Conclusions



  • It is plainly obvious now that we are seeing a resetting of the platform and that FI are quite happy to lose traders as they move to the new much lower risk (for FI) trading platform.

    Having much lower prices when the new fully functioning order books come in will mean that the new style trader they are looking to attract will not be starting from a very attractive price position.

    Current disgruntled traders are just adding to the problem and in effect reducing prices unwittingly for future traders by constant listing at market price.

    Those traders who they are losing now are just collateral damage along the way, my guess is that they may well use LP1 to hoover up plenty of low ball instant sales in the coming days which can be sold for profit at some point in the future.

    As per my thread yesterday re market sales I have tested it today by listing 1 share in each player I have (70 - all top 200) since 7am at 1p below and then checking every 20 minutes if the price needs lowering again. I have had to keep listing at lower and lower prices and not 1 share has sold!! However due to panic traders have instantly sold shares at much lower prices as they are selling at the new lower bottom spread price. Experienced traders know that whilst there are no instant sell prices these disgruntled panicked traders will keep listing 1 p lower forcing the instant sell price lower and are just waiting for the right time to step in which will be when the delisting stops!!

    It does seem to me that prices will rise in the near future when all the panic stops as value will be off the page especially as when FI implement the new trading terms I expect an announcement regarding there financial strength and long term sustainability which will provide the stimulation traders need to buy.

    Finally I do think long term that they may implement some form of share buy back that runs for the duration of both transfer windows which would be an exciting feature and tie in well with the actual football world.



  • @Fletch

    The problem for me is the long term damage being done to the platform; lack of liquidity is forcing sellers to undercut each other & relentlessly drop prices whilst willing buyers simply haven't got the firepower to oblige & take them out, largely as a result of 80 -90% of their existing holds being illiquid. That could be solved fairly quickly but would need FI to facilitate it (several solutions have been proposed on other threads).

    Whilst the actual volume of active sellers is relatively thin & consequently the amount of required demand to absorb them would be equally small, the fact that FI are basically willing to deliberately crash the platform & traders portfolios, for what would be quite a small sum of ££ support, without any attempt to halt the damage is very instructive. It means that they are either unwilling or unable to understand either their own market or traders needs.

    It's very obvious to me LP1/MM/FI aren't going to be the answer either now or in the future to the required liquidity to turn around the market. It will necessarily have to come from traders themselves, not just the existing £100m that is already on the platform but more ££ from new & existing traders over time. However even the fantastic yields available might not even be enough to persuade such a £££ injection if FI effectively burn any confidence & trust that they had built up with traders. Who would commit proper money in the levels necessary, to a platform that had the track record that FI have demonstrated over the last 10 months?

    The longer FI allow the pain to endure the harder the recovery will be to achieve & the more traders that they burn & cut loose the more negative sentiment it creates on Social Media, trustpilot & word of mouth & eventually no amount of taxi wraps or flashy TV ads will be able to overcome the actual toxic trader experience. If it seems that FI either stood by, failed to act or worse still deliberately inflicted a large part of the misery then permanent long term platform damage will be inevitable IMO & recovery might never happen as a result. Unless the liquidity issue is addressed & PDQ then we all face very serious problems for the forseeable future IMHO.

    Failure to address the market liquidity is essentially corporate/management negligence.



  • 'Perhaps' Fletch... FI 'need' and 'want' to get rid of those longer term traders (like us?) that have made money on sheer capital appreciation through growth of the platform? Like you say, taking out the large lumps you initially put in to double your profits and then 'play with your profits' is not doing them any good?

    When I started, I initially saw this as a short term investment, to jump on its growth in order to 'double my money' before 'everyone' got in on the act... doing that, i'm now 'passively' playing the game because i like it... not too bothered if i win lose or draw, but we all get greedy... i don't like seeing red! I still want to win!!!

    Maybe this 'reset' is just what the platform needs to be sustainable, but I would like to see 'more change' if that were the case, because carrying on as normal with tech issues and what i think is 'unsustainable' prize money... by just lowering the value per all our futures... is simply delaying the inevitable for later down the line!!!! What really needs to be done is 'a plan' of action that 'guarantees' we can all have 100% complete faith in the platform and the product and its future!!!!



  • It bottles down to one thing. FI want to remove the liability from the platform. They released that its more profitable.

    Over the last couple of months while they have announced this they have run experiments to identify what the impact of spending in promotions has on the market.

    They have found its far cheaper to acquire new customers than it costs to retain the current customers. The current customers want old prices, FI can not afford to prop them up to that extent and now are looking to reset the board and get new customers instead.



  • @Toptom said in Conclusions:

    have run experiments to identify what the impact of spending in promotions has on the market.

    2,689 active traders over the last 24 hours to me says they aren't bringing many 'new' customers over right now whilst the 'existing' ones aren't investing!!!



  • @Geronimo159387 Really under

    @Geronimo159387 said in Conclusions:

    @Fletch

    The problem for me is the long term damage being done to the platform; lack of liquidity is forcing sellers to undercut each other & relentlessly drop prices whilst willing buyers simply haven't got the firepower to oblige & take them out, largely as a result of 80 -90% of their existing holds being illiquid. That could be solved fairly quickly but would need FI to facilitate it (several solutions have been proposed on other threads).

    Whilst the actual volume of active sellers is relatively thin & consequently the amount of required demand to absorb them would be equally small, the fact that FI are basically willing to deliberately crash the platform & traders portfolios, for what would be quite a small sum of ££ support, without any attempt to halt the damage is very instructive. It means that they are either unwilling or unable to understand either their own market or traders needs.

    It's very obvious to me LP1/MM/FI aren't going to be the answer either now or in the future to the required liquidity to turn around the market. It will necessarily have to come from traders themselves, not just the existing £100m that is already on the platform but more ££ from new & existing traders over time. However even the fantastic yields available might not even be enough to persuade such a £££ injection if FI effectively burn any confidence & trust that they had built up with traders. Who would commit proper money in the levels necessary, to a platform that had the track record that FI have demonstrated over the last 10 months?

    The longer FI allow the pain to endure the harder the recovery will be to achieve & the more traders that they burn & cut loose the more negative sentiment it creates on Social Media, trustpilot & word of mouth & eventually no amount of taxi wraps or flashy TV ads will be able to overcome the actual toxic trader experience. If it seems that FI either stood by, failed to act or worse still deliberately inflicted a large part of the misery then permanent long term platform damage will be inevitable IMO & recovery might never happen as a result. Unless the liquidity issue is addressed & PDQ then we all face very serious problems for the forseeable future IMHO.

    Failure to address the market liquidity is essentially corporate/management negligence.

    Really underrated post.


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