Validators sold out faster than I expected
Well, that escalated quicker than I thought. My estimation for the first day of the validator sale was completely out of place because I was thinking everybody is poor like me.
After roughly 24 hours(probably less), the first round of sales or presale rounds sold out quite rapidly. Right now, we're in the first tranche and 2,691 licenses are available.
When I was predicting a relatively slow pace of sales, I wasn't factoring in the fact that many Splinterlands investors have deep pockets. I'm not going to lie, it is quite incredible how fast the licenses sold out.
For what it's worth, I'm pleased by the rapid pace of validator sales. This indicates that regardless of the general condition of the crypto market, Splinterlands assets are still in high demand.
What really happened?
Honestly, I don't have an explanation beyond Splinterlands players are very rich. In one of my previous publications, I talked about how the sale will positively influence the price of SPS tokens.
In that publication, I envisaged a situation where investors would have to pile up a decent chunk of SPS tokens from the market and invariably pump the price of validators.
It turned out that investors didn't necessarily have to go out of their way to buy validators because the SPS was always in their wallets. The SPS pump we saw was probably from external investors that wanted to get involved in the sales as well.
Anyway, at the end of the day, the number of SPS tokens in circulation reduced, somewhat. The number of liquid dropped to a bit over 368 million, while over 395 million tokens remain staked.
Right now, we're in the first Tranche of sales where the price is $3000. However, you can get a $3 discount for every voucher you add to your payment, thus reducing the number of SPS that will be burnt in the process.
Slowing down
Looking at the situation as it currently is, this current round of sales will be a lot slower than the previous round. So far, only 309 licenses have been sold in the first tranche after the presale and I believe that was a spillover from the initial rush that came with the presale round.
The price of SPS has started slowly receding to the general market condition and I reckon it will stay there for a while.
The interesting thing is that as SPS continues dropping in value, more SPS will be burnt whenever licenses are bought from Splinterlands. So, hopefully, more people buy licenses and reduce the supply of SPS in circulation.
In anticipation of an SPS pump, I unstaked 1K SPS, hoping to capitalise on any crazy move that materialises but it didn't go as planned, so I just ended up restaking it and I'll continue compounding my SPS staking reward till further notice.
I look forward to the days when I'll actually be able to comfortably afford to spend a couple of thousand dollars to invest in my favourite projects. For now, all I can do is continue grinding, scraping up the best low-end deals I can see and just grow from there.
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What's a validator?
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Think of them as witness servers
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so if you own some you're getting some sort of reward for them like witnesses do?
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Exactly.
it makes sense why they sold out that quickly then.
It's better to buy rather than withdraw 1000 SPS, bro, you don't know when the pump will happen, but you can lose a lot of SPS from lowering the interest rate.
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"and I was thinking like a poor man."
haha!
Man, I'm the same.
Underestimating how big Splinterlands actually is and how much money there is floating around the entire crypto ecosystem looking for a home in good projects.
Just happy to have them on Hive!
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