Thread: The 21 mil $xch pre-farm held by @chia_project is bullish for #chia
Why? Read on...
1/ Forget what you think you know. The pre-farm is NOT held by developers or directors of @chia_project . It is NOT going to be sold or "dumped" on the market.
2/ So what is the $xch pre-farm going to be used for? Mostly lent to institutions who have a short-term need for large amounts of $xch
3/ What does lending $xch do to the price? Well if the interest rate on the loan is not negative it would result in UPWARDS pressure because they would need to pay back more than they borrowed. This is likely an end-game scenario when mass-adoption is realised.
4/ Additionally @chia_project may use the $xch pre-farm to fund promising projects and incentivise farmers, increasing the security of the network.
5/ None of this is happening until @chia_project has filed to go public. Until then they are sitting on the pre-farm and dogfooding custody controls that can later be used by other institutions.
6/ Finally and perhaps most interesting. When @chia_project goes public you can buy the stock. This is similar to buying a slice of the pre-farm, plus benefiting from revenue generated by the company, plus they may distribute the pre-farm to investors as dividends!
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