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RE: Let's Talk SPS: Why is SPS at it's current value?

in #splintertalk3 years ago

The real answer to this question is the supply that keeps being released into the market. If you've been paying attention, you can see that over the last month the number of SPS in circulation has gone up by like 30M. If you look at the market cap chart you'll see little spikes in market cap with no real volume to drive the price up. That's where the supply is being released. Then a portion or all of that supply is sold into the market and the price goes down.

While the factors you talk about are indeed factors, the biggest driver is the supply. Not sure how long this will keep dripping into the market but...until it ends (or at least pauses for a couple months), the price isn't going anywhere.

I can't remember the exact numbers but I seem to recall back in the fall there being less than 500M. I actually think it might have been considerably less than that even. Probably under 400M. Now it's 640M. That's a LOT of supply to eat without anyone selling.

Just keep watching that number. Someone should ask on the AMA when it's going to stop. Like I said, until it does, the price ain't moving.

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The max supply is going to be 3B after 5 years, but based on my assumption we can expect the supply to be around 1B by the end of the SPS airdrop in July.

The biggest driver is the supply

Yeah, I agree! Although that explains why it was going down, so now we need utility to push it back up. Although to be fair I never expected it'd go down to the private sale price so soon.

Well, the private sale price is still higher than "free", which is what people are paying for the airdrop...

I'm a few days away from hitting 20k SPS and I only bought a few hundred just to jumpstart things in the beginning. Of course, I've spent God only knows how much on cards and packs...lol

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a gold level deck can't have been cheap xD I just want to have a little hopium and think of SPS hitting that sweet 1 USD mark xD

I think it's possible. Just going to be a while. That's where your factors come in. Once the distribution is completed, then they can get down to the real work of making the token useful. Unfortunately, until that happens, I don't see the token price improving a whole lot. There will be spikes and dips but I have a feeling we're pretty much range-bound in between 10 cents (hopefully) and 15.

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Makes me feel kind of silly to have added SPS when it was doing around 20 cents thinking this was a really good deal. HAHA oh well, hindsight 20/20

Nah, it's crypto, anything can happen. Usually the best time to buy is when everyone else is selling. It's hard to get yourself to do it but that's why it works. Plus, you obviously are getting more for staking it and more vouchers as well so it's not like it was wasted. No one ever picks the bottom. You just have to decide whether you like the price and make your decision. I bought a bunch of CUB around 40 cents a couple weeks ago only to watch it drop to 22 cents a day later. Could have spent half as much (or got almost double the amount). It is what it is. I'm not buying it to trade. I'm buying it to hold so how much I have is more important to me than price. I just buy when I have the funds available.

Yeah I remember you told me to buy CUB before to prepare for poly. It was around 20+ cents then xD I bought some and then sold some when the fomo for poly was high! haha