I took a closer look at the SPT token making a post on September 25th last year (See Post). This made me start to cost-average my way into it soon after and now 4+ months later, I reached my goal of getting to 1 Millon SPT. This is the road toward that along with the passive returns I have been getting and my plans moving forward...
I still see SPT as a sleeper coin right now waiting for it to be implemented into the Splinterlands game at some point (There is no guarantee that this will happen). Something that happens a lot in crypto is FOMO kicking in on an announcement combined with a price pump. This was recently seen in the PAL coin that got integrated into the new dublup.io prediction market running on the Hive Blockchain.
This made the price go all the way from 0.0411 HIVE (0.0058$) on January 26th to 0.7 Hive (0.095$) at its peak om January 30th to now have cooled back down to 0.16 Hive (0.0306$) today. Making for a nice 5x rewarding all those that kept or accumulated PAL while it looked rather dead. I see a similar scenario for SPT as not all too unlikely especially when looking at the market caps of other tribe tokens...
Market Caps Compared
In the end, when trying to estimate the actual value of a token, a lot comes down to the total value of coins in circulation combined with the inflation and actual usecase. SPT is very low on market cap right now with a lot of room to the upside in case it really would get integrated into the game. SPT has quite some inflation but this can easily be offset by delegating SPT to @monster-curation who payout 100% of the curation rewards on a daily basis along with blogging about the game which potentially earns some extra SPT. All this had me FOMO in early in SPT setting myself a goal to accumulate, hodl and compound SPT the last 4+ Months.
Cost-Averaging SPT and @monster-curator Returns
I never sold SPT in the past and had 42.600 SPT when I started my road up to 1M on October 1st, setting my maximum buy price at 0.00025$ for 1 SPT. This number is quite arbitrary as it gives a 25k marketcap the moment 100 Million tokens are in circulation which is too low based on my own estimation of the potential use case and value. There was not all too much selling going on and I clearly was not the only one who was looking to stack on SPT during the time I bought so it was not always all that easy to buy without pushing the price up. Patience was key and I picked some up below my maximum price whenever it was possible and when I had funds available from some other coins on Hive-Engine.
Grinding my way up to 1M SPT was done by buying SPT frequently when SPT was sold below 0.00025$ (most was acquired way below around 0.00016$), adding all the SPT earnings from posts published on Splintertalk.io (50% of post payout goes to the content creator 7 days after it was published), and compounding the daily delegation payouts from @monster-curator. The passive returns on average for Delegation based on my own number comes down to an increase of +38.48% APY in SPT.
Plans Moving Forward
Right now, I'm basically done buying SPT and plan to just hodl and compound everything I earn delegating it to @monster-curator each day. I'm happy with the stack I accumulated and the position I got into regardless of what happens from here on out. If it never goes anywhere, I'm perfectly fine with that as it's all part of the risk. If news comes one day that SPT gets implemented somehow, I will likely at least keep 1M SPT as long as it provides passive returns and take some profit on everything above that in case there is a big pump.
I made a complete guide on how to Earn with Splinterlands and go about things as a new player to have the best chance to reach these kinds of monthly earnings from the game in 2021. See How To Earn 100$+ Monthly (Complete Guide)
I continue to play the game and offer a win-win sign-up deal in 2021 for everyone that starts out with the game using my Referral Link. I updated what I'm offering recently see Full Sign-Up Deal and I will keep this in place normally during the entire year.
To understand what the game is about and how it can be played check the video below!
Important: Treat games in the first place as games and not as investment opportunities, Splinterlands allows you to earn some money and get good returns but you are much better off flipping burgers in Mcdonalds when looking at the money earned for the time invested. Investing also comes with a risk of card values going down.