Buying the Dip: SPS-DEC conundrum
Splinterlands tokens have been feeling the blues lately. SPS, in particular, hasn't exactly been hitting the heights many hoped for but deep down, we all knew it was going to be a long journey, despite the early hype.
The crypto market has been so hardcore in the past couple of days that even DEC felt the heat. The in-game token was on its way to achieving the psychological peg but suddenly got derailed along the way.
In any case, a 2-4% drop isn't a big deal in the general scheme of things and I reckon that a slight upward movement in the market will put DEC back on its bike en route to the peg.
Picking between buying the DEC or SPS dips is an interesting scenario. I'd have ideally liked to buy both but with funds so tight right now, I can only afford one. I guess it is more about long or short-term gains.
To buy DEC
DEC is going to be regulated at a peg and that peg will be achieved in a short time. Between the current price and the psychological peg, DEC needs a 45% pump. This is easy money from a short-term flip and for high-volume traders, it is probably a 300iq play.
SPS, on the other hand, doesn't have the luxury of a peg and its trading value is determined by market sentiment. Here's the thing though, it is very unlikely that we'll see SPS pump by 45% in the time it will take DEC to pump by the same percentage.
So, in essence, DEC is a smooth short-term play that you can flip a nice 45. So, if you spend time on the market you can just patiently wait for DEC to reach the peg and then buy SPS with your 45% pumped DEC.
To buy SPS
SPS also has its own unique benefits of buying early though. In the long run, SPS is most likely going to be a lot more valuable than DEC; especially considering how much more development will surround the token.
If you're a lazy trader and would prefer something that you can "lock and forget", you could just buy SPS and stake it. Also, keep in mind that staking SPS means that you earn more SPS and vouchers. Something that you will not get from DEC.
The longer you stake your SPS, the more vouchers and SPS you earn. Considering how the market is right now, it might not be a bad idea to actually just double down on SPS, stake it and look away for a couple of months.
In Summary
Both plays have their benefits, and it is up to you as a trader to decide which route to take. If you can, I'd even suggest you just go both ways by buying DEC, as well as buying and staking SPS tokens.
Personally, I'm leaning towards SPS because of the staking benefit and also because there's the Rift Watchers collection on the way. I reckon a small pump will ensue because of the new monster collection and hopefully, I'll be able to buy a couple of hundred packs when that happens.
So, what about you? Will you be going for DEC and the potential to scalp a short-term gain or will you play the long game with SPS and just stake it?
Disclaimer: This is not financial advice. Always do your own research and only invest what you can afford to lose.
Posted Using LeoFinance Beta
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Notwithstanding the fact that the bear in Crypto market generally is affecting literally every token but still,we have our hope built that it's gonna bounce back soon.
Amen to that
Curious, you didn't mention liquidity pools. Have you compared staking to pooling?
The pools go up and down, so obviously difficult to estimate, but it seems that a little DEC & SPS put into pools as well as staking can massively help increase those rewards!
I'm getting way more of both in rewards from pools than I am with my staked amount. I generally take rewards from staking and put them into pools. Small amounts to build up bit by bit.
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Ah yes, LPs weren't mentioned but they offer their own unique type of value.. The APRs in Lpools are massive right now. I was only considering each token individually, rather than in an LP pair.
WHich pools are you invested in right now?
Investing in DEC - Swap.Hive pool in Beeswap can be an option.
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Yeah, I was in that pool during the SPS airdrop but pulled out to buy packs with my assets
That's look pretty cool. I am wondering how can one know Dec hit the peg
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When 1000 DEC is equivalent to $1
Thanks for using some of the Leoglossary terms. We are now approaching 150 Splinterland terms in SplinterGlossary. This is a great reference point for all your Splinterland posts.
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Will bookmark Splinterlands glossary and use it more often
I think that sooner or later DEC will no longer have a function. What do you think about it? I have no doubts about SPS, while I have some doubts about the future of DEC
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They want a stable coin to transact inside the game. SPS can't be that which means DEC should be sticking around.
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DEC will always be used to buy packs and monsters. I think that is the main purpose as the game's stable coin
It's not really that unlikely. It's looking potentially more likely SPS will get their first because all it has to do is retrace what it just lost.
With SPS currently at $0.052, adding 45% would only bring it to $0.075. It was there last week.
Within the next few days I expect Rift Watchers to be announced and that could drive SPS up in a hurry to at least that price.
The problem with SPS is that they rushed to put it on major exchanges in a bear market. Any sell off in Bitcoin is going to hit SPS directly as the arbitrage bots hit every token on the exchange without mercy or reason.
So if Rift Watchers announcement comes out and then the fed says something the market doesn't like, SPS will get hit no matter what's happening in the game.
Still though, 45% for SPS is a walk in the park. It's probably going to take DEC a few weeks to a few months to hit that peg.
What I'm really interested in right now are vouchers.
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Interesting angle and yeah, SPS could run up when Rift Watchers get announced. I doubt it though.
Even a listing on Huobi couldn't seriously pump SPS, I doubt Rift Watchers will be that powerful a catalyst to actually get a 45% pump.
Also, as you pointed out, the bearish nature of the entire crypto market makes it quite unlikely for any token to actually make any real movement.
DEC, on the other hand, could potentially rise to the peg, regardless of the state of the market.
I am planning to hold both SPS & DEC. Lets see where it takes me in the long term.
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Dec is designed and mean't to be stable pegged so not much is gonna happen with that
SPS has potential and with more govern features now and with riftwatcher packs only purchasable with SPS it gonna rock some pump into the price so stake and enjoy the ride i would say
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