TFT Liquidity Estimation - how much TFT you can buy right now?

#1

Hi,

In this post I would like to explain how the current level of liquidity for the ThreeFold Token (TFT) is connected with the current low price of TFT, and how quickly this can change.

Please note, TFT should not be seen an investment instrument. Its main purpose is to buy and sell IT capacity on ThreeFold Grid. Therefore, the value of the token ultimately should be in direct correlation with the supply and demand of IT capacity, and liqudity should be in direct correlation with capacity reservation volumes. Of course, there is also the speculation element on the market but this factor is quite volatile and subject to market sentiments.

Right now the grid is already quite big, with 70+ PB of storage and 16k+ cores online. The fact is that current utilisation is low and with TF Grid 3.0, we expect to see much more utilization. In this way it creates a disbalance between supply and demand for the token. In the future, the growth of demand will definitely affect value of the token.

As for liquidity, it is also quite low at the moment, which has a major impact on the price of the token and means it is not very representative of its actual value. Buying a substantial amount of tokens at the current market price is not possible. Due to low liquidity, the price will start to grow quite quickly.

In order to demonstrate the current level of liquidity and its effect on the price of TFT, let’s take a look at PancakeSwap:

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At the time of writing this post, if you were to you buy 100 USD worth of TFT, you would get it at 0.0445 USD per TFT. However, if you wanted to buy 10,000 USD worth of TFT, you would get it at 0.048 USD per TFT.

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And it is interesting to note, that this purchase would rise the base price to 0.052 USD per TFT for the next purchaser.

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If someone would decide to purchase 100,000 USD worth of TFT, the average price would then be 0.081 USD per TFT.

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And for the next purchaser the base price would rise up to 0.148 USD per TFT. Similarly, the value of the PancakeSwap liquidity pool would rise to 440k total without additional liquidity deposits, only because of price fluctuations.

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In this way we can see that the current TFT price is not very representative of its actual value, for now. Exact numbers may vary depending on what is the current price, but the principle is the same. As utilisation and liquidity grows (take a look at our plan for utilisation), this would probably change. Growth of the utilisation-related demand will create a ground for the more stable and more liquid tokenomics.

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#2

Trying to understand the dynamics of the project, and whenever I am available reading info from the website. FirstIy, I am not a crypto savvy so might come up with the wrong conclusions… the project should hinge on the attraction and retention of user demand, in turn the project should have fundamental viability of value propositions and to keep maintenance of user satisfaction. As you mentioned in text the grid is already quite big, whereas I could not find a substantial use case on the grid running and pay TFT in return. I could not find any info regarding demand for services transacted on the platform. So I would think whether is the project is doable or not? On the other hand, being a farmer and to contribute the grid is not easy as it is mentioned, if you prefer to install DIY it needs lots of work, other option more costly( it is not a deal breaker) and delivery problem might be a problem?
On the speculation side, it is not that easy to buy&sell TFT token , it is also bottleneck for the success of the project. I do really want the project to be successful, as an ordinary investor ( speculator or investor) need to figure out the utility drivers much more simply .Thanks

#3

Hi @nickolay @strategy hope you answer my inquiry, as far as I understand the team would like to discuss the issues through forum instead of telegram. Thanks
b.a

#4

Hello @goldenhand6422, sorry for delay with reply.

Agree with your line of thought, these are all important aspects and we are working on it.

Regarding utilisation of the capacity itself, please take a look at this posts, where we explain current state of efforts: Grid Utilization Plan – Part One and Grid Utilization Plan – Part Two.

Regarding the DYI farms, agree that this requires some technical knowledge to build, and therefore we are planning to expand and involve regional partners who can build and distribute plug&play ready equipment. But if we talk about bigger farmers who want to operate substantial amount of hardware this is for sure DIY format is preferable to build most optimal configuration and we are ready to support such efforts, we have a lot of materials in chat, in forum and wiki. But for sure in future releases we will try to simplify DIY process!

Regarding easy buy and sell TFT process - we have some amount of guides how to do it here on the forum: Useful guides and information, How to Buy and Trade TFTs , please leave us a feedback there if some steps are not clear. Regarding further improvements in this question - this is something I’m personally working on right now :slight_smile: , if you have any ideas and want to participate in this, please ping me in telegram.

Thank you for supporting us! :slight_smile:

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#5

Thanks Nicholay,
I appreciate for the detailed explanations. However, it would be useful to understand what is the current total revenue or expected total revenue of the project? thank you,
b.a

#7

ThreeFold Foundation is a non-profit organisation and it is currently supported by couple of farms that is owned by foundation. Regarding ThreeFold Tech - it is supported by investors and also starting to have initial revenues in 2020 and gradually scaling up this year. To understand more details about difference between ThreeFold Foundation and ThreeFold Tech, please see this wiki page: https://library.threefold.me/info/legal/#/threefold__threefold_tech

Right now we are focusing on technology but if we look at total cloud revenue in 2025 which is worth trillions, we expect 10B of revenue if we get 1% market share by then.

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