The business model type is quite typical on Hive, most of our fellow members create a coin and put a utility to it. But, bigger project that pay nice rewards are normally linked to interest per holding.
But, most successful models here are known to games. I hope you agree.
I think your both Leo and Hive goals are successfully accumulating power, but even though it is a huge goal you have achieved here. !LUV
That is an initial setup, but the real "magic" happens behind the scenes where business owners have to "create" value (sometimes money, crypto)... Unfortunately, in many cases, it becomes a "slow rug" where you as an investor aren't aware that you are actually using money as the value of the project tokens is going down...
Agree with you on this and it takes time to find a "profitable" model as we can see with Splinterlands where it wasn't all great all the time, but they got to the point where the "balance" has reached... It looks more perspective today, than it was a few months ago...
Eventually, Slow rug is inevitable in most cases where Supply is more than demand, and users also want to cash in their profits by selling too much to recover their investment also, initial investors buy and sell immediately as they see a hike. What could be potential solution to it?
There is no solution, but to avoid those tokens and projects... :)
If you spot yourself "chasing" the APR, you will probably lose money... It happened multiple times to me... The token creator gives 0 value to the token, but "attracts" investors with (currently) big APR... Investors exchange their HIVE (or other valuable tokens) to get the shittoken that will give them a bigger APR... After that, the investor is trying to get even with his investment by selling shittoken... As the price of the tokens goes down, that break-even point is far more and more...
I agree with chasing Apr sentiment. Unfortunately it has become a trend in the general cryptospace. Quick profits are overvalued. The real profits are in the long run where value is created. It is the same with the most successful projects on hive. Like the example you used - Splinterlands. It took them a long time to be where they are, along with multiple slow times. But they remained consistent and focused on growing the community and creating long term value.
That's true and I can confirm it with my personal experience... I was doing that when I came into crypto, investing my last fiat into crazy shittcoins out there, but with experience that changes... Today, I'm far away from where I was and believe me, I got teased multiple times in a day to FOMO or FUD... Having people like myself of 4-5 years ago, testing me... 😂
But, as long as we have this "need" for fast profits, we will have projects that are delivering that "promise" to others... That's how we humans work... Luckily, we have exceptions that are paving the long-term road...
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