This is an issue that came up for discussion every since the airdrop by Leofinance was announced. People are wondering should they get more LBI or hold their LEO until after the airdrop?
It is a valid question and one that is easily understood.
To start, we do not know all the details of what the airdrop will be nor what the token is actually for. We do know it is tied to the new microblogging application. Thus, we can presume it will utilize some form of Proof-of-Brain.
Understanding this concept allows us to align it with what our present goals are with LBI.
Anything that comes under the LBI umbrella is used to back the value of the token. This is true whether it is more LEO coming in through curation or a new project that we undertake. It is all part of the same family and will be used to enhance everyone's holding.
Thus, the more LEO that is held, the greater the airdrop to the community. Like with LEO, if the new token works the same, it will be staked and curated to provide a return. This will be done by the LBI team, which hopefully will grow in number as more get involved. Whatever the drop, LBI will use it to help generate a minimum of a 20% return.
Another thing that is unknown is when the airdrop will be. At this point, we are not even sure when the snapshot is. What we do know is the LBI token price is held through January, then it will see a 10% increase in price. Thus, holding off could cost one 10% for each token purchased, something that can add up into a fair bit of money if the token price takes off like we expect.
To put it in financial terms, is the airdrop going to be worth at least the roughly 5 cents that equates to 10% of the LEO price? It is impossible to say but something to think about.
Certainly, it would make little sense if the new token is only worth a couple percent of LEO yet people waited and paid a 10% premium on LBI.
@lbi-token is one of the larger LEO holders. This means, presumably, it will also be one of the largest holders of the new token being dropped. Already, LBI is doing very well with curation rewards in LEO. The expectation is the same will happen with the new token depending upon how it is structured.
When airdrops are announced everyone gets excited. They see free money and greed tends to take over. This is only natural. However, LBI is a project that is designed to grow people's holdings over time. Each action is undertaken with the view that it will enhance the numbers that come out each Saturday.
Another example can be derived from SPInvest. That token is worth roughly 7 HIVE today. When that stared, it was sold at 1 HIVE. The difference in holding 1.1 SPI versus 1 SPI is .7 HIVE. That is a huge premium for .1 HIVE.
Looking at the LBI/LEO airdrop situation. Is it sound to give up .7 LEO to hold out for an airdrop? Is it worth it to give up 1 LEO if LBI hits 10 LEO?
This is the potential risk that one is taking. Certainly we cannot answer these questions at this time since the details are not known nor do we know what the future holds.
What we are in the know about is that whatever is dropped to LBI is going to be utilized and leveraged for a much greater return for the LBI token holders. And each token represents a certain stake in the total value of the LBI platform.
Sometimes it is best to look at things from a larger perspective.
Article written by @taskmaster4450le
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I was thinking the same around 3 days ago and decided to go on and building up my LBI stake. I think I bought since then 90 further LBIs.
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Being a small account without much LEO and not really posting in Leo, the little bit of Leo I get I'll be adding to my LBI for now, until things change. Right now I am trying to get 1000 HP for the big bee badge so some of my outside hive invest are being lowered like my archon mining, but I see that as a part of investing, why invest if you never use to meet wants and desires, needs do not come into play for small account like mine.
Historically, whenever you get a free coin, it plummets in value.
Just look at:
-Bcash (bitcoin cash)
-Ethereum classic
-Every single other bitcoin fork
Uni token (its way down in btc and eth value although USD value is up)
-1Inch token
And so on, sure we might get a temporary pump if there is super low supply and a moment of increased buyers, but unless there is incentives to keep buying the token then most people will cash out some or all of their airdrops.
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Spot on! That's what I see as well, what usually happens.
My take: Better not to change plans (in case a plan exists) just because of a free airdrop. Continue as if the free airdrop is not gonna happen. Or take short term profits when the pump is happening and rebuy after the airdrop :)
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There are exceptions. LEO was an airdrop for Steem holders (before Hive split) and so far LEO is doing pretty good. But yeah, most airdrops don't do too well.
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Do you realise why LEO is doing well?
And foremost:
And maybe the most important:
However, the above is not a guaranteed LEO will continue to do very well. Not saying Leo doesn't deserve to do well, but we all know how crypto-based social media is performing.
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Thats true, and LEO + Hive will be bigger than Steem so there’s that too
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I'm just happy enough to be here earlier than most - I don't have 'thousands' of dollars or 'thousands' of tokens -
but i can work on 50/50 split my earnings and 'get rich slow' LOL
either way i win in the long run ;)
Thank you EVERYONE at leofinance/lbi-token and all the holders/believers for keeping everything going
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I don't have any LBI-TOKEN since I joined only in December and I'm still very young here, but your transparency is just fantastic and brings tranquility to those who invested in the project.
