None of this is financial advice. This is meant to convey thoughts about the Leofinance ecosystem and the LEO token.
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There are times when to go for it. In life, there are times when a life changing opportunity is presented before us. LEO is such an opportunity.
Obviously, being a large token holder tells a large part of the story. While many of the holding was earned, a large portion was purchased. Thus, there is financial stake at risk that could have been used elsewhere.
That said, there is no fear of the future. In fact, it is very exciting to think about where things are going.
Transferring back to this time a year ago, few were excited about Leofinace. Sure, it was having some success but was not on the radar of anyone on Hive. In fact, even 6 months ago, most were still just tagging Leo as opposed to using the U/I.
What a difference a few months can make.
That said, this post is not about the past. Instead, it is the future that has me confident with my position.
The 2020 read map was not fully released yet. What we did get, at Hivefest, was a condensed version of where things will be heading. Simply put, Leofinance will continue to expand the reach of the ecosystem through development AND a focused marketing plan to onboard users.
Ironically, a portion of the success will likely come from additions to Hive that provide the platform with even more tools upon which to develop. The idea of smart contract capability available to the Leofinance development team is very intriguing.
Nevertheless, we will leave that speculation aside.
What we do know is that Leofinance is using Hive as the back end for the entire ecosystem. Of course, the goal is to reach further out and provide interoperability among different chains. This is a fantastic way to bridge the gaps between users. The proof-of-brain framework can be of interest to many crypto users. Enabling cross-chain application means that people can participate on Hive using whatever blockchain account/wallet they choose. In fact, part of the road map is to allow access by utilizing other traditional social media sites.
This is just the foundation of what is taking place. Obviously, it is no secret that I am excited about the microblogging feature being added to Leofinance. This is something that will take engagement to a level we have not envisioned before. My expectation is that we will quickly see a 10x in activity within a couple months of the release.
It is the Internet use case that most users are accustomed to. Leofinance can really tap into this.
All of that offers up reason to be excited. However, the biggest thrust forward will come in the DeFi area. Throughout 2021, this is going to be a focus. There is already a start with wLEO operating on Ethereum. This is the first of what will likely be a number of liquidity pools (on a number of chains) that Leo has.
One of the biggest issues with DeFi is governance. Decentralization can only take place through the spreading out of the governance model. We are seeing DeFi platforms approaching this by issuing out governance tokens. Uniswap did this earlier in the year and 1Inch just did it today.
Innovation in the field is taking place at a rapid pace. My expectation is that Leofinance will monitor what innovation arises and follow suit. This means we are just getting a glimpse of what is possible.
The performance of the token, throughout this year, was exceptional. Those who took the long-term view realized the value when it was hammered down. This presented a sensational buying opportunity. However, the story is likely not done.
A reason for holding is the expectation of much higher prices in the future. There are times when going for it all is required. Again, this is not financial advice as much as thoughts about where things are going.
As the reach of Leo spreads out, we will realize an enormous increase in activity. As more features are added, we see the push into other "markets". Not all users are the same, differing in experience, interests, and goals. No project can expect to be highly successful with a "one size fits all" approach.
My view is that success in this arena comes from a holistic approach. There is no one part that will magically flip the switch. All efforts need to be made to keep expanding and growing. Leofinance appears to offer that.
Development was highly successful this year. Probably the biggest step forward was the creation of the website from the ground up. This offers much greater flexibility than the fork software that was being used.
At the same time, outreach efforts, while still in their infancy, are starting. This will end up attracting more users. The numbers are consistently increasing as per the weekly and monthly reports put out.
The market cap of LEO can really explode. This token has a high inflation rate which will add to its appeal. That sounds counter-intuitive based upon what people commonly think but the evidence is to the contrary. A high inflation rate is of benefit when growth is happening. People want the token as shown by the price action as well as the percentage staked. This will only be multiplied when other liquidity pools are opened. Even the latest project, which is not part of the core team, @lbi-token, is eating up LEO at an amazing rate and staking it.
A market cap of $100 million for a project like this is not outrageous. Any platform that has tens of thousands of users along with an economy that is growing and expanding, something that Web 2.0 does not always offer, we can see how the value will be there.
It will be a few years before the token supply hits 10 million. Anyone with some rudimentary math skills can figure out where this is all going if it comes to pass.
There are a number of DeFi projects that are well above the $250 million market, some of them achieving that end in under a year's time.
Leofinance is not going to be solely a DeFi application but it will have that component to it. Couple this with the PoB reward system, a marketplace (LeoStore), and streamlined sign up, we can see how this could really explode in value.
Will this happen overnight? Certainly not. However, through the combined efforts of hundreds, moving into thousands of people, we can see how things will grow.
These are my views on the situation.
Let me know what you think of this project and how it is unfolding.
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