SLT , smartland. A protection from Bear market
In this short article I will explain why SLT is the ultimate token to shield yourself against a spiralling Bear Market, or even against corrections.
I will start by making a parallel with most of the other Token's staking mechanics, which give a fixed return in terms of a Token %. Let's take for example an imaginary 100$ Token called ABC, which brings 10% APY when it is staked.
Staking a 100$ ABC bringing 10% APY is very nice during a bull market, you would make 10 bucks a year. And, if its value goes up, you will make even more, but that is also its Achille's heel during a Bear Market.
As the Market falls and the value of the coin goes down, the rewards diminish, which entices holders of the coin to sell, diminishing it even more. We all know the effects of a Bear Market.
Once that ABC falls to 10$, you are now receiving 1 buck a year.
That's not a lot of passive income.
As for SLT, Bear or Bull, you get the same return or higher as more assets get listed.
SLT rewards are in no way influenced by the current crypto sentiment, the rewards are backed by how many Real Assets are getting listed and traded on Smartland's platform.
Staking rewards are coming from 33.33% of Smartlands fees, that's it. A direct bite of Revenues, not Profits…
It is NOT based on:
- – The current Token value
- – The number of Transactions being performed on a Blockchain
- – Adoption & Demand of a Technology meant for a Crypto Audience
- – Willingness to adopt a new Currency
Again: whether the market goes Up or Down, you still get the same rewards. This fact makes SLT the perfect token to hold since you can use the staking rewards to buy other coins at a huge discount.
If you plan to forever hold SLT as a vehicle of passive income, you will crave for a bear market.
Have you ever been in a situation where you wish you had money to purchase a dip/correction/bear market?
SLT will keep giving you that spendable income to load your bags with cheap assets, providing you are not using the rewards to compound your SLT stash, which I think is a good idea during a Bullrun and less during a Bear market.
Take a minute to think about this concept… You will not find a Tokenomic as good as this and if you do, please leave a comment I am curious.
Now, don't get me wrong, the SLT token value will still go down during a Bear market, but not the rewards. Although, mechanically, the Token should still maintain a good value versus other cryptocurrencies since the rewards are what influence the price of the Token, and the rewards are the same.
Obviously, there are still risks: if the platform does not get adopted, it will lose its value since there won't be any rewards. This statement is 100% correct, but so as all other coins out there, so might as well bet on one that survives a bear market. And, if you read the linked article above, your doubts will be appeased.
For all those reasons, of SLT confirms it can deliver on its promises when the platform launches, it becomes a lifetime hold for me as it will be a great hedge to buy discounted cryptocurrencies.