When it comes to deciding on which SCOT projects to invest in, the following are some factors I consider:
- The initial distribution - was there an airdrop? What stake do founders/team hold?
- Inflation rate and reward/token mechanics - This determines the ROI on your investment in terms of curation rewards for staked coins. The ROI in this instance of course doesn't take into consideration price movements of the coin.
- The community - how likely the project is to have sustained growth and attract new investors to the platform
- Personnel behind the project
Why I have decided to stake all my SPORTS rewards so far
So in using the above criteria, looking at SportsTalk.Social, we can see an interesting setup, different to most of the other SCOT projects. The initial distribution is quite small. There wasn't any airdrops, but grants were subjectively given to users who were active in the community. Reward payouts on the other hand is very large compared to other SCOT projects. With a stake of around 10k SPORTS, your vote can be worth more than 20k SPORTS. This means that, as long as rewards don't get dumped on to the market too much, and the price doesn't fall too dramatically, staking SPORTS tokens provides a good ROI in terms of reward payouts.
Finally, as I have talked about in the past, I believe sports is a universal topic that can reach a wide audience, and as a result has the potential to significantly grow its user base and attract new investors to the platform.
So this is why I have staked all my SPORTS tokens so far.
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