ruicarlov wrote on 16
th Jul, 2016 at 11:31pm:
But are people even gonna buy ad packs in significant quantities? Everytime there was a swap, there was always the same argument: "We become debt-free and the potential for growth is enormous".
Some growth we got.... Everytime people got burnt, the more credibility the site lost, and with little credibility the demand for ad packs gets worse. After three times I feel like some serious damage might have been made.
Yes, that is the $64,000 question
According to the reset rules, pack bought this week won't have their BAP swapped and they will still be worth 3400 BAP. The new ones bought after the 21st will be worth 2400 BAP. So the BAPs are on sale this week and it looks like people are showing interest:
This is the BAP data from the last three days
Total Restart
Ad Packs: 4,367
(813 + 1,620 + 1,934)
BAP: 13.5MIL
(2.5 + 5 + 6)
also, we still have the massive website and advertising opportunity. Advertisers aren't going to go away from that. The advertising is quite responsive
As a matter of fact, the only weakness was the debt which really was a problem from six months ago. If they have solved that, then the mechanism should be fixed for good. We should no longer have to worry about swaps but this is where the risk lies
I wrote this on the news page for today:
Quote:yes, BAP holders will be hit hardest but if they start accumulating BAP again it may pay off quicker in terms of better ad issues than if we had waited to eliminate all the current BAP via debt reduction.
So this is the dilemma many people will have. If the BAP and BAP debt reduction mechanism is properly balanced, then we will not have steady debt reduction but steady growth moving forward. So is it a good gamble to put more money in the site?
As mad as I am for them doing this, the math side of my head is considering this possibility from an opportunity perspective. I think I'll wait a little and see how the BAP/debt reduction balances out but I think we'll know pretty quick and if people get excited and start buying a packs again then this will have been a good move to jump back in early
for me, what I plan to do is turn what cash I have there back into BAP. I should have about $1200 in assets after the swap. Currently they are in the FTQ and the rest will be in shares.
If the BAP market is good, then shares should recover after the initial panic (since it will be the only investment option besides ad packs).
If the cash takes too long to materialize for me I might throw a couple hundred dollars in to boost my BAP but hopefully I won't need to. I hope my referrals become a bit more active also. This all depends on the ad issues of course. If they can recover then everything else should work.
if it is a short term spike then that will not be so good but the debt reduction mechanisms should keep the BAP down so the $ to BAP ratios should remain high