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RE: Week through Adrian's Lenses (24-30 April 2023)
The LEO token has lost a lot of value in the past months, would you attempt an explanation for that? I'm wondering whether I should hodl my LEO or dump them on Tribaldex ... Thanks
0.00125934 BEE
LEO has been losing value for a long-time. On the other hand, there is a lot of development going on and a lot of emphasis on growing an active community. Over time, LEO has been good to me, I benefited from the airdrop, I've used LEO to finance other things before starting to stack again. I've decided to HODL and see what happens.
That is true. The expansion toward other ecosystems with tokens on each of them has hurt LEO and now they are trying to regroup and give back value to the core token, which is LEO. Khal admitted it was a mistake and this is what they are trying to do now.
I believe LEO has been good to most of us involved actively in its community (and even to those less active).
To be honest, I don't have an explanation. Maybe LEO has been distributed in too many ways. One fund that was slated to pay HP delegators 16% in LEO is about to be depleted of funds. Khal mentioned when that happens they will come on the market and buy LEO (the cheapest on the blockchains where it can be found, natively or in its wrapped form) to continue to pay the dividends to delegators. That should provide some constant demand for LEO.
Or perhaps Khal decided it was time to pull the rug ...
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Which account is about to be depleted of funds?
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In the meantime, I came up with an explanation (a good night sleep does wonders!), which extends to a period longer than a few months. LEO value was drained for a while into the other tokens Leofinance launched on other chains, like CUB and POLYCUB, as those two defi applications were very hot. It is still one of the exit options from the Hive ecosystem to the two blockchains, but now there are also HIVE and HBD (also SPS) to share the burden with. The reverse is they can also be entry points just like they are exits.