The Dilemma of Investing in a Non-business Oriented Community: The Case of Sportstalksocial on Hive
Some weeks back, @Trumpman championed a campaign for leofinance users to write about their "shitty" investment they made. All was pointing to the fact that some investment may bring on tears when the invested sum gets lost. In the past one year of Steem-engine/Hive-engine tokens existence, there are many tokens that surfaced with a great promises which spurred excitement on their prospective investors. I refuse to see SPORTS token as one of such.
Funny enough, every token that comes in newly is sold costly at the inception. Investors buy in trust hoping that the lead team of the issuing community will live up to expectations of ensuring that investors trust is not marred. Sometimes, the most dreaded thing happens. I know many thong contribute from greed and unfaithfulness of the team lead to poor business strategy, poor marketing and lack of utility.
It must be understood that cryptocurrency at first is a volatile investment option since most are not backed with any tangible product. This means that the prices would only fluctuate with FUD. Just now, I remember that every business comes with a call for risk/trust on the part of the investors.
The @SPortstalksocial community lad by @Patrickulrich is one of the awesome communities on Hive blockchain. Back then on Steem, it was one of the most engaging communities as their token -SPORTS was (and still is) used to reward posts from two dapps - https://www.sportstalksocial.com/ and http://actifit.io/. Many users were given to creating posts on those two dapps til when the referees where put on to cleanse the system. Some users thought their checks were at the extreme thereby putting investments at risks of delivering returns.
After reading this post by @sportstalksocial few days ago, I was encouraged that at last the community is regaining some interest from its founders and there is the likelihood that activities would be revived to bring in new creators and investors. Indeed, the activities on both Sportstalksocial and Actifit Dapps are increasing according to Hivedapps. The below screenshot shows to hive numbers in daily usage of the dapps.
As i have been agitating in the past few weeks, SPORTS token issued by the Sportstalksocial community is one Hive token that has a huge prospect. I imagine having five reknown sports organizations adopt the token as their fan token to reward their fans and supporters, then we'll be seeing the token worth over $0.001. I have made personal calls to some clubs and anticipating positive responses, but O thing the lead teams would drive some more energy on this regard.
Sad that the SPORTS token value gets dipping by the day with just 6 buy orders which can be filled y just one whale token hodler who just wants to cash out his investment. Dumping the token at that rate would be very unprofitable.
SPORTS token presently stays around 0.00002 HIVE and this actually was the opening price when the token was moved from steem to Hive bockchain. I am attributing the dip to the bullish nature of HIVE. I refuse to be pessimistic as I have some tangible investment in there which I am not willing to cashout at the interim.
I want to be a long term investor for SPORTS token aiming towards hodling, say 50 million tokens in stake. I am believing that someday, we'll have some sports team stay fully here on HIVE and in the community, adopting the token as their fan token.
This present situation of the sports community is a concern for all because it has the potential of driving a huge social force to the Hive blockchain which would also serve the good of HIVE. But where do we go from this dilemma? It's not profitable to cashout and new investors are not yet buying in.
However, this is an awesome opportunity for some users to hold huge quantity of the token at a very cheap price. 50 million SPORTS can be ordered now at around 1,000 HIVE (that's less than $270) assuming an order is filled at 0.00002 HIVE rate.
What's the way out?
First, the truth is that the sportstalksocial community was not initially seen as a business community. Everything about it was supposed to be social-minded. This, I guess was the reason for the lack of growth and marketing strategy to lure in new investors.
All we need at this point is a rethink by the lead team to see that the social aspect of the sports community would be enhanced when "profitability" of investors' investment is held in mind.
I wish Patrickulrich would respond to this post and that we can do something now! I', mot yet giving up on SPORTS. So far, with 26 million tokens in stake, I still go for more.
- If you have made a recent "quality" #sportstalk post of at least 200 words, drop the link in the comments section of this post and reblog the post for a huge upvote from my 26 million stake.
- Please consider following @uyobong.sports to be able to see our upcoming give away.
- You may also consider delegating SPORTS to @uyobong.sports to enjoy daily Curation.
Posted Using LeoFinance
The fall in the price of SPORTS was a bit to be expected, since there was an increase in the price of Hive, many will not mind selling all their SPORTS for having a few HIVEs and see if they take advantage of the increase in the value of the coin.
