Exponential Growth With LBI

For those who are unaware, @lbi-token was modelled after @spinvest. The goal of the project is to "get rich slowly". In other words, the key is to generate solid returns over long periods of time to create wealth for all token holders.

This is a basic wealth building strategy employed by some of the richest people in the world such as Warren Buffett.

Fortunately, there is one key difference that LBI has over the rest of the world. We are operating in the world of cryptocurrency where outside returns are commonplace. SPInvest has a terrific first year yet the second was off the charts.

One of the reasons for the enormous growth in year two is the concept of the airdrop. When Hive forked from Steem, SPI saw their tokens double. Since it was a 1:1 drop, the tokens holders has twice as much as before. This allowed for the STEEM to be sold off, much of it ending up in Bitcoin.

With the run in that coin, the value of SPInvest great exponentially. Instead of an 80% growth rate like the first year, we are seeing a triple digit return, probably between 300%-400%.

LBI is about to witness the same thing.

Yesterday, @leofinance announced a new project, CubFinance. This will reside on Binance Side Chain and, from the indications we are getting, is the foundation for a much larger DeFi system that is planned on being built there. Essentially the team is looking to replicate many of the DeFi applications on Ethereum, but do them on BSC.

As per the overriding model of Leo, CUB tokens are going to be airdropped on LEO token holders. LBI is in a great position, obviously, being one of the larger holders of the LEO token.

We do not know the ratio of the drop. Nevertheless, we do know that LBI will receive the CUB token in proportion to its LEO holding. This means there is another layer of value about to be dropped into the fund's lap.

It might not double the value of LEO holdings yet it will add some portion. The best part is the opportunity for growth exists. Since the CUB token is the foundation for this new DeFi platform, there will be opportunities to use the token, along the the liquid LEO held, to generate an ROI. We will have to see what is available but most are far exceeding the 20% baseline that LBI set for an annual return.

At the same time, as more applications are rolled out, the possibility that the value of CUB will increase is high. This means that we will see the value of the entire LBI holding jump. It is similar to what happened the day HIVE was airdropped to SPInvest.

Of course, this project by @leofinance, is kind of a surprise. The big one most are awaiting is ProjectBlank. This has not been released but the plan is still the same. We will see another snapshot taken that will lead to Blank tokens being dropped into the LBI wallet. These are Proof of Brain tokens so they can be leveraged for a return by engaging in curation activity, similar to what we are doing with LBI.

Nevertheless, in a short period of time, we can see the value of LBI grow exponentially. The tokens being distributed have no value at the time of the drop. However, they will instantly be eligible for trade, meaning price discovery will take place. This will affect the LBI weekly report as soon as it is done with the new figures.

In effect, LBI is being handed a larger asset base from which to grow its wealth. The 5% growth we achieved in the first couple months through curation and posting is providing a solid foundation. Through that activity, more than 10K LEO were earned by the fund. This, however, is about to be multiplied through airdrops and the prospect of leveraging it for greater gain.

This is how compounding works. The difference is that, with airdrops, it is put on steroids.

It will not be surprising to see the CUB token add more than 50% value from where we stand now over the next few months. If that project takes off like the team expects, huge growth could be on the way.

And remember, this is just one project of a number that are on tap to be rolled out.

Article written by @taskmaster4450le.

Posted Using LeoFinance ^Beta