I was analyzing what was happening recently and those are my thoughts.
I think that the recent price action is mostly due to the whole mess about LPs.
People were waiting for some juicy APR and were gathering clny. Especially big-bag-quick-flip-short-time investors. When we got the announcement that APR is going to be on the level of 50% expectations meet reality and we had a big sell off of cnly and plots.
I was thinking about the target group of LPs and I couldn’t find it. Who will invest in it?
For Martians it’s far more profitable to upgrade then to put cnly into LPs.
I cannot imagine anybody who is not involved in MC to buy cnly to put it into LPs. They have at least a few better options. I would pick jewel-one for sure as APR is much better and jewel has proven its value.
After discussing it on discord I’ve found one use case for LPs. It’s when somebody is gathering cnly to upgrade plot or just waiting to sell it later.
I think that the above use case for LPs is just a small use case and cannot satisfy all this LP rush and everyday “when LPs?” questions.
Topic to consider:
I know that devs do not like the idea of locked LPs but maybe we could consider it.
With high APR and some reasonable lock percentage and period we would just postpone supply of cnly to the moment when we have more use cases for it. Additionally high APR with a locked period would attract outsiders who would stay around MC for long.
On the other hand I think that this plot price shake out is in fact a good thing. There are a lot of people having 100+ plots who don’t care about the project and just want to quickly flip plots. They are selling their plots now, sometimes for a very good price. Maybe that’s time that we could use a bit of marketing to attract new people who would value their plots more than flip investors.