SportsTalkSocial needs a token sink.
I've been following SportsTalkSocial with interest lately given its widespread popularity here on STEEM and its wide-based audience.
The tokens market cap once heralded $200 million+ but has since fallen to around $50 million. Tragic in some sense, but it is what it is.
In many ways, what is going on with the token SPORTS is no different than the problems currently plaguing STEEM.
The inflation rate is just too high relative to its user base.
That is not to say that this project is doomed or that there is no future in it, but I wouldn't stick my neck out on the line in expectations of a climbing token price anytime soon.
SPORTS needs a sink for its high inflation rate.
It looks like the SPORTS team has begun to acknowledge this little conundrum based on a recent post:
I very much applaud this move given the rapid pace of the tokens price deterioration in recent days.
The one curiosity that remains, however, will be if the platform continues to centralize or decentralize the longer the high rate of inflation continues.
A look at the Rich List:
Thus far to my surprise the rich list shows that barring the top few accounts, SPORTS has actually managed to stay relatively decentralized as a broad base of users continue to power up even as the price dwindles.
I remain curious if this would apply with STEEM as well as the price continues to linger.
My initial thesis wouldve been that the user base would become even more centralized given only those with a vested interest in the platform would buy up the token.
Yet thus far it is good to see the dispersion remains somewhat wide.
Regardless of price, SportsTalkSocial is proving to nurture a quite constructive audience base. Its move into token sinks are much needed, and my hopes remain that these continue to be adapted.
I do remain somewhat skeptical if the sinks will be able to offset the high inflation rate, however.
But at least the platform appears to be moving towards meaninful solutions, and for that I'll extend a thumbs up for the actions taken.