Sports token pumped by 50% in LeoDex
So, this is really surprising; Sports is finally picking up and showing an aggressive price uptrend today. Actually, it started yesterday when it surges to 0.0005 Hive/Sports swap rate. In the past month, Sports tokens usually sit around the 0.00025 to 0.0003 Hive/Sports swap rate.
To be honest, this is still a relatively low price if you ask me. I remember when I first got my hand on Sportstalk, the price per token is 0.0035 Steem/Sports; that's 2 years ago. It's been a long time and Sports was under the umbrella of Steem back then. As a comparison, $Pal was priced at 0.44400 Steem while $Leo was priced at 0.22999 Steem. Look at how Leo has performed over the recent months.
Even though the price of Sports token is considerably low compared to Pal & Leo, the profitability of Sports is way better than those two tokens. During that time, delegating Steempower to the Sports Voter community account can yield better profit compared to the Bidbots that plague Steemit during those years. Many have shifted their SP delegation to the Sports voter account and then dumped those Sports token rewards to the Steem-Engine market. It definitely affected the price of Sports tokens and so Sportstalk implemented a lower APR for delegating SP to the community account.
I'm not sure what happens after but what I do know is that the Sports voter account is still curating but not as before. There are no rewards in any form if you delegate to the account. I guess that is the end of it.
So, what makes it still interesting?
The high-yield performance of Sports power has always been its strongest feature. I really like the high curation rewards that could even reach up to 50% APR even with manual curation.
And if you enjoy consuming Sports content then the rewards are just bonuses.
Anyway, let me move on to the current price trend.
Let me give you a glimpse at how Sports token has performed since yesterday.
Here's Feb 2
While this one is today's chart
Although the buy orders haven't picked up yet, it seems that there are accounts that are buying more Sports since yesterday. They are literally pumping the price to its highest in the past 2 months or so.
IMO, it's not really difficult to pump the price since it only requires less than $100 to really push the price trend to 50% which it did today. However, this is actually a good indication that Sportstalk is beginning to make bold movements.
Recently, an economic change proposal has been presented to the Sports community which will greatly affect the platform. The proposal aims to set a "tariff" to non-native Sportstalk posts by 50% off of their author rewards.
It may seem harsh but if you are to look at a different perspective, it will add more value to the platform itself. The way I see it, more users will use the Sportstalk frontend instead of just adding the #sportstalk tag on their post through the Hive blog or Peakd frontends. It would mean that there will be more traffic flow through the Sportstalk website and that will have an impact on the Alexa ranking of the site. A higher rank could result in a higher website value and higher yield if Sportstalk decided to monetize the website through ads.
Since social platforms like Sportstalk doesn't have transaction fees, the only way to monetize it is through ad sense or similar. Personally, I feel that it's a much better way of increasing the value of the token. The ad revenues could be used to make site improvements or to buy back the tokens from the market and permanently burn them.
For this to happen, Sportstalk has to attract more users to use the frontend and participate in content creation and curation. Keep the users engaged and build the value of the token that will encourage more participation in the platform.
I have always thought that Sportstalk is a sleeping giant. It is one of the tribes that have a good potential of growing its user base. I really hope that today's pump isn't the last, and I hope it would be a series of uptrend until it reached its previous value if not higher.