Seoulite Posted October 25, 2021 Share Posted October 25, 2021 (edited) As soon as I saw this I thought there was something off about it, and I've figured out what it is. These return rates are not going to maintain at this level, and so we are looking at a small snapshot of time. This is like those people who got 10,000% APR in some DeFi application for 1 minute. If you posted something like that on twitter, people would see through it more easily. But I fear this is the same kind of hype. 5% a month is great, and we are all loving watching rewards come in all the time. But I don't like the hype aspect of tweets like this. That said, I love the contrast with banks. This should be driven hard. Having money in the bank is a loser's game, and DeFi helps to solve this. This is a message worth spreading, not 'get rich quick'. Edited October 25, 2021 by Seoulite henne111, WrathofKahneman and JASCoder 3 Link to comment Share on other sites More sharing options...
JASCoder Posted October 25, 2021 Share Posted October 25, 2021 5 minutes ago, Seoulite said: These return rates are not going to maintain at this level Shirley, we're all collectively participating in a grand experiment. ( for context, in my university days I studied econ - so my perspective grounding comes from there ) My prof told us about a lost native culture on some island back in the 17th Century - maybe it was on Easter Island? - anyway, this community had adapted stones as their currency. The bigger the stone, the more it was worth. And they used the stones to trade for goods and services. His point, they collectively agreed stones had value, and it worked for them (for a time). So SGB comes out, we expect it to have some worth (ie. it CAN be traded for fiat to buy beer). So we collectively coveted more, and we bid its price up. And here we are now. We have a market, with supply and demand. And a use for the token: staking for moar. I have to expect, that without new capital value entering the SGB ecosystem, eventually its market will collapse. And that's where utility comes in: services that others will insert new value into the ecosystem (as one feeds coal into the furnace to keep it lit). So the question is... WHAT are those services ppl will pay to use ? WrathofKahneman and Seoulite 2 Link to comment Share on other sites More sharing options...
Guest Posted October 25, 2021 Share Posted October 25, 2021 (edited) 50 minutes ago, Seoulite said: As soon as I saw this I thought there was something off about it, and I've figured out what it is. These return rates are not going to maintain at this level, and so we are looking at a small snapshot of time. This is like those people who got 10,000% APR in some DeFi application for 1 minute. If you posted something like that on twitter, people would see through it more easily. But I fear this is the same kind of hype. 5% a month is great, and we are all loving watching rewards come in all the time. But I don't like the hype aspect of tweets like this. That said, I love the contrast with banks. This should be driven hard. Having money in the bank is a loser's game, and DeFi helps to solve this. This is a message worth spreading, not 'get rich quick'. Frankly what amazes me is people thinking this is income. It is not. It is just protection against the system’s in-built inflation and ultimately these “rewards” are still speculative. There is an expectation that someone in the future will pay enough to offset or counteract the added liquidity in the system. The current lack of liquidity due to most exchanges withholding distribution is skewing perception IMO. To me, income => ultra low volatility / cash / stable-coins. It’s passive income, a reward for participating in a system (speculative or otherwise) or putting up collateral. Something that you cannot lose once you receive it. Like the dividend from a stock or a yield from a bond, or loans, or a % of transaction fees for being a market maker or through an NFT. I’m looking forward to that. Edited October 26, 2021 by Ripley Link to comment Share on other sites More sharing options...
brianwalden Posted October 26, 2021 Share Posted October 26, 2021 43 minutes ago, Ripley said: Frankly what amazes me is people thinking this is income. It is not. It is just protection against the system’s in-built inflation and ultimately these “rewards” are still speculative. There is an expectation that someone in the future will pay enough to offset or counteract the added liquidity in the system. The current lack of liquidity due to most exchanges withholding distribution is skewing perception IMO. To me, income => ultra low volatility / cash / stable-coins. It’s passive income, a reward for participating in a system (speculative or otherwise) or putting up collateral. Something that you cannot lose once you receive it. Like the dividend from a stock or a yield from a bond, or loans, or a % of transaction fees for being a market maker or through an NFT. I’m looking forward to that. But people who participate in FTSO rewards are beating inflation. The whole design of Flare is that it passes on the inflation to holders and exchange traders and rewards people who put their Songbird/Flare to work on the network. I think it's an interesting mechanic. WrathofKahneman and wojake 2 Link to comment Share on other sites More sharing options...
Guest Posted October 26, 2021 Share Posted October 26, 2021 1 hour ago, brianwalden said: But people who participate in FTSO rewards are beating inflation. The whole design of Flare is that it passes on the inflation to holders and exchange traders and rewards people who put their Songbird/Flare to work on the network. I think it's an interesting mechanic. Yep, because of the distribution issues from exchanges. Still doesn’t take away from the fact that price is driven by speculators on a single exchange. Once the state connector and the S-Asset system is enabled, along with higher liquidity through ExFi, things should change. Also with trading expected to be enabled in other CEXes in a couple of months. I don’t expect this with Flare MainNet. It’ll be much more different in how it plays out. Link to comment Share on other sites More sharing options...
