Its the age ol' strategy
when plans and dates start to drop it gives some people a target
Its all perspective but the majority of people follow the herd and this is what usually happens
The idea is there is an event to jolt up liquidity for those who want to exit
However one thing that matters more than anything is the order book
The order book is where the price comes from. you take that price and do as you wish with it. Lots of people like to take this price and multiply it with some number and call that a market cap
But focusing on the market cap is not productive. Its just an imaginary number
For example, bitcoins market cap, are we counting Satoshi's coins? those are not circulating so why do they even count towards the total?
Lets look at LEO, if the price goes to $1 the market cap is technically not $30,000,000, it would be lower because there is some burnt LEO
But the point is, this magical number is not important. the price you can buy and sell something is what is important
the largest LEO holder might have $500,000 of LEO but that does not mean they can get $500,000 worth of USDC or whatever stable coin.
As they start selling that price will go wayyyy down.
The price of slippage is can be real nasty when you don't have thick limit orders waiting to absorb sell pressure
This is why, at this stage, its good to create "burnt liquidity"
LP where no one can pull it out, and a thick order book at the top of the market to absorb the inevitable cool down of the overall market
But here is something that you need to consider. I have been saying it over and over and will continue to repeat it. THE ORDER BOOK is what matters
What's my point?
The more streams of revenue that go into buying LEO off the market and use it to improve the system will be able to "outrun" any bearish scenario
So while bitcoin and ethereum can continue to make new ATH's and come crashing down, if the metrics on LEO continue to grow we will have a ladder chart going up and to the right weekly, monthly... and as we conquer certain price levels we can achieve massive price discovery
The possibilities are endless when everyone remains focused on the endgame... this project alone can potentially set us all up for life and this is coming from someone who is doing everything organically off the chain, so imagine those who put serious time and money into it... when incentives align a lot can come out of it. Don't pick up pennies in front of freight trains
Posted Using INLEO