Alternative cryptocurrency Peercoin rallied after NuBits shareholders decided to distribute the first dividend. Namecoin and to a lesser extend Litecoin had a sympathy rally right after. Big brother bitcoin stayed flat during the commotion.
PPC Rallies 13 Percent on NuBits Dividend
Peercoin rallied 13 percent on news that NuBits shareholders decided to distribute the first round of dividends. About one hour after the motion passed, the PPC move up started. Prices rallied over 13 percent, from $0.736 to a high of $0.834 before falling back somewhat. We are currently quoted at $0.793 per coin.
Let’s break this down a bit. If you are regular reader of our blog, then you’ve probably read about NuBits, a new altcoin that aims to eliminate the volatility that’s usually associated with cryptocurrencies. The system employs trading bots on the sell side and interest rates on the buy side to keep the value of one NuBits fixed near $1 US Dollar. To find out more about how this works, take a look at the NuBits whitepaper.
Where Does PPC Fit In?
Where does PPC fit into all of this? Well Peercoin is the currency that will be used to pay the NuBits shareholders. Yesterday, at 14:50 EST a motion passed to purchase approximately 68306 PPC for the first dividend distribution. Here is the relevant section of the thread:
‘’The motion passed today at approximately 14:50 EST. This time should be used for valuing the purchase of dividends.
The value of PPC/USD at 14:50 EST was: 0.732
The value of PPC/BTC at 14:50 EST was: 0.00197
This means that approximately 68306 PPC should be purchased for the first distribution. The amount of the second portion of dividend period 001 should be announced by @KTm once the funds become available.
@KTm has 71.66 hours to complete the first distribution.’’
According to a more recent post by KTm, who was tasked with the job of acquiring PPC, the buying spree has already begun so this move isn’t just speculators trying to get ahead of the move.
‘’Dividend purchase has begun, and I fully expect to meet the obligations set forth in this motion. To address @Chronos’s question, I will utilize all of the tools available to me as defined in the proposal to maximize shareholder value for the dividend. Leveraging premium pricing on smaller exchanges to buy larger blocks of peercoins will be one of the strategies that I will employ.
Based on the results of my trading, I should have an update within 24 hours for when the dividend distribution will be made.’’
Namecoin and Litecoin follow PPC rally
Both Namecoin and Litecoin rallied shortly after the PPC move up. Namecoin gained 40 cents, from $0.894 to $0.934 during the PPC pump. We are currently trading somewhat weaker at $0.911.
Litecoin also moved up, albeit by a smaller degree, from $3.72 to $3.77 per coin. It’s unclear how much of the 68306 PPC needed for dividends has been bought so far, especially taking into account the fact that the trader tasked with the job plans to spread out the purchases over several exchanges. It would seem logical that once the buying spree ends (over the next few days), PPC should return to its previous downtrend. But then again there is a small chance that this event will shift the market’s perception of Peercoin and traders will now start to buy up PPC in anticipation of future NuBits dividend purchases.