What gives play-to-earn game tokens value?
Direct from the desk of Dane Williams.
Play-to-earn game devs need to better educate their communities on why the tokens people earn have value.
After all of the initial hype around Axie Infinity and its related token ecosystem, we’re starting to see things return to the mean.
The game’s Smooth Love Potion (SLP) token price is falling…
Which leads to lower earnings by players…
And a continued death spiral as both prices and game numbers race each other to the bottom.
Here is an interesting quote that I read in today’s CoinDesk email newsletter, from crypto research firm Delphi Digital:
“As SLP prices dip, players suffer as they cannot earn as much when compared to a few months back,”
“At its peak, a player could have earned $35 per day on July 21 vs $1 today at current prices (assuming 100 SLP/day). This has led many players to stop playing as the income has been reduced massively.”
The lesson here?
Create ongoing demand for your tokens.
Or they will die.
But perhaps most importantly of all, play-to-earn game devs need to educate their communities on why demand for your token will always exist.
As well as why an eventual equilibrium price point between buyers and sellers will be found.
If the hysteria around quotes like this from analysts show us anything, it’s that the play-to-earn gaming space has not done this well at all.
Yes I’ll step on a few toes saying this on a blog published via a Hive front-end, but this involves Splinterlands too.
I can guarantee that if you asked 95% of players on both Axie Infinity and Splinterlands where the rewards come from and why they have value, they couldn’t tell you.
Surely that’s a topic that needs to be talked about more?
It’s exactly the same as blogging communities here on Hive with their own token.
I’m always trying to encourage people to consider what gives your tokens value before blindly shilling.
But honestly, it doesn’t seem like they want to know.
People just want to earn free money that they can keep dumping with no care in the world about who or why someone on the other side of the trade is buying it.
Oh…
But they’re happy to loudly cry when nobody is buying the shit they were shilling and endlessly dumping though.
Questions for you to answer in the comments
It’s the weekend and as always, somewhat quiet here on LeoFinance so let’s get some discussion going in the comments section in order to answer these questions.
What drives demand behind people buying the tokens other gamers have to sell in order to ‘earn’ from their play-to-earn gaming?
If yes, what is the game doing to raise the equilibrium point between buyers and sellers of the game’s token?
There are answers.
But maybe not for your particular play-to-earn game...
Let's see what we come up with!
Best of probabilities to you.
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Electronic-terrorism, voice to skull and neuro monitoring on Hive and Steem. You can ignore this, but your going to wish you didnt soon. This is happening whether you believe it or not. https://ecency.com/fyrstikken/@fairandbalanced/i-am-the-only-motherfucker-on-the-internet-pointing-to-a-direct-source-for-voice-to-skull-electronic-terrorism
Well most games don't really think about how to set up their economy. With play to earn games coming out, we just see a bunch of projects that come out but I do think the systems need to be checked. They need to create a reason for people to hold on or use these tokens. I like Splinterlands because DEC and other tokens all have their own use.
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I'd love for you to expand on this in terms of Splinterlands DEC.
What parts of the game ensures that there are always at least an equal number of DEC buyers, to players who are selling in order to earn?
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Well to an extent, DEC can always be used to buy credits in-game. I think they removed the quest potions but there are pools on ETH and BSC where people can sell off the DEC. Also DEC self-regulates how much comes out based on the price of DEC so less is generated when DEC price is low
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Use cases and new earnings ways are what keep a play-to-earn game alive. Look at Splinterlands, even if it moved down with the market they keep on adding new features and expanding, so as long as that is happening new users will always want to jump onboard.
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Yes there will always be speculative price moves, but that's really all just noise.
The key for play-to-earn game tokens retaining value, is closing the loop and create an equilibrium point between buyers and sellers for those actually playing the game.
Do you play Splinterlands?
Think about what features the game has implemented tp close the loop.
What ensures that there are always at least an equal number of DEC buyers, to players who are selling in order to earn?
This is the real question that needs to be answered somewhere in this blog.
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!BBH
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Because this is such an awesome post, here is a BBH Tip for you.
. Keep up the fantastic work
Didn't we agree not to tell people where the demand is coming from? :/
Jokes aside, I ranted about this subject last week and had a great discussion about Gods Unchained in the comments with @l337m45732, if anyone is interested.
Currently, it is almost always speculation. Most of the new games incentivize providing liduity at launch so a fictional market is all set up on a random AMM giving the uninformed false hope that it will be there for eternity.
