Leofinance has made some news around Hive with the successful launch of its wLEO token on Ethereum. This was followed by a liquidity pool that filled up rather quickly. A few hundred thousand dollars found its way into the pool, making wLEO a decent sized player there. While far from the biggest, it is enough of a foundation to build upon.
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As the token moved up in price, it is easy to fall victim of focusing exclusively on that. However, there are variables in this situation that everyone truly needs to consider.
Leofinance is building. While many enter the DeFi world to speculation, this platform is utilizing DeFi for growth. It is all part of a larger plan to attract users and catapult Leofinance into the mainstream.
Since many like to use token pricing as a barometer, we can say that the run has been outstanding. There was a time when the LEO could be had on Hive-Engine for .025 HIVE. The present asking price is 1.69 HIVE, an increase of almost 70 times. After that kind of run, surely the air is going to come out of the balloon.
https://leodex.io/market/LEO
That is a conclusion that one might want to put on the back burner. With Leofinance, there is a lot to consider with all the development that is rolling out.
Overlooked in the release of wLEO was the new user interface that the team built from the ground up. Presently, it mirrors a lot of what is taking place on Hive since the front end was designed, initially, to model Peakd. Thus, we have not seen much of a separation from the traditional Hive based UI.
That is going to change. There will be a time, in the not too distant future, where Leofinance is going to see a number of social media tools built into the UI that are exclusive to that project. This will enable people to interact in a manner similar to traditional social media while focusing upon the financial arena. The best part about this is the fact that it all takes place on Leofinance, hence Hive.
For a few months now, I stated that the exciting part about the new user interface is when V.2 and V.3 roll out.
Of course, we cannot overlook the major announcement this week (teaser I guess) that introduced us to LeoInfra. There is a new back end that is going to enable Leofinance to tie into other blockchains. Much in the same way as wLEO took the LEO token to the world of Ethereum, we are going to see something similar with the applications.
Here is how the team spelled it out in the post that introduced it:
This project has been dubbed "LeoInfra" which will build the backend infrastructure to allow cross-chain LeoApps including an upgrade to the current suite - LeoFinance, LeoDex, Hivestats - and will also lay the foundation for the next generation of apps we build. Why stop at WLEO when we can build apps that bridge Hive to Ethereum and other blockchains?
@leofinance/wleo-liquidity-pool-incentives-leaderboard-or-138-annualized-yield-for-lps
What does that all mean? While we are only left to speculate at this point, here is an idea of how things could work. How about the concept of someone signing up using their Ethereum information? This would open up the doors to a host of other users. Naturally, the sign up process would need to be seamless so that the individual had instant access to the Leofinance features. Here we would see an immediate market that could be tapped into.
Going one step further, wLEO is now a valid Ethereum token. Why not tie the payouts to that token if individuals prefer. Leofinance is already offering bonus payouts for the liquidity pool in either LEO or wLEO. It only makes sense that one could opt to receive author payouts in either token (although with fees it might not make sense).
Another point to consider is the fact that the UI is going to enable a host of new features. For example, it is possible to start offering subscription based services on Leofinance. By crossing chain, we can only conclude that payments for said services, or any others that end up on Leofinance platform, could be done utilizing other tokens. This would open up an enormous wealth pool as we know ERC-20 tokens can all be traded for each other.
Finally, Leofinance has its own DEX, aptly named LeoDex. How does this fit into the equation? Again, speculation is the only thing we can do since the team said nothing about this other than what is the introduction post. They did mention that LeoDex would be part of the "cross-chain LeoApps". Here we see that the team is already thinking of ways to utilize that application for the Ethereum (and other) blockchain.
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In the end, we all can have fun with numbers, playing the game however we like. For those who missed it, check out @nealmcspadden's posts where he gives some projections on LEO and HIVE prices.
That said, after a near 70X run, could there be some life left in LEO? At this point, with all that is taking place, there is. I was asked if I believe we are still dealing with pennies on the dollar when it comes to this token. Ultimately, yes I think that could be the case. Over the next few years, for those who like to look long-term, there could be much higher prices ahead.
As Neal used in his videos, the idea of growth is little talked about in cryptocurrency yet it is exactly the focus for Leofinance. The idea is to move the user base up the scale. First, get thousands of people involved, and then move to hundreds of thousands. Eventually, with a lot of development and advancement, it could be possible to see an ecosystem of over a million users at some point.
How this will impact the token is anyone's guess. However, we do know there is a correlation between activity and token price. Also, LEO has a very tight float meaning that the number of tokens outstanding is not enormous. This will also factor into the price moves of the future.
Could we see a price of 10 or 20 HIVE per LEO in the future? That will depend upon a number of variables that are impossible to predict such as the token price of HIVE. That said, with all that is taking place, it is likely we can see much higher numbers for the price of the LEO token. The development is rapidly moving towards the point where it is warranted.
If we look at Leofinace as a 2-3 year project, where do you think it will be by the end of 2022 or 2023?
This will show that Leofinance is a lot more than just a quick token pump.
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