LBI: Presenting Opportunities
LBI is one of those projects that flies under the radar. Each week, the numbers keep looking better yet most overlook it. This is simply how some of these projects on Hive are. @spinvest gets the same treatment.
Nevertheless, the opportunity is there and some take advantage of it. Considering that LBI churns out weekly dividends along with the value of the token being back by assets that are held. Thus, in each LBI weekly report, we see the "Book Value" of the fund.
){kind=link}
According to that report, here is where things stood on Saturday.
As we can see, the value of LBI token is worth 1.43 LEO. That means, if all assets were sold, there would be 1.43 LEO for each LBI held. At the present price of about 30 cents per LEO, that works out to a price of almost 43 cents for each LBI.
This is why this comment is really telling.
The price of LBI was actually below that of LEO. This means that not even considering the dividends, we are looking at a discount of more then 40% on the price of LBI compared to the value of the assets backing it.
Obviously, @jfang003 was able to take advantage of an opportunity the market presented. Why was it there?
That is what happens when there is not a lot of attention paid to a project. Many funds like LBI are overlooked on Hive. Nevertheless, for those who are involved, they are money makers. The value of the assets held keeps growing. We are closing in on 50K LEO paid to the fund in rewards from posting and curating.
Markets have a mind of their own. Inefficiencies exist and can be beneficial for people who are alert. Here was a prime example of a token being offered at a severe discount. When something is generating weekly payouts along with growing in value each month, having a near 50% discount is a bargain.
This is why it is always smart to have some extra "powder in the keg". For those who have the long-term outlook of LBI, it is easy to see how token acquisition in this manner could really be of benefit down the road. We could see LBI worth 3 or 4 LEO each with the pace we are on. Couple this with a run up in the value of LEO against, say, the USD, and we are now in the area of having a massive multiple on our investment.
One of the keys to building long-term wealth is to take advantage of the opportunities when they are presented. Warren Buffett calls this "buying when assets are on sale".
Everyone is out looking for the 100X projects. We can see how something like LBI, even overlooked like it is, has that potential. While the number of token holders is small, we could see all of them ending up with a significant payout in the long run.
This is what the project is all about. We are looking to increase the value a great deal over time to create massive returns for every token holder.
Sometimes, as we see above, the market hands some people a gift.
When opportunities are presented, it is best to jump on them.
Article by @taskmaster4450le
Posted Using LeoFinance Beta
My guess is that the project is too attached to the LEO community. So, I hope other tribes hear about this awesome project. Also, is the best and easiest way to invest in LeoFinance and it pays dividends :P
Posted Using LeoFinance Beta
Good point
I'll shill it to other communities I'm a part of :P
Posted Using LeoFinance Beta
LBI is a young project and it's already a great one. Imagine what it's going to be like a few years down the road.
Posted Using LeoFinance Beta
Hello community, and specially @taskmaster4450le
First of all, thank you very much for always sharing useful content. I really look forward your videos, and share many points of view expressed in it. Thank you for that.
May I ask how to start using $LBI? I really don't have a concrete idea about this. I am still learning a lot in using HIVE, so your experience and help will be very much appreaciated.
Thank you very much, and see you around!!
-EvM
You can participate by just holding LBI. You can read the LBI FAQ for more information.
Edit: You can't earn LBI by sending LEO anymore but you can buy it on LeoDex or Hive Engine.
Posted Using LeoFinance Beta
Thank you very much @jfang003 - I'll read the FAQ and will sooner than later get inside.
Best regards,
EvM
Yea the LBI was definitely something I didn't want to pass up since LBI was cheap. Of course, I didn't buy up everything and I thought letting other people know about the opportunity would be nice.
Posted Using LeoFinance Beta
That's what I was just saying in the LMT thread. The only real negative with these type funds (LBI, SPI, INDEX, UTOPIS, etc...) is their lack of liquidity. If you ever want to sell a bunch in a hurry you're going to end up doing what happened here: drive the price down to below what it should be. So, jfang got a steal while the seller probably took a loss.
That said, the entire premise behind LBI is to buy and hold. You get weekly dividends and the underlying value of the coin is slowly rising. Down the road a ways, once LEO becomes more mainstream, there will probably be a bigger market for LBI and liquidity won't be quite as big of an issue. There has also been discussion about LBI buying back tokens from people who want out rather than letting them hit the market.
In the meantime, I suggest people don't buy in unless they plan on holding for at least 3 years. Preferably longer. Personally, I plan on owning these for at least ten years and there's a legitimate chance I never sell them. Just hand them down to my heirs to keep collecting dividends every week.
If you think about it, LEO could very well become one of the premier financial blogging sites in all of the cryptosphere. If that happens, I could certainly see $100 LEO in 30 years and the LBI token would probably be worth 20-30 LEO by then. The curation power of LBI would be enormous so we could still be receiving multiple LEO as dividends every week. A person could literally be collecting a few hundred dollars every week just by holding this token.
Obviously there are a lot of what-ifs between here and there but...considering they're basically 30 cents each right now, it seems worth the gamble to me.
Posted Using LeoFinance Beta
Very nice! Looking like some really good growth occuring. Keep up the great work
While I unfortunately seldom have time to read a lot of posts @taskmaster4450le, this one did catch my eye tonight, with a little bit of time, before I go to bed.
You make a great argument, one which resonates with me, as too many people are unwilling to let time "do the heavy lifting" ...
So ...
"Presenting opportunities?" Okay. I bought another 250 LBI (even though in a recent exchange with SilverStacker, I got him to confirm I was getting a 4X better return buying CL tokens ...)!
Good job of marketing!!
Posted Using LeoFinance Beta
Thank for your word,noted
I think I spent around 300 or 400 Hive for 100 LBI in spring so I'm still to "recoup" my investment :) but since I'm not selling I'm sure I'll make a nice profit in a few years