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@mykos
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Excellent and fantastic article and this is why hive engine users in particular i always felt weren't the smartest crayons in the box. Let me explain. As you point out in this article. Hive engine isn't really rooted in the hive blockchain or connected per se unless you consider hivep. in fact you're also trading against other cryptos that come through the exchange. So it's more like hive engine is on it's own servers and can just as easily integrate into any crypto.

Not that hive engine itself is a bad concept. It's good to have some community based projects that can in some sense tokenize to get that effect. However, this is not rooted in the hive chain etc., So the value of these tokens in a sense are mostly created from their own value however it could be some syndicates form that use the rewards pool on hive to fund projects which has occured however, that can also be bad in a sense in that you could end up eating hive's lunch depending on if it's a matter of the project bringing value to hive or hive bringing value to the hive engine token.

Let me take your other example to bring it home. So you give this example how you can take these front ends like maybe leofinance. The value comes from like ad networks and attention value of the user of the platforms own promotions. So the value of what you're probably going to get from that would be connected to metcalfe's law.. or the value of the network being relational to the number of nodes or could be actual users as explained under the rule.

So the value in essence will come from attention value. In that you're on a network that collectively gives value over in some form to the project. The problem with both hive and what would be the theme of hive engine tokens is that hive probably only has a few million actual users.

That means not many people will see any of this content and information. So would the tokens achieve any significant value. Maybe, but to be realistic on average it's probably likely many of these projects will never see 40-50k users. So that would mean value wise they probably won't perform well as an ad network.

In comparison to like Google and Facebook. Networks with billions of users. Networks like disneyworld where everyone in teh world loves disney no matter what land. These vast projects are valuable based on their network effect. Is it possible for cryptos other than bitcoin to achieve that or ethereum? Maybe but very very difficult.

The last part and most important part is what is it we call the value being moved on hive engine. Well i'd call that just a standard auction market. So you have net asset value and you have market value. What are the differences. So net asset value or nav is much like the actual book value which doesn't change based on market auctions or manipulation etc.,

You then have auction market value. Which is speculator driven. You could have one guy manipulating the market.. some market maker doing something or another. So the prices could become inflated or even show valuations that aren't accurate. The true value would lie some place maybe inbetween but obviously smart investors know the difference between the smoke and mirror of what happens in especially crypto markets.

So are there any projects on hive engine that i believe will ever actually hold true value. Well so far i can think of only 2. The first is splinterlands which interestingly enough is not a tribe. Most tribes don't hold much value. The other is also not a tribe bitcoin myk which my belief is it has more value than every token on hive engine besides splinterlands. These 2 videos i'm about to post are very explanatory as to why. I would continue to write but it would turn into a book. So the 2 videos when will bitcoin myk become worth billions.. and Bitcoin MYK will be bigger than google adwords are good explainers to why tokens on hive engine don't have much value and won't. Why splinterlands and bitcoin myk does and will.

https://www.youtube.com/watch?v=fxnaGLhHyGw&t=25s

https://www.youtube.com/watch?v=kQC6ukGYc0I&t=626s

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