Congratulations for continuing the excellent work.
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Well, great analysis. Tricky situation right here. From the performance of SPI, going for LBI might be the better choice. For now, I'll make the investment on both even then see how things goes
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thanks for the explanation, maybe diversify 50/50 between LBI and LEO its better :)
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I have reached 50 LEO by interacting with the community so I have my short-term LEO goal hit and will be focusing on LBI. The way I see it, you don't lose out by contributing to the LBI project. Even if you may lose out on some airdrop rewards, you don't lose out as much as you think if you consider lbi-token upvotes. It may be possible that the airdrop nets you more money in the end but I have received a decent amount of LEO from lbi-token's upvotes so I don't mind putting it into LBI right now.
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I had my goal in mind even before the airdrop was announced, so I planned on getting to that point no matter what. Then after that I have made the decision to still put some into staking and put the rest into LBI. I am trying to keep my stake at whole numbers right now so unless I have enough Leo that I can stake a multiple of five, I will not be staking it. Speaking of the team, have there been any people posting yet wanting to be considered for the governance team?
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Having a target is a great idea. That is where following a plan can eliminate distractions, even ones that will benefit one.
It is easy to get enamored with different opportunities that crop up in financial matters.
Remaining focused is what separates many from the masses.
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I will start a LEO PD in the next day or two, air drop or not. Although I have already bypassed my initial goal amount of LBI, I still want some more before the price increase. I doubt once the price increase happens I will buy any more LBI. Every time I look at my SPI balance I wish I had more but I was poor and unsure of how it would work. So at this time with a little more understanding of what is happening and a little more crypto wealth to spread around, LBI is my main focus. In LBI I trust.:)
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Maybe by the time the first power down hits, we will have more clarity about the airdrop.
It will take 7 days so there might be updates.
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I was definitely on the fence about this issue but your post provided clarity. I decided to invest a bit more in LBI
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By the way, you are receiving 1% from this post as a beneficiary.
Leo, for some reason, requires a beneficiary so I just put my finger in the richlist and pulled my mouse down and let it stop where it decided.
You name was under my finger when it stopped.
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Sweet! Thanks 😊
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I don't know how much will I will get from the airdrop. But as always, I will split 50/50 between LBI and Leo Power.
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That is not a bad plan.
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That’s a pretty good idea. Maybe I’ll follow that myself
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Thanks @taskmaster4450le for this post. Indeed, many are wondering what's going to happen with the airdrop and just as many are undecided whether to invest in LBI or HODL LEO for the airdrop. I decided to do both, grow both my stakes.
I'm sure LBI will use the airdrop to benefit us. Staking, curating and even posting on the microblogging platform is an option, a good one.
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At the moment I am betting on Leo, because I am helping everyone with my votes.
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Thank you for clarifying this to us.
I'm already curious what February is gonna bring us ( on all levels ), on and offline. I guess it means I'm excited for life.
Will try to focus on the now though, even though it's nice to hear about long term strategies surrounding part of my financial holdings.
Keep up the good work!
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A lot going on with Hive, crypto, and the world in general.
It will be interesting to see what things look like come Spring.
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This is something which crossed my mind too. I guess once a clear announcement is made in airdrop the decision to be taken by users will become easy. I personally preferred staking LEO but now I am thinking it's better to buy LBI.
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Hard to tell but we believe the value of LBI will keep growing over time.
That is something that we know from the track record.
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50% to 50%... That's how I think.
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Hedging on both sides.
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High chance that LBI will get more returns on the airdrop than I would, put it's personal and might not be true for some of you.
Regarding the calculation, assuming airdrop is in Q1 and LBI grow to 1.2 LEO during this period, we actually give up 0.2 LEO because we would still be able to sell our LEO on the market and buy LBI at 20% premium.
At least technically, but we know liquidity of LEO and LBI might be harsher on the trader.
Or my calculations are wrong ? :D
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Hive-Engine is experiencing some issues so tokens will be delivered when we are able to access it.
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I change my LEO rewards on a daily base into LBI token.
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STOPLBI is tempting but hive's price is so low that I feel bad to spend it on anything until it rises a bit
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LBI indirectly is tied to HIVE so increase price of hive will definitely also cause increase in LBI value. So It's worth to have at least small value in terms of LBI as well rather depending all on hive.
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I would love to see a LBI airdrop as once I am involved in a project or fund I put my mind to grow in that investment. The rest is how we all diversify our portfolio but if we are into LBI we should get LBI airdropped if it is the case. Pile over pile :)
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Well at the end all the value that we may get from the airdrop will be inyected in the LBI economy right? so im not really worried about that, in my case i bought enough lbi (according to my pocket) to not feel like i missed the train and ill just power up all the LEO that i get from posting on my @academialibertad account.
