Let The Market Decide
Yesterday we got a post from @lbi-gov, asking shareholders to vote on an important matter and there was an announcement that they are accepting proposals.
The matter shareholders have to vote on is a very important one, that concerns all of us. We have to decide weather to set a hard cap for the LBI token, at 275,000 LBI share issued.
The reason for this cap is that the number of LBI shares issued has dropped dramatically, which at first glance may suggest lack of interest on investors behalf.
Reality contradicts the above mentioned reason. LBI shares have been transacted on the secondary market since day 1. Although I don't have any statistics about the volume of shares transacted, from what I've seen, the market was very active.
The reason why many use the secondary market is because sometimes the price is better than the issuing price. I'm guilty myself of using the market instead of buying freshly issued shares.
Maybe some of you may find this as not exactly an orthodox method, but this is a free market, every shareholder is free to do whatever they want with their shares. If you look at the buying price alone, not taking into consideration future earnings (dividends), you can make a profit if HIVE/LEO price is higher than the buying price.
Let the market decide! This is a natural and perfectly normal process. Some wallets are emptied while others are filled with those LBI shares. Some are making a profit now, while others will make a bigger profit later.
The hard capping will mean no LBI shares issued and the only way to get some is on the secondary market. I see it as a good thing, that will rearrange the holder list. Those who are in it for long term are going to HODL and accumulate. Reducing the supply may drive the price up to a certain point, which is also a good thing.
There's already a big price difference between freshly minted LBI and the market. That price may go up even more one the cap is done.
I'm not sure when the investment project started, it was towards the end of last year. Every decision we make, like the last one to postpone dividend payouts can cause sells, but I tend to believe those who are not in for long term or have other plans have sold their shares.
The second announcement was that the gov team is expecting proposals. This is where the community comes in. There are so many good projects out there and LBI has the funds to help them. @lbi-token is 9th on the LEO richlist with a total of 228,597.207 LEO. This is not a negligible number.
I truly hope project will come soon. Till then, HODL those shares tight and go vote on caping as it's important:) It's our stake, we decide what to do with it, but for that to happen, you need to voice your decision.
Here's the post if you missed it
Also if you have a good proposal, don't hesitate to present it.
Posted Using LeoFinance Beta
