To all of my wonderful colleagues in the Hive Universe, greetings. I hope everyone is doing wonderfully. The Hive community is paying close attention to the freshly released roleplaying game Holozing. Holozing is now the most ambitious game in the Hive Universe because of the huge returns on the game's token, ZING. After a couple of weeks, while the token's price is becoming more stable with the constant decrement in APR in the liquidity pool along with other options, today I got a higher return as liquidity pool APR which surprised me. I am going to find the underlying reason for that and I will conclude by offering my perspective.
The core token of the Holozing game is indeed losing its value which is currently trading around $0.01 which was around $0.012 a while ago and also traded around $0.015 a week ago. What does it mean? Simply the supply is increasing and demand is decreasing on the other hand. So what was the situation weeks ago, let's try to recap-
Supply was not enough a couple of weeks ago and demand was huge due to the heavy returns in rewards in each aspect, HP delegation, Stacking, Liquidity rewards, and POSH rewards. As a result, the price was increased due to heavy demand with limited supply.
But, currently, supply has increased heavily but the rewards APR has decreased significantly leading to lower demand in the market that pushes the price of ZING into lower ranges.
There are no practical use cases of the ZING token except the stacking rewards in current days, so the price is facing heavy pressure from the sellers who grab tons of ZING every day, actually the short-term believers of the game.
The good thing is that the sale of packs and other assets will be in other currencies except for ZING which will keep the market free from such negative pressure.
Before I begin, I want to state my position about the game's future. Without a doubt, I have high hopes for the game's bright future. Many have spent a significant amount of their HP in the game for a shoperiodime due to the larger prizes. Still, many seem quite excited about it, and the growing interest in the Holozing community among the Hive universe's community members is remarkable. As far as I can recall, very few of the recently released games were able to get this kind of attention in a matter of days.
Today io have gotten 88 ZING tokens from the distribution which is almost 18 ZING tokens more than yesterday, a solid jump of around 25%! The question is- is it normal? or are there any fishy things happening? The answer is not complex and easily the situation can be understood.
In my previous post, I said that some people will be here to generate rewards only and have no contribution to the ecosystem, and that's the bitter truth and such a thing is real in every project. So, some liquidity provider has removed their liquidity from the pol led the situation in reverse and I got the jump in the token distribution.
And my share in the pool has also increased from around 0.17% to 0.21% now! That the fact of getting my rewards more though the real fact can be more to consider, let dive into the deep-
My Hive quantity is decreasing significantly with the negative pushing price of ZING and it has dropped to 80 Hive in the share from 95 Hive a week ago, which is known as the impermanent loss.
So, am I losing money? Not at all, my Hive share has decreased by around 1 in the last 24 hours, but I got 88 ZING worth 2.5 Hive which means a solid gain of 1.5 Hive.
So, don't be worried about the rewards APR, At this lowest price of ZING, still the APR is 535.45% which clarifies the solid future of the game. But be careful of the management of your assets and risk management.
Which direction to go
After the previous discussion, I believe the most pertinent point is whether the liquidity reward pool is better to consider. Still, it is the best option as iquidity pool payouts provide the highest APR, but the staking reward is almost four times less than the previous one. There are a few genuine factors that need to be taken into account before participating in any of them.
It's not a smart idea to invest anything by rushing into any one of them. Therefore, careful consideration of possible impermanent loss calculation and risk management are required.
Over time, the incentives for staking will become more consistent, but the liquidity pool's annual percentage rate (APR) will fluctuate greatly as it manages transient losses in a volatile market.
My advice is to utilize as many opportunities as you can grab right now to expand your portfolio. Even if there is no chance of losing money for now, I advise you to allocate all of your assets by considering the risk factor. Furthermore, the bull season is approaching in 2024, so there's no need to be worried.
So, what is your plan regarding Holozing? Why make it late? jump into it before so late and be ready for the future explosion of the game. If you have any questions or info about my thoughts. please let us know in the comments, it will help us in mutual growth. Thank you for your time and attention.
Have a nice day.
For further information-
Official Website - https://holozing.com/
Hive account - https://peakd.com/@holozing
Delegation account - https://peakd.com/@zingtoken
Twitter/X account - https://twitter.com/holozing
Whitepaper - https://whitepaper.holozing.com/
All the images have been taken or reproduced from the Holozing resources.
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