Splinterlands is actually ahead of the game if you ask me. You need DEC to rent cards and to earn DEC rewards by climbing ranks and winning. I don't play much but during the past few weeks, my rental expenses mostly outwayed my earnings, as it should be. You shouldn't be able to jump in with a few dollars and earn more than what you put in by playing a 2-hour session.
With a few more utility additions DEC will be superior to SLP in every single aspect.
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Your Gamefi Economy is broken blog, really is a banger.
I definitely second that anyone looking for an excellent take on the economics behind play-to-earn games, needs to go and give it, and the comments, a read.
The whole Axie Infinity SLP v Splinterlands DEC comparison is intriguing.
This is the type of rabbit hole I wanted to go down with this blog, so cheers :)
I'm happy to see that the Splinterlands team do seem to get that play-to-earn game tokens need to close the loop and create an equilibrium point between buyers and sellers for DEC.
Like you said, earning a ton of tokens from gameplay that the player inevitably wants to dump so they can earn, forces supply to far outstrip demand.
A model, just like the one we see in Axie's SLP, that ends up flushing the token to zero.
PS. I can't wait for your deep dive into what upcoming additions to Splinterlands will do for the economy and ultimately the price of DEC! ;)
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Cheers mate. It's an interesting subject to explore but if a game can generate revenue consistently I don't see why it can't also have a healthy economy. Some are rushing to give out more rewards than they can handle atm.
Gonna need to do a lot more reading before I can do a deep dive on Splinterlands but it is on my to-do list. It's coming but no one knows when.
I just watched this pretty brutal video about whats wrong with NFTs. Its a 2 hour watch, and its very pessimistic about crypto in general (including what the outcome for the world would be if crypto actually succeeds)
It made me feel like Ive been spoiled on Hive and splinterlands because we actually have a dynamic community and genuinely interesting development, but it would be nice to know if we have some answers to these raised issues.
I for one am not especially technically minded, and Im definitely prone to delusional fantasy about what this technology could do to change the world, so it would be nice to hear some counter arguments from the innovators of the hive community. Do we realistically stand to iron out some of the injustice of the world or are we really just leaning in to yet another way for our lives to become manipulated by the wealthy and powerful?
Id love to hear from some commentators on this, like @edicted and @taskmaster4450 and @lordbutterfly but tag some other folks as well
maybe @khaleelkazi @blocktrades @disregardfiat and people who are pushing the boundaries of the development here.
Sorry to drop your names in it like this, but its a very well put together video and i feel it demands some discussion.
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I might sit sown to watch the whole of this at some point, but scanning thru the chapters it's undeniable that good points aren't being raised. But are we accurately framing these issues? Like Trust services are 15% of GDP(which also means a massive carbon footprint)... that's legacy banking. Privacy coins do exist. DAOs are just a step forward from Representative government. NFTs aren't limited to digital art and ownership... We are on a road, and this road leads to a lot of places. We could go down some dark paths and it's good to be aware of what to look out for.
exactly. Im sure people are having these discussions, but its important to keep the conversation alive if we dont want to end up in the same old paradigms (or worse!)
Id love to hear your response after watching the video : )
Its a probably a little overly blinkered in its negativity, but its sometimes useful to have that sort of extremity to kick against and shape the trajectory of the community
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Thanks for sharing the vid, it looks right up my alley.
Give me some time to watch and I'll come back...
Without yet watching the vid, my initial take is this.
There is no black and white when it comes to the concept of decentralisation and freedom.
But networks, such as the one being built here on Hive, are laying the foundation for a more equal and free world.
There is always going to be 'wealthy and powerful' trying to take advantage, but as we saw during Justin Sun's takeover of Steem, there are already mechanisms in place to prevent this from happening.
Hive is literally on the cutting edge of answering all the questions that those against crypto have.
It might work in helping humanity, or it might not.
Right now I'm just happy to be a part of it.
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I definitely feel that here on Hive we are part of something very special. If any community has an opportunity to prove the worth of the crypto space its ours. I would love to see the wealth get distributed even more and for the power of the community to grow in width. I guess this is what is happening with community tokens. I just hope that there is enough incentive to keep building towards a positive future, and not for people to sell out or give in. Essentially we need our top developers to be iron-willed and super humanly vigilant in their persuit of awesomeness, because the scales of power will be stacked against us, and empires have historically found many ingenious ways to crush rebellions and new movements. Justin Suns takeover was overt and very public.... how do we propose to hold together if the attacks become more subtle?
