Why I Own 27,069+ SURGE and Want More

LeoStrategy has become a very interesting project as we've all seen the community launch and strategically scale the model. LeoStrategy's LEO holdings have now surpassed 2.7M LEO on their balance sheet. Just 300k more LEO and they will own 10% of the max supply of LEO that is out there.

LEO is a 100% circulating token and has a max supply of 30M. There is 0 inflation and no new issuances of LEO. With LeoStrategy acting as "Microstrategy" for the LEO token, we are seeing a massive rise in economic value and activity surround the LEO Token Economy.

LeoStrategy's mandate is to be a financial layer on top of the LEO Token Economy. Serving the ecosystem financial tools, products and services and earning revenue. Then using that revenue to acquire more LEO and expand their balance sheet. The expansion of their balance sheet then leads to more LEO financial products which then leads to more revenue and the perpetual motion of a flywheel that acquires LEO and permanently stakes it.

Why I Own 27,069+ SURGE and Want More

SURGE is a fascinating financial tool that LeoStrategy has created. In my opinion, they created it at one of the best possible times for the broader crypto economy.

LEO has risen from $0.018 at the bottom to ~$0.13 today in just a few months. This rapid rise in the LEO price has led many to powerdown and take profits. This is normal market behavior. We rose from $0.018 to $0.26 for a brief time. Since then, we've retraced to the mean price at $0.10 and then slowly have grinded back to $0.13.

As LEO continues to rise, LEO holders may want to take profits. This should not be frowned upon. It is a good thing to take profits - especially when it fits your lifestyle and investment goals.

SURGE allows LEO holders and broader crypto investors alike to take profits into an instrument that:

1. Has downside protection ($1 floor price)
2. Unlimited Upside potential (conversion to LSTR at any time at a 50:1 ratio)
3. Yield while you wait

Effectively, SURGE is a hedging tool that lets you maintain upside exposure while limiting your downside. The entire time you wait for upside, you get paid a yield in HBD (or USDC / LSTR).

My yield so far has been 25.28% APR on my SURGE holdings. This is paid to me as LSTR (my chosen dividend preference). Every week, I get paid $76.083 USD. I can use the @surge.yield AI Manager on INLEO Threads to manage my payout preference and see real-time stats:

SURGE Presale and The Drive to Buy More Now

The SURGE presale is now over 54% sold out. This has been accelerating (as I predicted it would). Similar to the LSTR presale, the SURGE presale is selling out more and more tokens with each passing day. The velocity of them selling out is making many of us believe that SURGE's presale will end any day now.

This doesn't surprise me at all. The LSTR presale buyers bought LSTR at $0.90 and LSTR is now over $5 just 7 weeks later.

SURGE presale buyers get a similar discount (actually a steeper discount - $0.73 is the current price of the SURGE presale) and when it ends, a $50,000 Liquidity Pool will be launched at a price of $1 per SURGE.

This $1 per SURGE price is the actual floor value of SURGE. I expect SURGE to trade much higher than $1 in the future.

Why SURGE Should Trade for More than $1

SURGE has embedded value and this means that it should always trade for more than $1 if the market prices it correctly.

1. Embedded call option -> there is an embedded call option to convert 1 SURGE to 0.02 LSTR. This means that when SURGE crosses $50, it effectively acts like an in-the-money option. You can convert 50 SURGE to 1 LSTR and make an instant profit. i.e. if LSTR is $100, then 1 SURGE = $2 via conversion. This embedded call option gives SURGE value now and in the future as LSTR rises
2. Dividend yield is self-healing -> this is where things have gotten really fascinating to me. The dividend yield is self-healing for the SURGE price. What this means is that if SURGE drops in value, then the effective yield increases (since the yield is fixed to $0.15 per 1 SURGE). So if you can buy 1 SURGE at $0.73 (like you can today during the presale), then you are getting $0.15 / $0.73 = 20.50% APR
3. $1 Floor Price -> the $1 Floor Price is driven by the liquidation preference in LeoStrategy's capital stack. You can confidently buy SURGE knowing that in the worst case scenario (LeoStrategy dissolving the token / fund altogether), SURGE holders will get paid back first at a $1 per SURGE valuation

So you get:

1. Upside
2. Downside Protection
3. Dividends While You Wait

SURGE checks all the boxes for someone who wants to protect some profits they take from other crypto investments (or even from LEO), get paid yield and still get future upside. This is why I've started taking profits from my trades into SURGE and HODLing it.

Right now, I get paid $78.083 USD every single Monday at 0:00 UTC simply for holding my SURGE. In the future, I want this number to be a lot higher. I continue to add SURGE to my portfolio every day.

Everyone has unique reasons for owning various assets. None of what I've said here is financial advice - it's just what I'm doing.

I believe SURGE is an incredible tool to have in my portfolio as a way of:

1. Limiting my downside exposure (reducing delta risk)
2. Maintaining long-term exposure to the upside (future profits as LEO and LSTR succeed)
3. Sustainable yield paid to my wallet every week (20.50% effective yield on my SURGE holdings - which is actually more like 25% APR since I get paid in LSTR which rises every week)

If you think SURGE is an interesting value proposition, dive into the details of it on @leostrategy's blog posts. You can also buy SURGE's Presale on HE -> https://beeswap.dcity.io/tokens/SURGE

Posted Using INLEO