SPS - Future Of Token & My Goals

With the airdrop a little bit over halfway through, I wanted to talk about the SPS Token. The current times seem very cold with the hold crypto and stock market down and about to enter a bear market. With the announcement of rising interest rates this will mean that this trend is most likely to continue. Nevertheless, I am very hopeful for Splinterlands and especially about the SPS Token. In this article I want to talk about some explanations on why this token is tanking right now, what reasons there are to be hopeful and what my goals for this token are.

Reasons For Bad Performance

Lets start with some reasons why this high promising token is currently tanking. For starters the whole stock and crypto market are currently taking hits after hits. Over the past days it seemed like the prices are about to recover, but with the latest FED announcement it seems like we will enter a real bear market soon. This obviously has impact on the price of SPS because this one of the assets that is the easiest to get rid off and thus adding a lot of sell pressure on the price.

Another valid reason for the current decline is the daily airdrop which is adding a lot of tokens to the market. Combined with the current limited utility of the SPS token the most common equation in economics is out of balance. The supply is much higher than the current demand which leads to a decline of price. This can be easily seen in the price chart above. When it was announced that SPS will be necessary to obtain Vouchers which will be needed to buy the new Chaos Legion Pre-Sale Packs the demand for this token went trough the roof. After the pre-sale was done which was around beginning of December the demand slowly decreased. With the mentioned airdrop the economic equilibrium started to decline and so did the price.

Indicators That Make Hope

With the reason for bad performance out of the way lets talk about some indicators that are making definitely hope. Lets start with the state of the game. In my opinion, this should be the number one indicator for any P2E Game out there. Is the game playable? Yes. Is the game established and widely adopted? Yes and it is adopting more and more every day. Is the game actual fun to play? YES! All of this, paired with the great community of this game are great indicators for a game to survive. This means that any currency within the game will have its place on the market place sooner or later.

Speaking of the game state, the developers announced a roadmap for the SPS Token a few weeks ago. In this roadmap, the major utilities for the SPS Token were explained. One of these utilities will be that the new packs which are coming out will only be purchasable with SPS. Furthermore, SPS will be heavily involved in the Land aspect of the game which is promised to generate new cards. Additionally, to all of this new demand the supply will be cut immensely. Like mentioned in the intro, in almost 180 days the airdrop and private investment sale will end which will drop the monthly supply by roughly 53 million SPS. This means that at this point the demand will be driving up because more new players are coming in and more utility is added to the token while on the other hand the supply of this token is drastically cut. If this is not a sign for a massive price jump then I don’t know what is.

My Goal With SPS

As for me, I am currently holding around 1200 SPS which are all staked. With the airdrop and the daily APR I am currently earning about 4.5 SPS per day which is a good rate for somebody who is not able to put an insane amount of money in this game. Nevertheless, my goal until the end of the airdrop is to get to roughly 5k SPS. Depending on the price development of this coin I hope to achieve up to 10k but only time will tell. Until then I am focusing on developing my Collection Power and climbing the ranks. I figured that Splinterlands is a very rewarding game once you hit a certain threshold and it will continue to reward you as long as you stay active in the game. This means for me that I will continue having fun while working towards my SPS goal which is the perfect win-win situation.

Published by ga38jem on
LeoFinance
On 26th January 2022

Posted Using LeoFinance ^Beta