It is hard to tell whether LEO's airdrop on PAL stakers is a good idea or bad one. The main beneficiary of the airdrops were the PAL curators since they already got large amount of LEO (30K LEO). They got 1:1 in LEO for their PAL holding. There are 15 PAL curators.
The pros of the 1:1 airdrop is that large holders can sell at discount so that wanna-be LEO stakers get them cheaper. The cons is that since they get large amount in airdrops, they can crash a price of LEO at anytime. The crash is possible since the current market volume for most SE tokens including LEO are mostly illiquid.
Most of the large airdrop beneficiaries are settled. That means either they have cashed out or staked for the long time. However, @drakos's exit was timed perfectly since LEO is performing well for last month in price wise. He is getting handsome amount of Steem in return.
His action can be seemed beneficial or banal. He is providing cheap LEO to wannbe buyers. But he is also breaking the buying support abruptly.
I will give him the benefit of doubt.
LEO was recently trading at 0.18 Steem bid and 0.235 Steem ask. Due @drakos's fire sell of 15K LEO in last 8 days, LEO's support has broken down to 0.108 Steem. Buy support has become unsually thin.
However, those who able to catch LEO cheap and want to stake, they may become happy. But traders who catch them, they may try to sell it higher. It means that the sell side will get thicker. The future buyers have to pay premium to LEO traders.
Unless, we see buy support similar to last month, LEO may struggle to hold it's mini bull run. There will be another 15K from @drakos and around 40K LEO in total that are probably coming to market for sell which will test LEO's resilience.
So, we can call it the revenge of Drakos, The Jolly Pirate (Pun intended)!
Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions.
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
Sadly, I am low on funds right now :-(
If I wasn't, I would say this is great!
Since I am, I say it is terrible :-)
May have to see if I can scrape some together ;-)
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Don't worry, LEO recovered ;)
However, we have to make some support for the next 15K dump incoming in 15 days.
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It would be nice if Tribe sites stopped using PAL stake holders as the go to for their air drops. All it does is give to the ones that already have creating one of the same issues that Steemit has. Too much power in the hands of the few.
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I think recent tribes have stopped airdropping on them, anyways.
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Great post as usual and I agree, a great opportunity to get Leo at a discount.
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Perhaps overused but still useful ;)
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wow so he his the one providing cheap leo, caught some at a high price though they were staked, hoping to get more and probably start trading the leo market, as it seems shorting is the best strategy right now
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Trading is usually hard. It also becomes difficult when big players such as @drakos are involved ;)
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Thank you for posting from the https://steemleo.com interface 🦁
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