Buy The SPS Price Dip?

There is an old saying when markets are falling do not try to catch the falling knife. Since Conclave rollout the game has been struggling to hold up in asset prices. Now currently SPS is closer to its yearly lows than its highs. The pump that we saw SPS double in price from the lows just a couple of months ago have all but vanished. Yet here we are at this crucial price of SPS under $0.007.

I have read opinions that SPS can rise and stay high from multiple sources but I have yet to find one that can truly support the reasoning for SPS to gain in value and stay high. I am not going to bash at the token or Splinterlands to put out my thoughts as to the current outcome and hoping that in time the Splinterland's tokens will rise again. I am a believer and hold a ton of Splinterlands assets. Just for reminder from Peakmonsters my overall rankings:

Face Lift and Conclave

With new cards arrival and update in user interface it would make for a recipe of attracting more eye balls to the game. Yet we are in an era where attention span does not last longer than 15 seconds. Dedicated entities that have thrived for years in the crypto space and remaining active are far and few between. Its the sense of Splinterland's community that I appreciate holding on to their assets.

Here in lies a flaw in the belief that crypto tokens simply rise because there is new updates to the game. Today the hottest game to play is to find the fastest way to riches when it comes to the crypto space. The main reason to invest in crypto is for the high rates of return. It is just the environment we are living in. Its not in our control but what we can control is how dedicated and loyal we are to the franchise.

Reality is simple. The community sticks together while the game continues to get updated. The community scraps in what ever resources we have to our disposal into the game which in turn creates and holds value. How much value really comes down to the community. As a long term player and investor of Splinterlands I am here for the long haul. This too shall pass.

Oversupply of SPS?

From the very beginning of the token's inception it was known what we were getting ourselves into. The developers had came up with a scheme on printing and distribution of SPS tokens. In hinge sight those who sold out immediate upon earning SPS tokens would be the biggest winners. Yet for long term the end result has yet to materialize.

There will only be 3 billion in total SPS ever to be printed. Currently close to 1 billion is staked and 1.5 billion in circulation. A staggering 0.25 billion already burned never to be seen ever again. The supply is getting restricted as time rolls. The game still has enough attention that players who have been playing for a long time is seeing the steady decline in supply. Bottom line where there is less supply and same to more demand the value trends up.

One of the reasons SPS supply fell is likely due to the conversion into DEC during Conclave's initial release. The mechanics of reducing DEC supply is steadily trending down but it has been stubborn in is decline. In the long run trend going down will lead lower supply which in turn equates to similar fate of SPS.

Incentives

Like Charlie Mungar's saying, "Give someone the right incentives and they will give you the results." Going back to the first reasoning of the attention currency. Investors and traders want to yield massive gains and Splinterlands currently is not in that environment. Instead the growth in asset prices are either slow or flat for the effort people put in. From playing land production to high barrier of entry, need playable cards like Conclave and Rebellion to earn SPS, and not enough on boarding of new players.

The incentives to come onto Splinterlands and remain invested is simply not as enticing as other crypto assets. It is not to say anything wrong or bad with Splinterlands. On the contrary the incentives from Splinterlands is simply not aligning with current trends.

Taking a stroll back in time on memory lane there were times when players basically had nothing and playing the game was free and earning rewards had value to them. From packs to actual token assets such as DEC and credit that could be exchanged for other assets it was a sure way to raise prices. Yet the developers wanted to play the long game and decided to remove or somewhat water down the rewards and later increase the price in order to earn.

From my personal experience from Alpha set all the way to Conclave with each passing set it meant I had to invest more and more in order to keep up with the same amount of rewards earned over the years. This was not sustainable for me therefore I fell in earnings and with that less to reinvest into the game. I could have input more assets outside of Splinterlands to keep value high but it needed to be for incentives that would want me to do so.

The crucial part is what incentives can Splinterlands provide us that will lure in new capital. The current system is not flawed but it can not compete with high flyers such as simply buying ETH or BTC during boom times, which we are currently in. Of course the game could simply increase prize rewards to all in turn making asset price inflation. It may happen with the current release of Frontier plus Foundation cards.

Conclusions

There is an underlying theme here as to why SPS price is struggling. It simply is not its time right now. Like in the real stock market investors are putting capital in things that rise 100% in a week rather than buying and holding blue chips stocks or value stocks. The growth stock demand versus value demand is still in full swing. Until sentiment shifts we may have to endure the Splinterlands downtrend slightly longer.

What I love so much about the community is that there are players who have remained active for very long. These are die hard fans that simply will not go away. With solid support it has motivated the developers to remain focus on developing and innovating the ecosystem. In turn it has only kept the core fans wanting to stay and heavily invested. A solid feedback loop that would remain the strength of holding up Splinterlands.

It may still all end up crashing, but in terms of how volatile or simply price support for Splinterlands assets I personally feel it is one of the best in the crypto space. With is long history in crypto and how it has not rugged pulled players the ecosystem and game has remained relevant after all these years. I can imagine in the future when we have digital assets as antics it would come to a point where there will be people willing to pay top dollars to own. SPS token may likely be one of them.

Until next time thanks for reading!!!

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