Leo reminds us of the importance of second layer tokens

over 3 years ago

It's kind of Alt season, and we're seeing some upward movement in the price of certain tokens. Coins like Ethereum, Rune, AVA, and AAVE have somewhat appreciated but sadly, Hive has sort of reduced in coin value in that same time but in the midst of the storm, Leo has moved in the opposite direction.

Now don't take this the wrong way, this post isn't about shitting on Hive at the benefit of Leo. On the contrary in fact, as I believe that consistently building and growing second-layer options on Hive will be beneficial to the token in the long run.

For this case study, I'll like to use Leo as it is the front-end I'm more familiar with and also more invested in. If you follow the @leofinance official Twitter you'll find that the team behind the project is very active and constantly update the public about activities surrounding the project.

Every day there's a new ATH in terms of traffic to the niche site and the price has been doing quite well relative to Hive and Ethereum in the wrapped side of life. Other than the traffic and token value, there are regular updates on the front-end, a couple of products that includes leodex and even a forthcoming airdrop in the near future that will be based on how much Leo stake you have locked up.

Okay, so we've established how awesome Leo is, how does it translate to Hive? Well, technically speaking, there are few things about Leo that doesn't concern hive. Let's look at it like this; the value of Leo is directly linked to Hive. This means that for now at least, a Leo token value in dollars is derived from multiplying or dividing the dollar value of Hive according to the value on Hive-engine/Leodex.

Also, it is worth noting that there are only two ways to get Leo right now; either through blogging on the front-end and invariably increasing traffic or through purchasing from the Dexes that it is listed on,

Airdrop Analogy

So let's say Leo announce an airdrop that will give some form of benefit for holding Leo power; you know, kind of like the teaser announcement that they already threw out some weeks ago. People that want to benefit from this airdrop have to buy Leo and power up, simple as that.

Now there are two ways of getting Leo as I said earlier; posting will take longer and will not amount to much if the airdrop is in your mind. Buying from the market on the other hand is more expensive but faster and will reap more rewards in the event of an airdrop based on Leo power.

People that want to maximise their participation in the said airdrop will have to buy Leo from the dexes it is listed on. At this moment, I can only think of Uniswap and Leodex/Hive-engine.

Uniswap runs on Ethereum blockchain, so you'll be buying the wrapped version with your Eth. However, Network charges are insane on Ethereum, so if you're not rich, you can't do much there.

The other option is to use Hive, which is the path of least resistance. Using Hive, you don't have to worry about network charge and you also don't need to unwrap the Leo before staking it. So, at the end of the day, anyone interested in participating in the Leo Airdrop will have to stock up on Hive first.

How I see it, anything that increases buy pressure on Hive in central or decentralised exchanges is a win for me. So Leo, like any other second-layer front-end that builds consistently and grows beyond the shores of Hive is, in fact, good for the entire community.