Is it too late to buy SPS?

Hey everyone,

As you may know playing Splinterlands doesn't only give you the opportunity to earn some crypto through play2earn but also gives you the chance to get some SPS which will grant perks such as a great return on your staked SPS and getting VOUCHER tokens that can be used to buy the newest Splinterlands Chaos Legion pack. But is it too late to invest now? Let me explain why investing at this moment can still be promising.

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What's SPS and how to get it?

SPS is the governance token of Splinterlands. It gives holders power to have a say in the development of the game and get other advantages in the future. That can be certain promotions - like the VOUCHER airdrop - or other rewards. So having some SPS and staking it is really rewarding, especially because you'll also receive interest on your staked SPS which is currently 60% APR. That's a lot and if people unstake some of their SPS after the VOUCHER distribution that rate might even go up again.

So how can you get yourself some SPS? Well, there's still an airdrop ongoing in which you get daily free SPS just for beeing an active player. You can find out more about that in this post I wrote a couple of days ago. The other option is to buy SPS which you can do on Hive-Engine with your Hive or other cryptocurrencies.

Should you invest now?

A couple of weeks ago I would've instantly said yes to that question. Although this question is not that easy to answer because you could also invest in DEC to increase your airdrop points and thereby raise your SPS drop as well. But investing seemed like a good idea in general back then.

Now with the start of the presale a lot of things changed. In the past few weeks people have been buying a lot of SPS for staking so that they could get more VOUCHER token (which are needed if you want to buy the new Chaos Legion packs) which led to an enormous increase of the SPS price. Now - after 3 days of presale - the price is decreasing again. Let's take a look at the SPS chart.

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As you can see the price went from under $0.30 to almost a dollar within 3 weeks. At the time I'm writing this post one SPS would cost you $0.766 which is slightly less than a week ago but still a lot more than the price at the end of september. So the question is: Is now a good time to buy?

Well, if you already own some SPS and you're happy with that amount & your share of the daily VOUCHER distribution, you're probably better of not investing. And even if you want more SPS just waiting for your airdrop SPS might be a good alternative to buying. But you should be aware that most people will stake their airdropped SPS as well, so your VOUCHER rewards might still stay at the same amount.

But let's say you want to invest now. What kind of return can you expect? Let's assume you would buy 100 SPS at the current price. That would cost $76.60, maybe a bit more if you had to buy some crypto first as well. Now, how much VOUCHER tokens would you get with 100 staked SPS?

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Since there are currently 150,192,735 staked SPS, you would get only 0.02 VOUCHER a day. Let's say that share won't drop because it is more easy for my calculations and you could also increase your staked amount by staking returns from your staked SPS and airdropped SPS. So in the next 30 days you'd receive 0.6 VOUCHER token which would be (right now!) worth ~ $10. So although you invested more than $70 you still wouldn't be able to buy a Chaos Legion pack without acquiring a fraction of a VOUCHER token as well.

Of course there's also your staking reward of ~ 60% APR. If you stake your SPS for 30 days you'd get around 5 SPS on top as well. So all together you'd get VOUCHER worth $10 in addition to SPS worth $4 which would be a return of 18.4% (14/76) which is really good for just one month!

So should you invest right now? Well, that also depends on the development of the SPS and VOUCHER prices. Let's say the SPS price would fall to $0.60 after the presale because people don't get any more VOUCHER for their pack purchases afterwards and don't want to stake their SPS anymore. If you sell your SPS at that point you would have made a loss of 100 x 0.76 - 0.60 = $16 which is more than your return! And the price might even fall under $0.60.

So in the end it is your decision if you want to take a risk and invest in SPS at this moment. Nobody knows how the prices will develop but if you want to get yourself some "free" VOUCHER and believe in the future value of SPS (like I mentioned in the beginning there will probably be more perks of holding SPS in the future) buying SPS now might be a smart decision. And who knows, maybe you'll look back some day and be happy to bought SPS for under a Dollar 😄

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What do you think of investing in SPS at the moment? Smart decision or just stupid? Let me know in the comments down below 👇

Thanks for reading and see you next time.

Cheers ✌