The LEO tokens has dropped since it moved over to Hive from Steem. This makes a lot of sense since it is now pegged to HIVE which staged a massive run. I am sure it is merely coincidence but it is interesting to note that HIVE took off right after the LEO token was moved to Hive-Engine.
When we look at the buy-sell wall, this is what we see. It looks very bearish.
A picture can be worth a thousand words but it can also be misleading.
When we look at the actual sell wall, this is what we see.
Even though the present bid price is $.02, it only takes 113 HIVE to get the price up to .075. In USD terms, this is only $68 to move us from the present levels by wiping out all those sell offers.
Looking at things a bit closer, going back to the graph, we notice something else.
There are 24,000 LEO available from .075 to near .09. This equates out to just under 1,500 HIVE or $900.
As we can see from the LEO distribution, there are only 4.2 million in total. Of those, 3.3 million, or 78%, are staked. This leaves only 900K on the open market.
The more tokens that are staked, the less liquidity we see. This opens up the door for massive moves with very little buying pressure.
Right now, with the run up in HIVE, it is sensible that most are focusing upon that. However, with all that is taking place with Leofinance, it will not take a great deal of interest to push things in the other direction.
As these numbers show it will not take a whole lot to cause a massive run up in LEO. This is what happens with tight floats that are in strong hands. Of course, as the price increases, more sellers could enter the market also. However, we are unlikely to see much in the way of major selling under .10 LEO.
None of this means that prices can't fall. As the buy side shows, there is not a lot of buy support posted. That does not mean that buyers wouldn't jump in if prices drift down since the risk-reward ration only keeps improving.
Low liquidity always opens up the door for massive moves.
LEO could find itself in this position at some point.
This is not financial advice.
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Posted Using LeoFinance
If I made a super simple gambling dapp but then connected it to LEO exclusively I could probably pump and dump it pretty hard. No one wants to sell this low, but demand is also very low. A tiny bit of demand would go a long way.
Even something like 1 LEO bets on a peer-to-peer coinflip might be interesting.
Heads I Win / Tails You Lose
:D
As always, it comes down to utility. With LEO, at the present moment, there is no utility, hence no demand.
Something like you suggest could create some demand although I would not want to see a pump and dump. But a gambling app that provides some utility and offers something to the people who are interested in that sort of thing is a great idea.
Posted Using LeoFinance
Yeah when I said pump and dump I didn't really want much emphasis on the dump part. There's really no need to "dump" unless you don't believe in the project and you desperately want others to hold the bag as you exit. Either that or you want to dump at the top so you can buy in cheaper later.
As investors with 50k+ coins in a 4M-5M coin system we don't need to do any of that. We could just sell off our inflation and posting rewards and that would be more than enough capital injection into the market.
Leo will have bad liquidity until coins are worth A LOT.
With only 5M coins... One coin has to be worth quite a bit before LEO acquires some real ability to become liquid
You bring up a really valuable point. This is a situation where the holders of a lot of tokens can provide the full liquidity just by unloading their inflation and rewards.
That will keep the mix going while staking provides the support by "locking" up most of the pool.
Posted Using LeoFinance
Great analysis, I was actually looking at the Leo token this morning because when there is blood, I want to buy, especially if the price in HIVE is exhausted for the time being.
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There is blood yet not a lot of selling volume out there.
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Can't wait to see what happens to leo if and when it becomes an HMT and starts getting listed on regular exchanges! Till then Ill keep enjoying my staking rewards which are pretty good lately I must say ^_^
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That is my view of the future and plan that I am working. Just keep accumulating LEO token and see where it ends up. I believe the future for Leofinance is very bright with all that is taking place so much higher levels can be easy to achieve.
I really dont think the path back to .30 is really that difficult.
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