HoloZing: Naming Contest, Liquidity Pool, and Trading Strategy
As I mentioned in The Beginning of My HoloZing Journey, I will check other published articles and responses in the community to keep myself updated about most recent developments surrounding the project. I think now is the time to write another piece and let me start with the naming contest.
The Naming Contest
After reading the Name the Holozing Starters contest article, originally, I was thinking of participating in it. Using ChatGPT, I came up with some cute names for Fire Wolf. However, as I go with the process of elimination and adding description, I realize that the task of naming the Holozing starters is not as easy as I thought at first. And besides, such a naming process requires more of the creative part of the brain than the logical one, which is not my strength. And so I have to accept the reality of my limitations and I trust that many in the HoloZing community can do far better than I can.
Liquidity Pool
The next article is the one published by @acidyo two days ago about liquidity provider. Currently, there are three ways to earn rewards: staking $ZING, delegating HP, and holding $POSH. The fourth has been added, and this time it is by way of creating a liquidity pool for $ZING in the market. This has been delayed for a week to give fair play to everyone. I might also consider adding this fourth earning avenue once I have enough amount of $ZING.
I love how @acidyo communicates this idea of fairness, a certain level of assurance, and warning. The reason for the postponement is to allow holders to un-stake $ZING and to utilize the "sell pressure" to help stabilize the market price of the token. If such an intention is realized, this will make pool participation safer for those who want to provide liquidity.
Growing Stakes
As for the assurance part, this was also my worry at first. I thought the early holders of huge quantities of $ZING tokens would immediately dispose of their stakes. Except for a small number of tokens being powered down by a few accounts during the time I check the Richlist, I observe that in the succeeding days, the stakes of most holders start to grow again.
A Reminder
Moreover, @acidyo mentioned that the HoloZing team "has stayed neutral during this time and has not participated in the market." He concludes by reminding supporters of the project not to "make any drastic decisions" for fear of missing out (FOMO).
The Token's Supply
When @acidyo showed the Distribution Chart, I immediately checked $ZING's token supply. At first, I mistakenly thought that 10M was the maximum supply and so interpreted it that the token would be scarce in the future.
Seeing the above chart, I was surprised but later I realized that this project needs a lot of liquidity for this is a long-term game that requires four to five years for its growth and development. The 9Q maximum supply is not unique to $ZING. Other Hive Engine tokens have similar maximum supply, and the most influential among them is the $BEE token:
A Potential Trading Guide
This reminds me of an earlier article by our dear @acidyo about the price of $ZING. Based on his computation, his estimated price of $ZING is 0.001333 SWAP.HIVE. As you can see, the current market price of $ZING is way above the estimated price. If you will strictly follow this price benchmark as your guide in trading the token, this would be your strategy:
$ZING < 0.001333 SWAP.HIVE = BUY
$ZING > 0.001333 SWAP.HIVE = SELL
And so that's my story about why I failed to join the naming contest, my response to the liquidity pool, the clarity of the token's maximum supply, and a potential guide for trading the $ZING token.
Worth mentioning that the price you stated at the end is more of a "base" price where selling under that would have gone against HP APR of delegators. There's many factors involved as to why the price could be quite higher, like being part of staking Zing early but not having the HP to compete for delegation rewards or wanting to be in the LP from day 1 but not having unstaked enough. On top of other speculation like knowing there will only be about 100-200M tokens after 1 year depending on how far the game has come along by then. Then you also have the price of Hive in the factor and its fluctuations, etc.
It will take some time I believe for the price to hit a bottom, aside from unstaking taking 4 weeks in total other inflation rewards are also still settling in like HP delegations still growing and the project being quite young thus many not knowing about it yet, as was shown by many POSH holders not even claiming their "free" Zing yet.
That "trading strategy" could be the logical decision after reading that "base price" you gave. Nevertheless, the market generally doesn't follow logic but the dominant sentiment. I will just keep that "base price" in mind while speculating about the price of the token. Thanks for a more detailed elaboration.