Anyone else interested in a HODL-type-token? Then feel free to check on what's happening in LeoFinance and read through these posts: What is LeoBacked Investments? & LeoBacked Investments Explained.
I read that LBI is a project run by the same group as SPI. Honestly, I'm not familiar with SPI and I never got involved with it however I read posts claiming the legitimacy of the SPI model. Since I'm not familiar with SPI, I'm not sure how to compare it with LBI.
For this post, allow me to share my personal take about LBI based on my readings and learnings from other users.
First of all, the main reason why I like to take part in LBI is its accessibility. Everyone can participate regardless of the Leo token holdings. Personally, I just started with 4 Leo tokens in which I received an equal amount of 4 LBI tokens. These are the Leo tokens that I earned from commenting in LeoFinance. I'm committed to increasing my LBI holdings upon receiving my succeeding Leo rewards.
I figured that it's the best way for me to make use of those earnings since it's little to no effect when it comes to curation.
Over time, those LBI tokens that I bought will be increasing in value in terms of Leo. And we can all agree that Leo has been performing really well at a steady rate. Just look at the chart in LeoDex and realize its potential as time goes by.
That's Leo's performance in the past 2 months and it's been a steady rise.
Another aspect that I looked into is the dedication of the team behind the LBI project. The SPI team is the one managing LBI and they have a dedicated team of content creators that will post updates about the project. They are also in-charged of the coordination through posts and so we can expect detailed dissemination of info for the token holders. Also, the posts' earnings will also be added to the value of the LBI tokens which adds to the sustainability of the project.
So, in the first few months of the project, the LBI team will be working hard on curating, posting, and buying Leo miners to increase the LBI token value in terms of Leo.
That gives the LBI token holders a handsome passive income in a form of dividends that will be distributed on a weekly basis. It doesn't stop here since the accumulation of Leo stakes in the LBI account will keep adding to the value and by the time there's enough income that flows through the LBI project then that extra income will venture to other investment opportunities.
When it comes to governance, every LBI token holders across all levels will have a say in the direction that the project will go. That's another good point that makes the project more attractive for a variety of potential investors. As I mentioned earlier, even a lowly LBI holding like mine could appreciate for as long as I keep it within the fund.
Although there's a first-mover advantage in this investment scheme, there's a 3-6 months timeframe before the LBI token to go ballistic. During these early days of LBI, the appreciation of the token will go slowly. It will go for a steady rate until it reaches a point where the income from posting, curating, and even the Leo miners will gain enough traction to finance the other investment ventures.
At this early stage, it will be best to take part in it even in small amounts instead of going big by the time the token price has appreciated.
Again, I encourage you to go have a look at the posts I mentioned earlier. As always, this post serves as my journal for the way I invest my time & resources here LeoFinance space. What's written here is not financial advice.