$ZING - price stability against distribution over time. Thoughts, Questions
Earning ZING is whats up right now on Hive and with the multiple earning streams and almost everyone jumping in with everything they’ve got, I’ve found myself asking one question a lot more recently.
As we keep distributing more ZING to people, will price be able to hold against the high liquid supply that will be available in the markets over time?
I’m asking this question because I got caught in something in the last half of this year that I’d very much like to avoid. I got into a investment that had very staked APR of the asset in question. At the start when the supply was capped, everything was going great and token price was looking good…until the token distribution got out of hand when people started unstaking and cashing out their huge returns. I watched my asset worth plummet everyday even up until now, with everyday passing by, I had renewed hope that possibly today will be the day price turned around.
But the lower limit orders in the market just kept pushing the already weak price down.
I like to think that it wasn’t because the project was a shitty project or that the problem in particular was with the token. Somehow, it appears that the tokenomics was what was affecting the tokens price that much. But even if it was that the project is shitty, from everything I’ve read so far, it’s clear that HoloZing is a solid project and has a solid team.
But the tokenomics has me wondering whether if after people accumulate their staked ZING for a while, price will be able to hold against the liquidity they’ll hit the markets with when they unstake.
I’ve noticed something a bit interesting though about the APR over the past few days. The APR for the different earning streams ZING staking, Posh Balance and Liquidity APR keep fluctuating. I believe this is a strategic move to slow down the distribution overtime, hence controlling the supply.
I probably shouldn’t be worrying about any of this, because I’m probably rambling about something I don’t understand. Maybe I should just shut up and let the market do it’s thing?
Anyways, this was just something that’s been lingering on my mind and that I was stupid enough to put into writing. Lol what do you guys think though? Do you think price will be able to hold at current price $0.036HIVE ( ZING price the last time I checked) when the big stackers hit the market?
PS: I wrote this post last week but haven't been able to post it for a while now. This is still something I'm interested in hearing people's opinions on though, so any thoughts are very welcome.
Posted Using InLeo Alpha
When price is high, some already big accumulators looks to cash out, although some will come back to buy back the bottom, while many might not. It's similar with many projects I tell you.
Yeah it's making me really skeptical about going in with as much vigor as I wanted to, because of the experience I had.
The secret is all about having an exit plan then(?) Knowing the right time to exit, and what amount of your position to exit or hold.
There's more to just buying and selling ZING. It's for a game, Holozing, and that's its usecase. When the game goes live, there'll be ways to use this ZING, which would eventually make it more valuable. The prices may fluctuate and get scary in the future because of those not invested in the game itself, but the game sounds really promising to be something worthwhile for those willing to be a part of it long-term.
Thanks for the perspective, man. But this is really what the thoughts are about. The “before” the game goes live. Whiles we’re waiting, essentially.
The other token I mentioned I bought into is a game currency on Hive as well, and hasn’t gone live yet either. For sure, price might recover when the game rolls out, but until then, without much of a use case, most people are going to be trading the token.
I don't expect ZING to hold this price. At least not in the short term. The long-term price of the token will depend on how it is used in game and how many sinks there are compared to how fast it gets distributed.
That's why most people are getting ZING by delegating HP and not by buying it. That way you don't lose your HIVE stack when/if the token price drops.
This is actually a really smart way to look at it. I thought exactly this when I was contemplating on whether to buy ZING or just delegate to earn it, and after thinking long and hard, I saw that delegating to earn was probably the best alternative.
I don’t expect $ZING to hold at the current price either. I believe that whatever price we’re trading at when the game goes live is the price we’ll hold at.
Let's see a month from now.
!PIZZA
$PIZZA slices delivered:
@rzc24-nftbbg(4/5) tipped @depressedfuckup