I wrote a post taking a closer look at Splintertalk.io and the SPT token 2 months ago. (Link). By making that post, I talked myself into accumulating some more myself. As usual, I kept close track of the returns and these are the numbers so far...
In that previous post, I came to this conclusion:
The price at that time for 1 SPT was 0.00020$ and I started cost-average buying slowly as very little is needed to really push the price up since the supply on the market along with the trading volumes are extremely low. The maximum price I am willing to pay for these tokens right now is 0.00025$ which I see as a really good risk-reward zone.
This is how I cost-averaged my way in below my target price while getting daily passive returns and some more SPT from blogging along with the percentage returns each day on the delegation.
The average daily returns you get by leasing out SPT to the @monster-curator initiative based on my numbers is around 0.12% which brings it at around 43.8% on a yearly basis all calculated in SPT. I visualized it in a chart taking the 7-day average numbers comparing the Delegated SPT to the yearly returns also based on 7-day averages. I did most of my buying early on and slowed it down as the price got higher above my price. I continue to add both my daily passive delegation returns and my post rewards compounding everything.
Looking at the tokenomics, it all comes from inflation which is really high at the moment and the only function of the token right now is to have tokens to get more tokens along with getting content higher on the trending page of Splintertalk.io.
There is no token burn mechanism yet or an outside use case for the token but they are planned in the future. I see front-running these in anticipation while nobody is really watching as a nice opportunity.
As far as the value goes, right now there are ~62 Million tokens in circulation with 96k being added each day. At a price of 0.00025$ it comes at 24$ daily or 8760$ on a yearly basis. It will take over a year for the total tokens in circulation to reach 100 Million which will come down to only a 25.000$ market cap. Well over 50% of the inflation will go directly to curators as not everyone is using their SPT Power. Even when looking at the value purely from a blogging reward perspective it is not even that crazy compared to many of the other coins. Add the planned function for cosmetic NFTS in Splinterlands to work with SPT and a possible burn function and it's hard to see the price go below 0.00025$ this year. I also have been observing the market on hive-engine and noticed that there are more who try to accumulate. Regularly someone steps in buying all the sell order up to a point way above 0.00025$ for 100$ worth.
The @monster-curator project now has a whopping 26.5 Million SPT delegated to it which is close to half of the circulating supply. They seem to be spreading the upvotes around in a fair way and everyone that puts some time in creating good quality Splinterlands related content using the SPT tag will get picked up with a good upvote. Also, everyone that joins in on the Weekly Battle Challenge also is getting a SPT upvote from @monster-curator. There are currently 42 different users who delegate their SPT to the project to get passive returns which is in most cases way more optimal and time-saving compared to doing manual curation.
I'm quite happy with the ~440k SPT I bought and accumulated over the last 2 months leasing it out to @monster-curator to get passive returns in anticipation for the token to (hopefully) get more use cases. I will continue to buy more in case the price goes below my personal 0.00025$ target price but I'm also fine if this opportunity to buy that cheap is gone now. I by no means see this as a serious investment but more as a fun token with some potential and enough reasons to believe it's undervalued. Regardless if it goes up or down, I'm all fine with it.
Also See: LEO Miners 50-Day Calculated Returns
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