On Wednesday the Uniswap protocol released their UNI token and everyone was suddenly very interested in a pink unicorn
I assume this sudden release is partly due to the fact that they had to react to the Vampire attack of the Sushi protocol and it is in fact a very good moment for them to do so even though this might have sped up the programme of the release. There is apparently a V3 of Uniswap in the works and the thought was that the token would come then.
The Spinoff/Fork was draining their assets and even with the whole Chef Nomi debacle, the danger was there to threaten the project.
The liquidity on Uniswap is redeemed using liquidity provider (LP) tokens that account for the depositors’ share of the pool (the value of the share grows as people use it and pay 0.3% fees on each trade).
Users have turned their LP tokens over to SushiSwap. The smart contract will then redeem all its pools on Uniswap, migrate the actual underlying crypto assets to SushiSwap and then replace users Uniswap LP tokens with SushiSwap LP tokens.
So the whole community that ever used Uniswap was entitled to those 400 UNI.
I claimed mine yesterday and even paid 17 dollars in GAS fees. At the time the token was worth 1.15 dollars so I figured paying 17 to get 460 was not bad.
But then I got to thinking.
- Why sell immediately?
- Sell When and at what value?
- Sell at all?
I am glad I waited because as we speak the token is worth 4.63 which makes mine worth 1972. But these questions remain.
Why sell immediately?
Well, I did not sell because I like to hope for a bucket of ice cream instead of a scoop.
Dilemma:
Imagine a child, and ask this child if they would like a scoop of ice cream now or a whole bucket later.
99% will take the scoop now. I wanted the bucket as I know this story.
Sell when and at what value?
That is the biggest question here. The value of the token as such is not really that important in this contemplation. Something else is.
The total Marketcap.
When I received my token it was ranked over place 100 on the ranking sites with a total value of roughly 100 million. So if I compared that to other similar but centralised exchange tokens like:
BNB spot 8 with 4.1 billion
CRO spot 9 with 3.3 billion
OKB spot 18 with 1.7 billion
HT spot 23 with 1.1 billion
I realised that it would not stay where it was but would move up in the ranks and the market cap. I would imagine that would take it to at least rank 30 or higher.
Rank 30 is now taken by AAVE with 750 million
UNI is now 42 with 450 and a unit price of 5.
So if we take this math into account that would put the token at a rough price of about 8 dollars per UNI
If I were to sell that would put my sales target at about 3200 USD. Now this is a personal deduction and of course, this token could go much higher than that but it could also stay below but I would be happy selling them for that amount.
Sell at all?
This is where I am looking into the other option. Becoming an LP on Uniswap. I was going to start this with the wLeo anyway so this is just the same step but another token.
To start, UNI is available through four liquidity mining pools: UNI holders may vote to add more pools after an initial 30-day governance grace period
more info here https://uniswap.org/blog/uni/
Initially, I thought there would be an option to stake the UNI as an LP and earn more but that is not possible in the beginning. These are the 4 pairs that will allow you to earn UNI in the first month. After that, the community decides which will be added.
- ETH/USDT
- ETH/USDC
- ETH/DAI
- ETH/WBTC
I have the sneaky feeling that the UNI token will be added as well. For now, the token allows users to participate in the governance and vote on all community proposals. (which needs you to sign a transaction which is currently 8usd)
https://app.uniswap.org/#/vote
So until we hit that 8 dollar mark I am not making a decision either way.
What are you doing with your UNI?
- selling and for how much?
- sold already?
- keeping em for governance?
Posted Using LeoFinance
I haven’t claimed my airdrop of UNI yet. Like you, I think it’s easily going to a $1b market cap in the next few weeks.
Not only have I not dumped my airdrop, I actually went over to Binance shortly after the announcement and bought a bunch of UNI to add to my stack. Paid $2.97 per token :)
Posted Using LeoFinance Beta
Weeks? As the circulating supply is increasing and the price is stable or even going higher it can totally have $1b marketcap tomorrow.
Crazy nonetheless.
very true, 2 hours after I wrote it its at 6.5 from 4.5
Posted Using LeoFinance
damn, cannot believe I did not think of that...
have you seen the Burger from binance? Another token, 0.4 cents at the moment
Posted Using LeoFinance
Well, I'm not planning to hold these for long. I was just waiting for farming to start. Now it has already begun, I think I should sell them within next 2-3 days time before yield farmers start dumping. But you may also wait for a month when treasury is handed over to community. At that time token should peak, I guess. Prices will also depend on what community proposals get approved regarding economic decisions for UNI distribution and platform growth.
Posted Using LeoFinance
Don't sell...free money...going higher.
Posted Using LeoFinance
I would have sold a fraction and kept the rest assuming I had any to claim
My first swap was 63 mins after the cutoff. No UNI for me.
I expect to see the market cap of UNI equal the one YFI peaked at last week. That would mean UNI at $14. I already sold some to pay the taxes I'll owe on the value at the time it was airdropped to me. I will probably also take some profits at around $8 (more than half where I think it will reasonably go). At least 1/4 of it I will hold indefinitely though, waiting for some event that makes it ridiculous NOT to sell.
I wish I'd made a tx with a new wallet one day sooner. I would have gotten two drops if I had. But I guess it's worse for people who only made their first tx hours too late, so not feeling bad about not getting double helpings.
Posted Using LeoFinance