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Crypto: Why The Best Is Ahead

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Good news has been rare these days both for investors in stocks or cryptocurrencies. Stock investors face greater uncertainty.  Stock prices have been driven by 40 years of lower interest rates.  That game is over now and inflation is on the rise. That means higher rates. That’s bad for stock prices. 

Over time cryptocurrencies will come to be viewed as anti-inflation tools and that could turn out to be very good news for all that have endured the volatility of recent times.

No Need to Be Negative

For investors in bitcoin, Ether and other cryptocurrencies, it is easy to sit back and proclaim that the worst is behind.  After all is bitcoin going to fall another 55% or Ether by a further 33%?  It is very unlikely for this to happen.  

As painful as the last two weeks have been, let’s take a look at what was lost.  The price of bitcoin is now back to its pre-hyperbolic move that began in late November of last year, but still 7,000%+ above February 2017 levels.

For Ethereum the picture is even better.  The price of Ether is nearly three times last November levels.  It matches the 7000%+ year over year gain of bitcoin.  Where else can you suffer such losses and still end up this well off?

Sentiment Overrules Logic

Investors are looking for logic to plan their strategies.  Technical analyst lately have been mostly gloomy but that is to be expected.  Once a down trend begins, that remains the story that nearly takes an Act of Congress to change.  The redeeming value of technical analysis is how it identifies investor sentiment.  Right now the sentiment is not going the right way.

Back in December it was the Chinese government cracking down, next South Korea stepped in and now we learn that financial regulators in Japan will be conducting inspections of certain cryptocurrency exchanges due concerns about vulnerability to cyber attacks.

Hungry deficit ridden governments everywhere are looking to collect taxes from investor winnings on cryptocurrencies, the US Internal Revenue Service benefitting from the new tax law.  Proposed regulation of cryptocurrencies seem to be in the headlines on a regular basis.

Anytime a government interferes with business investor sentiment turns negative turns negative.  Logic may dictate the moves by Asia’s three biggest countries represent efforts to improve safety and security and that will ultimately attract more investors.  However, sentiment overrules logic most of the time.

Nothing New

What is happening at the moment is no different than situations faced by just about every world changing innovation from the automobile to the Internet and beyond.  In the case of cryptocurrencies there needs to be the recognition of value beyond pure speculation. Otherwise these are nothing more than just another financial instrument with a pretty face.

We may be stating the obvious, but these days the negative sentiment is originating from various government regulators with the stated intent of shielding its citizens from “the bubble”.   Right now the world is overlooking the key benefits of currencies like bitcoin, Ripple and Litecoin: the seamless transfer of money anywhere in the world 24/7.  Once something happens to return the focus to applications of this technology, logic will be restored to the planet.  

Readers will identify our bias toward Ether and there is a reason for it.  The very nature of their open source platform offers limitless applications the average investor can taste, touch and smell.  Yes there are all those stories about failed Initial Coin Offerings that used the Ethereum platform, but that is part of the development process.

Speed And Cost Become Key

Before mainstream adoption takes place, the twin issues of speed and cost must be solved. The current lethargic processing pace of fewer than 20 transactions per second is one thing but the idea of ultra low cost is a joke.  Last year witnessed the proliferation of thousands of use cases.  It inspired investors and sent prices of cryptocurrencies to record levels.  From here getting the details of the technology up to mass market applications is what should drive prices higher.  This is a lot less sexy but adds much greater value.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.4 stars on average, based on 96 rated postsJames Waggoner is a veteran Wall Street analyst and hedge fund manager who has spent the past few years researching the fintech possibilities of cryptocurrencies. He has a special passion for writing about the future of crypto.




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Altcoins

The Long-Awaited Altcoin Extinction Event May Be Near

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The cryptocurrency market is undergoing a major paradigm shift as low-quality altcoins embark on a mass extinction event, according to Xapo President Ted Rogers. This view, which is shared by industry titans like Vitalik Buterin, suggests things will get a lot worse before they get better.

Mass Extinction

In a Monday tweet, Rogers warned that more than 90% of altcoins and tokens could disappear in the not-too-distant future.

“We could be in the midst of the extinction-level event for “cryptoassets” that many maximalists have predicted. 90%+ of CoinMarketCap list will disappear eventually – might as well happen now.  Meantime, lower BTC price means incredible opportunity to buy more bitcoin,” he said.

Rogers’ tweet echoes previous comments by Ethereum founder Vitalik Buterin, who believes that 90% of tokens listed on CoinMarketCap will go to zero. Buterin made the comments back in October during the historic run-up in cryptocurrency prices.

Whereas Buterin emphasized the emergence of higher quality coin offerings following a mass-scale correction, Rogers believes now is the ideal time to buy more bitcoin. The leading digital currency continues to cannibalize altcoins with its share of the total market crossing 54% on Tuesday.

At the time of writing, there were 1,833 cryptocurrencies listed on CoinMarketCap. A couple hundred were added to the website’s tracker in the last few weeks.

ICO Cash-Out?

Crypto assets have shed roughly $220 billion over the past three months and are trading at less than a quarter of their all-time highs. Although the recent meltdown originated last Tuesday when the SEC communicated its non-decision on the VanEck SolidX Bitcoin ETF, the extent of the selloff suggests there are other factors in play.

With the bulk of the declines concentrated in altcoins and tokens, many are blaming the latest rout on a large-scale cash-out of initial coin offerings (ICOs). This has direct implications on Ethereum, which is one of the most important bellwethers of the ICO market.

The ether price has experienced an unprecedented drop over the past seven days, losing more than a third of its value to trade at its lowest level in 14 months. Previously, the developer’s cryptocurrency had shown resilience in the face of broader market moves.

While ICOs have raised more than $6.6 billion this year, investors appear to be selling too early. Short holding periods are placing significant pressure on the market.

