Understanding What You're Buying on Steem Engine
Looking to buy 100 Highland Archers for $1. Comment if you would like to sell your Highland Archers in bulk
After reading up on certain tokens on Steem Engine and seeing what price they were selling at made me wonder if people realize what they are actually buying on Steem Engine or are they purchasing tokens in hopes of one day the value of that token going to the moon?
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Let me be clear I'm not talking about speculative coins like @dramatoken and other for fun coins that have no real value outside of speculation. You can get some upvotes on comments by giving away drama tokens once you accumulate 10 drama, but outside of that, there is nothing that backs up the value of these coins (besides how fun it can be to find some really juicy drama and give them away).
One token I'm talking about is the @tipu token. The TPU token was announced here and seems like a great token to pick up for the right price. From my understanding, every TPU token is backed by 1 SteemPower held by the Tipu account. You get passive rewards by owning this tokens just like if you decided to donate SteemPower to the project.
Advantages of Purchasing / Owning TPU
The advantage of owning the token is that you don't have to wait 7 days to get the Steem Power back like if you decided to delegate. As soon as your done with the tokens you can put them for sale on the SteemEngine market. The TPU token can be backed by at least 1 SP per token and sometimes more. If you want more information about that you can check out the TPU annoucement post.
Unless something changes, if you can purchase this token for less than 1 Steem per token it's a good buy. I'll be looking to see if the price ever hits 0.9 Steem or lower as that will probably be where I'm looking to accumulate (assuming it ever makes it that low).
Disadvantages of TPU
You may have to sell the token for less than 1 Steem to get it to sell. With SteemPower you have to wait 7 days, but at least you're guaranteed to get back what you sent. Even when offering TPU at a discounted price it may take longer than 7 days to sell.
To my knowledge, there is no smart contract in place to guarantee that 1 TPU is worth at least 1 SP. I trust the TPU service and see no reason for them to do this, but they could decide that 0.5 TPU is worth 1 SP one day and double the amount of TPU tokens over night.
To Tie Everything Up
I'm not picking on TPU and think this will be a great token to purchase for the right price. I am just trying to emphasize why it's important to understand what (if anything) backs a token so you know good prices to buy/sell the token and bad prices to buy/sell the token.
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I just want to encourage everyone to become an informed investor and if you want to speculate that drama token is one day going to the moon and be worth 1,000,000 Steem for each 1 Drama then go for it! For those looking to make a good investment, take some time, read the paper that was hopefully written to explain what the token is, and do some research on the project/team.
There are some good tokens out there you just need to do some research to find them and know what a good price is to wait for and purchase them.
!dramatoken
Actually, DRAMA does hold a value. While it is a joke it also holds value.
You need 10 DRAMA to call the DRAMA bot which gives the "Caller" a vote backed by 5400 plus Steem Power which equates to a Dolphin Vote is above the dust level and certainly adds value.
Storms off in a huff!
You have
DRAMA!To view or trade
DRAMAgo to steem-engine.com.Perhaps OP was trying get some drama tokens!
haha, yeah.
It’s a cool idea and all I just rather invest in Steem. Many of these are so dependent on Steem itself if for whatever reason Steem goes off more cliffs and never recovers there went the neighborhood for these.
If I was going invest in any I would prefer coins to projects that could stand on their own two legs if they had to without the platform.
Eh like I said tipu can be a good investment if you can get some for under 1 Steem.
Im enjoying drama so thats not really an investment.
Also been purchasing alpha booster packs and looks like steemmonsters has a dark energy crytal coming out for game related content.
I think its a mistake to dismiss it, but at this point youre right 90% of the tokens on there youd be better off holding steem. I have made profit (very small) trading drama, and a few tokens have done air drops that you can make a few dollars of steem from.
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Defiantly not something to ignore. Will just be interesting to see what ones treat it like a business and it it helps or hinders a projects growth. While others will solely have all their eggs in one basket and not be able to do anything about it.
There all already more than one platform people are choosing to have their coins at. Some of them are going charge exchange rates. Some might even be such a pain in the butt to use that no one wants to.
I’d rather just spend Steem. Not have to send Steem to an “exchange” to buy some coin then spend that coin in a game. That just adding a middleman.
Yeah thats a great point I dont really understand the future token that drug wars created. I do think its a nice nod to 0bytes however since they airdropped all those tokens to us.
I guess its an easy way to be cross chain compatible when all your players own the same token that can be purchased with other crypto, but definitely see your point.
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Thanks for this info, I know tipu as i use it a lot for tips, and this is interesting i must look into it more
Glad to have helped. I want to delegate to tipu, but working on building my steempower first. Seems like a good project as well as a good investment.
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I use tipu primarily to thank people who join my Wednesday Walk, I had not realy though about it till now but with the Steembasic income giveaways and the tips I give away about 5 Steem and 5 SBD on Wednesdays
I like @tipu and understand that waiting 7 days sucks, but you know what sucks even more?
Having to change TIPU into Steem.
Here is an idea, they could just send Steem. Oh wait....seriously what the hell is the point?
Yeah I agree. I dont 100% see the point of the tokens unless you get them for a good discount and can sell them for a profit after making some interest.
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It certainly is interesting and I appreciate you explaining it. I know a thing or two about equities, but crypto, forget about it lol.
Whats an equity lol
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Id probably never support a bot but its great that folks are trying to come up with things to tokenize.
Heck yeah it is. Always interesting to see new ideas even if they do seem a bit silly.
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Some ideas have the potential to become interesting in nature for sure. I have not dived into the market right now but intend to do so soon as I really want to get more Alpha Steem Monster packs!
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