Made on Canva
I remember back in September when I bought SPS for about $0.075 and watched it go all the way to about $0.086. Did I sell? The "sensible" thing would have been to take some profit and buy low again but I did not do the "sensible" thing. Instead, I held on to dear life hoping that it would gain more but, unfortunately, it didn't. When the price was a little above $0.030, I sold all my Liquid SPS because I needed some urgent money at the time. Now here we are with the price still going down and no end of it in sight.
It's really easy to say to yourself in hindsight "you should have sold, stupid" but you just could not have known. I did not intend to sell my SPS but something happened and I just had to let it all go - the liquid ones at least. Now, I have just 1,017 staked SPS and 10 liquid ones.
I would have kept Hodling my SPS but, in hindsight, I am super glad I sold it because I see SPS losing more of it's monetary value in the short term.
But why is this happening?
Well, except for the obvious bear market, the reason SPS is losing value fast could be due to how quickly the token is being rewarded.
From WhitePaper
According to the whitepaper, there are a total of 3 billion SPS tokens to be released over a period of 5 to 6 years but if we gotta be honest, all the SPS should be released before the expected date. Right now, players are being rewarded SPS for playing ranked battles, participating in brawls, holding Nightmare Packs and Land Plots (should be under DAO), staking SPS, and so on. There are currently over 941 million SPS in supply and that supply does not seem to be slowing down. Let's not forget that a good amount of SPS has been burned so far from the Riftwatchers Gems sale so that is not even counted in the total supply. With all this in mind, it's safe to say that 1 billion out of 3 billion has already been released so far in less than a year and a half. Wow!
I don't know if we're still on track to having all the SPS released after the expected period of time or before then but I really don't care. Honestly, I have so much faith in SPS that I know it's going to be huge in the long run.
Think about it, SPS has a fixed total supply of 3 billion. What would happen after we reach that total supply? Well, we can expect the supply to reduce as more SPS is burned during future sales. Given this deflationary model, we can expect the price of SPS to increase as the supply reduces. How awesome is that?!
The All-Time High of SPS is $1.27 according to CoinMarketCap. It's not unrealistic to expect the token to get back to that price level in the long run as the supply reduces and it gains more utility. Right now, the price of SPS is $0.025 which is over 50x less than the ATH. Imagine getting a 50x return on an investment! To put it into context, $100 can buy 4,000 SPS today but if we get back to the ATH, the 4,000 SPS would be worth over $5,000!
Sure, it would take time for SPS to get back to its glory days but it's a good idea to keep accumulating the token now. This is Splinterlands' main token so I expect it to be utilized a lot. This is just the beginning of something huge for every splinterlands member. I have plans to increase my SPS holdings as steadily as I possibly can. This is definitely a golden opportunity that I just cannot miss out on. You should not either.
