What will it take for the TOD price to recover?

Jeff

I have a lot of TOD and plan on staking for a while but was quite shocked at how fast the value has plummeted and how fast the returns have begun diminishing. At this point is it becoming a failure just based on price action? Also, what does it take in the protocol to gain value again? More buyers/users? I guess my question is how is TOD even given its sale value? What underlying factors increases and decreases it value?

Annie Hoang

@jefe811 Hi Jeff, TOD is a decentralized reserve currency which is backed by a basket of assets. This will make sure that the intrinsic value of TOD will not fall under $1. We will soon introduce Buyback and Burn Mechanism for TOD to rebalance price of it.

Cobra Kai

As I know, the token price is purely based on market pressure.
If they use LP and BUSD in treasury in a steady way and issue bonds at the same time, there might be hope for a stable upward trend in market price.

Kel

Hey @jefe811, nice question. Let me expand here a little..
Why TOD Token price has decreased?

The TOD asset value has plummeted due to multiple reasons.

Whitelist wallet allocations attract P&D users who do not intend to hold assets for longer periods of time and most of the time dump their assets once Token is launched for trading.
BSC Network overall is more oriented to giveaway/airdrop hunters, IDO/ICO (whitelist) hunters, P&D, early benefit/incentive users who leave after competition or event is over. Due to low gas fees.
Narrative on DAO's in Crypto Space is pretty shaky with examples like OHM; TIME; plummeting even harder. Investors adapt and learn during the course of the cycle, thus, many users just stay away from DAO's as they have a negative example happening previously.
Single wallet has made a big purchase during the launch and has dumped it's Tokens after whitelist allocations have started being unlocked. Users take advantage of Token listings sometimes creating fake hype or even FOMO by pushing the price up significantly, expecting more users to join in the buying frenzy then later using them as exit liquidity.
More and more users tend to realize their profits immediately, especially during bull run within the market cycle, rather than taking the longer route and accumulating the bag over the course of upcoming years. That is why even some of the whitelist allocations were sold of after unlock.

What gives value to Tokens? What affects the price?

Utility (Crypto token that serves some use case within a specific ecosystem)
Supply and demand (The higher the demand and lower the supply, the higher the price and vice versa)
Cost of production (PoW / PoS. Equipment or assets needed to generate more assets and their costs)
Environment Conditions (BTC for now is always the father/papa of crypto assets prices, ETH has also influence for altcoins usually. That means if BTC drops -> ETH drops -> altcoins drop and vice versa)
Local Conditions (Referring to local network recent PA, narrative, news - (TOD is launched on BSC-Binance Smart Chain))
Competition (If a new competitor gains momentum, it takes value from the existing competition, thus sending the price of the incumbent down as the new competitor's token sees its price move higher)
Governance (Stable governance where things are relatively hard to change can be of value by providing more stable pricing)
Availability on exchanges (If a cryptocurrency becomes listed on more exchanges, it can increase the number of investors willing and able to buy it, thus increasing demand)
Power of the media (Good news can certainly increase it, while bad news can cause panic)
Financial crises (Economic situation in the world)

Which ever crypto asset or project you will do research on the main factor will always be Supply and demand. If there is no demand within investor base, no new holders - the price will decrease if the token is inflationary as supply is increasing constantly.

Utility and power of the media can create demand and being unique from competitors gives an additional edge in the Crypto game.

That is why TOD still has additional utility yet to be implemented like becoming an asset available to Lend/Borrow in Trava Lending Pools. TOD is also planned to be integrated to Trava NFT Program. And currently we can see Wallet Reputation and user loyalty being taken into account which will benefit higher rank users/wallets with better Bonding discounts, higher APY%, option to take bigger debts via Bonding Installment and longer repayment periods and more benefits in the future too.

To wrap this up, I would like everyone to look at DeFi more than just actual today price of the Token and simple trading - that usually means you overinvested or bought at ATH and are expecting for the price to return. By staking, bonding, rebasing your assets you are able to grow your portfolio and outweigh your losses which might have happened due to recent negative price action. Personally, even with current TOD price and "plummeting" chart, playing the Game Theory with rebase TOD Token and Bonds allowed me to stay stable with supply increase and price decrease and actually being in profit today. This eventually becomes an additional passive income source where your daily stake/rebase rewards can be sold off as profit while the amount staked/rebasing does not change, finding this balance of reward ratio.

Jeff

@annietrava thank you for the info and updates.

Jeff

@cobra-kai thank you for the info

Jeff

@kel thank you for the in depth info. I was aware of most of the items all have discussed and I am hoping as the TOD is implemented in more parts of the total Trava ecosystem we should see a recovery at that time. I am a long term holder in all of my crypto investments which I got into in the beginning of 2017, we mined ETH for many years until the equipment became obsolete. My partners and I have begun acquiring, staking TRAVA, buying one of all the NFT's (which we have been farming) since January when we first found out about the Token and its ecosystem. The TOD we decided to do since its will just help and should be valuable plus my partner grabbed the Sir Kuana knight the other day so he will be increasing his TOD holdings soon as well. For us we are just in plain shock at how much the Trava team has built out, the great transparency constant updates, etc. We feel this project is so undervalued its really gross now. At this point we are just buying more. Hopefully the general crypto population sees this project soon because at this point it seems to be a cheap acquisition for any tech hedge fund at these prices. The technology and ecosystem alone is well worth three times the current value of all tokens in our analysis. I feel Pantera Capital needs to be introduced to Trava at this time because once they look at this I feel they will be grabbing tokens hand over fist. If I was heading the marketing team at Trava I would be calling their offices daily until they get a meeting. Good luck to everyone and this new forum is another great addition, will be making some more posts and discussions soon. Jeff