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Play to earn game are actually dynamic in nature and it also makes a player feel good at the time of playing,the fun derive from playing and the earning part of it
Meh.
The harsh reality is that people are here for the money.
If DEC goes to zero, nobody is going to play Splinterlands.
Fun just won't cut it.
Play-to-earn game tokens need to retain value.
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Agreed. And to be honest, blockchain games are not exactly fun yet... at least not to the general public
We're seeing some new projects and evolutions on ongoing projects that maybe start making them fun but as you said, how many would stick to their blockchain games just for fun if suddenly they stopped making money? Not many.
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I am not adept enough to answer the questions but what I like is the fact that Splinterlands, even though I am not a big holder, is adding more layers. They keep building which increases the use cases for their token.
We are going to see a lot of expansion in that game, based upon their past tendency, which will help to keep the users/investors engaged.
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This.
I've said in a comment above that the key for play-to-earn game tokens retaining value, is closing the loop and create an equilibrium point between buyers and sellers.
This is done by the game's dev team adding layers to the game that generate demand.
If these layers don't exist, then the play-to-earn game token price will go to zero.
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That makes a great deal of sense. We are seeing the development expand on a project like Splinterlands. This is going to be key going forward.
It is all a process and we are still so early. Yet the expansion is certainly getting exponential now.
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I am new in this play-to-earn game scheme, and I don't know about Axie, but other games like Risingstar, Splinterlands, NFT / collectible items are drives demand people buy other people earning tokens. Or something like the game feature that could be unlocked with "earning tokens" in the games.
It's not happening with Gala Games, I play that too, yes their earning token can be used to buy NFT in store, but the problem is it's pegged to USD, the earlier player will get a benefit. Still, I have no problem with pegged USD but there is ETH, Gala option to choose from, not only to "earning game tokens" that makes earning tokens no longer special.
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Whether you earn rewards for playing the game in the form of a token (like DEC) or NFTs (like a card), the questions are the same.
What gives the rewards you're earning value?
Are there features within the game that means an equilibrium point between sellers and buyers will be reached?
If not, then the token/NFTs that gamers are selling after playing, will go to zero.
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I don't understand with economic perspective, and I am still learning but from my own opinion (gaming perspective) the community itself will creates value.
What I am saying above is earning token rewards to purchase NFT / unlock game feature in the game. NFT is limited / game feature is time limited, when that specific NFT is no longer issued, supply and demand will play. That player who selling their NFT will no longer have a chance to get more rewards / play new feature within the game. From my understanding it will creates a new layer and value for that.
Still, speculation is involved here, also gamers will need help from developer to implement new feature and gaming community itself to make the games more interesting to play.
I am writing this comment and I keep remember playing RPG game, when I was younger there is specific item / game equipment that price is above average USD. And I imagine this is a NFT rather than just code in the game.
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People just want to earn free money...
Sometimes people just want to enjoy some games and let time pass them by.
Challenges and incentives may help drive demands.
regards
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I completely disagree haha.
If the Splinterlands team changed the economics of the game that meant there was no reason for anyone to buy the DEC that current players were selling, it would go to zero.
If DEC went to zero, nobody would play Splinterlands.
Finally, if nobody played Splinterlands then the devs would no longer be able to be paid and the game would cease to exist.
Play-to-earn game tokens NEED to retain value.
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Play-to-earn game tokens NEED to retain value.
I agree.
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Access more in game opportunities holding the token provides, like qualifying for another airdrop that will have another use case or generating more tokens then hope more use case will be added to boost its speculative value.
I see Dcrops implement a slow release of tokens every season of the game ending (15 days) this somehow stabilized both selling and buying pressure. The lack of liquidity, a player base that has more hodlers, and low token printing helps stabilize the price on hive engine. There's always going to be token sellers once season ends and those flipping nfts of the game but generally, the token has been stable in terms of value for months now.
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I have always enjoyed your takes on dCrops.
If you ever do a deep dive into answering these questions from a dCrops perspective, then definitely tag me in the comments.
I'd love to have a read and get involved in a deeper discussion there :)
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Play to earn is what's giving money now. That's also a way to generate traffic in their site.
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Where is the demand coming from, William?
