A new week has passed and it is now five weeks since we launched "The battle of the OHM forks" in the IP Address Guide. This is a very interesting experiment in which we test OlympusDAO and several OHM forks side by side to see which will be the best performing over a set amount of time.
So far, the experiment has been kind of a failure, at least if you look at the original value of the investment and the current value of the investment. But, if you look at the data that can be withdrawn from the experiment, I believe this has a lot of interesting information that can be useful to general investors.
-> You can read the introduction to the experiment right here.
What happened last week?
Since the start, we have seen a trend telling us that the big is the best. In other words, those projects that have a good team working with them and that works hard also with communicating with the communities, have performed better than the rest, in general. That is why Wonderland was the most successful project of the experiment for a long time. But, in the last two weeks, HectorDAO has totally taken hold of the throne. The value of the HEC investment one week ago was approximately $900, and today it was worth more than $1300 (the original investment was $1000). And it should also be mentioned that HectorDAO is THE ONLY project that currently has a value higher than the original investment amount.
The closest competitor is Wonderland, and the value of the tokens we own is currently $800. Behind Wonderland comes OlympusDAO (valued $608). Looking at these numbers, it shouldn't come as a surprise that the original investment valued more than $11,000 is worth less than $5500 at the moment. And if it hadn't been for HectorDAO (and Wonderland) it would have looked much worse.
What can we learn from this experiment?
First of all, APY isn't everything. In fact, APY can and will often be your biggest enemy. For example, in five weeks our original PapaDAO investment of $1000 (giving us 51 tokens) has turned into 220 tokens, but it is worth only $400. Do you see what we mean? We have 4x more tokens, but it is valued way less than originally. Why? People are selling their tokens due to the high APY.
That is why you should invest with wisdom and look for core values such as quality of team, communication, and actual developers working hard (and not just some teenager forking OHM in their bedroom).
Do you have any thoughts?
I really recommend that you read the two articles I have referred to in this article because they will give you lots of information and valuable wisdom about the experiment and the projects involved.
If you have any further thoughts or comments, please write them below!