LEO and PAL trading update: LEO's buy and sell spread reaches equilibrium and PAL has an another downturn!

in steemleo •  9 months ago  (edited)

Frequently, I write updates on LEO and PAL's market activities when interesting events take place. Today is a such day.

Amazingly, LEO has reached a perfect buy and sell spread equilibrium at around 0.2 Steem. It means that both buyers and sellers will have the minimum slippage cost to take positions. It is great for entering and exiting investors. However, it is not good situation for traders since they thrive on slippage premiums.
leo_buy_sell_market.png

Very recently, LEO had a surge up to 0.5 Steem. After that it steadily declined and settled to 0.2 Steem.

In the meantime, due to large delegation (533K SP), large amounts of LEO are earned by investors. A whale is earning up to 600-700 LEO per day for his/her large delegation. Luckily, he/she stakes all his LEO profit. Therefore, there is no significant sell pressure from SP delegators.

In the long term, LEO has doubled its support from 0.1 Steem to 0.2 Steem. It has to be seen whether LEO can gradually uplift its support to 0.3, 0.4 and finally, 0.5 Steem. It is quite possible if onboarding sees an acceleration and LEO sinks earn more from sources such as Ad reveneue, SeemLeoLabs, SteemDex etc.

LEO_great_run.png

On the other hand, PAL had a crash of lifetime. It will require somebody to sell 500-700 PAL to crash it below 0.02 or even 0.01 Steem. It crashed from recent strong support of 0.03 Steem to 0.026 Steem. It means that PAL's internal economy is failing.

PAL_chart.png

There is low incentive to invest in PAL since confidence has been dwindles. The inflation (e.g. reward to PAL curators) is nowhere near to keep up with few sinks. Most earners of free PAL are dumping without holding back. If founders do not take any immediate actions PAL may drop to 0.01 Steem, or less, a 200% drop down.

PAL_great_demise.png

Both LEO and PAL have shown two sides of a spectrum for tribe tokens. LEO is having a great success due to better economic model. The model is based on reducing inflation rate by burning LEO as much as possible from sinks.

Also, through innovation and community involvements the number of sinks kept increasing. Moreover, continuous developments (e.g. dex.steemleo.com, SteemLeo Dashboard etc.) have kept investors and attracted new investors.

PAL has failed to bring in new sinks and new features. Moreover, PalNet is competing with generalized front-ends such as Steemit.com or SteemPeak.com which is a hard task. Without significant innovation and better economic model, PAL's recovery is uncertain.

Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions. This opinion is only for educational purpose.

Image sources: Most images are open sourced (e.g. Pixabay, Wikimedia etc.) with Creative common license. Some images are used with due courtesy to respected owners.

Thanks for reading.
@dtrade
Cryptominer , occasional trader and tech blogger since 2013

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PAL has dropped like a brick since it was introduced. It is dying a quick death. While it was a trailblazer, there is no innovation. You highlighted the biggest difference between the two: the fact that the Steemleo team is innovating while the PAL team does not seem to be heading anywhere.

My optimism with Steemleo is due to the fact that additional features are added and the intention is to keep innovating. The idea of throwing a tribe out and expecting it to take off does not fly.

It takes work to keep something moving forward, something most tribes seem to ignore.

It looks like tribe bubble is busting and winners are coming out of rubble ;)

.03 held for a while. I thought it was going to hold for good.

Eventually Pal should find a bottom. 01 maybe?

I like Pal because I can trade it more but Leo doesn't tank like Pal does.

News and update bring forth investors time and time again I saw pals massive airdrop as a downside as most people never value that dey didnt pay for and the lack of innovation from the pal team also contributed and most of all every community needs professional traders to help maintain the price on their token as once there are less traders and more miners price tends to go down. Steemleo is one tribe am proud of although didn't stake much still buying as little As I can cos I see the price getting to 0.5 steem before the end of the year

As I can cos I see the price getting to 0.5 steem before the end of the year

LEO has broken 0.5 Steem several times. Now 0.5 as a permanent floor similar to 0.2 Steem, has to be seen.

I guess that's what he meant seeing Leo at 0.5 steem/Leo as the floor price especially with the way development is ongoing

Yeah next time I might try and defend .5 instead of running it as high as I can. lol

The Leo market definitely seems pretty stable to me now.

Yea if steem-engine can fix the 30days cancelation of open orders the market will be stable

I continue to stake the PAL I receive from the contents I create.

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It would be better to sell on any bounce and buy later. Making a buy order around 0.01-0.015 can luckily filled. With 150 Steem, it can be 10K PAL. In panic, market works in irrational way.

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Leo is looking kind of tight. I'm tempted to reduce my exposure but everytime I do that I get burned and Leo shoots up. lol Plus I think Leo does have tremendous long term potential.

I really thought Pal would hold .03. I'm surprised that it didn't.

I do like Pal because it kind of seems tradeable. I have to do a lot of holding with Leo.