Gambling on Hive-Engine Tokens

High risk = high return.

Yeah, we’ve all seen that truism. But it leaves out a key word.

High risk = potential high return.

You could also lose everything.

In the context of our Hive blockchain, there are a lot of different options along a risk/reward spectrum.

Probably your safest bet is HBD, at least nominally somewhat pegged to the USD. And with the upcoming Hard Fork 25, a fair to good chance that it may well stabilize in price in terms of fiat. And you can put it into savings, earning whatever interest rate our Witnesses choose. Not perfectly stable, but a fairly “safe” bet (low-risk, low-return) among the universe of Hive-related investing options.

Hive tokens put you in the higher risk, higher reward realm. If you believe in the long-term potential of the Hive network, Hive tokens offer the possibility of significant, and perhaps life-changing, gains over a long-term horizon. Yes, you could get rekt. We’ve all seen cryptos crash and burn. But Hive was birthed by Justin Sun’s attempted hostile takeover; if it goes down, it’ll go down fighting.

Staking your Hive rather than holding it in liquid form of course opens up the income streams of curation and/or delegation earnings, albeit with the risk of locking up your funds when the market might quickly move against you.

And then there’s Hive-Engine tokens...

With H-E, your risk/reward possibilities are on steroids. You could do much better than HBD or Hive, but you could also go to zero.

Granted, the vast majority (99%?) of Hive-Engine tokens may end up “in the dustbin of history” as forgotten shitcoins with zero value.

It’s critical to understand that they all are MUCH more centralized than Hive itself. A few (such as @spinvest’s SPI) are making plans to at least somewhat mitigate that risk.

Hey, I grew up in New Jersey. By nature and training, I therefore tend towards being a cynic when it comes to human nature. There will be rug pulls. There will be angst and drama (does the recent POB brouhaha ring a bell?). And what happens if the one person behind the token gets hit by a bus?

All that said, some of the H-E tokens might have a bright future. LEO is of course the big megillah and happens to be my largest H-E holding. And I own LBI as a LEO “derivative” as well as SPI (which has Bitcoin exposure), CL as a Cub DeFi play, as well as EDS and EDSM as sources of a Hive income stream. And, as a speculative gamble, UTOPIS which currently has a high rate of return but is basically one guy’s hustle.

How much risk are you willing to accept for the possibility of enhanced returns?

Disclaimer: This should not be construed as financial advice. I am not a registered financial advisor; I don’t even play one on TV. Do your own due diligence. Batteries not included. Objects may be larger than they appear in mirror. Some assembly required. Do not taunt Happy Fun Ball.

^{Badge thanks to @arcange}

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