As you might know, I think investing in projects on the Steem Blockchain by delegation is part of the blockchain's future.
@steemhunt is the first project that is offering more ROI than a bitbot on delegation and when their HUNT token goes live for trading on the Daybit exchange April 15th it will be really cool to see how the price will develop.
But there is currently another project on the blockchain offering an amazing return on Delegation.
It's DLIKE.
Because investing with Steempower has my peak interest right now, I dove into it and there is just something I don't understand about this one.
They are offering a 1:1 return on delegated STEEMPOWER in this post.
1 SP = 1 DLIKE token per day.
They also have an IEO on the IDCM exchange going currently selling DLIKE tokens for $0,025 each. here.
But let's do the math:
If I would buy 10000 STEEM @ 0,43 = $4300
A DLIKE token in the IEO = 0.025 USD.
Investing $4300 in the IEO = 172,000 DLIKE tokens.
But buying 10000 STEEM and delegating it = 10000 DLIKE tokens per day.
In 17 days you would be able to earn 170,000 DLIKE tokens and still have 10000 STEEM.
Total Sales Amount: 8,000,000 DLIKE in the IEO.
In other words, If I would delegate my full 200k SP I would earn the whole IEO in 40 days.
Why would anyone invest in the IEO? What am I missing?
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They have an unrealistically high price for their IEO. Nothing else seems to make sense.
I have always been a bit mystified by one of their posting instructions:
I guess the double negative means we should only post links that are useless and not informative.
OR! STEEM is extremely undervalued. With a higher STEEM price, it would all make more sense :)
Anyway, after asking around.
There seems to be a 'yet unknown' power downtime on the DLIKE tokens earned from delegated SP vs the IEO preventing the price from crashing after it becomes tradable.
My deal is better: I'll give you 2 joshman tokens for every 1 SP you delegate to me! What are joshman tokens good for you ask? Let me get back to you. I'm still trying to figure out how to make joshman tokens. #tokenizeyourself
You can always have @tipu tokens! @tipu send 2 tokens please
I am honored
You can make them on Steem-Engine!
I see what you did there!
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Success! 2.0 @tipU tokens worth of 2.043 STEEM POWER have just been sent to @joshman.
@joshman - you can check out your new investment at: https://tipu.online.
Please validate the transfer at steem-engine wallet.
I have no idea. I haven't looked into any details about DLike at all so far, but that doesn't sound logical at all...
Sorry to go off topic, but I just want to ask:
What type of projects/initiatives do you personally believe people should invest in? I'd love to hear an answer for both red fish and/or minnow and beyond.
I would always concentrate on getting a decent amount of SP first before expanding to other projects.
Also, I feel that everyone should always do their own research when it comes with investing with STEEM. I personally invested in Steemhunt, Partiko and Steem Monsters but mostly in getting SP.
I delegated just a small amount of SP (100.872 SP) on 2018-11-10 and have earned 27,608 DLIKE tokens (worth $690.2 based on IEO pricing).
At current STEEM levels, that’s a $42 “investment” (though, like you said, I still own my STEEM) and a 1600% return.
I was pretty early as a delegator, which is why I kept the amount small as the platform was very bare at that point in time, but the risk was essentially null because I could’ve retracted the delegation at any moment in time.
As you said in your tweet earlier, this is such a better way of investing. I hope more people see that.
As for your question of why people might invest in an IEO:
I think there are many people out there who would invest in tokens like DLIKE or HUNT who either have no interest in buying STEEM or who don’t have the knowledge that you’ve shared here (delegating is essentially a no-risk way of earning the same or more tokens than simply buying them in an IEO).
This also makes me excited about the STEEM price because if we can inform these potential investors about the benefits of hodling SP and then delegating, we could drive a consistent demand for STEEM!
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Wont the price dump though? Most people are going to want to cash in that profit, I can't see there being enough buyers. Most ICO's dumped in price as soon as they were tradeable, I think the same will happen with IEO's.
It’s definitely possible that the price could dump. I think IEO’s are a slightly different game than ICOs in terms of who’s buying and why they’re buying in.
It’s going to come down to utility. Can the team behind an IEO give their token enough utility to make it worth hodling? Certain tokens have that value already - STEEM, for example, is encouraging to hold because of the upvote power, RCs, passive return on investment, etc.
