Leofinance Tokens

I believe the three Lions of Leofinance: wLEO, bLEO and pLEO bring value to Leo token through;

• new investors/new capitol
• utility
• increasing scarcity

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First, New investors

Each of the three Lions have enabled Leofinance to reach out beyond Hive and Hive-Engine to bring investors to the Leofinance ecosystems from other blockchains, increasing the community size and bringing in new capitol.
First Ethereum, second Binance and third Polygon.

But not every one agrees, new investors/new capitol, and they brought up valid concerns about printing to many tokens, and not enough new capitol, so more tokens, same amount of capitol, means lower prices. But the creator of Leofinance left a comment, brief and to the point, addressing this concern about wLEO, bLEO and pLEO;

wLEO, bLEO and pLEO are wrapped versions of Leo token, or nonfungible tokens which represent the value of one Leo token on another blockchain. They are not new Leo.

Let’s unpack this statement from Khal

• wLEO, bLEO and pLEO are wrapped versions of Leo token, which represent the value of one Leo token on another blockchain.
• NFTs are not new Leo, they are wrapped Leo, not new Leo.
• So there is no printing of new tokens, no expansion of Leo token supply, and there is no capitol dilution from Leo tokens.

Second Utility and Third Scarcity:

• We need to understand wrapping is a transaction, exchanging one token for another, Leo for bLEO, and bLEO for LEO, as well as Leo for pLEO, and pLEO for Leo going the other way.
• Exchanges or trades require trading pairs, like wLEO-ETH, BNB-bLEO and MATIC-pLEO.
• As you can see these liquidity pairs require assets like Leo, bLEO, pLEO, wLEO, ETH, BNB and Matic in trading pairs.
• This means investors buy these assets and deposit them in trading pairs.
• The utility here is investors can hodl their assets and earn income.
• Hodling reduces the amount of token in circulation.
• So this use case or utility makes people buy the three Lions of Leofinance, and take them out of circulation, by depositing them in trading pairs, which like hodling creates scarcity.
• That gives us three ways.

It sounds nice in theory, but does it work?

Khal often says Leo is like a 25 cent stable coin, because during the pseudo bull market we have been in ever since Bitcoin lost 50% of its value dropping from 60k to 30k, Leo price has been pretty stable in the 22-26 price range, but usually 24-25 cents.

So I guess it does.. the Proof is in the pudding, my mother use to say. Here the Proof is in the Price. In fact, one might say, the more projects, the higher the price…

So what happens when the Bullish Market resolves? This is not financial advice, but what does Superman say: Up, Up and Away

What do you think?