What happened to the great SE tokens: PAL and LEO?

in steemleo •  3 months ago  (edited)

Both PAL and LEO buy support is now very thin at 0.111 and 0.073 Steem.

Earlier, PAL had a big buy support at 0.25 Steem. It held PAL's price for couple of weeks. Even it pumped temporally to 0.36 Steem. Once that buy wall is gone, PAL's price is in free fall. Current buy order is it at 0.11112 which is shame that PAL once pumped to 0.78. It fell 7X from its peak.

PAL buy support.png

The reason could be that there is no buy back plans from the founders other than few burning policies and big monthly rewards to PALnet curators. If you look into the PAL richlist, you will see that all the moderators have the highest stake. There are few holders who have bought PAL from the market have 5-20K PAL. They are dwarfed by the moderators. It is a red flag for investors who want to buy big stake in PAL. However, it is argued that moderators are not selling since they have built it initially and are trusted. However, there are big selling pressure from the creators. The only questions is that who are buying?

Here is another article explaining PAL's dismayed future by @edicted: https://steemit.com/steemleo/@edicted/here-s-a-good-reason-to-not-invest-in-palnet

PALholders.png

Moreover, if PAL earners are selling in fear that they cannot build a stake as close to whales of PALnet, then PAL may not able to hold its value longer.

On the other hand, LEO is holding its value at 0.08 which is 2X down from its all time high at 0.17. Compared to other top SE tokens, LEO is performing better. Though LEO airdropped to PAL holders, it is not distributing monthly coins to anybody. Moreover, founders have lots of buyback and burn out plans. Only negative side is the early airdrops have made few holders instant whales. However, there are lots of self-made whales in LEO compared to PAL through investing. If the new wannabe LEO whales keep buying, LEO may keep support longer.

LEO buy support.png

However, overall altcoin, steem and SE market is down. Excluding 7 cent Steem in 2016, most altcoins and steems are hitting lows. Therefore, it is not unusual that both PAL and LEO are struggling. However, PAL's distribution is still a red-flag for new investors.

I would like to hear your opinions on why both PAL and LEO are falling. What future is ahead for PAL and LEO?

Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions.

Thanks for reading.
@dtrade
Cryptominer since 2013, trader and tech blogger

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Hi @dtrade, @jk6276.leo

I've been wondering about PAL and LEO for quite sometime. And my impression from the very beginning is that those projects will face many huge challenges simply because both allowed "bad actors" to become

In my opinion all TRIBEs should build their tribes slowly and "whitelist" users and build small but strong community, test ecosystem and only then scale it.

Right now mass adoption took place before tribes business model could be tested and adjusted. And providing such a huge airdrops to random people was a huge mistake. Only carefully selected and whitelisted users could be allowed to benefit from initial aidrops.

Upvote on the way! :)

Yours, Piotr

Among the tokens, only LEO, LIFE and few others have some business model to sustain token's price. For example, LABS project from LEO enabled to buyback 10K LEO at 0.1 Steem. LEO is holding closer to the magic 0.1 Steem. It is evolution and trial & errors, that will procreate better tokens. In fact, PAL dropped on whitelist and most other tokens followed the list.

The most missing part of the token is that who and why will investors buy the token. However, staking tokens can earn more tokens can be a motivation. But if the token's price keeps falling due to selling pressure from the content creators (who are not investors) then investors will avoid the token.

It is happening to the most SE tokens.

The DApp behind the token should have monetizing policy such as Ad, consultancy, burning (e.g. LEO has 9 sinks to burn tokens) to keep the demand up to sustain the price.

Late thank you for your reply @dtrade

I want you to know that I really appreciate your time and your comments

The most missing part of the token is that who and why will investors buy the token

So bloody wise words. Knowing your investors and allowing mostly long-term ones to participate is the key to success.

However, staking tokens can earn more tokens can be a motivation.

It actually discourage me, simply because I know that inflation will be probably way higher than ROI from rewards.

ps. did you ever considered powering up a bit?

ps.
Check out my latest publication..
It brought some real emotions. I've been downvoted by over half million SP (attack of few accounts), however I also received solid support and few strong upvotes and now I will be enjoying the biggest genuine payout in my lifetime ;)

Yours, Piotr

I don’t really know about PAL. LEO, I think will do ok as long as they continue to focus on investing and keep the house clean ( so to speak) as far as sticking to investing.

I believe they will and see a slow steady improvement in their value :-). I am putting my money and time into that belief :-0

  ·  3 months ago (edited)

Another info is that PAL has 15.4M vs LEO has 4.2M in circulation. However, PAL has no specific niche (similar to Steemit). Today, PAL has reached almost parity with LEO at 0.1 Steem. Considering, past glory of PAL (0.78 Steem), LEO is holding quite well. According to founders, LEO have 8 sinks to burn which is a great selling point:

At the present moment, we've got about 8 sinks that are continually operating to burn LEO tokens from the circulating supply. Source

Also, there are 22+33=55 accounts in LEO that holds at least 10K LEO, on the other hand 37 accounts in PAL has 10K PAL, out of them 15 are moderators. Therefore, 40 LEO whales (excluding PAL moderators who got airdropped LEO) vs 22 PAL whales. It means there are investors who are buying LEO.

https://steem-engine.rocks/tokens/LEO/richlist?sort_field=delegations_in&sort_order=desc
https://steem-engine.rocks/tokens/LEO/richlist?sort_field=stake&sort_order=desc

Yep.

With its niche nature, LEO tends to have more passionate users/investors I think.

And yep. Those sinks are awesome. The new LABS one especially.

I don't follow PAL as closely, so can't comment. Alot of the recent drop for LEO appeared to be 1 or 2 big sell orders. That sell which was at least 5000 tokens seems to have cleared through and LEO is recovering now. Heading back to equilibrium which seems to be around 0.1 ish.

Not Financial Advice.