RipMcGillicuddy Posted October 26, 2021 Share Posted October 26, 2021 Kicking myself for not claiming FLR/SGB via hardware wallet now. Seems like some really valuable knowledge/experience is being gained with SGB prior to Flare launch. I'm gonna be shooting in the dark and yous boys are gonna be waltzing through there with night vision goggles. Link to comment Share on other sites More sharing options...
tulo Posted October 26, 2021 Share Posted October 26, 2021 16 hours ago, Ripley said: Frankly what amazes me is people thinking this is income. It is not. Well to me it is. Every week I can withdrawal, send to exchange sell for USD and use it in my credit card. It is an income to me. It's "highly" volatile, but not even that much (there are much better and much worst in crypto). But it's an income. Live4xrp 1 Link to comment Share on other sites More sharing options...
Guest Posted October 26, 2021 Share Posted October 26, 2021 1 hour ago, tulo said: Well to me it is. Every week I can withdrawal, send to exchange sell for USD and use it in my credit card. It is an income to me. It's "highly" volatile, but not even that much (there are much better and much worst in crypto). But it's an income. What I'm referring to is probably more pedantic. You are only able to sell it off for USD because there is someone willing to buy it, which makes it a speculation. If that perceived value goes away, either through a whale dump or the Flare launch, or some other reason, whatever SGB you hold is worthless. So by selling off your rewards regularly, what you are effectively doing is being short SGB because you expect that holding your money in USD (or paying off bills) is going to beat SGB inflation in Songbird. If you *know* that SGB is going to only go up in price, you will probably not sell it right away I think it's a good call to sell it off. Once Uphold/Kraken support trading, I expect to sell some off to pay off taxes but I couldn't pull myself to do yet another AML/KYC with Bitrue and deal with tracking yet another wallet. Link to comment Share on other sites More sharing options...
WarChest Posted October 26, 2021 Share Posted October 26, 2021 I just thought that SGB was a testnet. I give two hoots if there is a profit. It’s about Flr learning from our behaviour, seeing if there are bugs, or whatever Link to comment Share on other sites More sharing options...
jargoman Posted October 26, 2021 Share Posted October 26, 2021 13 minutes ago, WarChest said: I just thought that SGB was a testnet. I give two hoots if there is a profit. It’s about Flr learning from our behaviour, seeing if there are bugs, or whatever I sincerely hope they learn a lot from my weekly sales Link to comment Share on other sites More sharing options...
jargoman Posted October 26, 2021 Share Posted October 26, 2021 13 minutes ago, WarChest said: I just thought that SGB was a testnet. I give two hoots if there is a profit. It’s about Flr learning from our behaviour, seeing if there are bugs, or whatever I sincerely hope they learn a lot from my weekly sales WarChest 1 Link to comment Share on other sites More sharing options...
brianwalden Posted October 26, 2021 Share Posted October 26, 2021 35 minutes ago, Ripley said: What I'm referring to is probably more pedantic. You are only able to sell it off for USD because there is someone willing to buy it, which makes it a speculation. If that perceived value goes away, either through a whale dump or the Flare launch, or some other reason, whatever SGB you hold is worthless. So by selling off your rewards regularly, what you are effectively doing is being short SGB because you expect that holding your money in USD (or paying off bills) is going to beat SGB inflation in Songbird. If you *know* that SGB is going to only go up in price, you will probably not sell it right away I think it's a good call to sell it off. Once Uphold/Kraken support trading, I expect to sell some off to pay off taxes but I couldn't pull myself to do yet another AML/KYC with Bitrue and deal with tracking yet another wallet. Everytime you buy crap at Walmart you're short USD and long Walmart crap. tulo 1 Link to comment Share on other sites More sharing options...
Guest Posted October 26, 2021 Share Posted October 26, 2021 1 hour ago, WarChest said: I just thought that SGB was a testnet. I give two hoots if there is a profit. It’s about Flr learning from our behaviour, seeing if there are bugs, or whatever Agreed. Do note that you’re still liable for taxes (especially if you’re in the US). Link to comment Share on other sites More sharing options...
tulo Posted October 26, 2021 Share Posted October 26, 2021 1 hour ago, Ripley said: What I'm referring to is probably more pedantic. You are only able to sell it off for USD because there is someone willing to buy it, which makes it a speculation. Yeah, all economies work like that. Also holding USD you expect someone is willing to accept it in exchange for food/electricity/house. Everything is a speculation in the world my friend. If I expect something to go up in value it's better to hold otherwise it's better to sell. That's why I live on 2% fiat and 98% crypto . Seoulite 1 Link to comment Share on other sites More sharing options...
WarChest Posted October 26, 2021 Share Posted October 26, 2021 42 minutes ago, Ripley said: Agreed. Do note that you’re still liable for taxes (especially if you’re in the US). Yep. I understand about taxes from profits from Songbird sales. Link to comment Share on other sites More sharing options...
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