It has been a while since I talked or discussed about my views on SPS.
In fact, my last update was about a month ago on 11 Jan. You can read about it here.
As shared in my earlier post, I bought 30,000 SPS on Crypto.com in Dec 2023 and sold for about 13% profit on Crypto.com platform. The downside of Crypto.com was that the spread was very big because of the relatively illiquid trading (I think) of the SPS token.
And after that not so pleasant experience, I had to find ways to trade and/or invest SPS given my recent bullishness about the token. Given that Hive offered the best liquidity, it was down to using either Hive Power or my HBD Savings. The powering down of Hive Power would take 13 weeks and that's probably too long, compared to the 3 days waiting period for HBD Savings. Hence, the choice was straightforward.
So on 14 Dec, I bought about 19,162 SPS using 600 HBD, which works out to an average price of 0.0313 USD per SPS. At time of writing, SPS is trading at 0.0246 USD. If we put it in a simple table, we are currently sitting on paper losses of 128.62 USD or a return of -21%.
| SPS | Price of SPS (in USD) | Total Value (in USD) | |
|---|---|---|---|
| Cost as of 14 Dec 2023 | 19,162 | 0.0313 | 600.00 |
| Value as of 22 Feb 2024 | 19,162 | 0.0246 | 471.38 |
| Profit/Loss | -128.62 |
Interestingly, SPS went to a high of 0.0381 shortly after I bought, which meant my SPS would be worth about 730 USD at one moment in time, but of course, I was keen to hold it for a longer term so I didn't sell or take profit.
1) Staking SPS To Generate More SPS And VOUCHER
At some point in Jan 2024, I realised I could stake the SPS to generate some additional yield while I wait for the price to recover. For those who are not aware, staking SPS would give you more SPS and VOUCHER.
While the APRs aren't fantastic, every little bit adds up! It has been close to a month of staking SPS, and I have received the following:
- 133 SPS
- 15 VOUCHER which I have converted to about 20 SPS
That's an additional 153 SPS!
2) Renting Out SPS
The fantastic thing about Splinterlands is that they are so many ways to play this game. Because of ranked battles, there are players who need more SPS and willing to pay DEC to rent staked SPS.
On PeakMonsters.com, one can see the listing of the Open Bids and one can Fill these orders on a weekly basis.
Once again, the APRs aren't fantastic as well, every little bit adds up! With the DEC that I have received, I have swapped it for SPS. Because the rental rates and the value of DEC and SPS fluctuates every week, here's what I have received in SPS for the past 5 weeks.
- Week 1: 16 SPS
- Week 2: 13 SPS
- Week 3: 22 SPS
- Week 4: 15 SPS
- Week 5: 13 SPS
All in all, that's an additional 79 SPS!
Now if I were to revisit the earlier table and including these additional SPS from staking and rental, the paper losses are reduced from 128.62 USD to 122.91 USD, and that's only about 1 month!
| SPS | Price of SPS (in USD) | Total Value (in USD) | |
|---|---|---|---|
| Cost as of 14 Dec 2023 | 19,162 | 0.0313 | 600.00 |
| Value as of 22 Feb 2024 | 19,162 | 0.0246 | 471.38 |
| Profit/Loss | -128.62 | ||
| Value as of 22 Feb 2024 (with Yield) | 19,394 | 0.0246 | 477.09 |
| Profit/Loss | -122.91 |
To conclude, I am still bullish on SPS for the same reasons in my earlier post and hopefully we will see some price movement in the coming year. Otherwise, I am fine accumulating more SPS while I wait. Hehe!
Before I end, of course, I should always reiterate that this is not financial advice. This is just my personal viewpoint and one should ALWAYS do your own due diligence for anything you want to put your money in.
So what do you think? Let me know your thoughts in the comments below. Feel free to agree or disagree with my reasons too!