This topic is a result from the discussion in RLY discord:
I noticed some big players coming in (100K RLY Bridge-ins)
What now happens is that those whales buy large amounts of (very) new coins for cheap.
Result: price goes up quickly, leaving the ‘real fans’ of the creator with the only option to buy for a higher price.
Then, the whale will sell everything (after flow-control is over).
Result: Sharp price drop and the new coin now is stuck with a super high 4 week average, while the current volume is much lower. So: no way of getting any reward for a while.
Whales make a lot of money (doubled or tripled their RLY volume) and go on for the next victim. New coin is left bleeding and perhaps never able to get back up again. The real fans see how their value of their creator has decreased, and might get serious doubts about the whole system (many aren’t into digital currency in the first place). And fans that see ‘their creator’ drops in value which doesn’t do any favors for the creator either. (Examples: BOLD, GROG, B2B, CPA, and probably many others)
I believe this is very bad for the thing that creator coins are supposed to be standing for: Making a connection with your fan base, and exchange value with them. And if it’s bad for creator coins, its bad for RLY as a whole.
My idea to solve this: I would suggest to put a limit in how much coin any account can have of a certain coin. Let’s say you can max. hold 1%-2% of the total amount of coin in circulation. (this percentage is arbitrary, can be anything) So in the beginning you cannot buy more then 500 - 1000 coins. This stops big whales from ruining the dynamics right from the start. There can be all kind of extra’s on this. eg. this max coin hold is only for the first 4 weeks. Or the coin creator can decide what the % will be for specific accounts (co-founders), etc.
Maybe there is a different solution to this problem entirely. But at this moment, it just is too simple to make a lot of money when you are a whale, and the real fans and the creators are the ones suffering. And this kills of the very basis that creator coins stand for.