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Should LBI change it's LEO Strategy? by lbi-token

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· @lbi-token ·
$43.39
Should LBI change it's LEO Strategy?
So a few days ago, I put out a post covering off our LEO wallets, and plans moving forward for our LEO positions.  As a frame of reference, you should check [it out first](https://inleo.io/@lbi-token/taking-a-look-at-our-wallets-part-1-leo-dkc) before I outline my newest thought process to gather feedback on.

 https://media.tenor.com/cbG6dP8SWZgAAAAC/think-deep.gif 

Anyway, here is what I've been thinking about today.

## Should we just buy a bunch of LSTR (LEOStrategy) tokens instead of managing our own off HIVE LEO?

Announcements have come out recently that @khaleelkazi has officially become "Executive Chairman" of @leostrategy and @taskmaster4450le has been appointed "Chief Marketing Officer".

Here are those announcements:
https://inleo.io/threads/view/leostrategy/re-leothreads-kdcafivl

https://inleo.io/threads/view/leostrategy/re-leothreads-39xzy9zqy

And Khal's post about the new job - 
https://inleo.io/@khaleelkazi/my-new-position-as-executive-chairman-of-leostrategy-jsn

___________________________

Firstly, I will say that it is good to have some faces to put behind the @leostrategy brand now.  It always sat a bit weird with me that the people behind it were staying anonymous, it was just off-putting for me. For wanting to be the Microstrategy of LEO, the anonymity just led to me wanting to keep us away from the set-up.  But having some clear and public faces behind the project gives me more confidence in it as a legitimate investment option for LBI.

> But why would we buy LSTR, aren't they a competitor?

Not really, any entity buying up LEO is a friend.  We have a nice bag of LEO, and our own plans and goals moving forward.  There is room for other players, and LSTR being successful would be good for LEO, thus good for LBI.

What I'm really thinking is to hold LSTR instead of managing our own LEO off-HIVE position.  LSTR's plan is to shift ALL of it's LEO to Arbitrum and stake it there as sLEO.  Our plan is to shift a portion of our LEO over, but retain a nice chunk on HIVE to keep doing our thing here.  

Maybe, instead of shifting our LEO off chain, we can simply buy LSTR instead. Personally, I really prefer to outsource the management of our off-HIVE holdings.  As I see it, this reduces my admin burden personally, given my LBI pay is not significant and running this project is basically a hobby.  We hold PWR as an off-chain exposure to ETH mainly, (with @empoderat looking after those funds).  We hold RUG as an off-chain exposure to some DeFi (with SSUK via @dailydab project managing those funds).  Why not treat this the same way and hold LSTR (with @leostrategy managing the sLEO position for us).

________________________

I have questions for @leostrategy before committing to this course, along with wanting feedback from LBI holders.

1. Will more of the people behind LSTR become "public"?

2. Would you consider OTC deals for LSTR? Our funds that we could commit to this are in liquid LEO.  I'd have to sell a large chunk of LEO (pushing down the price), trade to HIVE, buy LSTR, and then you would just use that HIVE to buy LEO.  How about just issuing us LSTR directly for LEO instead, and save the price fluctuations and unnecessary steps?

3. Is it planned for LSTR to become a yield generating asset?  Once the LEO is staked on ARB, it will generate USDC yield.  Will some of that be paid to holders, or is it planned as full growth and all yield used to buy more LEO - with capital growth the only goal?

That's about it at this stage, I'm sure LBI holders will have more thoughts or questions, and I'd love to hear from the @leostrategy team.  Let's see if we can bring together these two LEO focused investment funds for mutual benefit.

Over to you all in the comments,

Cheers,

JK.





