GambleFi Portfolio | Solcasino.io SCS Token Burn & Numbers...
After taking a look at the RLB Drama last week (Link), I'm now covering Solcasino.io and their SCS token which recently had a token Burn.
What Kept Me Away From SCS...
The main issues of SCS are clear in that only a very small part of the Supply was stakes while Solcasino NFT Stakers where earning a lot of the Supply wich either would get dumped or staked dilluting the USDC pool which pays out dividends. This made it stuck in a situation where both the price of SCS and the dividends were on a race to the bottom which shows in the weekly charts.
Add to this that it's fully centralized while relying on another centralized company for their software as they use OwlDao, the 2% staking fee and possible unstaking fee, very little info and communication on the USDC Pool which in the end is where everything relies on, and it was always hard for me to invest more than just a test amount to see what it was about while tracking the numbers.
So While the APY remained around the same in a range between 25%-40%, each week you saw the absolute dollar amounts of the dividends go down an down along with the price of the token which just isn't good.
2.6B SCS Token Burn
So recently there was a governance vote about what to do with the unused SCS supply with the choice between 2 options
- Burn the remaining Supply
- Distribute the remaining supply via NFT staking rewards.
Around 5 days ago this was concluded with a vote in favor of Burning the Coins, resulting in now a fully diluted supply in circulation of 3.29 billion SCS and No emissions, no inflation, no new tokens.
On top of this, there is also a monthly SCS burn where the company burns all the SCS that was earned by players who gamble using the SCS token.
SCS Chart & Valuation
At a price of 0.001781$ and a 3.29 Billion Supply, the Market Cap of SCS now is 5.86 Million Dollars. There are also 5000 NFTs at a floor price of currently which roughly equals 1 Million.
SCS Chart
SCS NFT Chart
So far, the price barely moved on the announcement and for me everything remains rather untransparant. It looks like the team wants to do things to increase the price of SCS but in end, it mainly comes down the the USDC Pool and how much can be earned there. With a 2% tax on staking and still a large part of the supply that isn't staked (right now 42.54% Staked) and zero info on how much actually goes into the USDC pool, it just remains a hard sell for me. Previously the NFT holders needed to stake SCS in order to get full SCS emission so I wonder what will happen to that and if there will be new usecases for the NFT's which again will take away value from the ones staking SCS.
My Position & Plan
I stated to get in a year ago with a tiny 100$ buy at 0.00667$ price occasionally cost-averaging more on the way down. I currently have 1M SCS Staked (around 1.8k value) while on average I paid 2458$ and already received 285.57$ in dividends. My biggest buy (half) came at 0.00152$ price so overall I managed to avoid the collapse it has been in mostly. The question now is to either hold, buy more, or sell. Honestly I don't really know as it feels like they could announce something that pumps the price while the inflation is over and there is still an SCS burn which based on the last month counts for 20% of the supply. So at the current market cap it all kind of feels rather cheap still.
So I'm not really looking to Sell right now. At the same time at 25.65% APR and a 2% deposit fee it's too high risk and low reward also given the centralized nature of SCS and the fact that they have some more competition with luck.io which is running on Solana also by the ones behind rollbit.
Conclusion:
It's nice to see a big token Burn for SCS which really suffered from the new emission to NFT holders for a long time. However there are still just too many questions or me to increase my position while I'm also not really looking to sell. So for now it's a hold and wait for me hoping they continue to develop and bring more things and new players to the platform. I do like the chart where the total supply got crushed down now with 42% of the supply staked instead of just 22%
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Posted Using INLEO