For the splinterland players, there was a massive announcement today, you can read about it here: @splinterlands/announcing-splintershards-sps-the-splinterlands-governance-token
But what I want to talk about is the splintertalk token and why this annoucnement impacted the price.
Splintertalk token (SPT)
The splintertalk token is the token used by http://splintertalk.io to encourage people to write about splinterlands, the eventual use case is that the token will be used for purchasing game related items like art.
The price has spiked today as shown below in the chart.
what caused the spike?
Splinterlands today announced that they will be releasing a new governance token, and as part of that token there is an airdrop. The amount you receive in the airdrop depends on the splinterlands assets you hold, and guess what? the SPT token is one of those assets that qualifies for the air drop. The relative weights of each assets are shown below:
As can be seen, the SPT tokens will be worth 0.25 X the value of a DEC. So by simple maths, if all you are interested in is the airdrop (which occurs daily from 1st of July 2021 to 30 June 2022) you would value the SPT at 1/4 of the value of a DEC. so this works out at about $0.0025 per SPT. Given Hive prices of around $0.50 I would expect the token would have a max price of around 0.005 HIVE. So in reality we saw it spike to 0.0025 HIVE, but a large holder quickly jumped on the opportunity and sold their share whilst the hype was keeping the price up. Its now back down to 0.0005, or 10% of the "air drop value" This shows that DEC has more use cases apart from airdrops, so you wouldn't expect SPT to reach the airdrop value price, but I am surprised its back down to only 10% of this value.
Concluding thoughts
So its fascinating to watch how announcements impact prices of tokens, and quite clearly there were some people like me that thought the SPT token was undervalued (but full disclosure I didn't buy any coins or sell them). However other owners of the tokens clearly thought otherwise and sold, highlighting the true market dynamics you expect, where some people value something more than others, that's why we trade. Anyway I suggest you read the announcement, its very exciting, and means great things are coming for splinterlands, and that's great for Hive and LEOfinance as some of those splinterlands users also end up on hive/LEO that's how I started blogging.. I am sure there are others.