Investing in the in-game tokens of the upcoming blockchain games can be an interesting but bumpy ride with ups and downs. Long before the actual game launches, tokens can be accumulated by participating in airdrops or by buying from a secondary market such as Hive-engine for example.
The price of these assets will usually experience very high volatility. Still, there are moves to be made.
What Makes It Go Down?
When an interesting game project launches its token, we will first witness it spiking and pretty soon after that the price begins to decline.
This is caused by the increase in supply which happens when there is a possibility to stake the game token. At the beginning of the staking option, the APRs are usually very high. Once users receive their staking rewards they might sell their earnings while the price is still high.
This is quite natural and will give good buyback opportunities to those believing in the future use cases of the token.
What Makes It Go Up?
Blockchain game tokens can also experience rapid upward movements before the launching of the game. This could happen if the project would announce the release of another in-game asset such as a land sale for example. This will obviously create demand and common interest in the primary token.
Let's take a look at a couple of examples.
GLX
Genesis League Goals is an upcoming game by Genesis League Sports. Their in-game token, GLX is being airdropped to those staking SPS on Splinterlands. At the moment, staking GLX on their site is still giving an impressive APR of 669% according to Splintercards calculator.
Besides staking GLX I have also bought a couple packs that can now be staked since December 7th. More info about that can be found here.
There was seen a decline in the GLX price after the staking went live but I'm waiting for even bigger movements when the actual rewards go live.
Staked GLX token rewards are not auto-compounding but come in liquid form meaning you can transfer them to H-E after claiming.
Similar to Splinterlands SPS staking, GLX has an unstaking process as well. It will take four weeks in total as 25% of your assets become liquid each week.
WOO
Another very interesting project is WOO or Wrestling Organization Online. I am currently accumulating WOO tokens by staking them with an APR of 52.18%, delegating Hive Power to @wrestorgonline, and buying on Hive-Engine.
Since I started staking it, the WOO price has gone through some fluctuation. After picking up during the Alpha pack sale, it has since been declining a little bit but spiked quite rapidly just the other day.
This was mostly caused by the announcement of the Woo land sale. This is a great example of an update creating interest.
- Unlike GLX, WOO rewards are auto-compounding.
- Staked WOO also has a cooldown period consisting of 4 transfers and lasting for 28 days.
Notes To Myself
- Read White Paper
- Learn about the team, and in what other projects they have been involved?
- Check out the road map to learn when the updates will approximately happen so you might have assets liquid when they occur.
- Timing of the unstaking process, opportunity to sell with a profit might be missed if assets are not yet liquid when there's an update.
- It's hard to resist huge APRs. For me, it's often too tempting to stake earnings as well and keep them compounding instead of taking a profit.
Early Bird Catches The Worm
As a huge blockchain games fan, I've jumped into many projects and found them thriving but also felt I could have started sooner. So in general, I do believe it's a good approach to invest in them before the release. Even with a small amount.
Once the game is live and the use cases are implemented there will be demand for the token. Then those of us who accumulated and staked from the very beginning might find ourselves in a quite good position.
Thank you for reading!
Note that this is NOT FINANCIAL ADVICE.
Follow for more:
brando28
Missing out on the fun on Splinterlands? Here is my referral link if you decide to give it a go: Splinterlands
Also check out: Rollercoin
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Great advice. I bought some more GLX yesterday, the APR is good!
I saw also that WOO APR for staking HP has increased to 9% now.
Yeah, it's 9.7% atm. Thinking about increasing my delegation in the future.
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Thank you very much!
I tend to agree with you on these up-and-coming games.Nice update, @brando28.
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Thank you!
Yeah, these could be huge opportunities.
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Good article. I was seeing about Woo token but didn't know it's actually the the games token lol
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Same here! Not just until recently I started clicking the tokens info icons on Hive-engine to learn more about the projects.
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I missed opportunity in WOO but cannot be everywhere.
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I hear you, there is a lot happening on the Hive ecosystem all the time. Already feeling like an octopus here! 😅
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Have added these Games on my List and keeping eye on news and events coming out. Great work! !PIZZA
Cheers mate! Glad, you found it helpful!
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