With crypto markets imploding, one of the topics on the top of many a mind is, “what happens to Michael Saylor’s big partially-leveraged bitcoin bet?” Saylor’s software company Microstrategy made a $4 billion bet on bitcoin which is now worth less than $3 billion. Investors now fear that MicroStrategy might face a possible margin call and be forced to liquidate its bitcoin holdings.
Saylor recently tweeted that MicroStrategy “anticipated volatility and structured its balance sheet so that it could continue to #HODL through adversity.” (Depending on who you ask, “HODL” is either a meme-ified misspelling of “hold” or it means “hold on for dear life.”)
Saylor has also recently assured investors that he does not expect an imminent margin call and that if one does come, the company has sufficient assets to cover it. Nonetheless, shares of MSTR have fallen right along with the price of BTC further devaluing the company.
Still, Saylor believes in the hodler strategy. And he has some good points when he says that there’s a difference between investing in assets for the long haul and trading. During the .com bubble, several major companies including Amazon saw a 90% decline in their price. Anyone who bought at the top of the bubble and sold at the bottom of the bubble made a big mistake because, since the bubble burst, stocks like AMZN have gone up by several orders of magnitude.
So, essentially, Saylor’s not doing anything that smart investors don’t do.
Gnox Token — backed by smart investors
Speaking of smart investors, let’s talk about Gnox. Gnox is a reflective DeFi token that’s designed to benefit hodlers both in good times and bad. To achieve this, the platform uses strategies that both decrease the supply of the token and increase the stack of everyone who hodls on regardless of market conditions.
At the same time, the strategies being used reduce the risk for investors and incentivize early adoption while drastically cutting down on the time required to earn passive income via DeFi platforms.
The key piece of the puzzle is a 10% royalty collected on all sales of GNOX tokens. While it doesn’t sound like a good idea to hand off 10% of your investment up front, there are good reasons for it. For starters, it discourages speculative trading. You can’t swing a deal if you have to make 10% just to break even. This is expected to greatly dampen volatility.
Second, seven out of ten dollars of those royalties are used to decrease the supply of the token and increase the size of everyone’s stacks.
First, 6% is pooled into a treasury that’s used by a team of professional DeFi investors to buy into a diversified basket of DeFi opportunities such as staking, lending, and pooling that produce passive income. That income is then used to buy back and burn GNOX tokens. This decrease the supply, which naturally increases the spot price of the token. Second, 1% is airdropped back to existing holders as passive income on an hourly basis. (The final 3% is used for marketing and operations.)
It’s important to notice here that this strategy — a combination of token deflation and passive income — means the platform should be earning money in both bull markets when people are buying and bear markets when people are selling. Either way, the treasury grows, the circulating supply falls, and the stacks of individual holders grow.
Speaking of burning tokens, Both Michael Saylor and you still have time to get in on the GNOX presale before the platform launches in mid-August. The presale is divided into three phases. At each phase, a number of tokens is burned thus raising the value for early adopters. The presale runs until August 12th.
Visit Gnox.io for more information on this very interesting DeFi token.
Learn more about Gnox:
Join Presale: https://presale.gnox.io/register