Being on HIVE we are a little spoiled for choice being able to earn multiple tokens with HIVE being the main token and the others belonging to the various communities and tribes known as the secondary layer.
The Dollar Value Grew, But Is It Real?
I noticed with the recent uptick in the HIVE price that the secondary tokens in my HIVE Engine wallet increased by roughly 70% in value. The last time we saw the HIVE ATH back in November of 2021 my wallet was showing a $25K value, but that is more miss leading than showing the real value. The same applies to the $1.7K earlier this week and the reason or possibly why I have not taken these second layer tokens that seriously. Just try and sell them and see how much real value you will actually receive in return as the liquidity is not there.
Back in 2021 I had many millions of Spots Talk tokens that were a nice number to look at and support others in the community, but realistically could never really be sold. At one stage I had a value of around 35K HIVE and today less than 1K HIVE. The reason is there is no liquidity and if you look across 99% of the tribes that liquidity has not changed. If I had set up sell orders or actioned all the buy orders I would have tanked the Sports Token to 0 and I would never do that. Not everyone thinks like this and would just tank the token.
I know many members of the community have concentrated on the secondary layer tokens instead of growing their HIVE bag and I hope things turn out right for you. The liquidity is a major issue and somehow it always ends up with the same people benefitting at everyone else's expense.
HIVE is where I have always seen the value because the second layer tokes are all backed by HIVE and valued in HIVE. What has concerned me for some time is many have delegated a high percentage of their HIVE in order to earn various community tokens which has impacted their HIVE growth. Will that have been a wise decision time will tell and I hope there is sufficient liquidity when you are trying to cash out. If everyone has the same plan as you then we know how that is going to work out and is a genuine problem that we have seen before.
Out of the 113 tokens my HIVE engine wallet is reflecting I would say 2 or possibly 3 are investments and again not quite sure what to expect from those either as we have seen them crash and burn in the past. The other 110 are not for cashing in, but supporting the community because there is no real value besides the support helping others earn more of those tokens. I do think if you have the attitude of more about offering support then whatever you earn is a bonus and not a guarantee.
I may be a bit negative and pessimistic with these tokens because I have seen so many promise so much, but fail along the way. Too many people have continuously milked them over time not allowing these communities to grow their value. This has always been a worry and why when I saw the $1.7K value it was nice to see, but deep down I know it is possibly worth less than 30% in real value and that is being generous.