Choppy days ahead #5

The Big Picture

With rewards about to switch to SPS for ranked play and season rewards, DEC price has been on a diagonal trend back to its peg of 0.001$. This is huge for Splinterlands as not just DEC is on track to double in price by the end of this month, but also Chaos Legion packs and cards that have been traded at a discount due to DEC prices. Personally, the hold majority of my assets I hold in splinterlands are in Chaos legion cards, and I have already seen about a 10% bump in their net prices. Whether or not their rentals increase with the underlying price would depend on if the new rewards are better and higher than current levels.

There is chatter among the community, that the splinterlands team is first initiating the switch to SPS rewards without requiring staking of SPS to allow players that dont have SPS earn some before it is used as a requirement to earn SPS. While this is good news for the players that have not been collecting SPS, it is also HUGE for bot farms, and their opportunity to collect mass amounts of SPS from this system before it adds the staking requirement. This has garnered a lot of mixed feelings from the community, but one thing is certain, that the team has shown that they are deadset on preventing value leeching out from the community, be it through bots or spam playing. I believe that come what may, if any thing appears to be an existential threat to the economy of this game, the team will rectify the situation as fast ass possible, and the switch to SPS rewards has proven their resolve.

Rental Updates

Todays rentals are shaping up to be slightly lesser than what I hoped for, but its definitely more than what I was expecting based on last season. With the rewards update going to go live soon and the CL cards gaining in value at the same rate of DEC, the future is looking very bright. The yROA for my rentals has went down due to rental prices not catching up with the underlying value of cards, yet. The numbers coming in this season is definitely setting high expectations for the next one. Word on the street is that the new rewards increase player earnings by 7 times, lets hope that is reflected on rental prices and possibly card prices too :)

What I'm doing now

At the moment I've just bought another batch of CL reward cards with my daily rental income. I am expecting their prices to increase too eventually, but at a higher cap then DEC itself because there is no swapping mechanism to cap the potential value of these cards unlike the SPS-DEC system that is going to be implemented.

Legal

Just to be clear this is not financial advice and is purely for entertainment only. DO NOT make financial decisions based on what I say and PLEASE only invest what you can afford to lose.

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