Among all of the new tokens that I invested this 2021, $AKT is the one that gave me the most outstanding result. I would say that it's dumb luck that I got into investing in this token. I first learned about this token on a #askblurt post that I did in Blurt blog. Jacob commented on it in which he mentioned about $AKT among other tokens.
I vet through the suggested tokens to learn about the use-cases and among all of them, the Decentralized Cloud by Akash Network sounds compelling to me. I had to dig deeper about this project to find more interesting aspects of it.
After I learned enough about it, I made my first purchase of the token on Jan 5 and continued accumulating $AKTs for 2 weeks until the price hit its ATH. I planned to keep accumulating $AKTs for the whole month of January but due to the high price than expected, I had to stop after my 2nd week of buying these tokens. I was really hoping for a pullback but the price seems comfortable within the range of $1.60 to $1.70 which is tough IMO.
Anyway, for this post let me show you a glimpse of my progress so far.
Comparing the prices of purchases and the current value of the token, I'm a few % away from my ROI. It's 8% to go before I gain my ROI. Considering a span of a month, the doubling of dollar value for investment feels awesome! The appreciation of the price of $AKT is outstanding. The amazing thing about it is that it looks like it has been sustaining the price level even though BTC has had swings within that period.
Recently, the price ranges between $1.60 to $1.70 levels.
That's pretty stable and it shows that the community has a good grip on its coins.
I believe many of those who purchased have staked their tokens. That's the best thing to do with this token, why is that? It's the early phase of the Staking period. This token was offered on exchanges less than 4 months ago. The 50% APR is something that is hard to pass on.
The current inflation is quite high which is good to propel the adoption rate. It is gradually reduced over time and so now is the best time to participate in the staking.
So, how much am I earning from staking?
On average, I earned a total of 3.38% from the previous month. It's lower than expected because I didn't purchase all my $AKTs at the same time. As you can see in the spreadsheet that it took me 2 weeks to gradually purchase and stake the tokens which gave me the misleading value.
One thing that I've been doing with my staking strategy is that I'm re-staking and compounding the rewards back to my staked tokens. The reward come in liquid form and so I have to manually stake them.
Compounding interest is a reliable strategy in growing wealth especially on a stake-base asset with diminishing inflation like $AKT. Let me show it to you through this table.
For simplicity, I chose to set the initial stake of 100 $AKT.
In this table, I factored in the effect of the reward curve on a daily basis. Also, the re-staking of the rewards is presumed to be done on a daily basis. As a result, the ROI for non-compounded staking rewards would be 4 years; that's fine in comparison to traditional fiat-based assets. But if you compound all of the earnings, the ROI will be 2 years, that's outstanding!
So, the growth in dollar value together with the staking rewards is what I consider as a profitable investment.
Should I cash-out at this point?
Not quite yet. In fact, I could even keep it staked for the next 5 years or so.
Why is that?
That's because of the upcoming Mainnet 2. On the launch of Mainnet 2, the Decentralized Marketplace for Cloud services will take place as well. Akash Network aims to disrupt the cloud computing industry by creating a platform where individuals & companies can participate in the buying & selling of cloud services.
The Akash Network will take 20% of the transactions and distributed that profit among token holders.
As a token holder, I would expect 2 kinds of rewards for my staked $AKTS:
- staking rewards from inflation pool
- dividends from the marketplace
It's not a wonder why 90% of the $AKTs were staked. The proposition is compelling and the rewards are outstanding.
Just thinking about the current price and the proposition... I feel that the token is undervalued at this point.
For that, I might buy more $AKTs soon!
