GLX and NFTs need utility to thrive
It's almost likek the crypto market heard my plans for GLX token and is intentionally trying to shit on all my dreams. The price of the token continues its slump to unheard depths as the crypto market stutters.
As much as I'd like to blame the crypto market for the current travails that the token is facing, I feel like there's more to it. The market is ina bad place right now but the price of GLX is performing far worse than every other asset on Hive.
The price of GLX has dropped to 1.1 cent for the first time since I started slowly buying up tokens and this is worrying. However, it is expected because there's not much else to do with the token these days.
At the time of writing, the staking APR is still upwards of 100%, making it lucrative to stake the token but there's very little incentive to hold the GLX you earn from farming. Restaking is an option but that hardly fills people with optimism since the dumping of the token has been on the rise.
When game?
There's a simple solution to the challenges that GLX is facing and I have to say that it is not as simple as it is simple. We know for a fact that the game is still in development and that we're not too far off from launch and this is the solution.
Now, as much as GLX token needs the game and invariably, the utility that the game will add to the token, it can't be rushed. When Genesis League goals finally launch, it needs to make a big splash and be the talk of the town.
I'm not just talking about gameplay, I'm talking graphics, marketing and whatnot. A proper launch will almost certainly have a net positive effect on the market's perception of GLX token.
Interestingly, it is not just GLX token that needs to launch; in recent times, we have seen interest in buying NFT cards drop rather significantly. Only 4 days ago, I talked about over $3000 24-hour trading volume and fast-forward to today and there's only a bit over $47 worth of sales in the last 24 hours.
This drop in sales is quite dramatic if you ask me, and it is all connected to the fact that the game hasn't launched. All these issues will be resolved when the game launches in the near future.
As of right now, NFT assets and GLX token are technically useless assets. GLX token is just another "shit coin" you stake, earn, and dump. Until something changes and by change, I mean the game launches, the price of the token and the market activity for NFT cards will continue to drop.
Posted Using LeoFinance Beta
you already know my opinion about GLX, i still don't see a single reason why it should move before the next season pack sales (min. half year+), unless new use cases won't appear, and game launch won't change it.
i just read it in a splinterlands related post's comment, that they're planning to do something with SPS, too, and in the near future, a certain amount of staked SPS will be a must to enter in certain leagues.
that's the only thing i see, heard as an idea in GLX, GL Goals case, what they can adopt, and probably will. Then again, most of the players already have that much GLX... (there is 1 more, what I see, if that daily nearly 200k GLX drop after the staked packs ends soon, but it will just slow down the trend)
so what do you think, what exactly would create a turn, and start to pump GLX, at least for a while, around the game launch??? it will effect the card market for sure, but why would it effect any coin, if no new use cases coming??? and more and more cheap GLX flow in the market everyday.
When thinking about it I realized that my biggest gains with splinterlands have come from the cards, not sps (airdrop/rewards).
The problem is they have to create a lot of the token, because the potential market is huge and could need a lot of tokens. The economy will run on GLUSD and the only way to get it is by burning GLX.
Only when the game has launched and investing in cards seems a profitable venture, will people start to burn GLX for GLUSD.
As there is such vast amount of GLX already printed, it will take time for that burning to make an effect on the price of GLX.
With SPS there was a working game and economy in combination with hive scarcity because both rewards cards and untamed had stopped being printed. This created the perfect storm for the hype that followed.
If the same had been done for GLX all would be very different. But I guess the team needs money to fund the development of the game and therefore started printing the token and started selling assets which can’t be used in game yet. The only way to do this is by printing and rewarding investors with the new token.
I understand why they did it, but it’s not good for the token value and I expect that it will take a lot of time for the value to stop falling, finding a bottom and then slowly rise.
For example see CUB on BSC. Cubfinance is now officially deflationary. They burned more tokens than were created in the last month and still the price went further down!
This goes to show that nothing beats lack of trust, people losing faith in a token and just sentiment in general
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