🚨[THREAD]🚨
Why I'm adding heavily to my long term $MATIC position.
Why I'm adding heavily to my long term $MATIC position.
DISCLAIMER: This is not financial advice. I am not shilling my bags. I don't care if you invest or not. I simply enjoy curating information. I don't make promises, I don't charge money. This is for educational purposes only.
Let's get into it. $MATIC landed on my radar the same way it landed on everyone else's radar. It hit #Binance and pumped to the moon during the IEO Launchpad event. It did a 10x and spent the next 2.5 months retracing.
Since the epic 3x of December, we'eve had two smaller, yet substantial pumps from the coin.
Most of #cryptotwitter is drawn to the dramatic P&D's, but something else has caught my attention. Though the highs are all over the place and come with painful corrections, the lows are what determine the bull case for $MATIC. And #matic consistently prints higher lows.
If I am adding to a long term position, I only like to do so near long term trend support levels. $MATIC has had one of the most solid, and consistent up-trends in #crypto vs $BTC. Each time it test support, I add to my position.
Not only does it have direct funding from @coinbase. But the $MATIC advisory board is made up of #Decentraland dev's and Pete Kim, Head of Engineering and Wallets at coinbase.
If you are like me and were around to witness the 2017-2018 ico craze, then you are rightfully skeptical of most #altcoin projects. I'm quick to write off most projects as a scam for devs to lace their pockets and not produce a working product. But it's time to wake up.
It's 2018, it is 2020 and people have built some incredible working projects. $MATIC is one of them. So what does #matic actually do?
$MATIC is not a blockchain, but rather, a side-chain. And the first of it's kind to implement the plasma framework. If you're unfamiliar with plasma, it is a scaling solution that was proposed my Vitalik Buterin (for the $ETH fanbois 😎)
In short, the $MATIC side-chain uses a validation layer to batch transactions, allowing it to process 65k transactions per second.
The blocks on the $MATIC chain are produced via Proof of Stake. Anyone holding #matic can "delegate" their tokens to a node and receive staking rewards.
Currently 18% of the token supply is staked and the reward rate isjust over 50% per year. So 10k $MATIC tokens will earn an individual 5k tokens over the next 12 months. This number will fluctuate daily as the % of tokens staked fluctuates.
One of the main reasons I'm very bullish on the price of $MATIC is because this 50% reward rate seems very high, and very attractive. With the steady uptrend vs $BTC it is logical to assume there are a lot of long term holders, and more people will likely stake for rewards.
A more reasonable figure to me would be to see about 50% of the supply staked, which would bring the reward rate down to 20% annually. This means a lot of tokens would come off the exchanges and likely drive up the price of $MATIC, assuming stakers are compounding and reinvesting
With any project, it is always wise to look at the distribution of the supply, and $MATIC has a pretty fair distribution imo. 23% for the ecosystem, which i understand is staking reward payouts, the foundation has 22%, team has 16%. advisory board and seed investment is minimal.
My personal plan is to continue to watch the $MATIC btc chart while buying spot with usd under $0.022. This level has been long term resistance and I'm expecting a breakout and r/s flip soon.