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I agree it may be foolish to hold onto something that will cost you at the end of the day. tis is why I am adding to Leo and Lbi daily if I have rewards. I see it as a must investment for myself and wont be holding back just because of an airdrop.
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yes, in fact the airdrop question could be a question mark.
The details are not known yet but it is assumed that it should be launched by the end of February, it should not be too long for the announcement of the announcement
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Have you considered making a new post that links to LBI tutorials. I've been focused only on building my curation account and have really forgotten what LBI has to offer. I find that with new people getting onboard Leofinance posting something about how people can get started every couple of weeks or so would be important. I feel like some other projects have slipped away from newbies because they don't understand the basics. thanks
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The thing is, we just don't know what the airdrop is going to be or do. In saying that... you're a bit of an insider here in the community, Task. Have you got any insight on what it will do and then maybe what it could be worth? ;)
But honestly, with clear growth and value already established on LBI, the decision should be pretty clear if you're tossing up between the two and need to decide right now.
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Just a thought what if leo airdrop is capped for whales ?
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I have no idea what you're talking about right now! My account here is only a few weeks old, if that, so I'm still just finding my feet... when is this airdrop happening? And I've heard mention of this "microblogging" platform too, but I didn't realize it would have an entirely separate token. Am I understanding that right? Sorry... I'm lost, and I talk a lot. lol
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My 2 cents: Agree with the basic underlying idea in the post. However, there is a decent history of cases in which a project has outperformed his owner (Yahoo had a 10% of $BABA at one point, which was quite more valuable than the entire yahoo, or the Bitcoin stash from the ICO that basically is the core value of Tezos nowadays) So it's always legit to ask ourselves "What if".
Even fully convinced that LBI will outlast in value (because of the Magic of Compounding Interest!) to this new project, it will be interesting to keep this airdrop around. Maybe 50% to LBI and speculate with the other 50% . Maybe in 6 months the token overheats and the airdropped token jumps to 0.25 HIVE each... Then we can sell it and get MOAR LBI ^_^
In line of the policies of diversification and risk I wrote in other of my comments, I am definitely pro-hodling everything that anyone throws at us. Our main stream of revenue is other.
My 2 cents as usual!
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I hope LBI holders benefit from LEOfinance Airdrop in anyway...
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LBI to the moon. I think invest and reap the rewards. The airdrop will initially be cheap as dumpers dump their coins.
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I didn't even know an LBI token is out in the market. Obviously, I immediately checked LeoDEX :) Didn't find the time yet to investigate what this LBI token is about. You may have a few links I shall look at to understand LBI and what it delivers?
What I've noticed in last so many years in the crypto universe we are all part of, is that when free money is offered, quite a few users jump on it. All good and nice, no doubt about that. But what I also realise, is the moment some future free money is offered based on an airdrop, the price of the token being used to determine the airdrop size, usually gains in dollar value a lot, while after the airdrop, the dollar value decreases quickly again.
I tend to take a larger perspective :) This essentially means, I usually don't start accumulating more tokens in the period between an airdrop announcement and the snapshot/airdrop itself. I tend to hunt for startup and startup-like projects of which the tokens are dirt cheap. Maybe a little riskier than going for Leo, but the returns can be so much more than eg doubling your money through free tokens (doubling means: the new token having the same value as the token used to determine the airdrop size... in this case the new Leo token versus the current Leo token).
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Airdrops are a way of bringing projects to the community. Distribute for free and gain trust from the community through promotions from the community itself.
Any project will need airdrops or similar events to make the name go out
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Airdrops are not too bad either. Not everyone from the community comes to get it for free. You need to know that in the community about 1 out of 100 people will want to invest. A project with only about 50 to 100 quality investors is probably fine
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I wasn't in LEO/LBI space. After I came back a few months ago, I saw Leo doing great, so I took some funds from my savings and bought around 300 LEO. In mean time LBI project was initiated and the roadmap was pretty clear. I have been part of BRO and it's been doing great. During SPI times I wasn't here, so missed the boat. After LBI was launched I didn't had liquid savings to get some, So I decided to sell my BTC worth 65$ (@29KBTC) at that time and bought up around 275 LEO and used to get LBI. I still have around 230 LBI. I did sold a few at higher price and bought some other engine tokens and also Powered up hive.
What I see is there isn't much difference if we power up LEO or LBI. Powering up Leo makes one to do all stuff and curation and in case of LBI someone else is doing it on our behalf and with much bigger pool, there is more chance to catch up then going alone. So have some LEO power if you are content creator on LEO. Else I think better to buy LBI and let the team do stuff.
Have a great day.
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