Lost in Translation
Lost in Translation
Lately many of us are talking about Cub Finance a lot, and it surprised me a bit, that something, even after a lot of explanations and disclosures, are 'lost in translation'. People buy into a token, for whatever reason, and 'want' its price to go up instantly! As if that is the only direction the price of a token can go! This is general statement, and I am not talking about only people invested in CUB token. This is just a general feeling. This feeling needs to change.
Lots of it is lack of education in financial market in general. Many people here are not exposed to financial markets for a extended length of time. That leads to unbalanced expectations and fear when things don't do as the person expected it to do. Trouble is financial markets don't care about any individuals expectations, including my own. I can say whatever I want to say, the market (any market) will do, whatever price and volume action dictates.
That brings me back to CUB. I feel quite good about the chart below. The end of Emission 1 period of first 7 days just ended, and the block rewards are now down to 2 CUB/block. This is not a news, as it was communicated by the project team at the very beginning and clearly stated at the documentation , but still when it happened I think it was met with a bit of surprise, at least from a few individuals.
This is where I recommend a bit more education and awareness of reality. Currently, after the reduction of CUB generation rate, rewards are 8.4 CUBs per $1000 invested! That translates to an APR of over 1000% + (although the APR doesn't mean much, as this won't be constant for 1 year). To tell you the truth, I started putting money into Pancake when its APR was 232% :), and I correctly thought it was INSANE! I invested nearly $40K US into Pancake at that time, and I am happy that I did. I have my pancake story documented with a date stamp! Hey, writing financial blog can be useful sometimes!
Tell me, Who is complaining about CUB's return and APR? :)
As I look at this hourly chart of CUB now, I see limited price history, so making any kind of TA analysis is impractical. Still, we can observe the most obvious items, as shown by the text on the chart. The only level of interest from a chart point of view is around 3.5, which is the low after the airdrop. I do not know if the price will get there. I also do not know if the price will bounce from there. But for me, that is a good level I can invest some money in.
Fundamental
CUB token has a nice predictable dreasing inflation rate that is built into the token mechanics. I am not sure how many people are aware for it, but I saw this at the #friday channel at Leofinance discord posted by @onealpha. I am thankful to him for this graphics:
I am adding this plot for my personal reference, as this gives me a perspective on the inflation rate of CUB. I don't care about the exact details on the numbers, but I am taught in economics, that, lower the inflation higher the price (all else being equal). That fact is good enough for me. I am holding all my CUB and staking as needed!
Disclaimer: This is NOT professional advice, this is all just my own opinion and experience. I am NOT a Certified Financial Adviser. Consult professionals for any financial, accounting or legal related questions you have.
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