The recent update of leofinance.io, provides those who sign up using Metamask the opportunity to earn rewards. Being an Ethereum wallet, the interface (Leofinance) has the ability to pay rewards in that native token. This, of course, requires a swapping of LEO to ETH.
We can see many advantages to this as an outreach project. Ethereum users do not require a thorough understanding of Hive in order to interact. This allows for a smaller learning curve, hopefully motivating more activity.
From a financial perspective, this could be an issue. While Ethereum is a very valuable blockchain, with the token holding a strong price, thinking long term might yield a different outcome.
As people sign up using Metamask, the question they will be confronted with is whether to get paid in LEO or ETH?
In my mind, people should consider going the LEO route as compared to ETH.
Why is this the case?
There is no denying the strength of ETH. Here is the breakdown of that.
The number 2 blockchain with a market cap of $43 billion.
Yet, the question applies to the future. Even believing that the future is bright for ETH, how of a move are we going to see. The all time high is more than a 3x from here. Obviously, this is not too much of a stretch for it to reach at some point.
That said, what truly is the potential?
Is 5x realistic? 7x? 10x?
A 10x puts the price of Ethereum at $3800 with the blockchain having a value of $430 billion.
While this could be in the cards and if you are optimistic about Ethereum, well within reason. However, the question is how will it stack up against LEO?
Here is the most recent 60 day chart from leodex.io.
As we can see, the price of LEO went up 6x in the last two month from early September until today. It must be stated that this pricing is in HIVE and not USD.
However, we can see the present price, in USD is about 17 cents. To match the aforementioned ETH price jumps, we would be looking at $1.70 for each LEO.
So what is more likely, $3,800 ETH or $1.70 LEO? To take it one step further, a 20x would be $7,600 ETH and $3.40 LEO. Which seems more likely?
Keep in mind that $3.40 LEO would still have the total value of the platform still under $20 million. ETH, under the same circumstances, would have a blockchain market cap of over $850 billion.
Which seems more realistic?
For this reason, while it is tempting to take payouts in ETH, one might want to think about it a bit further. The odds of LEO going up 20x are better than seeing the same move in ETH. While there is plenty of reason for optimism regarding Ethereum, the future of Leofinance has a lot going for it. This is coupled with a very low token distribution which means the appreciation could be spectacular.
The potential will likely be come clear with the re-release of wLEO. Liquid markets have a way of pushing assets higher.
As we have seen, the tight float will make LEO a highly sought after token.
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