Sep 28, 2020

2 min read

Uniswap, User Growth Targets and the Future Price of LEO

Since the announcement of the new LeoFinance interface, our listing on Uniswap and our roadmap for the rest of 2020, LEO has been performing extremely well. A lot of people are trying to make price predictions and are looking at LEO from both a fundamental and technical perspective.

Show Notes: https://leofinance.io/hive-167922/@khaleelkazi/norblqry

Recently, @nealmcspadden (2nd from the bottom in the featured img) posted 2 price prediction videos.

In the first, he made the case for LEO going to $2.

In the second, he made the case for LEO going to $37.

While we can’t predict price — since we’re operating in an open marketplace — we can extrapolate growth from the current daily active users along with other key metrics like the staking rate.

The interesting thing about Neal’s two price predictions is that the result is actually based on the same # of users: ~4,000 daily users of the interface.

The reason why the user # remains the same even though the price targets are incredibly different is because of the staking rate/utility of the LEO token. The $2 price target and 4,000 users is calculated under the assumption that all users would sell 100% of the LEO they earned and none of them would power up.

The $37 price target extrapolates the current rate of user staking and then overlays it with the expected ad revenue.. leading to the same ~4,000 daily active users but the key difference that not all of those users will sell all the LEO they earn. Some will stake (assuming the current staking rates continue) which will lead to a tighter supply hitting the open market and thus, a higher price per LEO.

Again, nobody can predict the future price, but seeing these user growth targets is extremely valuable in my opinion. It helps us understand that the key to building our project lies in growing our hardcore userbase — daily active authors and curators using https://leofinance.io.

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