Premise

Recently, heavyweight @steem.leo blogger @edicted declared about ending a good thing (i.e. LEO liquidity) by running through 0.2121 Steem level. He changed his previous position from selling at 0.2 level and buying at 0.18.

I took a page from his book to experiment the market maker strategy. I ran through sell orders up to 0.348.

Actions and Lessons

Don't worry, I powered up all the LEO and has no intention to trade.

Due to Scotbot lagging caused by the @steem-engine upgrades, sell orders were relatively thin. It did not cost much to buy LEO up to 0.348 Steem.

I recently wrote about LEO and PAL updates where I examined how LEO reached support from 0.1 Steem to 0.2 Steem in last couple of months. Now, we have to see whether 0.3 Steem can be reached in coming days. Due to high confidence in @steem.leo tribe inspired by the innovations and developments, large number of LEO are staked each day.

It is no wonder why though I power up a large number of LEO everyday, but my voting power in absolute LEO amount is decreasing. It is healthy in that sense, LEO is distributed among the large number of holders. It also mean that LEO's price will increase to keep up with the demand.

Question and answer

There is a question: why @leo.voter buys LEO from the market. Here is the answer for the concerns: @leo.voter basically rewards SP delegator with LEO. A big portion of LEO comes from purchasing LEO from the market using Steem earn from curation by @leo.voter. (https://steemworld.org/@leo.voter).

However, rewards is disbursed through @leo.bountes (https://steem-engine.rocks/@leo.bounties). @leo.voter transfer purchased LEO to the @leo.voter. This mechanism can work as a sink too if the large number of delegators stake their earned LEO instead of selling. The good news is the largest delgator who earns more than 80% of the all LEO, stakes everyday.

However, it can create a paradox: since @leo.voter buys LEO, it increases LEO's price. At higher price, delegators earn less amount of LEO but same amount in Steem (i.e. 18% APR). Potentially, @leo.voter is working as a positive feedback to increment LEO's price. Food for thought!

Future thoughts and conclusion

The LEO market is not mature yet. In fact, @steem.leo tribe is at very early stage. It has already attracted prominent Steemians to join the tribe with incentives. Moreover, innovations are keep coming from the team. The next innovation is probably market related since the hint is "Buyers & Sellers".

One interesting thought that being recently discussed is multi-chain token idea that LEO can implement. In that case, LEO token can co-exist in EOS, TRON, BEP2 (Binance Chain) or SMT. For that, there will be a gateway where a token from a chain can be interchanged for another chain. APPICS (APX) has already implemented such idea. APX token is tradeable at @steem-engine (Steem) and NewDex (EOS). Multichain token for LEO will help it to be listed in top external exchanges such as Binance, Upbit, Huboi or even Coinbase, why not.

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

Image sources: Most images are open sourced (e.g. Pixabay, Wikimedia etc.) with Creative common license. Some images are used with due courtesy to respected owners.

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