There are lots of investors coming to the cryptomarket all the time, and sometimes you are lucky with your timing, and other times, well – you are not lucky. If you bought your first OlympusDAO tokens in August, or some Wonderland (TIME) tokens in September, you were lucky. But, if you bought your Wonderland or HectorDAO in November, or maybe your JADE Protocol tokens in December, you might feel like the timing was bad. But, how bad is it? Will you ever be in profit with your investment? In this article, we will take a closer look at the battle between the APY of the projects and the recent (and possibly future) price decline.
For the sake of this example, we will make it very easy. Let us say that you really hit the top and you managed to buy 10 TIME tokens, 10 HEC tokens, and 10 JADE tokens when the price was at an all-time high.
PROTOCOL | Number of tokens | Price | |
Wonderland | 10 ($10,000) | $100,000 | |
JADE Protocol | 10 ($450) | $4,500 | |
HectorDAO | 10 ($250) | $2,500 |
Let us imagine that you made those investments one week ago, and when you look at your portfolio today, you can see that Wonderland is trading at $3000, JADE is trading at $75, and HectorDAO is around $60. You are in a major loss. If we add the staking rewards you have received since buying, it might look like this.
PROTOCOL | Number of tokens | VALUE | |
Wonderland | 11 ($3,000) | $33,000 | |
JADE Protocol | 12 ($75) | $900 | |
HectorDAO | 11 ($60) | $660 |
So, the initial investment of $107,000 is now worth around $34,500. Those are quite ugly numbers, don’t you think?
But, is there hope in the end of the tunnel? How long time will it take for your investment to turn profitable?
When will your DAO investment go into profit?
If you bought the top, then you might feel very sad right now. But, how much time will it take before you actually get into profit, or at least reach zero? It is really impossible to predict, because the prices may fall further, but it might also happen that the market will go green and people will start investing big amounts in these DAOs again. And we all understand that if the prices will increase, then the way to reach zero and later profit will be much faster.
But, if the prices would remain at today’s level, how long will it take to reach zero with the three investments?
When will you reach break even with your investment?
All these protocols have calculators on their website, and you can use those to easily find out the status and future of your investment. Of course, we don’t know when and how much the APYs will change of the different protocols, and we have even less clue about the future price of the mentioned tokens. But, if they should stay at today’s level, this is what we can expect.
Our Wonderland investment
If you spent $100,000 buying 10 TIME tokens and just keep staking them, it will take 66 days for your investment to be worth $100,000 and in 104 days, it should be worth $200,000. As you can see, things quickly start to multiply after a while, and that is when you will see that the APY clearly wins again the price decrease.
Our Jade Protocol investment
If you spent $4500 buying 10 JADE tokens and you just keep staking them, and the price will remain at $75, then it will take you approximately 80 days for you to reach break-even with your investment, and in 120 days, it will all be worth $10,000.
Our HectorDAO investment
The HectorDAO investment is performing very similar to that of Jade and Wonderland, meaning that it will take somewhere between 70 and 80 days to reach break-even, and after that, it will all be about profit.
Is this article encouraging you?
We hope this article will encourage you, even if you invested with bad timing. The truth is, time is on your side, and the most important thing right now is just to see that the protocols you have invested in will stay around and not rug. And that is why it is important to invest in great protocols with teams that you trust, because you know that they will be around in months and years from now!
Do you want to follow an interesting OlympusDAO fork experiment we are doing right now? Click the link to find out more!
Do you see things like we do? Are you positive concerning your DAO investment in Jade, HectorDAO, Spartacus, TaiChi, Wonderland, SnowBank, or any of the other similar protocols? We would love to hear from you!
There is additional way to earn from most DAOs wrapped token. with gOHM you can use it in TraderJoe in the pool to earn money for liquidity you are providing. PS: if you buy gOHM you dont need to stake it, since it is calculated as Index of Olympus x OHM price.