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More people on the site , give value to the token
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So what i believe is demand for something gives it value.. The problem with play to earn and nfts or selling teh dumbest jpegs in nft's is that the products are dumb. axie infinity is not even an entertaining game for most people they just need the money to do something else with it.. so it's a means to an end that's not even valuable within itself.
same as blogging. we can read all these blogs free. we do it here because not that writers are great but " some of us" can get money from them and go do something else with it.
the value for me lies in the direct access to the demand. that's why bbd coin and btcmyk will always be in demand and make more sense. the numbers are like 80% of the globe wants ubi in several major polls. so they want the money. we create the money and give it to them that's teh demand that's what they want, it's that simple. the intrinsic value rest in the attention value and data which is the oil of teh 21st century we do it through social networks. thats why meta was just able to lose over $250 billion the biggest market loss in a company's history period because it had the demand for that type of value.
The problem with you guys projects all of tehm is it doesn't truly have it. which is why hive can never be a top 100 coin and why play to earn games are like hyped fads until they aren't..
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Your UBI is in the form of your token, right?
Which you intend to give to people that need to then sell it for FIAT, in order to use it?
So where does the demand come from?
Who is buying your UBI token and why?
Where does the demand come from?
At least when it comes to Hive and certain p2e games, there is a closed loop between supply/demand.
Hive has features that ensure there is an equilibrium between supply/demand.
Features that generate demand being:
The blogging aspect simply ensures that new tokens are distributed.
There will always be bloggers selling their tokens, but there will always be demand for that supply.
HIVE will not go to zero because there is demand.
Why won't your token go to zero?
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Really good questions. I guess to be completely honest it's a bit inaccurate to say we're a ubi project. I don't know if you're familar with dan larimer's concept of the uri or universal resource inheritance plan.. where it would use inflation to pay a dividend or basic income to every user. Biticoin MYK tokens and BBD coins are actually financial devices doing something else and using inflation from bitcoin and an attention value economy to pay the dividend.
Data suggests that the gold economy of about $8-9 trillion dwarfs any currency or payment system. For example mastercard and visa combined as well as paypal barely is worth a trillion dollars. BBD coin pays interest as the first certificate of deposit on hive as well as being a store of value.. programmable money and programmable interest. People want to see a token appreciate in value. that's really what they want. Using deflation against growth enables the token to become valuable. First demand lies in price appreciation.
Second demand compared to bitcoin just performs better transaction wise it's cheaper and faster which kinda makes bitcoin obsolete.
It's the only token in this ecosystem with significant intrinsic value. Each bbd and btcmyk token grants you $2400 worth of attention value promotion. So can act like a marketing/redeemable rewards token independent of value in the trading market.
Again UBI token is more of a branding idea besides what actually happens with the token. The ubi portion exist as a subset of bbd and btcmyk tokens and not as a primary focus of attention or value.
An interesting article to quote
No, UBI is not “Communism.” UBI is getting the customer of your currency hooked for life. It’s the ultimate airdrop, and the ultimate form of marketing.
https://medium.com/@fcecin/universal-basic-income-ubi-eos-mass-adoption-16a2eaab989
Asking who is buying the token in crypto as well is probably not as important question as if they are buying it.. It's easy to just look at the blockchain and data on who's bought btcmyk and bbd coin and i can tell you that people have spent thousands upon thousands of dollars on the product and the reasons why could have primarily a wide range similar to the same reason people buy doge coin. i mean i don't really know why they buy it but we have data to support that they do. I can think of many reasons why people buy crypto but it's limited info in this post.. It's like asking why some of you buy hive and why some people like me think it's ridiculous to pay for articles i can get online for free.
I'll answer the question with a question? is there a demand for basic income or ubi? what is the attention people put forth worth? anything?
At least when it comes to Hive and certain p2e games, there is a closed loop between supply/demand.
I'd argue it's not significant demand and maybe will never be
so bbd coin right now increases your token supply by 10,000% in a year.. which is great degree more than the interest you'd get from staking on any hive application.. 20% on average annually underperforms most crypto projects. Also i don't think yielding influence over other people works as well for growth as you all believe
Stake means you can onboard accounts that you can monetise in other ways.
Data over the 6 plus years dpos has existed with the same community of hive and steem shows their onboarding numbers have decreased not increase.
if one person is buying no token will go to zero, hive or any other token
Question is pretty much the same as the previous one, i can say this polls suggest 80% of the globe opts for the citizens dividend. I highly doubt that demand will go away. DAta is the oil of teh 21st century and means to every network under metcalfe's law this interest would create value naturally.
i don't think hive could ever have signficiant demand in that the oligarchy that controls hive only allows for a small percentile to make money which doesn't really incentivize masses of people to join. so i don't think the way the system is set up is solvable. Whereas the growth of bbd and btcmyk token is exponential.
there are thousands of videos and sites on btcmyk and bbd coin. There are countless comments on our youtube videos... So i don't really have to give an opinion about this right? Means if you visit any resources on our projects and look into who buys the tokens that should answer many of your questions, to date over 17,000 low level kyc accounts.. almost a million site visits without spending one dollar in marketing.. and about 13,000 hive/steem accounts who are holders..So i think you'd find a great deal of info asking people from hive and the online community why they join us and what do they expect to get from this as they can probably answer the questions with real time data.
