A snag in the road for PoWH3D?
Since my last post Proof of Weak Hands (PoWH3D) continued shooting up in value as more and more users bought in. Eventually this had to test the resolve of some of the earlier buyers who were now seeing substantial profits if they decided to sell (become a weak hand).
This was the time where the whole concept of the system was really tested for the first time. For anyone who doesn't know what PoWH3D is I recommend going checking my earlier posts here, and here. The idea of a contract that pays dividends sounds great but does it really work?
Hitting and all time high value on the 5th of April and with almost 20,000 Eth invested in the contract, it seems that magic 20,00 was a breaking point and catalyst for some people to sell off and book their profits, which can be seen in the graphs below.
This mass selloff hit very quickly and very hard, which with a normal token could have caused a huge crash, but the dividend system proved itself, as those who sold payed out the 10% tax to sell out and those who held gained those generated dividends. I will show you this in the graph of my own holdings, shown below.
As you can see the value of the token decreases (the green line), but some of that is offset by the rising dividends (the red line). The key thing to note is that any drop or gain in value gives you dividends, so as long as you don't get too nervous about the dropping value and decide to sell your tokens, the dividend system pays off in the long run. Eventually that red line will be above the green one as the dividends keep paying out.
The first real test of the contract hit on 5th of April, and PoWH3D passed it with flying colours! It remains to be seen which way the value of the token will go in the near term as it has held at around 14,000 Eth in the contract with buyers and sellers equalling each other out. Those who have already bought in have seen Proof of Weak Hands working as intended and should be full of confidence as they saw a huge growth in their dividend gains on the spike in volatility.
The easiest way I can describe how PowH3D is in terms of the tortoise and the hare. The dividends are the tortoise and the actual token value is the hare. The Hare might shoot forward but its not a guaranteed winner, the token value could drop down and you could be only able to sell for a loss. Those who hodl for a long time see the dividends tortoise slowly creep up and overtake the value of their actual tokens and they are guaranteed to eventually have more dividend value than the value of their tokens.
Want to know more about Proof of Weak Hands? Check out the links below for everything you need to know
To get involved and buy in just visit https://powh.io and buy using your Eth. Simple!
https://steemit.com/crypto/@comeonecomeall/proof-of-weak-hands-faqs-and-explaination