The point in one sentence. On an order-book exchange a large player moves the price with little money and profits from those who panic. WattCoin has no order book: the formula prices every coin, so a large order lowers the price first of all for the player, while the rate for everyone else barely moves.
Ordinary exchange
How a whale profits from others
- A thin order book. The last trade sets the price. There are few buy orders near the current price, so a large sale eats through them level by level — and the price falls by percent or tens of percent.
- A chain reaction. The fall triggers stop orders and forced closures of leveraged positions. Small holders sell at a loss — often automatically, without a decision of their own.
- Buying back at the bottom. The whale takes the same coins cheaper. When the price returns, it holds the same number of coins and more money. Its profit is the loss of those who sold at the bottom.
The whale’s leverage is the ratio of “how far the price moved” to “how much money it took”. The thinner the order book, the greater the leverage.
WattCoin
What the formula changes
- There is no order book. The system itself sells and redeems by the proprietary WattCoin formula. There are no orders to eat through, no stop orders and no leverage to trigger.
- Every coin has its own price. The rate stands still inside a coin and changes at its boundary: every next coin sold pays slightly less, every next coin bought costs slightly more. In a large order the first coin gets the best price and the last one the worst.
- The reserve stands behind the rate. The reserve covers the redemption of every coin, and no coin is ever sold for less than 1 MWh. So the rate cannot be pushed into a void: there is always a floor beneath it.
The consequence: moving the demo WattCoin rate by 0.1 % takes an order of about $21 bn. The leverage is gone — manipulation does not pay.
Comparison
One attack — two exchanges
A whale sells a large block, some holders panic and sell after it, then the whale buys its coins back. We calculate the same scenario twice: on an illustrative order-book exchange and on the WattCoin formula.
Order-book exchange
illustrative model · both charts share one scale
- 1. The whale sold — price
- —
- 2. Holders sold in panic at
- —
- 3. The whale bought its coins back for
- —
WattCoin
calculated by the formula, EU demo
- 1. The whale sold — rate
- —
- 2. Holders sold in panic at
- —
- 3. The whale bought its coins back for
- —
How this is calculated
The order-book exchange is an illustrative model. Price drop from the order = 2 % × (order amount ÷ orders within 2 %), capped at 90 %. The whale sells the block at an average price halfway down the drop. Holders who panic sell their share at the bottom, and the whale takes those coins. The whale buys back the rest of the block while the price returns. Whale gain = panic share × order amount × drop ÷ 2. Holders’ loss = panic share × order amount × drop. Real exchanges are more complex: the model shows the mechanism, not a forecast.
WattCoin is an exact calculation by the formula. The whale sells the block down the steps. Holders sell their share a few steps lower. The whale buys the block back up the steps. Whale gain = received for the sale minus paid for the buy-back. Holders’ loss = what they would have received before the attack minus what they received in panic. Demo WattCoin EU: cap 11.17 bn coins, 10 % in circulation, demonstration parameters of the formula.
Calculator
What it means to buy or sell several coins
Coin price = price of 1 MWh × the WattCoin factor. Every next coin bought costs more, every next coin sold pays less. Enter your number and look at the steps.
Calculate your own order
Enter the number of coins to see the price of each step and the total.
| Coin no. | Price of this coin | Dearer than the first by | Total for that many coins |
|---|
- First coin
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- Last coin
- —
- Difference between them
- —
- Average price
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- If all at the first-coin price
- —
- Total amount
- —
Whale scale
A large order hits the player itself
The same steps on millions of coins. Four consequences of one order: for the whale, for an ordinary holder, for a patient seller and for the market.
The whale hits itself
- First coin
- —
- Last coin
- —
- Average order price
- —
- Shortfall versus the first price
- —
An ordinary holder is unaffected
A 100-coin wallet before and after the whale’s hit.
- Before
- —
- After
- —
- Change
- —
Patience pays
- Difference
- —
It works when there is counter-demand: the market buys the coin back and the next one goes at the same price. Without demand the result equals a single order, but never below the floor of 1 MWh.
An ordinary exchange is different
The price move for everyone from the same order. The exchange is an illustrative example: $50 M in the order book within 2 % of the price. There the price falls for everybody, stop orders fire, and the whale buys back at the bottom. WattCoin has no order book: the formula sets the price.
Demo WattCoin EU: cap 11.17 bn coins, 10 % in circulation. Calculated with demonstration parameters of the formula; working parameters are provided to operators under licence.
Schemes
What stops working
| Scheme | On an order-book exchange | In WattCoin |
|---|---|---|
| Crash by a large sale | the price falls for everyone, stops fire | the player gets a lower average price; the rate moves by hundredths of a percent |
| Pump and dump | pump with buys, sell at the peak to those who followed | buying and selling straight back returns no more than was paid; a gain is possible only on others’ purchases and is limited by the same tiny move |
| Stop hunting | a brief dip to trigger other people’s stop orders | the system has no stop orders and no leverage |
| Spoofing | bait orders create an illusion of demand or supply | there is no order book — the WattCoin formula sets the price |
| Collusion of large players | the price can be held or pushed | no party can change the price by hand — neither the operator nor the standard |
Honest limits
What we do not promise
The whale’s gain is not zero, but negligible
If someone sells between the whale’s sale and buy-back, the whale buys back a few steps cheaper. The calculator above shows that amount honestly: it is hundreds or thousands of times smaller than on an order-book exchange and does not cover the risk.
Patience works when there is demand
Selling at the market’s pace pays more if someone buys the coins back. Without demand the result equals a single order — but never below the floor of 1 MWh.
The figures are for demonstration
Calculations on this page are made for the demo WattCoin EU with demonstration parameters of the formula. Working parameters are provided to country operators under licence. The order-book exchange is an illustrative model, not data from a specific venue.
Check it on the exchange ← 100 % reserveThe price formula FAQ