There was a time when SPS was new and only very small supply was available. Also, SPS gave more SPS airdrop and staking rewards. So the inflation got higher and higher and the price dropped during the bear market.
Once all SPS are distributed, this could change, because you can burn SPS for DEC which you need to buy things. Also, when DEC is above 1 USD per 1000 (better said 975), you can actually make money by burning SPS for DEC.
We're far away from this good situation, but in theory it should work with either new players or the company stille existing 2 years down the road.
Keep enjoying the game!
I got to know that this sps coin was launched in 2021 and that was it's peak and now it's price is not even one cent. Do you think it will reach its all time high price again?
I couldn't understand this. Could you please explain this as I don't know the burn plan and how it benefits
There is a burn mechanic built into the game where you can burn SPS to get more DEC. This is always 1$ worth of SPS for 975 DEC. If the DEC value is now high enough, you actually get more than 1$ back. This way, you would earn money by burning SPS. Theoretically, because everyone could now make money by burning, DEC price will decrease again as more is minted.
This would increase the SPS price while balancing DEC. But because we still have more selling pressure to DEC and there's still too much DEC around, we don't reach that 1$ value at the moment. That's a problem. The former CEO tried a lot of quick fixes and market moves that didn't work out. We're now on a much slower, but more sustainable path. Still with problems, but the company seems to tackle them one by one, which I consider good.
I checked that the current price for Dec is low and we can get 1300 dec for $1 and 1000 dec is worth around $0.73 so price is low and not the right time to burn for SPS. Right?
On the other hand if dec price is high which is more 1k tokens worth more than $1, it can be good time to burn for SPS and one can earn this way. Did I say it correct?
Yes, that is correct. You always get back 975 DEC for 1 USD of SPS. If now 975 DEC are worth more than 1 USD, you can buy more SPS than you burned before.
This makes sure that the DEC price would not increase too much and is considered rather stable. However, so far we only reached this point a handful of times at max since the logic has been implemented that way.