Trust the math.
SURGE launched at $1 and now trades around $0.75.
People see that and panic which is fair enough.
But if you understand the mechanics, you realise this is actually where the opportunity lies.
SURGE pays a fixed $0.15 yield per token per year.
That’s 15% at $1, but at $0.75, it’s 20%.
You’re getting paid more for the same asset, AND it still carries a $1 floor value through its liquidation preference.
https://inleo.io/threads/view/forexbrokr/re-leothreads-2ukybmq5y
You’re also sitting on a built-in conversion: 50 SURGE to 1 LSTR.
That right there is your upside.
So while others are focused on the short-term chart, I’m focused on the math.
The lower the market price, the higher the yield, the greater the discount and the stronger the eventual pull back to $1.
That’s not theory, it's math.
Best of probabilities to you.
Dane.
Posted Using INLEO
I'm not saying you're wrong, and I like both of those assets myself, but...
How is it an upside that you can convert 50 SURGE to 1 LSTR, when the current price of LSTR is significantly lower than $50?
I think the issue or legitimate complaint some could make was that the presentations of Surge made it appear that it could always be converted to $1.00.
When the hype train was in full swing, the hype-men never pointed at the fine print. That is under certain conditions, if LeoStrategy is dissolved, then holders nominally have first right to convert Surge.
That conversion process does not exist in any code, or hard baked mechanism. To the best of my knowledge there has been no white paper detailing security procedures, or even wallet holders. To date LeoStrategy is operating on "trust me bro" procedures.
Yikes.
It’s not like an instant swap feature. It’s a conversion right, similar to a convertible note in traditional finance.
50 SURGE = 1 LSTR only makes sense if LSTR trades at or above $50. Until then, SURGE holders simply collect their yield and let the market return the asset to its $1 floor over time due to how amazing the sustainable yield on offer becomes as price goes down.
Exactly what Dane said
Think of the conversion as an out of the money call option. You wouldn’t exercise an OTM call but you do understand that it has extrinsic value: the value that it has is based on the time value (SURGE is perpetual meaning it never expires) and also the dividends associated with holding it. The $1 floor price guarantees that the premium of this OTM option is never less than $1. Though market forces can drive it below $1, market forces can also drive it to theoretically infinite value
Cheers Khal.
I just remember having read somewhere that it was like swapping.
I may remember it wrong or have misunderstood it while reading 😅
!BBH
Common investing. People always expect 10%+ rewards and for their assets to only go up lol
And it's always someone else's fault.