BRO token profitability - is it worth the high price?

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The BRO token has become pretty expensive, but is it worth that?

The BRO token is trading for 9,49 Hive. That is a lot. As this is a dividend token the question is, if it is still profitable to buy in at this price point?

I currently have 10,65 BRO tokens in the wallet for my account @elbrava. I have calculated the Hive value of the rewards I received yesterday. Ofcourse the daily dividend ‘drips’ vary a bit from day tot day, so the numbers will be a little different tomorrow.

Drips   Price   Value   BRO

Archon 0,001 0,2894 0,0003 10,65
SIM 3,645 0,0035 0,0128
BEE 0,001 0,6657 0,0007
STEM 0,007 0,125 0,0009
WEED 0,004 0,1332 0,0005
LEO 0,006 3,57 0,0214
PAL 0,004 0,1114 0,0004
NEOXAG 0,045 0,0033 0,0001
Total 0,0371

So per BRO token I got about 0,0371 swap.hive worth of value in these tokens at current ask prices on hive-engine. Obviously these prices go up and down a lot, so that also influences the estimated APR. But using the prices of this morning and a price of 9,49 for 1 BRO token the profitability look like this.

BRO tokens 10,65
BRO price (ASK) 9,49
Reward/token 0,0035
APR (in Hive) 1,2727
APR % (today) 13,41%

Looking at the percentage, BRO is currently a bit overpriced. 13,41% APR is not much. Dividend tokens like EDS and INDEX do the same and the DHEDGE token is doing much better.

But the BRO token wasn’t always this expensive. It started at 2 Hive, then went to 5 Hive and 7 Hive before the @Brofund account sold the last tokens. If you bought in at 7 Hive, you are looking at a APR of 18,18%, for 5 Hive that is 25,45% and if you were smart enough to buy in at 2 Hive, then your APR is a staggering 63,63%.

So should you buy BRO today?

Well, if dividends would not go up and the price would stay the same, then no. But if you expect @brofund to grow and increase the dividends, then the price could also go up much higher and then it could be worth investing into.

So, do not buy BRO for today’s profit, but buy it if you believe that it will grow and become even more expensive to buy and profitable for those that invested early. The decision is up to you.

Do remember, this is crypto. Do your own research and in general you should not invest more than you are willing to loose.



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8 comments
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I weep each time I discover that I didn't invest in BRO when they were 2 HIVE each. One of the most awesome collateral tokens on Hive with great appreciation over the months. Really doing well.

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Absolutely, I bought most of them at 5-7 hive after selling all at 3.5 hive or so, when it wasn’t so clear what the plan was.

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I think I bought my 34 Bros for 100 hive or something like that. So its been a good ride so far for me :D

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Oh yes, that has been an awesome investment decision so far.

Well done!

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I noticed the price increase when I bought one today. I had to liquidate my holdings late last year and am now rebuilding. With everything going up, let's hope this rising tide really does lift all boats.

Posted Using LeoFinance Beta

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Very true, it might be trading for 20 hive by the end of the year. Who knows?

The fund is heavily invested into Leo and that coin is very likely to take off, so that should have a good effect on the price I hope.

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Nice analysis. I just posted yesterday about my monthly BRO earnings and with 9 Hive a BRO APR was around 21% is i sold all my engine tokens tomorrow. I believe if APR is 15% it is still worth to buy because BRO recently invested in CTP community. in a few weeks or months we can also expect CTP in dividends. Bro also merged BROAG token with BRO, so when it's profits comes in price would definitely go up. Last thing we should not ignore is coming leo airdrop. BRO holds a lot of stake in LEO and miners, that airdrop would indeed benefit BRO. So i think holding it and buying at this price is best because it is gonna moon soo.
Here you can check my BRO dividend post as well as bro diving into ctp..

Regards.

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Thanks for your reply. I do are with you that it is expected that bro would go up in price for the reasons you mention. This year will be very interesting.

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