted AVAX throughout the crypto winter  2022-2023 🚀🚀🚀
Title: Re: Grayscale adds AVAX to digital large cap fund
Post by: KryptoBull on February 13, 2024, 11:38:58 PM
I think this is really not important, we just need to know that GrayScale accepting AVAX into their fund has helped AVAX gain a very good position in the crypto market, and at the same time attract the attention from investors. This will help AVAX gain new cash flow and users in 2024, indirectly driving the price increase of AVAX tokens and bringing profits to investors who have trusted AVAX throughout the crypto winter  2022-2023 🚀🚀🚀
GrayScale's addition of AVAX to its digital large cap fund will have a positive impact on Avalanche and the AVAX token: giving investors more confidence in the value of AVAX. I know many investors refer to GrayScale's portfolio because they believe in this company's reputation and ability to evaluate market value. I believe that after this positive news, AVAX will be added to the portfolios of many investors.

Of course I also know that GrayScale is also an investor, they buy and will sell AVAX, but in the current positive market period, their buying actions will support the price of AVAX tokens in the market. I don't care too much about the consequences of selling GrayScale for profit in the future, as I will also sell AVAX when it hits my TP in 2025.
Title: Re: Grayscale adds AVAX to digital large cap fund
Post by: MrSpasybo on February 28, 2024, 04:49:32 PM
~
Of course I also know that GrayScale is also an investor, they buy and will sell AVAX, but in the current positive market period, their buying actions will support the price of AVAX tokens in the market. I don't care too much about the consequences of selling GrayScale for profit in the future, as I will also sell AVAX when it hits my TP in 2025.
Yeah, the crypto market is very vibrant and fluctuating in a positive direction. BTC is in the $61K area, leading the growth of this entire market. The impact of good news will be amplified and promote token price increases. Although the AVAX token price is stagnant due to the recent token unlocking and outage events, I believe it will still see large growth fluctuations as BTC flows to ALTS.

GrayScale's current acquisition of AVAX for their fund is a good event for AVAX and the Avalanche ecosystem. The consequences of a sell-off in the future do not need to be considered and worried at present. Instead, I'm thinking: when will AVAX token price make a new ATH ^^