Although the path forward is paved with uncertainty, a structural shift in the ICO market will ultimately benefit cryptocurrencies. As Buterin said last October, “there are some good ideas, there are a lot of very bad ideas, and there’s a lot of very, very bad ideas, and quite a few scams as well.” Cleaning up this image is a good thing even with the accompanying pain it has produced.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 544 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Altcoins

Why Investors Should Pay Attention to Waves

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Despite the proliferation of cryptocurrencies and ICOs over the last 5 years, the process of undertaking an ICO and getting funding is still not nearly as simple as it should be. There are complex regulations and heavy amounts of friction that make it hard for the “crowdfunding” model of startup financing to occur.

Waves is a platform (with an eponymous token) whose aim is to solve this problem by launching a decentralized cryptocurrency trading platform and opening more gateways between other cryptocurrencies and fiat currencies.

The Waves Team

The team at Waves are planning on changing the crowdsale model to make it much less complicated for companies trying to get funding. The team operates out of Switzerland, but is run by Russians (the CEO, Sasha Ivanov, is a trained physicist with a strong past in the cryptocurrency space).

The Progress Waves Has Made

Waves’ ICO occured in April 2016, with 100 million tokens being issued. 85% of the tokens went to ICO investors, with the remainder going to strategic partners, Pre-ICO bounties, and internal development and marketing.

Since then, there have been considerable advancements in the power of the network. Their DEX launched in April 2017 with various gateways (both fiat and crypto) being unveiled in the following months. This has made it much simpler to get money into the exchange, thus breaking down funding barriers for any protocols issued on the platform.

Understanding the Business Model

Waves is all about helping companies obtain funding for their projects, and all of their work has been focused on this singular goal. Tokens need to have a specific use or utility in order to justify their existence, and the Waves token has been designed to fulfill this condition.

You can either pay a fraction of a WAVES to transfer tokens or buy a token, or you can spend 1 WAVES to create a new token on the network. Additionally, there are rewards on the network for tokenholders based on their balance of WAVES. The incentive structure is clear in this protocol: owning tokens helps you trade or create tokens, which is the purpose of the platform. The tokens may also be used to run smart contracts, which is why many consider WAVES to be a competitor of Ethereum.

The End Result

Waves tokens are currently trading at approximately $1.70, although it has reached peaks above $16.00. This sharp drop-off in price can largely be attributed to the phishing scam that has occurred in the last few days. Last month they were hacked when their CEO’s passport was falsely reproduced and used to obtain access to the domain and obtain the personal information of customers. Although the facts currently being reported make it sound like the fault lies with the domain provider, this is not the sort of issue that should be happening in a trading exchange.

In addition, Waves currently has limited KYC requirements and allows users to trader without submitted extensive identification information. This can be seen as a positive thing or a negative thing, depending on where you are standing. Yes, it is great that there are few barriers to entry for anyone who would like to trade on the DEX, but it is also likely to attract the ire of regulators in the USA. With a token that is strongly linked to this exchange, it is definitely something to pay attention to.

With the goal of creating a network of new tokens that are all interconnected and tradeable, Waves certainly has its worked cut out for it. However, with this recent drop in price due to security issues, it might be a great time to buy some tokens.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Altcoins

MB Technology and GoChain Partner to Accelerate Innovation on the Blockchain

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MB Technology has recently announced that it is committed to bringing $500 million USD worth of ICOs to the GoChain platform. MB Technology is an expert ICO advisory firm that has advised blockchain projects with a combined valuation of over $2 billion in several industries. Some of the companies that they advised include Fantom, Origo, GoChain, QuarkChain, CoinSuper, Icon and other top ICOs.

The company is committing $500 million to GoChain because it has already launched it’s mainnet functioning at 100 times the speed of Ethereum while being 1,000 times more energy efficient. GoChain is fully compatible with existing Ethereum wallets, smart contracts, dApps, etc. Two companies have already chosen GoChain to launch their ICOs: Solaster Health and Etherprise with a combined value of $63 million.

GoChain has hit the ground running. While many blockchains are still trying to finish up their technical whitepaper or have yet to launch their mainnet, GoChain is way ahead of the curvey. Although blockchains are competing to deliver the fastest Transactions-Per-Second (TPS), they nothing without the dApps that build on them. While speed is important, most blockchains releasing now are more than capable of handling sufficient TPS for production dApps. The dApp ecosystem built on top of a blockchain is just as important, if not more, than the speed of the blockchain itself.

ICOs struggle to build on new blockchains as there are not many well-defined standards. GoChain’s codebase is 100% compatible with Ethereum so any dApp that can or has been built on top of it will easily port to GoChain. This makes it easy for existing Ethereum apps to move over to GoChain and immediately work 100 times faster. A few blockchains build amazingly fast transacting software yet have no use cases or a dApp ecosystem building strategy.

With MB Technology bringing half a billion dollars to GoChain, the coin is extremely undervalued. Compared to other projects on CoinMarketCap, GoChain should be at least in the $100 million market cap range. Competing blockchains talk about overtaking Ethereum, yet GoChain has a working mainnet with dApps being added at a blinding rate. GoChain is one of the most underestimated and undervalued blockchains at this time. Look for GoChain to grow to five to ten times in the next few months from its current market cap of $19.4 million. GoChain is currently only on Kucoin. Look for it to list on other exchanges as it gains daily trading volume.

MB Technology offers advisory services to bring specific solutions designed to boost a project’s outcomes. They also create global investor awareness through their network of partners, influencers, and media outlets.

Disclaimer: Writer does not own GoChain. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 49 rated postsKent Hamilton - ICO Analyst on Hacked and Co-Founder of SpryOne - Loyalty Platform on the Blockchain




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