LEO and PAL Tribe updates from a trader's perspective- LEO FOMO continues and PAL in downward spiral without whale's support

LEO FOMO continues. If you missed the FOMO, you can read here: 1, 2, 3, 4.

However, the FOMO continues and most have missed the second one that took place last night. The 8th ranked LEO whale @diverse in single effort have pushed LEO again to 1.79 Steem.

I wonder whether his FOMO type buying will bring any fruit in the long term. However, in dollar average buying cost for LEO still can be bargain. For example, at Steem 16 cents, his average cost could be 8 cents. But LEO can stay at 0.2 Steem and Steem can rise to $5 in future. Then each LEO can be as high as $1. It is almost 12X from his probable buying average.

Here are records of @diverse's buying spree. He bought around 6K LEO from 0.15 to 1.79 Steem, powered them up and became 8th largest LEO whale in staked LEO.

LEO became the highest gainer with one million dollar marketcap in the @steem-engine market for the short period of time. Now it is comfortably sitting around 0.21 Steem, which is 200% up from the recent low of 0.073 Steem. The order book in buy-side looks very healthy to sustain 0.2 for few weeks.

Due to that great (second) pump, my own LEO holding crossed equivalent Steem Orca level.

Here is another interesting article from @taskmaster4450 where he explained how wealth are being built by tribes in spite of tribe staker's Steem holding:

The first thing to note is the letters next to the name. That signifies accounts status with the Steem Power. There is not one Steem Whale in the top 15 largest LEO accounts. We see three Orcas and a handful of Dolphins. There are even a couple Minnows and one Plankton.

The current marketcap of LEO is at $142K which is half of PAL's market cap ($272K) and still lower than Creative coin's marketcap (199K). Don't get fooled by the big marketcaps of tokens in SE. Most do not have trading volume and few coins are at circulation.

The potential MarketCap for LEO can be $4M in the long term.

On the other hand, the first great tribe token, Palnet's token- PAL is struggling. The order book looks very unhealthy. PAL is in downward spiral without whale's support.

PAL dropped from ATH of 0.78 Steem to 0.11 Steem. There is so much selling pressure that a whale (you can dig to know who is that whale) had to put a buy wall at 0.25 now another wall at 0.11. Very few speculators or traders are buying around this price but most are sellers. It looks like large number of creators/investors are selling at whatever price they can get.

I have personally bought 5K PAL at 0.25 Steem on average. I have bought as low as 0.045 but as high as 0.45 too. I don't feel optimistic about PAL tribe due to its current market condition.

There are very few sinks for PAL to hold price.

Similar story can happen to other tribes too. The tribe without many sinks and sustainable business plan (e.g. buyback with Ad profit, consultancy, distribution) cannot hold the sell pressure, since most will dump them at whatever price since it is basically free by just adding tags.

For trading to increase Steem is a very risky game using Tribe tokens. It is very hard to time it such as buying at 10K PAL at 0.11 Steem then sell it at 0.25 Steem. If I power them up for curation reward, I may miss the pump all together to sell them at 0.25 Steem.

Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions.

Thanks for reading.
@dtrade
Cryptominer since 2013, trader and tech blogger