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Closing the loop in tokenomics terms is similar to a game of paper-rock-scissors (PRS):
The loop is closed, and all items are needed to keep the game interesting. Remove any element in PRS, and the playing PRS is pointless.
Now imagine if PRS featured tokenomics.
Splinterlands has at least 19 tokens, but the most commonly used tokens are DEC and SPS. Both are needed, precisely because they are used for different things and reinforce the need to have the other token.
I don't play Splinterlands specifically or P2E games generally, but I'm guessing that the PRS example (lame as it is) may clarify things as we try to answer the question about what keeps buyers and sellers of a token in equilibrium.
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Play2Earn token only have value due to the community.
Currently I compare Axie Infinity versus Pegaxy because both have the scholarship functionality. However I know Axie Infinity have already 3 years old and PEgaxy only 2/3 months.
Axie was a pionier but it stucked in time and take to long to try to improve somethings and other projects started to study how they can "fix" tokenomics problem.
Pegaxy it is the most success case at least until now. However I have doubts about what will happen when one or two big guilds starts to cash out a lot of money.
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As an Axi player, you're the perfect person to ask.
Who is buying the SLP you are selling and why?
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There is no reason at all to this pump.
Only if people is thinking after season 20 when less SLP will be minted daily
What separates splinterland from the remaining game is good economy and constant development.
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I'd love for you to expand on the features that you think make the Splinterlands economy robust as well as what you're excited about the team developing.
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i will beg to differ from your perspective. I think with nft gaming and anything crypto basically a lot of emphases is placed on token loyalty, there are poor tokenomics that are not sustainable, and poor user experience. you can't bait people with money and expect to keep their interest when your platform isn't profitable.
So dev should (in my opinion) focus on one of the two (or both):
Bonus:
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Then it's not a play-to-earn game with all of the benefits that come with it such as making money and true asset ownership.
Tokenomics is key to keeping this aspect of play-to-earn games sustainable.
You have to close the loop between supply/demand.
Ensuring a profitable equilibrium point is found between players who are selling (to earn...), and buyers (for whatever reason).
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There for sure needs to be on going demand and use cases. But there also needs to be funds coming in. What I mean by that is those $4 packs a good 50% or so should be dumped back in rewards to players over time. Nothing huge lump sum but perhaps over a period of a month. So 365 SPS tokens per day would mean 1 SPS token to be divided out to players of battles or tournaments etc. I think that's where we are falling at the moment but being we should have voting rights here soon I hope we can start to push for things like that. Now of course there would be more then 365 SPS that's just the low ball case but I feel like we can get there. Vouchers are pretty pointless at the moment and honestly I would have like to have seen less packs or at least value from those packs given back to players. It seems to be stored or all going to dev work but I'm unsure on those numbers.
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If fresh money coming in because the team releases new cards with new gameplay advantages is a part of the tokenomics, then so be it.
As long as there is a plan!
I like your proposal actually, hopefully it gets more discussion within the Splinterlands/Splintertalk community itself.
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One monetary theorist thinks that a token's stock to flow ratio affects its price. The higher, the better. Currently, it appears to me that SPS' STFR is low, and so the natural outcome is for the price to go lower. However, I think this is just temporary. As the game grows over time, there will be bigger demand for the token. If such growth will exceed that of the new production of the token, its price will either soon stabilize or will gradually increase. As the market absorbs and realizes the significance of the 6 utilities mentioned in the updated SPS 2022 roadmap, a higher valuation will follow that will also reflect in the token's price.
Though not in proper order, this is the overview of the 6 utilities I mentioned above:
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Excellent take when it comes to finding an equilibrium point between supply/demand.
Thank you for sharing the utilities that will help generate demand and ensure this point is reached before SPS goes to zero.
You get it :)
My only follow up question is how does this effect the tokenomics of DEC rather than SPS?
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That is also unclear to me. Though I believe that both DEC's value and price are closely connected to the success of Splinterlands as an NFT blockchain based game, but I am clueless as to the details of it.
