Could SPI token traders kill SPinvest's growth?

As more people hold SPI tokens and become aware of the fact that there is a huge margin on the SE exchange to take advantage of, we are lossing out on growth. It's a loophole i foresaw and i originally wanted SPI tokens to be something like SBI shares with no SE token but i felt the SE token makes it more real in terms of ownership. Anyways, to get to the point, people are able to set buy orders and buy SPI tokens for less than 1 STEEM. After they buy them, they can uncut SPinvest selling price of 1 STEEM and make a profit. Good for them and bad for SPinvest which means bad for everyone that holds SPI tokens. SPI token doesn't lose any in terms of STEEM value but SPinvest misses out on the opportunity of growth. Until now it has not been a problem with most people uncutting SPinvest's sale price to date being investors cashing out but as everything grows, it attracts more people, more people see the huge margin and decide to take advantage.

It's a Free Market

It is a 100% free market, there is no question and people are free to do as they feel but people often forget that Mr SP Invest is free to do as he feels as well to a certain degree and sometime's his actions counteract others actions. People that feel discriminated against often forget the free market works both ways.

Without talking too much, it's maybe easier to just show some numbers of how traders uncutting SPinvests token sale price hurts the total SPinvest fund growth. I think it would be easy to trade 1000 SPI's per week, 500 on buy and 500 on sell. The profit is good, i have to admit and it's easy to see why people will take advantage of this and it will become a larger problem but i have only witnessed club members doing it so far which i think is a dirty move ethically because 1 single trader can make a profit at the cost of every other token holder while drastically slowing down SPinvest's growth. It's not confirmed member behaviour and is bad adequate. Members are encouraged to HODL, SPI tokens is not set up to trade while in ICO stage. We are all about growth right now.

This is such a bad advertised for what im trying to stop

It is easy to see the dramatic effect 1 single trader can have on SPinvest in terms of total fund growth. Using the example of 1 trader doing 1000 SPI token (buy 500/ sell 500) in volume per week, we can see they would make a profit of 15 STEEM and SPinvest would lose on 255 SP's worth of newly issued tokens. Over the course of a year, this would amount to the trader earning 750 STEEM and SPinvest lossing out on the growth of 12750 new issued tokens being out there.

You might be thinking, 15 STEEM per week is good but as with everything when 1 person starts, others will join and margins will get squeezed until traders are fighting over thousandths of a STEEM profit all while the loss to SPinvest remains the same. In the number above, it shows the profit of 0.03 STEEM is made for each trade the trader pulls off. If we assume some free-market competition takes place as others find the loophole, both buying and selling price's become closer as margins are squeezed and we could end up with prices like this.

The trader's profit goes down to almost nothing as more people undercut each other but SPinvest's loss to growth remains the same. Do we wonna be in a place where some traders are profiting 52 STEEM per year while SPinvest is lossing out on issuing 26000 new tokens, inc potential profit plus gaining 520 STEEM's worth of growth for 1 persons gain? This does not sound like the ideal place to be.

If this is confusing, I'll show you a screenshot of the SPI token market on Steem-engine. I have circled trades to show which trades are doing what to the growth of SPinvest.

- Green

This is SPinvest issuing brand new shiny tokens into existence and growing the fund to earn more for each investor. Each time SPinvest issue's a share, we are 1 closer to the 1 million issued target and steem-engine is a big part of issuing new tokens having overtaken direct sales recently. This trade circled in green is SPinvest's main source of growth currently. This has a good effect of SPinvest fund growth

- Blue

This is people that have in buy orders looking to buy SPI tokens for less than 1 STEEM. This is not a problem, all these trades are recycled tokens. All these trades are complete when a current investor sells some are all of there SPI tokens for the price offered. This has no effect on SPinvest fund growth

- Red

These trades are recycled tokens but ideally, they should be newly issued tokens. These are either a current token holder looking to cash out are a trader locking in the profit. Investors cashing out 500 SPI tokens every 6 months and undercutting SPinvest sale price to get a quick sale is not the problem as that's a 1-time thing, you can only sell your holdings once. The problem is people have both buy and sell orders in as this is ongoing. For each SPI sold for under exactly 1 STEEM (not 0.99999999999999 STEEM that shows as 1 STEEM), SPinvest miss's the chance to issue 1 new token This has a negative effect on SPinvest fund growth

Can this be controlled?

100% yes. We are i can control this. My mission is growth, i don't wonna be still issuing SPI tokens in 15 years from now. If this turns into more of a problem over time and becomes a threat to the growth of SPinvest, i will take action. I would rather not as it's a picking the worse of 2 evils sorta deal. The free market works both ways, individual goals have little to do with it. I except people will take advantage of this, they are free to do so and it's profitable for them. I am free to close that loop at any time and i have exercised this in the past once. My mission is growth and little will get in the way of that, especially individuals looking to profit from SPinvest's structure.

Growth

If you read this blog regularly, you will know that growth is very important and is key to SPinvest becoming fully decentralized. When people think of growth they think of adding new services, new ways for people to invest, more ways for people to earn but it's also about protecting what we already have in place. Steem-engine's exchange is a big part of SPinvest's growth, bigger than any tribe account we have, bigger than expected beneficiary payment growth are any other method we use and it must be protected in ensure growth. What some might call price control because they can no longer profit, i might call fund growth protection.

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I understand that everyone enjoys the free market and what it has to offer but let's face it, the free market sorta kills SPinvest's growth for personal gain. Yes, it's a greedy centralized thought but it's not for personal gain. We don't live in a free-market world, not really when 8-12 holding companies own everything we use and consume. Spinvest is currently set as semi-decentralized and if some action is required to ensure growth is protected than so be it. I respect everyone's freedom to do whatever they like but SPinvest holds around $15,000 worth of other people's money and this is to consider when making choices

Thank you for reading through the post, as i said at the start, its a touchy subject talking about the free market, price control and stuff like that. I thought that i would share it from my point of view and how i see how the free market is a real threat to our clubs growth. Plus, I can use it to refer back to in future battles, baaa-hahaha.