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I delegated to dlike a long time ago. As you said, I wanted to be part of a project that was going to give me some kind of return. My biggest problem is I am not exactly sure what their plans are. I still haven't figured out what the ultimate goal of their platform is going to be. That has kept me from investing more than I already have. You are right through, the model does seem a bit odd. I am just hoping one day I can sell some of my dlike tokens for a decent return.
Talking about DLike: i also do not understand the math behind what they are doing with their IEO.
Yesterday, I tried the service for the first time and I also wonder what the intention is for this service. The UI seems to be for posting only, not discovering... they didn't build in any discovery feature like tags, search, or anything else than showing the last 90 contributions. Since the DLike post I made, more than 90 followed and my own post is not visible in DLike anymore.
In addition, I posted a youtube video and added some words around it, but seem not be able to read the textual part in the DLike interface. I need to go to Steemit UI or any sister UI to be able to get to the complete post.
I usually try and curate on most steem dapps such as steemhunt and actifit but every time I've logged onto dlike unfortunately I never saw anything worthy of curation. Not keeping my hopes up for this one but I wish them luck.
You clearly havent seen what i share on there then @acidyo 🤔🤣
Could be, I have to admit I haven't spent a lot of time on it.
Same here! Following it with interest though. Might delegate some SP but like to see a better value proposition first.
You're right, but I also wonder what those tokens are actually useful for. I couldn't find anything on the Dlike website nor in the whitepaper, so I wonder why anyone would even want to have tokens. Does anyone know?
Obviously, after the IEO it might happen that the price crashes because anyone who's had some might want to liquidate. Basically, a fair price could precisely be determined by the capital cost for buying STEEM and staking them for Dlike rather than selfvoting or delegating to a bot.
So I guess your model is the better one, even if the rewards structure obviously won't be sustainable.
Interesting information, Mark, but often when tokens appear on the stock exchange the price drops sharply in the first days and I would consider the possibility of delegation after April 20!
But the real question is, what's gonna be the price of DLike token.
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Haha 😆 let’s go get richer dude! Lol o
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That would be fabulous if the DLIKE token is valued at .42. Not so much if its value is .00042.
Probably the idea is will the token price continues to increase and rise more or will it be at that 0.024$ for ever
Interesting - i am going to delegate a small ammount today!! I suspect they are over ambitious with their price expectation...
@exyle, Don't know what is missing but after your calculations it sounds and reflecting as something whole aspect is missing. 🙂
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Thank you so much for participating in the Partiko Delegation Plan Round 1! We really appreciate your support! As part of the delegation benefits, we just gave you a 3.00% upvote! Together, let’s change the world!
Haha lol look like there is some mis information we have regarding this IEO. It can't be possible.
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I have been delegating as it seems as the best route at the moment for this and other Dapps. Will be interesting how these tokens trade after the issuances as most still need to be integrated to the original wallets that early adopters hold.
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I have to learn more about steemit from people like you.
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hehe that was some really interesting math to calculate lol
Thank you for breaking it down :)
What is a decent amount of SP to keep before you start delegating?
Yeah it's all fun and games when you're YOLOing and delegate some free money for a laugh to see what happens, but frankly it's as if these guys are making an effort not to appear trustworthy at all. Their info site is honestly quite bad with spelling mistakes all over and the photos are just terrible. Still, worst yet, there is not one bit of information about what the DLIKE token even does at all. Everything they describe is something that the Steem apps already run circles around. Like if it were another frontend like Busy or Steepshot or something I'd understand but it's a Dapp on top of the Steem blockchain, except it's not and when you buy their token you get it to your ETH wallet ... according to one guy in the Discord? And questions about how the token works and how it's actually paid out to Steem delegators are answered basically by "chill bro".
Like for real, it's like they want people to hate them. Activate more than two brain cells at a time when you ask people for free money, they are going to want answers. I'm not gonna say no to free money but frankly all about this screams worthless pump n dump scheme. I welcome the DLike developers to prove me wrong, shouldn't be hard at all, right?
Hey, @exyle.
I'm glad I caught up to this post. I'm wondering if you ended up delegating to Dlike or not and if so, how it went. I went to their website and checked out the token information, and I guess they're using the ERC-20 to get started?
I have not delegated so far, man. Would like some more answers first.
Oh, okay. Can't blame you for that, based on some of the comments here. I'll keep checking your blog to see if/when you do to see what you think of it afterwards. :)