LEOMM Mining - My 1 Year Experience with LEOMM
Hi LEO-folks,
Right after the introduction of LEO Mega Miners (LEOMM) I decided to buy 100 of these tokens for 6 Steem each to get some basic LEO income over time. To learn more about the way LEOMM is operating, please refer to the following article
I already made a post about the first 10 days of experience that you can find here. Time went by, and I noticed that I hold LEOMM (on an alternative account than @no-advice) for more than one year now and it might be interesting to do an analysis and another article. In my analysis, I compare the cumulated mined LEO per week (Monday to Sunday) in ten consecutive weeks (calendar weeks 27 to 36) for 2019 and 2020. Please see the results of this analysis in the following graph and table.
| 2019 | 2020 | DELTA % | |
|---|---|---|---|
| total LEO per LEOMM mined (10 weeks) | 4,378 | 2,7478 | -37% |
| mean LEO per LEOMM per week | 0,438 | 0,275 | -37% |
| min LEO per LEOMM per week | 0,380 | 0,161 | -58% |
| max LEO per LEOMM per week | 0,619 | 0,3743 | -40% |
| cost per LEOMM | 6 STEEM | 55 HIVE | x9,1 |
| weeks to break even | 51 weeks | 392 weeks | x7,69 |
In 2019 the total number of LEO/LEOMM mined was 3,5344 LEO over 10 weeks, with a mean number of 0,438 (n=10, Range 0,3801-0,619) LEO mined per weeks. In 2020 the total number of mined LEO/LEOMM over 10 weeks decreased by 37% (same period of time) to 2,7478 LEO with mean number of 0,275 (n=10, Range 0,161-0,3742). So in essence mining with LEOMM is only 2/3 as efficient as it was in 2019. The price of LEOMM was at 6 STEEM in the beginning and, during the last weeks of the LEO increase also increased considerably.
There is almost no liquidity with less than four LEOMM on the Market at the moment and therefore the prices are extremely high with 55 HIVE as the first sell order. Demand is quite sparse (only 35 LEOMM as Buy-orders on the market) with a maximum bet price of 6.2 HIVE/LEOMM.
It is therefore not possible to define a reasonable price from the market at the moment. However, doing a break-even calculation, when I bought LEOMM in 2019 for 6 STEMM, 51,08 weeks of mining were required to earn the amount of LEO to get back the buying price. Even with the quite higher LEO price of 0,59485 HIVE as of today, a buyer of a LEOMM for 55 HIVE would need to mine for 391,91 weeks to get his investment back. Going the other way around, a reasonable price for LEOMM, with a break-even time of about one year (like during the time of introduction) and factoring the much higher LEO price in, would be around 8 HIVE.
I hope this article was valuable to you.
