LBI earnings and holding REPORT | Year 03 | Week 16
Welcome to this weeks LBI token earnings and holding post
What is LBI?
The LeoBacked Investment (LBI) token is the first of its kind, the 1st token to be valued completely in LEO. Each LBI token represents a percentage ownership in the overall fund including all LEO, HIVE, off-chain and wallets operated by @lbi-token. The goal is to provide a community based and ran investment vehicle focused primarily on the LeoFinance community and LEO token. We provide a weekly LEO dividend payment to all token holders whilst also increasing the value of the LBI token slowly but consistently over the long term by only investing into things that will stand the test of time.
LBI is a long term HODL token based on SPI's model. Because these tokens are backed and valued in their primary assets, the value only increases. Think of it as putting $1000 in the bank and earning interest. In theory, you should never have fewer dollars. The $1000 is the LEO you give us to buy your LBI token and the interest is the earnings we produce with that LEO.
Earnings this week are down a little on what they have been the past few months but for good reason. As you are probably already aware, the price of LEO jumped 20% this week and because the bulk of our earnings come from HIVE sources, we get less LEO. Wit that said, it's all worth more in terms of dollars.
I have read the new rules around LEO curation and look forward to seeing how that works out long term. Even if the % we earn from LEO curation declines more, i'd still rather earn less LEO if it helps to decrease LEO inflation is cut.
Sadly I dont think LBI will be able to take advantage of any of these new forms of curating because we dont have the people to run them. LBI is currently being operated by SSUK and Task4450, we'd love others to join and help to make LBI become decentralized and run by a self-appointed group but that's not something we can force.
Khal created LeoFinance and created a platform for me and Task4450 to create LBI. I and Task4450 created LBI for the community to pool resources and grow a massive fund. It's up to investors to open LBI up to new opportunities.
Overall earnings are decent but I think back to when we had a full team of writers.
Damn, im glad i never converted the liquid LEO balance into HIVE yet. I had planned to convert it to HIVE and then power it up to delegate to @leo.voter but i think holding back a week are 2 could be smart for 2 reasons. 1st is the price of LEO against HIVE had a good chance of continuing to increase and 2nd, we can see who leo.voter rewards are after the dust settles.
HIVE balances are growing steadily and we near 15k HP. You can see from the % Change, everything is down massively against LEO this week. In terms of LEO, our HP is worth 30k LEO less compared to just last week. I knew a correction was coming but god damn..., its a big one.
Converted harvests again this week into BTC, its cheap this week as it dropped to $27k. On the face of it, the whole crypto market is down 5-10% over the past week and LEO is up around 20% so we're losing LEO value all over the place, even the bLEO/BNB LP lost 4%.
It's not all doom and gloom. Even if our non-HIVE holdings are less in terms of LEO, they are worth more in terms of dollars and at the end of the day, thats the key number. We're never going to use LEO to pay for our shopping, bills are Amazon buys.
Big drip this week in the LBI token value dropping 0.34 LEO in 1 week. I have been saying for the past few weeks, a correction was due. In general, the pattern for LBI seems to be 3-5 weeks of growth and then 1-2 weeks of decline.
We have seen massive gains in LEO and massive drops in HIVE and non-HIVE holdings so both, are sorta like the perfect storm. As said above, the LBI token this week is worth less in terms of LEO but more in terms of dollars.
LEO has seen a huge decline in value over the past 2 years and our HIVE and non-HIVE holdings have worked perfectly as hedges against that decline and helped to increase LBI value to roughly 3x. Now that LEO is starting to gain traction again, those same hedges will work against us and decrease the LEO value of LBI. This is simply because when LEO jumps 20% in a week, all of our non-LEO holdings are worth 20% less in LEO.
Ok, i see i have 4 minutes to get this post uploaded before the midnight deadline, 3 minutes.
Thanks for taking the same to read this weeks report, have a great weekend.