The last two days have been quite red, and I feel it myself. Yesterday, I wrote about how I decided to buy some Hive tokens, hoping that it will jump back to its former level very soon, and thus give me a quick profit. Well, it hasn't jumped back yet. It looked as if things were turning more normal yesterday afternoon, but then everything went red again, and we are now at lower lows than during the dump two days ago.
But, there is one interesting, and that is the fact that investing in tokens with low total supply and low circulating supply often can protect you against price drops like the most recent ones. What do I mean?
Of course, it is important that people actually want the token, but if the demand is there, then it is almost immune to such drops as the most recent one. What do I mean?
Look at StrongBlock
If you have followed me on Hive for a while, you probably know that I am a big fan of StrongBlock, a project lead by David Moss, and it is making it super easy to set up nodes that will protect and secure the blockchain. Currently, they are providing Ethereum nodes and Sentinel dVPN nodes, and it is only a matter of time before they will implement Nodes as a Service for the Cosmos blockchain and for Polygon as well. In other words, this is a project with a good reputation and it cooperates with key blockchains. That also gives comfort.
But, if I return to the supply question - StrongBlock only has a total supply of 500,000 tokens (approximately). What does this mean? It is very limited how much the price can dump, because the demand is so big, that any minor dump will be picked up at once. That is why the Dollar price of the Strong token has remained the same during the last two days. The only thing that has changed, is that it is up almost 20% in the trading pair against Ethereum.
Of course, the price might dump - but due to the limited total supply, and way more limited circulating supply, this is one of the safest bets the way I see it for the rest of the year.
By the way - can you imagine what will happen with the token price of such a project with a very limited circulating supply and total supply during a bullish market where the demand gets even higher? You guessed correctly - it will boom!
What do you think?