How investors forgot about investing.
DMme, a real use case project
I remember when I started to invest in Masternodes, the first and (almost) only rule was: What is the use case?
I was thinking then: If there is no use case, why should people invest in it? It has no sense, as nothing will succeed if the project is useless.
Later I learned that A LOT of factors are so important as the use case, here the list of parameters to check is long: Community engagement, coin economics, ROI, budget, social media, developers and background, premine, dev funds, governance, transparency, ability to deploy what promised,…..
And much later I realized about another point: Most of the investors does not mind all the list above. They only look for high ROI, that’s the truth.
Check this: 90% of the projects sink when the block rewards change. That is, 1–2 days before and 3–4 days later, a lot of investors decide to sell his investment because ROI will go down. Simple, it happens.
So, in the short term, we have ROI seekers, people who invest in projects because of the high ROI they will get with their investment. The use case does not mind here; it is just a Ponzi where people invest, and the last one pays all.
When these investors left the boat, new investors arrive at projects. These are the ones who check the use case and look for long term profit, as they hope the price will increase in the long term because of the real use success.
I am sorry, this is what happens imo. And that’s the reason why people must research a lot for middle and long term investments. Here, the research list above is handy, as all the points must be ok to get a higher price in the long term.
We have a different case here, really different.
You can not see here a 2,000% ROI; you will see a 200% ROI first year and 100% later. Not more. And remember, there is a limited supply.
Project founders didn’t create the project as masternode because they need the money to develop it. They put about $1,000,000 and first development year is paid… all that they got with the first sale was five btc… that’s nothing … Less than 20,000 USD. Even not enough for paying all the publicity and listing fees nowadays.
So, the project is not valid for ROI seekers. Or it looks like it at least.
But, do you think ROI seekers use to get an x3 in his investments? I am sure; they don’t. (DMme first year pays at 200% ROI)
But they think that this project will act like other ones, and the price will sink soon, as people will dump his coins into new buyers. There is where you will find the other big difference.
As no one is getting a thousand % ROI, there are no coins to dump!!!!. The project is just some days old, and 57% of the coins are locked now at Masternodes… do you see how investors act?
DMme investors are long term holders who believe in the project real use case, so no one will dump this at this project stage, understand it!!
The DMme use case has been commented and explained in several articles; I will not do it better. I will say that it is related to privacy, app communications and sending money to others quickly and anonymously.
Please, read these two articles to understand it better:
What is an investor?
Wikipedia says: An investor is a person that allocates capital with the expectation of a future financial return……. It differs from gambling, which is based on random outcomes
So, if I know what is this team doing, I understand the coin economics, I see the variables, and I realize about the long term idea, in this case, I can be an investor. That’s the difference with the gamblers.
DISCLAIMER: Sadly, no one paid me for this article. I am just a DMme investor.
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