I'm sure staking more SPS is a bad idea....

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(Edited)

OK Firstly this is easy for me to say as I've already got nearly 50K SPS staked for Chaos Legion packs which covers me for a basic in of around 400 packs, but I've also got 10 000 liquid SPS and I'm damed if I'm staking that....

IF I can sell at around $1.00 (that is an IF) and then buy back at $0.50, I'm sure the price is going to crash HARD after Chaos, then I net myself an additional 10 000 SPS.

IF I were to stake that 10 000 SPS, I'd be making around 570 a month at 70% APY, so if takes one month for the price to crash back down, then I'd make an additional 9430 SPS from selling at my hypothetical top and buying back at my hypothetical bottom.

If the price drop takes longer or isn't as drastic, then I'd make relatively less.

The chart below shows the extra SPS I'd earn if I sold 10K SPS at a dollar and then bought back at three different prices - 0.80/ 0.60 and 0.40 - the longer I leave it the greater the opportunity cost of lost SPS through NOT having it staked.

Screenshot 20211009 at 15.57.40.png
(NB typo bottom left, should be $0.50)

If I could sell at $1 and the price took three months to drop to $0.80, a 20% reduction then I'd STILL MAKE an additional 773 SPS compared to staking.

At whatever price I sell, as long as there's a 15% price reduction within 3 months I basically can't lose compared to staking.

NB what this doesn't factor in is the SPS airdrop points I'd get on holding packs or the ONE single card I'd be guaranteed to get which 10K SPS would guarantee me in vouchers. These pack-holding rewards are, I think, VERY minimal, certainly not significant enough for me to consider staking another 10k SPS, it's better liquid, and then ADD to that the fact that I can pool this SPS (I don't have enough Hive to cover the amount of DEC I've got) and there's ANOTHER argument for NOT staking!

Keep in mind that if I accumulate MORE SPS and then stake for the NEXT round of purchases, I could still buy ALL the packs I'd missed out on this first round.

Note to self, don't stake more SPS, don't FOMO - sell and then buy back later.

Of course all of this depends on there NOT being an announcement which MOONS SPS into the stratosphere, but I have a feeling with the roll-out delayed due to scaling we're going to drift back into a slow drip-selling of SPS for a month or two at least after the Chaos Legion presale.

There's also the fact that I bought that 10K SPS at $0.30 so whatever way I look at it, I'm looking at a profit.

NB I'm not against staking, I will have 50K staked by the end of Chaos, probably more, but right NOW I think keeping liquid, selling and timing a buy-back in two or three months will be the optimal way of accumulating MORE SPS!

Of course something that might scupper my plans is that there are plenty of people with more than 100K SPS liquid who are PERFECTLY aware of the math I've just done above, so who knows, my plans might end up being sell at $0.80, buy back at $0.30?!?

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15 comments
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There's a lot of unknowns so it's a gamble.

  • There is 3 billion limited supply (for the moment as you'll be able to vote with your SPS for a increase or decrease at some point along with many other factors of the game)
  • Vouchers will most likely come in very handy
  • The time you're not staking SPS tokens they are also not earning you APR and that APR in tokens adds up
  • I do see a spike and a decrease in price though it just depends on how much which are the big unknowns. AXS for example their governance token just keeps mooning lol
  • More SPS is still to be dropped at some point in brawls, ranked battles oracles at the start of the year etc. so not all SPS is in play yet for drop

It's gonna be wild but there's huge potential in profits while still enjoying the game if you wish.

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I'm feeling selling, I've got to take SOMETHING out of this game at some point!

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I'm with you on that, A part of me wants to keep stacking as much as possible but I do need to take some profits it's dumb not to. I'm thinking about going heavy sell and then back to a 80/20 split for a bit. Keep 80% sell 20%

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I've got a similar ratio in mind for long term.

I am planning on selling up to 20 K in the coming month. But I've got nearly 50K staked already.

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You playes the game just about right dude pruce wise. Every option here is actually not a bad one and you have the options on the table.

But indeed having some liquid SPS will surely be the way to go as the price is starting to move already decently. And yeah you will have the aount of voucher that will suit the amount of packs you want to buy, I am surely lagging in that one still but working on it.

Too many options in this game of a lot of money dude! We will make it!

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I think just take Something out as you go is an important thing to keep in mind!

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exactly...it aint all fun and games, this stuff that actually pays the bills and we have to makee it work that way as well

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Nice strategy dear. I'm close to reaching that 50K SPS staked mark. currently at 46K+ SPS staked. I've started to exchange SPS earned for BNB and hence taking some profits. cheers

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I've been selling a little bit. But I'm holding most for the post $1 mark!

What's your card pack target? I'm now thinking just go for 400 - i'm not even sure the extra 5% bonus for buying 500 is worth it - I mean, what's 5% in crypto?!?

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Don't forget the potential price of VOUCHER, not just for the pre-sale but also for land use and every other future use they'll have :D I'm staking every microcent of SPS I get! :D

Cheers!

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I thought the vouchers had to be used for just the CL presale? At least these ones?

I may have misunderstood this of course.

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They'll be used at least for PART of the 'normal' sale, and they are definitely going to be used for other aspects of the game as well :D

I would not be surprised if they go for 10$ or even more during a part of the pre-sale. Afterwards... Will depend on the price of packs on secondary market. Most had to spend 4$ + loads of staked SPS to get a pack, so they won't be sold as cheaply as untamed packs in the beginning. Then price of packs - 4$ will be price of VOUCHER. When I'm thinking about this enough the price of VOUCHER increases in my head a lot :D

We'll see, but if I had 10k SPS I would not even think about selling/buying back, just staking and get a hold on VOUCHER. Not financial advise, just my honest input :-)

You've put yourself up for success whatever you do anyway! Enjoy the ride!

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