Those are good questions and one that play 2 earn games should focus on not letting happen. Players selling tokens. There should always be a need to buy more tokens or earn them.
Games can do this by having in game items and events that require purchasing with the games native token.
It is about retaining investment not losing it. Play to earn is dangerous currently and there are a lot of speculators who buy in early which means the game is already at risk. Sharp token declines in games hurts.
IMO games shouldn't release tokens until they are launched and playable. But this creates another barrier to the project team with finances.
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All that matters for the game's long term sustainable value is what mechanisms are in place to ensure that a supply/demand equilibrium is found.
So will someone have a reason to buy the tokens that current players are selling, in order to earn.
NOT including speculative demand.
Any speculative price gains on tokens is unsustainable and should be seen as nothing more than noise.
Ignore them.
Like some of the methods you mentioned, the key is that the game can generate ongoing demand.
I'd really love to hear more from actual Splinterlands gamers on which methods/developments will generate this demand and therefore ensure an ongoing supply/demand equilibrium is maintained for DEC.
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It all comes down to use case which is of course tied into the wider economy. From four years on hive i have seen how hard it is to balance use case, tokenomics and user experience.
I think that splinterlands do it the best out of the games that i have seen but they made a major mistake when they nuked rewards for the lower leagues.
That is your gateway for new investors and they wont just jump in without getting a good taste first. Once you get them hooked then they will enter accumulation mode.
The value of t he tokens comes from a strong community that want to accumulate them. They will only do this is they either believe in the long term possibility of success in the game or the token is necessary for being involved in the game economy.
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Were the lower league rewards reduced because it simply wasn't sustainable to have that much supply continuously being sold?
Was the devs trying to maintain a higher supply/demand equilibrium price by manipulating the supply side, the reason?
Is your argument that something on the demand side should have been done instead? - Such as implementing whatever game feature that means people need DEC.
Just from reading the comments section in this blog, I know there is a ton of stuff in the pipeline.
I'm really keen to see how it all comes together and what it ultimately does to the tokenomics of DEC/SPS.
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They said that the game was play to earn but that required pay to play. If you wanted to buy or rent and get up the ranks then you would be rewarded. It was also down to bot farms that were setting up accounts to farm dec and reward cards with just a $10 investment but it did hurt all of the new players that were joining and finding their feet.
It's a hard balance to find between encouraging small players and stopping reward farming. The same battle that we have been watching on web3 for the past years.
There si a lot of stuff coming up with SOS and land this year so im happy to keep stacking for the future. I play the game every day and while the loss of momentum did hit my account hard its still the nest game out there and will pay off in the future more than likely.
I don't know about other major games out there, but the economy behind Splinterlands is solid and actually quite complex, probably the most complex in a game I've seen.
DEC was pretty well pegged to 1$ without being a stable coin or acting like one. The sharp growth during the summer-fall of last year made pretty much all Splinterlands-related assets explode, including DEC.
SPS price has seen better days, but its main use cases are yet to be released. And if one 'reads' between the words of Matt, he expects this to be huge and will focus on it a lot. One of SPS's use cases and basis for others is his central focus at this point.
Card value fluctuate and has always done so. They drop after a release of a major set and go sharply up when the packs are sold out. Same for reward cards, when they go out of print.
Splinterlands in my opinion is something you either go in with a long term approach or you don't. Those expecting - and maybe realizing - a little profit and getting out will pull their hairs out when another wave comes. That doesn't mean one shouldn't take some profit out. I do it all the time. But reinvesting is crucial if you want to stay competitive and keep earning well so you can afford to take profit out in the future as well.
I'm certainly intrigued by the future of SPS and what use cases will be developed.
Right now, there is still a ton of SPS supply still to be dumped by insiders and early investors, right?
But once those early investment sales have dried up and use-cases start to be released, there is potential for another serious rip.
I remain cautiously optimistic.
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Yeah, for a few more months.
Utility and supply and deman. Splinterlands has done a great job of keeping up utility but as demand drys up prices fall. Just look at SPS people bought their packs and staked but when they had enough they sold and dropped the price significantly. I’d expect splinterlands to bring more utility and demand for the token so I’m buying at these levels.
Posted using LeoFinance Mobile
Prices have fallen, but the key is whether an equilibrium point can be found.
That the game isn't dishing out more rewards that players want to dump in order to earn, than there is utility that generates demand.
Posted Using LeoFinance Beta