The Accelerating Rate Of LBI Value

about 3 years ago

LBI is a venture that is concerned with long term growth. The idea is that anyone who gets involved will end up being well rewarded over time. Through the use of passive and active opportunities, we are able to generate returns far greater than most are accustomed to.

This is not a get rich quick scheme. The concept is to "get rich slowly". However, that does not mean things will drip along. With the opportunities present, as well as leveraging what is available on Hive, we can see how the numbers can grow fairly rapidly.

LBI went on sale back in December. The price at that time was 1 LEO for each LBI. The amount of tokens were open-ended at that point (although there was a max cap). Here it was decided to see how actively the tokens were embraced.

Fortunately, LBI become very popular with the community. This is not bringing us to the next phase. The cap for token sales comes May 7th. This means that all pricing will be determined by the market.

However, when we place a valuation on the tokens, that will continue as such in the weekly report. For those unaware, price and value are two different things. We derive the valuation by looking at all the assets held by LBI and converting it into LEO. This sum is then divided by the number of LBI outstanding to come up with the token value.

So far, we had nice acceleration through the last 4 months.

Here is the chart from the weekly post:

One key thing is to notice the trend. In spite of the line, it is not a consistent growth rate. We started out a bit slower and then, around 6 weeks ago, we saw the rate accelerate. Again, this is the value of the token.

This means the overall value of the fund is growing at a faster pace than it was in the early days.

In 17 weeks, the value of the token, which started at 1 LEO is now at 1.18. That is 18% in 17 weeks or an annualized rate of 55%.

Try getting that from your local bank.

Does this mean that it will continue? Like anything in the financial world, we cannot guarantee that. However, we do know posting and curating will continue, hence the flow of LEO into the account will continue.

At the same time, we are active in the CubFinance platform. In fact, that is what is adding to the rate of accelerating. We now have more assets generating a return that all feeds into the fund.

Of course, since CubFinance is off chain, conversion differences can apply. Depending upon the price of CUB to LEO, we might see the value of the holding, in LEO, go up or down depending upon how that ratio is.

The ideal would be for CUB and LEO to maintain the same ratio while both of them increase against other currencies, especially fiat. Nevertheless, this is just a mental exercise since all valuation pertaining to LBI are in LEO. That is the currency that we base everything in.

Over time, we will see the tentacles of LBI branching out even more. We know that, at some point, there will be an airdrop of tokens for ProjectBlank. Since it is going to be based upon LP holdings, LBI is going to be one of the largest beneficiaries. This will add instant value to the LBI token.

At the same time, since it is a Proof-of-Brain token, we will be able to set someone up with curating content. That will pull more Blanks into the fund, further increasing the overall value.

Thus we can see 3 paths of revenue: LEO posting/curation, CubFinance, and Blank posting/curation.

And who knows, there might be more.

This is how we keep growing things. We take a base that we start from and do all we can to keep it expanding. As LBI gets involved in more projects, we could see the pace of the token value keep accelerating.

If we do this over enough time, we will have a very nice return for people. This is how wealth is generated.