Posted Using [INLEO](https://inleo.io/@lbi-token/should-lbi-change-its-leo-strategy-c2r)
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vote details (398)
@bozz ·
$1.62
I'd just stick with LEO. Let's all remember how CUB ended...
๐Ÿ‘  , , , , , , , , , , , , , , , ,
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@jocieprosza ·
$0.04
Same here
๐Ÿ‘  
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vote details (1)
@lbi-token ·
$0.04
@lbi-token "Would your opinion change if we (LBI) got a seat o..."
Would your opinion change if we (LBI) got a seat on the board of Leostrategy as part of any deal?  That would put us inside the project and able to have a direct say on how it operates.  Plus the good PR for LBI and LSTR.
๐Ÿ‘  ,
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vote details (2)
@bozz ·
$1.60
I honestly don't even know what leostrategy is. It sounds made up... I don't care, if I could run it better I would be doing it myself. I just know new and shiny has burned people in the past.
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@hivebuzz ·
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@india-leo ·
Indiaunited Curation 1752194362131
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@khaleelkazi ·
$0.13
@khaleelkazi "1. Yes, since bringing me on I have been advising ..."
1. Yes, since bringing me on I have been advising for more public faces to back the project and take on official roles. At least 2 more will be announced in the near future and likely more as time goes on. There was some discomfort due to regulations (understandable) but crypto regulations have drastically changed in the past ~6 months. It's time to step into the light and make LeoStrategy a legitimate corporation. Maybe even look to file a local business license at some point to raise IRL capital and bring it onchain to buy LEO (same way Microstrategy did it but in basically reverse order - starting onchain, then moving corporate). The mandate will never change: own as much LEO as possible and increase the mNav premium (mNav is basically just a calculation on the value of LEO holdings vs. the market cap of outstanding LSTR shares)
2. I will talk with the board members about this. I think OTC deals are a great idea and honestly have not been discussed before. My main priority is seeing 100% of the outstanding LSTR shares in the initial sale getting sold so the capital can be raised before LEO's price goes up. LeoDex is cranking upwards of $2M in volume per month now (~$130k just today and this has been growing dramatically). It's time to get LSTR's LEO fund locked in before the price starts going haywire
3. For the forseeable future, LSTR will be a mNav-driven product (similar to Microstrategy and other Strategy companies). 100% of all inflows will be used to simply acquire more and more LEO. Then the market can price the LSTR token based on this growing stake of LEO. For example, if Microstrategy's Bitcoin stockpile 2x's each year because yield is used to buy more BTC + the price of BTC is appreciating, then MSTR's stock will increase by 2x x the mNav premium. It's a brilliant strategy as long as you have **permanent capital** and can allow time + inflows to do their thing (LSTR's permanent capital is the LSTR 100k initial sale - it can never be liquidated and this is key).

TLDR; on #3: Capital growth is the only goal now but long-term, I think a dividend at some point in the future may make sense. The mandate in the near-term should be **acquire as much LEO as humanely possible**. Allow LEO to appreciate and then decide if the fund is so rich that it should start paying a dividend (can and should be voted on by LSTR stakeholders and the LSTR board). 

This is how most public companies do it: like Coca Cola. If you've been in business a long time and are generating more money than you know what to do with, start paying some % of cash flows to shareholders. I think it's a good idea down the road. 

Overall would love to see you guys own LSTR and I like that you positioned it in this way - that owning LSTR on Hive is a good way for Hivers to get exposure to the sLEO growth (USDC payouts on Abitrum from LeoDex revenue) without having to do any of the work. My DMs are open if you want to talk about the OTC at all, if the board is open to it I would like to give LBI an exclusive discount since you guys have supported LEO through thick and thin over the years. The stipulation would be a gentleman's ask that you don't sell the LSTR for some measurable amount of time if the discount is hefty (as that would be unfair to other buyers). ๐Ÿงก
๐Ÿ‘  , , , , , ,
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vote details (7)
@latinowinner ·
leo seems a bit more reliable at this stage,however, nothing in crypto is guaranteed
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@oldmans ·
I'm working on picking up some LSTR myself so I wouldn't mind LBI going that route also. Can we do both? Shift some LEO off chain and deal for LSTR. Or is that not really feasible?


I would also back upping your remuneration for what you do for us here on LBI if that would make a difference on your decision.
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@lbi-token ·
$0.10
@lbi-token "So I'm at the point with a deal for LSTR that I'm ..."
So I'm at the point with a deal for LSTR that I'm able to put specifics into a post to run a vote.  It's a pretty big deal and I think very good for LBI (and LSTR also).  

Need to get some LBI governance happening again.

As for my remuneration, it's not really a focus at the moment.  If the fund grows and becomes significant, it can be looked at down the track, but I'm enjoying the  work at the moment as a hobby.

Thanks for keeping on top of LBI news.
๐Ÿ‘  , , , , ,
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vote details (6)
@oldmans ·
Great idea! Look forward to seeing the options and having the opportunity to vote on them.

I appreciate what you do for us with LBI. Just want to make sure you are happy. ๐Ÿ˜
๐Ÿ‘  
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vote details (1)
@onealfa ·
@onealfa "I am against buying of LSTR One single fact that ..."
I am against buying of LSTR
One single fact that  creator of leostrategy wants to remain anonymous - is a HUGE RED FLAG for me. 
And I mean - I prefer to know who exactly  is  ( the person) who holds the PRIVATE KEYS of that account. Not who is the CFO, CTO, advisor or  just a board  member of the team. 
Old rule always rings like a bell in my head - not your keys, not your crypto.

In other words - who owns the keys = owns the coins

If I put $1000 into LSTR today - I see no certain  solid evidence, that I will ever be able to get more than $1000  back. No matter how high the LEO token will climb.

How can I expect I will not hear the typical excuses ...." sorry,...you know... not all things went the way we have planed" ?

I can only keep a bold hope, that one day my held 1 LSTR will be liquid enough to be worth more that it is TODAY
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@taskmaster4450le ·
@taskmaster4450le "Forwarded to @khaleelkazi for answers...."
Forwarded to @khaleelkazi for answers.
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@yeckingo1 ·
I think it's a bad idea. I'd stick with LEO. For two reasons: excessive concentration for LEO and taking on another management risk.
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root_title"Should LBI change it's LEO Strategy?"
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