Although I dare to say that the price of SPORTS will grow again in the coming weeks, it is almost certain, for those of us who can take advantage of this price drop better, so we go up more.
In the worst cases, the SPORTS coin would reach 0.00000, but even so there are many possibilities that the coin will grow, since it is directly aimed at sports, it is only a matter of time that more people join this.
Yeah, that's true and always the case.
I thank you for always supporting @sportstalksocial. I still view SPORTS as a social token because that is it's current main use case. When powered up, it increases your vote values to determine post rankings on sportstalk.social and enables you to have a stronger voice in the future distribution of SPORTS rewards. That being said anyone can build apps, games or whatever else they'd like that is powered by SPORTS tokens such as a store for merchandise for free today using already developed open source tools. If you run into any organizations that would like to adopt a system like this then please let me know.
While holding for the abilities described above has a value to some we can not offer any type of profitability or store of value to the token itself. It's merely priced at whatever someone is willing to sell it for on the market. Instead we can offer a means to remove the tokens from the market in what others have termed a sink. These sinks allow users to trade their SPORTS for some kind of value that ends in the SPORTS, or a portion of, being destroyed and the user getting access to some kind of benefit.
Our initial sink we employed was selling upvotes through Steem Engine. By sending SPORTS with a post URL in the memo to @sportsvoter anyone could turn SPORTS into upvotes from the @sportsvoter account equal to the market price of SPORTS at the time of transfer. That gave a good use case for SPORTS to be earned and for those not wanting to be a part of the ecosystem to leave by requesting a vote and destroying the SPORTS they paid for an upvote. Unfortunately one of the side effects of free downvotes on the main Steem chain left some users feeling threatened that they'd lose value by converting this way if others downvoted them for using a bidbot. As with all things in life we couldn't offer guaranteed profitability and could only offer to upvote even if others would follow that upvote with a downvote. This service was eventually terminated due to lack of use.
We have since moved to make advertising a primary means to destroy the tokens. While others like @leofinance joined outside advertising networks to much success we put our trust in the ad network from @aggroed where Steem Engine would display ads on our site and in turn purchase and burn SPORTS for the ad revenue we generated. This has not turned out to be a good move on our part as we've not seen any ad revenue purchases of SPORTS in 2020 that I'm aware of yet. We currently have over $400 worth of revenue according to their ad server that is due to be used to destroy SPORTS from the market though I've been told we won't be getting that full listed value.
There are still a number of other projects we are working on building that will mean larger sinks for the token if adopted well. Were looking at everything from developing a football manager styled NFT game to store services with SPORTS. I've already sent a proposal earlier in the summer to see if there would be interest in adapting the changes @sagescrub made for Dokan on WooCommerce to work with tribe tokens and Hive. If we can get something like that made then we'll be able to offer a store where users pay SPORTS to list their own products with all funds for the purchase going straight to their Hive Engine account but the SPORTS they paid for the store entry being burnt. This could be nice for the sports card community if it comes to fruition the way I envisioned.
No matter what we're still here providing a place to talk about sports. Even if none of the other goodies come we're still be able to talk about sports in the Sports Talk Social community while having our own way of maintaining the value of everyone's work.
It excites me each time you create such valued time to give a detail response to my queries. This notifies myself as well as other SPORTS holders that we're on the right track investing in SPORTS. Like I'll always say, a frequent share of a leadership position as you just did is always necessary. It could be awesome if we can be having an official post about the Sportstalksocial community on a weekly basis from you. This would encourage more investors here.
I am very sure of the huge future value of SPORTS, the reason I am investing and encouraging others to do same. I know that when crypto finally gains mass adoption, SPORTS would be worth more than we ever thought of.
This is quite very interesting to hear. I never thought in that direction that we can build an app here that utilizes the SPORTS token. That's an eye opener. I have been targeting to help onboard sports organization here. I hope one of them could catch the inspiration there.
That's quite a huge accumulation of Ad revenue. That can burn off about 40 million SPORTS at a price of 0.00004 HIVE. I hope @Aggroed would respond to this soon.
Hoping this comes through successfully.
It would be interesting if you reposed the content of your comment as a full post for more visibility.
Thanks.
Cheers!