Wen Utility? Hive Community Tokens

in LeoFinancelast year

Do Hive Community Tokens Have a Future?

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I've been on hive for a bit. I'm not an OG by any means but I've now spent a few years here and I've collected a fair amount of community tokens. I'm on the top 20 of many of them now and some I'm top 5.

But I still really have no idea what any of them do.

I know the line about we're early. And although bitcoin is almost as old as the iphone and older than instagram, the argument can still be made on the tech as a whole.

But when things are early, you see quick progress. Most of these layer 2 hive tokens haven't made any real progress at all. They come out, there'a little hype because they're new and then they just fall away pretty quickly from view.

Even when platforms like LeoFinance have made progress on their platform, not a whole lot has happened that integrates the token.

And to make matters worse, there's not any liquidity for most of them.

I picked up a lot of CENT token last year because the curation rewards were worth far more than curating hive. I was thinking I'd buy a lot and then sell some curation rewards to increase my hive stake. That fell apart when I realized there was not a bid to handle selling even half the curation rewards I got day to day.

So i've sold none and have still watched the value plummet against hive.

This isn't meant to be a hit piece on hive or any hive second layer token. I realize most of these community coins aren't working with teams of developers and big budgets but I'm just wondering where any of this is going because because out of hundreds of tokens, I haven't really seen the ball move forward on any of them.

I welcome discussion and your answer to the question of why any of these community tokens are worth owning. And if you have a favorite, please tell me what it is and why you believe it has a future.

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You made some good points. Right now its a bear market and that's the time projects should be working even harder to add value for when the bull market comes. There's also talk about new cryptocurrency regulations and some may hold back on launching something radical until there is more certainty about what regulations will and won't allow.

Fundamentally all of the Hive-Engine tokens depend on the Hive blockchain. Tokens can be used by applications on the blockchain.

I think the main point I can make is to quote William Gibson, "The future is already here – it's just not evenly distributed." That's rather apt considering how decentralized the Hive platform is. There are probably several different projects being worked on right now independently that will be spliced together in the future. @blocktrades is working on the Hive Application Framework for developers. Developing is hard but AI like ChatGPT can be used to generate decent code for people who can't code and that AI will only get better at writing code with further iterations.

Image Source: https://chat.openai.com/chat

I am learning to code because I have some ideas I want to try to add to the Hive platform. I am sure as the price of Hive token increases there will be more incentive for developers who already have the talent to add to the Hive platform.

Keep in mind that Hive is still adapting. Since most people aren't developers the main new features come through the Hive-Engine team. Things like the Hive token diesel pools, smart contracts, and NFTs. For some things to work on the second layer new code needs to be added to the first layer which requires a hardfork. Even if there is a new Hive-engine feature ready today it might be months before another hardfork and it wound need the consensus of the Hive Witnesses generating the new blocks.

There are pools that don't have enough liquidity but that is an economic issue rather than technological. The coming bull market may solve most of the liquidity problems.

Hive is an access token and coupled with HBD can eventually be a payment method for the entire ecosystem. LEO is developing revenue streams via the bridging mechanisms and ads. BRO has scarcity and benefits of access, plus assets. EDS has a model that pays dividends in HIVE. The gaming tokens have their utility tokens that are supposed to eventually be governance and access tokens. Splinterlands is obviously the furthest along here, but PsyberX and Ragnarok are headed the same direction. WOO and GLX are also moving that direction. LEN seems to have a decent plan. CARTEL has assets and potential but needs development. Most of the tokens are lacking that. The key is figuring out which ones you believe are actually going to put some work in to build something of value. You have to realize that HIVE is trading for a fraction of a dollar right? Most of these tokens are trading for a tiny fraction of HIVE. In other words, they are not worth hardly anything. There's a reason you can buy as much as you want for fractions of a penny. If they figure something out, you could be richly rewarded. But odds are against that happening so...buyer beware.

Like I said, I believe HIVE and LEO have development teams that are continuously working to build value. Those are the ones I'm sticking to. The rest I have bits and pieces in. Some are fun. Some are just being supportive. Some have great communities. But all are longshots. Risk reward. I haven't put much into any of them so I just hold onto them in case.

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The way I read the blog post I think @imno's issue is primarily the utility of the tokens and secondarily the liquidity. If a token has more utility uses there should be more demand for the token which should theoretically drive up the amount of liquidity that people would be willing to provide pools. In principle due to pairing if one token has a lot of utility and demand it should bootstrap the weaker performing token it is paired to.

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In my mind, SPS and LEO would be the best tokens to hold and accumulate at this time. I've taken a brief look at some others, but they don't seem to have as much activity. There are countless tokens on every blockchain - investing in the right ones isn't always easy.

They are launched without any "value added sink" and the primary purpose of curation and blogging rewards.
If one wants to sell, there is no support.

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Most of them are terrible, I was bitten the first time around, PAL was the first and lots followed. Most of them I dump right away.

I don't think CENT has suffered that much yet). I've noticed that many tokens now focus on liquidity pools and pay nice bonuses to pool users at times.

I like ALIVE, which holds its price and pays some dividends.

BRO is out of competition, but very expensive right now.

DHEDGE is gaining momentum and not bad in its tokenomics either.

In fact, there are a lot of interesting second layer Hive tokens that I love and I am accumulating. I agree with you. So far, I don't see huge earnings from them or great uses for them, but I feel it's all ahead of me).

UPME and HELIOS I think you know. Just in case you don't, they are burned in lieu of upvoting your post. But then again, there are a lot of buts out there...

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No Utility = Minimum USD/HIVE Trade Value

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As you said they peak early on and then fade. The owners not doing much with them but being content with the supply increasing with no use case other than being a token for said tag and/or community. It is possible if/when the Hive Blockchain attracts more users we see the community tokens move up in value as some of those users might gravitate to and purchase 2nd layer tokens.