Crypto Analysis | SPS Is Getting Comical @ 2 Cents

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Good day Hiveians!

Join me in analyzing the crypto markets!

 

The expected drop to 2 cents seems to be happening

2 weeks ago I pointed out that there is currently no support for SPS and shared this chart:

As expected SPS is very fast falling towards this area. You can also notice that almost every day SPS made a new All Time Low in recent weeks. Ouch! I have now long pointed out (as have others) that Splinterlands does not have enough sinks currently to combat the extremely high inflation in all of its assets. As such, there isn't any quick fix for this unfortunately. Investors and players will lose value until this becomes addressed.

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Now is the time for you to ask: Do I HODL or do I (panic) sell?

For me, it's obviously the first option. But it's become quite comical:For 1.5 years I have bought and staked SPS and built up a stack of almost 130k SPS. This is not such a small bag; but at 2 cents it will be barely worth $2.5k. This means that someone could now enter the market and just buy $2.5k worth of SPS and will have the same amount which took me 1.5 years to accumulate! Again, Ouch!

2 silver linings

I am 99% sure that SPS will recover from the 2 cents area to around 3 cents again. This could be a potential 50% profit. Perhaps a way to reduce the losses that every player has...

The other more fundamental development is LAND. With LAND now being in phase 0.5 we can finally say that things are underway. In Q1 of 2023 we can survey our land and then will be able to trade it as well. For players this means that a lot of DEC will be burned through LAND (which is how the game economy will get mostly fixed). This is because there will be a huge DEC demand and the only way to essentially get DEC is to burn SPS. LAND will burn just about every SPL asset there is: DEC, SPS, Cards etc. This will be positive for price overall. But it is not a fast process. This will probably take at least a year for things to turn around.

So again: are you going to HODL or sell?

 

As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!

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12 comments
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Should we hold DEC instead of SPS though?!

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I think DEC will definitely come bqck to its peg, but it might be only when land comes out so it could take a while

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Thank you for this post that opened my eyes a bit. Indeed, you are right. Splinterlands is currently struggling to fight the inflation of its tokens and lately I have noticed that a lot of new things are coming out, but my fear is that these activities are mainly used to find money to be able to carry on the developments

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(Edited)

@tipu curate

The new year will have to look more carefully at the value of SPS, if we want to encourage above all the SPS->DEC burning process. The down market doesn't help, perhaps an incentive from the team will be needed. For example, I would have an incentive to buy RF packs if I was guaranteed a minimum value of SPS at $0.10 or 10 SPS=1$, similar for example to what happens to DEC where 1000 DEC=1$, regardless of the real value of the token

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yep this is basically what will save SPS and I am quite confident that this will happen at some point. Interesting suggestion with the guaranteed minimum value for SPS. 10 cents seems to be a good price

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Yeah you are absolutely right. Sps price going down day by day because of bear market. Everyone game coin almost down 90 '/'. I have invest some money in sps. Thanks for sharing your valuable review about crypto.

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LAND will burn just about every SPL asset there is: DEC, SPS, Cards etc. This will be positive for price overall. But it is not a fast process. This will probably take at least a year for things to turn around.

Same thoughts! Oh, how I'm looking forward to it...
Great thoughts in the report!
!LUV

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I am holding. I entered SPS a little later in the game so my losses aren't as great but it is disappointing to see it go down every week. I hope land does burn through some DEC and SPS.

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