Welcome to this week's review.
This continues to be a challenging time, with activity across the Steem blockchain continuing to drop. I can see this both from global parameters such as the reward pool and our own account parameters such as upvotes going out.
The one piece of good news is that this has improved the value of MAPX in terms of both price and the votes being delivered.
With ADDAX having finished last week and the TULIP game coming to an end yesterday, we should have seen a nice increase in income. Except that this has been balanced by us buying back some of our own tokens; we were running quite low anyway, so is good to top up when prices dip.
Our real concern is not so much a drop in profits but a lack of liquidity. This has meant starting a small power-down so that we can honour any sales and can continue to invest in some rather under-valued assets. If such funds are not needed then they just get powered back up again.
Our SP has increased in line with rewards coming in but we have been unable to power up anything other than that. The market requires some liquidity, which means people actively buying and selling tokens to adjust their positions. A sluggish market means few sales for us, even our other MAP FinTech tokens are seeing sales slow down. Just selling tribe tokens to drive their prices even further down is not a sign of vibrant activity.
I have been asked a few times about what the best strategy is now. That's a hard question as everybody has their own motivations, but this question can also be rephrased as to what to do with one's SP.
All the MAP FinTech tokens were designed before HF21 but in the knowledge of what HF21, and in particular the EIP, was really going to do. It really was obvious!
The problem with just powering down SP is that you are left with a growing STEEM total that isn't earning anything while waiting to out-exchange. Our tokens solve this problem by returning income higher than your SP could do on its own while at the same time being liquid and can be sold at any time and turned back into STEEM.
This means you can use tokens such as MAPR to park your STEEM while waiting for a much better market price while earning at the same time.
Indeed, this current slowdown has improved some of our parameters, with the our ABV up slightly to 1.068 STEEM; this means that the assets alone, without counting the upvotes, is worth that much STEEM per token. Our Vote Value per STEEM has also risen to 1.41, which means almost 40% more in upvote values compared to your invested STEEM. As the price has also dropped slightly, this has also increased the VVT, the value per token, to 1.27.
Putting all these numbers together means that MAPX tokens should be priced in the region of about 1.20 STEEM. They are currently available at 1.11 to 1.15 STEEM, so about 5-8% cheaper than their par value.
As with any market downturns, the moaning and groaning are expressions of discontent, but they don't by themselves solve any problems. The next step is to find the best way to profit from the changed environment. All of our MAP FinTech tokens have been designed to withstand such changes. Sure, it is more rewarding to live in a thriving market but, actually, one of the less-advertised features is that we do best when things suck!
Have a good week!
Please note that I always qualify any forward predictions as they are subject to technical issues such as the proper functioning of the blockchain and our own algorithms. We are also aware that HF21 is imminent although there is no fixed date as yet.
The headline figures are:
MAPX tokens active = 9080
SP in @MAP10K = 7118
Mining SP = 4,000
Other STEEM = 2584
Total STEEM = 9702
Total Income = 38.40
Fee = 3.84
Total STEEM carried down = 9698
MAPX ABV = 1.068 STEEM
MAPX VV/STEEM = 1.41
MAPX VV/Token = 1.27
Note that "Other STEEM" is the sum of all holdings not powered up as SP: liquid STEEM and SBD plus holdings within Steem Engine to maintain market liquidity plus some investments; we also now have stakes in MAPR, PAL and LEO, and some others, and receive rewards from them. Also note that values are volatile, especially any holdings priced in US$, so the above numbers are a snapshot and may have changed when you look at the @MAP10K account.
Income includes rewards and token trading profits but excludes token sales.
The Asset Backed Value (ABV) is our total holdings calculated in STEEM divided by the number of active MAPX tokens, whether staked or unstaked. This shall be used as the lowest price we offer MAPX tokens on the Steem Engine market.
If VVS > 1.0, then MAPX stake-holders are getting upvotes of greater value than the par 0.1% per token.
If VVT > 1.0, then MAPX tokens are under-priced on the market and good value to buy.
Full details of how the MAPX token operates can be found at New MAPX Token for Upvotes and Value Growth.
Any questions, please ask in the comments below.