Buying Into LBI

over 3 years ago

We are about a day away from the release of the LBI token. For those who are unaware, this is a LEO based investment fund that is modeled after @spinvest.

The goal of the fund is to help people "get rich slowly". It seeks a minimum of 20% annual return. This is something that might seem low considering today's Yield Farming craze but that is solid growth over a long period of time. A return like this over a decade or more will provide anyone with tremendous growth.

Given enough time, it will change anyone's financial future.

Of course, each person has to decide what is best for them. Personally, I have close to 11,000 LEO liquid ready to buy LBI tokens.

So what are my reasons?

Here are a few:

Track Record

As mentioned, this program is modeled after SPInvest. I jumped in with both feet when that was released and do not regret any of it.

These tokens were first offered similar to what LBI, for 1 HIVE (STEEM). At present, according to the latest Holdings Report, the token has a value of 4.52 HIVE for each SPI token.

This is a 4.52x increase in about 20 months. It far outpaces the 20% target that was set for the club.

https://leofinance.io/@spinvest/spinvest-weekly-earnings-and-holdings-reports-31

Naturally, this is not a guarantee so each will have to do what is best based upon personal finances.

Another Use Case For LEO

Leofinance is one of the stronger applications on the Hive blockchain. One of the areas it is excelling is in creating use cases for the token.

LBI is another example of this. People have the opportunity to stake, get involved in the LP on Uniswap, or hold tokens in liquid form. With LBI there is another use case.

Fortunately, this only adds to the value of LEO since the tokens acquired by the account will be staked. This will then be used to curate content. Obviously, this has an impact on a number of different levels.

To start, authors on Leofinance have the opportunity to get upvotes from the LBI account. The second advantage is more tokens are removed from the liquid circulation. If SPInvest is an indication, the HIVE that was received in the token sale was powered up and did not power down.

Activity Based Returns

LBI will leverage the opportunities provided by Leofinance to increase the return token holders receive. This is based upon the value of the token, not necessarily how it is traded on the open market since that is outside the project's control.

As mentioned, curation provides a return. By utilizing the stake, this helps to provide a daily stream of LEO tokens.

We can also see how the posting from the main account by different community members affects everyone. This helps to generate more LEO through the upvotes the posts receive. The idea is that when people are involved in the project, they will actively support the posts. This has a benefit to every token holder.

With the engagement we have seen on Leofinance so far, LBI offers a chance to continue this practice. It is with enhanced engagement that projects grow and LBI seeks to do its part to be an active member of the community. This should filter through to the rest of the membership.

The Use Of Hive Mind

This concept has nothing to do with technical details of Hive. Instead, this is the minds of all involved.

Many ask why should I invest in LBI when I can just do the same thing on my own. While that is true, the last section showed how each member benefits from the activities of others.

That said, this is only the beginning. An even more important aspect is the fact that we cannot know about all investment or opportunities out there. We all tend to focus upon our own areas of expertise as well as comfort. With a project like LBI, members uncover opportunities that we, individually, might have missed.

Thus, we can see how the experience, intuition, and knowledge of a large number of people can enhance the opportunities the project can get involved in. It helps to have many who can research an opportunity while also providing insight.

For these reasons, I will be participating in the LBI project.

Let us know what you think...what are your reasons for getting involved is you are.

If you found this article informative, please give an upvote and rehive.

gif by @doze