Hello everyone in the community. It's Saturday and I usually update my Saturday Savers journal. Leo 2.0 changed my plans a bit. I withdrew most of my savings in liquidity pools and reallocated them to Leo and Surge. My Hive goals of 15k HP are still on track since I'm also using fiat to add to my investments in the Hive blockchain.
Last night there was a market crash and most cryptos including Hive were down big time. At one point, Hive was down by more than 50% at close to ten cents. It's currently trading at above fourteen cents. To ones who are not used to the movements in crypto, it looks like a scary scenario. However, I have been numb to such movements and added bought some $SOL, $ADA and $CRO to diversify my portfolio. I even see this crash as a good opportunity to acquire more SURGE with fiat but Hive Engine is having issues again and I'm afraid my funds will get stuck again so I'd wait until Hive Engine gets fixed.
LeoStrategy Update
LeoStrategy (LSTR) is a crypto-fund inspired by MicroStrategy’s Bitcoin accumulation strategy. Its main goal is to acquire as many LEO tokens as possible, stake them, hold them permanently, and thereby generate accretive value for its token holders. Recently, it has released its 10/10 plan. Simply put, the 10/10 plan is two fold:
- To acquire 10m LEO tokens by 2025 and;
- To generate $10m capital by 2026 to be used to acquire more LEO.
Drawing inspiration from Strategy (formerly MicroStrategy), LeoStrategy aims to turn LEO into a capital-generating and value-accreting asset, locking up supply and creating scarcity. LeoStrategy has released two tokens, LSTR and SURGE and proceeds from the sale are used to acquire LEO. I haven't been able to buy LSTR but I'm buying SURGE when I funds come in.
LeoStrategy also plans to release new products such as:
- Collateralized lending - Future product ideas that would use LEO as collateral.
- Real World Assets (RWA) - plan to issue tokens backed by real-world assets, but collateralized by LEO held in the balance sheet.
My Thoughts on LSTR's Plan
The plan will rely heavily on how it will be executed by the team. To be honest, I'm not sure what the legal and technical requirements are if any, to create collateralized products, RWAs and derivatives. I work for the reporting side in a banking industry and I can say that there are a lot of legal requirements, capital ratios and monthly reports that we prepare to satisfy regulators. I'm not sure if LSTR's products will require the same level of scrutiny since it's in the crypto industry. Also, LSTR's success is tied to LEO whose revenue is from USDC share of LeoDex income. LeoDex has to generate consistent revenues in order for LSTR to maintain its profitability and increase in value. On the bright side, LeoDex volume is growing is on the top twenty in the exchange list.
On the other hand, I also consider the positives. First, there is a long term focus on value with never selling Leo and permanently staking it. It decreases selling pressure and creates scarcity. Second, is the flywheel effect by staking LEO and using the earnings to acquire more LEO. The more LEO the fund acquires, the more income from staking it gains and thereby increasing its buying. Third is if the new products are successful, then the more capital the fund has to acquire LEO.
On that note, I believe in Leo's future and intend to keep my Leo Goals:
LEO (15,331)
The native token of the Leofinance and InLeo platform. It started as a reward for micro-blogging and blogging in the InLeo platform. Recently, Leo 2.0 was introduced changing the tokenomics of the Leo token to a deflationary one along with constant buys from LeoStrategy. I didn't understand how it works before and I can't say I still do after all this time. Staking Leo on LeoDex earns USDC rewards as a share of swapping revenues on the platform. The LEO token thus become an earning token representing a share of LeoDex swap revenues.
My goal is to accumulate 20k LEO. I currently have a little over 15k so I need more to reach my goal. I'm buying SURGE in the pre-sale instead so LEO is not my priority at the moment.
SURGE (504)
SURGE is similar to HBD in the sense that it pays 15% weekly dividends of either HBD or LSTR assuming the price of SURGE is $1. Like LSTR, proceeds from the pre-sale will be used to buy LEO. SURGE has the option to be converted to LSTR at a ratio of 50 SURGE to 1 LSTR if in case LSTR reaches $50. So if LSTR's price rises above $50, then SURGE price is supposed to appreciate as well, mirroring LSTR's appreciation.
I was able to add some more SURGE to my balance I reached over 500 SURGE. I'm buying as much as I can before the pre-sale ends since the pre-sale price is below the stated price of $1. After the pre-sale, I'll resume my accumulation of LEO. Hive Engine is not working right now so I'm waiting for a fix before I buy more SURGE. On the other hand, there's only 27k left when I last saw it and it may sell out very soon once Hive Engine is fine.
Disclaimer
The above are my personal investment goals that I'm documenting and not an invitation to buy the tokens. Crypto is inherently volatile and you can lose your funds as I have experienced many times. Always do your own research when planning to invest in any token, manage your risks and exit strategy if the trade goes against you.
Posted Using INLEO
Great write up!
LeoStrategy’s success is going to be seen in how well they strategically scale their asset stack and profitability from market making and lending
The LeoDex USDC staking rewards they make is like a cherry on top. Hyper profitability in their own stack to acquire more LEO, then extra profitability from just collecting USDC checks every day