The CTPSB tokens is a great example that illustrates the power of compound interests.
We started the project on the first of October 2020. In two months time, we will celebrate the 5th anniversary of this project that has changed a lot over time but still has the same basic concept. It's a token that takes value from an underlying hive account @ctpsb. At the beginning of the project, one CTPSB token was worth 1.017 Hive. Now, almost 5 years later, once CTPSB token is worth 3.728 Hive. Which is an increase of 366%!
At the beginning the APR of the project was close to 30%. It went then gradually down to reach a constant level of about 15% APR. That's what we have at the moment. If we simply added the best APR over 5 years, we would get a return of 150% (5x 30%). But we get more than double that and the reason is nothing else than compound interests.
Will we reach 400% in 5 years?
I don't think that we will reach a value for the CTPSB token that will be over 4 Hive by the end of September but we will certainly not be that far from that. The interesting thing will be to see how things evolve from then on. These compound interests go on working for the token holders and since everything stays within the project, there is no need to actively do anything to compound the interests. CTPSB is the token to keep and forget about it and get a nice surprise some years down the line :-)
Here the numbers of this week
| Assets | Amount | Increase over last week |
|---|---|---|
| Hive Power | 34447 | +87 |
| Tokens in circulation | 9241 | -2 |
| Burnt tokens | 2257 | +2 |
| Token value | 3.728 | +0.011 |
| APR | 15.0% | -0.0% |
Learn more about the CTP Swarm Booster:
A project run by @liotes