Good day Hiveians!
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The expected drop to 2 cents seems to be happening
2 weeks ago I pointed out that there is currently no support for SPS and shared this chart:
As expected SPS is very fast falling towards this area. You can also notice that almost every day SPS made a new All Time Low in recent weeks. Ouch! I have now long pointed out (as have others) that Splinterlands does not have enough sinks currently to combat the extremely high inflation in all of its assets. As such, there isn't any quick fix for this unfortunately. Investors and players will lose value until this becomes addressed.
Now is the time for you to ask: Do I HODL or do I (panic) sell?
For me, it's obviously the first option. But it's become quite comical:For 1.5 years I have bought and staked SPS and built up a stack of almost 130k SPS. This is not such a small bag; but at 2 cents it will be barely worth $2.5k. This means that someone could now enter the market and just buy $2.5k worth of SPS and will have the same amount which took me 1.5 years to accumulate! Again, Ouch!
2 silver linings
I am 99% sure that SPS will recover from the 2 cents area to around 3 cents again. This could be a potential 50% profit. Perhaps a way to reduce the losses that every player has...
The other more fundamental development is LAND. With LAND now being in phase 0.5 we can finally say that things are underway. In Q1 of 2023 we can survey our land and then will be able to trade it as well. For players this means that a lot of DEC will be burned through LAND (which is how the game economy will get mostly fixed). This is because there will be a huge DEC demand and the only way to essentially get DEC is to burn SPS. LAND will burn just about every SPL asset there is: DEC, SPS, Cards etc. This will be positive for price overall. But it is not a fast process. This will probably take at least a year for things to turn around.
So again: are you going to HODL or sell?
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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