Fundamentals Always Wins - $SPS token

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Fundamentals help me sleep at night!

I think it’s safe to say I’m a fundamentalist especially regarding my dealings with crypto, while others read charts, I spend time studying and analyzing fundamentals. I don’t know how to read charts, I can’t do basic chart analysis to save my life not to talk of predicting the next course of action like some people claim to be able to do.

FA over TA

Back in the day, Technical analysis aka reading charts was something that interested me a lot, I watched tons of YouTube videos with market analysts delving into charts and what not! While most were basically fugazi, others that seemed legit still used fundamentals to interpret the charts. In my opinion, charts come in handy when using historical price actions to attempt to predict future price actions.

In my opinion fundamentals are best at predicting price actions. I prefer to study the developments going on within a project and draw my conclusions based on them. The only caveat to this is that a lot of time, price barely reflects the on going development within a project but at least you know that on going development is better than no development.

Fundamentals over price

A very well known example of price not reflecting ongoing development is the case of Hive. But that’s a topic for another discussion. A prime example worth expanding upon is the Splintershards token SPS. When I wrote this post a little over a week ago, the price of SPS was hanging around $0.36 and Chaos Legion presale program was still a couple of days away.

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Less than 2 days to the presale launch, the price of SPS leaped from $0.6 and touched $1 briefly, up until the presale launch day and has since been on a steady decline which has taken us right back to the price before the presale launch($0.58). Seems like a typical buy the hype sell the news situation.

At the point of writing this post, the total Amount of SPS that is unstaked and available to be exchanged - 84,607,170 and the total amount of SPS that is Staked (locked up) by token holders - 155,392,821, every SPS being used to buy Splinterlands packs are being burnt out of circulation, burning is indirectly incentivized by offering a 10% discount on pack purchases using SPS tokens, fundamentally, these are bullish signals as they shrink the supply of SPS.

Just recently a pool was launched on Pancakeswap to give SPS more access to liquidity, there is an immense amount of work going on in the background, according to developments, these are the busiest days for Splinterlands dev team, Chaos Legion is only just few days into its presale with 30 more days to go, there’s so much development going on, this is the point where fundamentals and price become tricky.

Don’t be swayed!

I’m not swayed by the price actions, I’m only expressing my observation, those times come when we really have to step away from price watching and do something else for a bit, let the market market. This is one of those times. I’m still bullish on SPS, I’m perhaps only being too impatient.

Perhaps it’s just a shake off of weak hands...long term thinkers have nothing to worry about but to claim and keep compounding those SPS tokens. Oh I forgot to mention, I’m a proud owner of 3CL packs whoop 🙌! In my next post, I’ll talk more about what I think about the price of Vouchers.

Or maybe I should be swayed, perhaps there are lessons to learn from being swayed amidst strong fundamentals, I could have agreed to this, but I’m not new to this, Hive is doing amazingly well but price is saying otherwise. Fundamentals always win, always, in the long run.

If anyone has a different opinion about the price of SPS I’ll be glad to read about them, thanks for reading.

Posted Using LeoFinance Beta



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22 comments
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Selling any single SPS token before a couple of bucks ?
Nahh, it is like selling BTC for $3K

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You get it! That’s not gonna be me. I’m not even worried the slightest. But I have a friend who bought at 0.8. I can only say hold

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I'd rather stick to fundamentals as well, a bit of a similar post I've put together to be published in few hours.

May those SPS keeps shrinking for the benefit of its investors.

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I would see it go down a little from there as users are unstaking their SPS as Vouchers are paid out.

I have read a few HIVE OGs planning or even doing it and writing it. Also, it seems, recently, there has been more supply of vouchers added to the market. As every token is linked to one another DEC/SPS/Vouchers.

I would expect everything to stabilize and maybe correct just a little bit.

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Always fundamentals bro! Price is always floating; fundamentals are strong. The SPS burned by selling packs should be negligible at this moment, cause vouchers really limit the amount of packs people are buying. After the pre-sale that could become something more noticeable for sure. If you look at the the staked vs liquid number, you can track it down some weeks ago, and it's VANISHING from the market. Everyday there's a lot less available and for me that's a huge green light.

I did a post some days ago about SPS and why I'm very bullish on it. Not going to sell for a long, long, long time. This is like selling Tesla in 2009.

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I read your post. Quite insightful. Even up until now, the liquid sps is drying up with a lot of speed. It will be interesting to see what will become of the liquid sps when Chaos Legion presale is over.

I also plan to grow my stake all year long

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(Edited)

Same here brother. I'm planning to stack and stake my SPS all year long, and probably even further. All green lights are shinning in my radar.

Thanks for reading it, btw! Always appreciate the comments.

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Totally agree that fundamentals are the thing to look at if it comes to long-term investment. Regarding SPS I understood that it will be given out as battle rewards instead of being burnt for pack purchases. I know that people in crypto like to burn tokens but a cyclic economy giving the earned tokens a use-case in buying new assets for better playing - rinse and repeat - looks even more promising to me. Especially as the SPS has no further inflation after the 360d airdrop. For me this kind of closed economy (in combination with a wide opening into other chains) is much more interesting than reducing the supply via burning.

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I know that people in crypto like to burn tokens but a cyclic economy giving the earned tokens a use-case in buying new assets for better playing - rinse and repeat - looks even more promising to me.

I totally agree i also thought about this especially when Ethereum started burning all that eth, funds that could be redirected into a use case that'll help the platform flourish. Whats for sure is that the ending of the 360days airdrop will be interesting as a lot of things will be revealed and tested, even down to the sustainable economics

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Hey friend! Great post and huge work! Love and upvoted it! I am permanently checking how much SPS is stacked. And this amount is almost 55%. Cardano project has a 70% ratio (I am in love with the Cardano project). With more than 250 airdrops to come, all my efforts go to generate more and more SPS. I do trust the future of #splinterlads

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