The Markets are being tested
Crypto prices are pretty much as low as they have been all of 2021. The Proof of Brain tribe burst onto the scene during all time highs. The hype around the tribe and tokenomics really made a lot of people fomo in. Once reality set in, things changed a bit.
Early on in the tribe, distribution was heavy to only a few accounts. People were making a lot of POB. At the same time, there were a lot of speculators driving the price of the token up. This made for a double whammy. I remember earlier on in POB, there were posts that were paying over $100 USD in POB tokens. Obviously, there were a lot of very excited people.
Hive refugees were rafting across the digital ocean to the Land of Opportunity and getting rewarded handsomely for it. The golden age is always early on.
Trials inevitably come
The market wavered. People found reasons to fight. What was once a nice moon-bag was now potentially trade-able to "buy the dip" into whatever was the currency of choice. Many were jumping ship to greener (or at least other) pastures. People thought that POB was immune to the issues that have plagued DPoS since its inception. When that notion was proven to be false, many got spooked and sold.
For all of the dumpers, there are also a lot of hodlers. There are many people who believe that the POB tribe can prove to be one that overcomes the trials and matures into a blossoming, vibrant and lucrative place to hang your digital hat. This post is for all of you who fall into the second category - the believers of POB.
What goes up must come down, sometimes
BTC is coming down to $30K. It was over $60K a few months ago. It was up, now it is down, but will it come down to $25,000, maybe... $12,000, not likely, $3000... i highly doubt it. Proof of Brain was trading at nearly two Hive. Now it is coming down to about 0.5 Hive. With the volatility of Hive having a direct effect on the price of POB, it is tricky make a call on where POB is at at the moment. It is somewhere around LEO's price, maybe a bit cheaper.
Cheap coins are an opportunity
POB is in a wonderful accumulation period. Blog it up, lot's of people who were into it at the $0.80 mark are not into it at the $0.18 mark. There is more POB to be had for those involved. The market is also ripe for the picking. You can pick up over 1200 POB (A whale's share) for under 0.7 Hive. Is that a steal? Time will tell. I have said before that POB will find it's sweet spot on the market, and my thought is somewhere between 0.5 and 2 hive. So, 0.7 might be a pretty good deal.
Tokenomics are still pretty sweet
Hive has 417 million coins in circulation and no max supply, LEO has over 7 million coins in circulation and a max supply of 1 billion. Proof of Brain has less than 1 million coins minted (89% staked) and a max supply of 21,000,000. We are pretty much 1/21 fully distributed. If you have 1000 POB at the moment, you would be considered a whale. To buy into whaledom (it should be a word) at the moment, would only cost you $200 (ish).
If you feel that there is long term potential on this project, the ground floor is not really far from where we are now. In 3 and a half years, distribution will be cut in half. As a POB whale, the way that curation works, you will be mining your fair share of these coins for yourself at a fairly massive rate for the next 3.5 years! Currently, curation on POB is paying over 200% APR (according to @amr008's engagement project's numbers). This is a nice way to build up a crypto nest egg.
Long game
Everyone wants to buy crypto, trade it a few times and retire a millionaire. This seldom works out. Most of the time it is better to just focus on a few projects that you want to be involved in and let the market magic happen when it does. This is my strategy with POB. I am building up a nice stake, staying positive and enjoying the community and the good reading. I am selling a small amount of my rewards because I do have goals outside of POB. My goal is to get to 10,000 POB before the end of the year. I also have bought a few POB's when I liked the price. I am starting to like the price again.
I am in the long game on crypto. I realize that 4 years is a long time in crypto, but a short time in reality. To accumulate tokens for four years is to set yourself up for massive success. I have seen this in action, as I was into BTC before the big bull run in 2017. Due to POB's tokenomics, there may be a similar market force at play. When things a halved the tokens could see a lot more upward pressure due to the lower supply.
So, let's say that you buy 1000 POB this moment for $200 and stake them. Over the next 4 years you could greatly increase your holding through curation rewards. Current APR is 200%. That is likely to not hold, but as it stands. If you have 1000 POB staked, in a year at that rate, you will have 3000 POB. In 4 years, you could have a lot more than that! I have not even considered the compounding effect! Will the price go up? It is hard to say, but if the community sticks to their guns and keeps working on making the place better, I see it going up in price. If the price stays where it is and you quadruple your supply, you have done well with your investment.
Governance is a work in progress
POB has shown some signs of reilience as of late. There have been proposals and discussions where the community came together to talk about the future of POB. Was anything concrete decided? No, but I think that we are a lot further along in understanding the complexities of some of the issues that we face. The community has also shown that it is able to come together and talk about important issues. This will be crucial moving forward.
Here are the reminders
- This still seems like a great place to be.
- The tokenomics are good
- The APR is amazing
- The entry price is cheap (or free is you want to write)
- The community is now battle tested
- The long game could produce some amazing yields
I'm sticking this one out
I see good things on the way for POB and those that stick with it. I am going to keep at it to the best of my abilities and stack my POBas high as I can. I am hedging my bets slightly by selling of a small amount of my rewards. If the price drops, I can buy back in and increase my stake. If the price doesn't hit my buying target, I do have other goals in the world of crypto (mostly in the Hive-sphere).
Disclaimer
I am not a financial advisor. I own a lot of POB tokens. There is a possibility that I am very wrong and everything to crash to nothing. DO your own research. I am bullish on POB long term and I am telling you why. That's it. I wish you the best... but figure your own strategy out for yourself.