Hello Everyone!

As many of you likely know already, for some reason or another, HIVE exploded yesterday in value and took SPS along for the ride. It went up 3x before correcting back down to around 2x where it has more or less stabilized. I'm aware that isn't a huge multiplier in the crypto world but its huge for me and likely many of you reading. I'm still invested in the Hive network and plan to continue doing so but because of this pump I was able to pull some profit and pay off my car. I'm now officially debt free and I owe it all to this wonderful network. Simply put, thank you. Also, if anyone has any idea what kicked this all off please drop a link or comment below.

With that out of the way, I want to take a moment to talk about these tokens and my predictions for them. To start off I want to get straight to the elephant in the room DEC.

DEC

The reason I consider DEC to be the elephant in the room is because I unlike a lot of you think DEC is a bubble at the moment. Now before you flame me and call me crazy, which you are more than welcome to do, hear me out.

First lets talk about how exactly the token works. Per the token's whitepaper, DEC is soft-pegged to .001 USD. What this means is that DEC should always float around that price. To ensure this, the algorithm that creates DEC variably increases or decreases the daily distribution based on the demand price, burned DEC, and other factors. Generally speaking, as the price of DEC goes up, more DEC is printed to increase total supply thus driving the price down.

Right now, DEC is trading at .0105 or roughly 10x the soft peg. To me this screams bubble as inevitably, based on the technical design of the token, it will come back down. Now, we have gone over the basics of DEC but what about that burning question: If DEC is supposed to go down, why did it spike up to 10x?

Well that has to do with the daily SPS airdrop. DEC is currently the undisputed best way to get airdrop points and as long as that is true, people will want DEC. People want SPS for two reasons: most immediately because they can sell it but also because vouchers are now an integral part of the Splinterlands player experience and SPS is required to get them. Plus as we established, DEC = more daily airdrop points = more SPS.

I personally think DEC is going to stay high for the time being but as I mentioned it IS a bubble and it won't stay high for much longer. Prior to the VOUCHER/SPS airdrop announcement people really were not finding value in SPS and therefore were not as keen on holding DEC for the airdrop points. This leads me to believe that once the airdrop is over, there is NO reason to hold DEC and more importantly that people are holding DEC primarily to get SPS for the vouchers. Logically here you can conclude that when it gets close to the Voucher airdrop start date (10/18/21) that people will be converting their stockpiles of DEC into SPS. This will absolutely flood the market with DEC on top of the DEC supply increase that is happening due to the tokenomics we discussed previously. This will tank the value and someone will be left holding bags of DEC at half price.

SPS

This leads us to SPS. Eventually everyone is going to want SPS for those juicy vouchers which at the low end sound like they will be worth $1 each and on the high end $10.

As soon as the Voucher announcement was made SPS spiked hard from .21 to .6 and then slowly dropped back down to .55. This is only temporary though. Like we saw, SPS is closely tied to other tokens in this area such as Hive. When Hive exploded yesterday, it brought SPS up along with it and it now sticks around .60. Additionally, as we get closer and closer to 10/18, the voucher airdrop start date, those people converting their DEC will ultimately cause SPS price to pump with less and less liquid supply available. Everyone is staking it after all. Obviously I'm bullish on SPS and I think you should be too. In the immediate future vouchers already provide SPS utility and multiple announcements have indicated it is planned to be a key piece of the puzzle going forward with future game updates much like the tournaments.

Disclaimer: These statements are my own opinions and do not represent legal or financial advice.

Post Tax

Those that follow me are aware I also adhere to the internet tax, ie pet pictures. For today's tax, we have Atlas and his never-ending quest to play fetch with his favorite toy. Who doesn't love donuts though, am I right?

Charts pulled from Coin Market Cap. SL and DEC banner made by @flauwy. All other images and content owned by me unless otherwise noted.

Helpful Details

Monster Curator
For those of you that blog, consider delegating your SPT to @monster-curator for daily SPT payouts. For more information checkout their how-to post here.

Hive Basic Income (HBI)
HBI is effectively an automated curation tool which will upvote your HIVE posts forever. It is an amazing way to ensure you get some income from all of the time you spend teaching others via posting your strategies, analysis, and thoughts. You can read more about HBI in their FAQ.

Support

If you are new to the Crypto space and wish to support Atlas, Nobu, and myself, please utilize the following referral links. You can also support me via Tip directly through Hive or including my name in a HBI purchase.

Exchanges
Coinbase - $10 signup bonus
Bittrex
NFT Games
Splinterlands
Gods Unchained
Exode - 2 free alpha booster packs
Rising Star