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ICO Analysis: bitJob

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As we said in our analysis of Wolk yesterday, the mantra of disruption is to disrupt and dis-intermediate. We can’t stress enough how important the last point is, and yet we fear that many ICOs are missing it, forcing themselves into an intermediary or middleman role that will simply be flipped upside down on the next wave of disruption. The bitJob ICO is going live not long from time of writing, so we must be quick to get to the heart of it and see if it’s a basket for our eggs or not.

bitJob Overview

Freelance marketplaces are a thing that are ripe for disruption. Fiverr.com, for instance, takes 20% of the revenues that workers earn. Blockchain technologies can drastically reduce costs, and decentralized services can make them more viable. As such, anything which presents itself as a crypto version of Fiverr or Freelancer.com or Upwork or any of them is bound to pique the author’s interest.

In bitJob, the technology’s disposition appears important to the designers. They intend for clients – as in, the people who would be hiring people – to use a centralized server run by them. On the other end, they want a decentralized to be available for everyone using the platform. They believe that maintaining a more standardized, centralized infrastructure at the outset will improve adoption, and on this point they may be right. It’s no secret that many people like to use web wallets despite the risks. The same will be true of decentralized applications – people will prefer the easiest route forward, even if it means using something centralized to eventually transition to something not.

It is very simple: a student looking to provide services online connects to the marketplace, chooses from a list of professionals jobs for relevant work, provides quality delivery, and receives immediate payment of his choice, in cryptocurrency or fiat money.

bitJob addresses a criticism which says that there are no obvious benefits to them using a blockchain, pointing out that the lower cost of moving money on a decentralized ledger is far lower, among other things, like the fact that building a decentralized, blockchain-integrated platform early is better than playing catch-up when it becomes the norm. This is all sensible, but in general, we get the feeling that we’re being distracted from the fundamentals. How exactly do you intend to make money?

We built a fantastic affiliate program tht will strengthen the relationship between bitJob and the students: students’ unions will receive a commission from each transaction their students engage in. We have launched pilot agreements with leading student associations in Israel, in addition to a number of employers who were more than happy to participate. We are also negotiating with several leading job search engines to ensure a continuous flow of quality jobs.

We see. Layers of intermediation. One problem from the top is that these affiliate fees are compensated somehow, we will have a look at the confusing chart in a moment, and some students may be wise enough to view this as an unnecessary expense. Students are free to use the existing centralized marketplaces, after all. The real challenge for any platform which wants to enable freelancers to find clients is that it have enough of said clients. Despite the fact that Fiverr takes 20% of people’s earnings, it’s still likely the best option for many providers, by virtue of the fact that their odds of getting paying customers is much higher. The same is true of Freelancer, and Upwork. A great way to thwart all this is to, as much as possible, be friendly to the idea that clients should be able to use whichever platform has what they need. This is to say that probably the real masterful technology in this space will be one that enables both providers and clients to freely navigate between the various middlemen, and then the thing that would obsolete that would be something which allowed the two parties to directly communicate without any intermediation at all. (Something like OpenBazaar, perhaps?)

bitJob also points out that lower transaction costs mean that people in depressed regions of the world will be able to participate, as both providers and clients. While individually their revenues may be small, collectively the size of that market is functionally unknown until someone like bitJob actually does reach it in an all-encompassing way.

There is no need for bitJob to spend money on hardware, infrastructure, or tech staff. Platforms like Ethereum offer such infrastructure, which has minimal cost only when used. Any new technological advances within the Ethereum community will be available to the platform as soon as they are created. It would be impossible for a business that facilitates freelance jobs to simultaneously invent systems that can be competitive in the global market. Due to the competitive nature of technology in global markets, it is very likely that a new platform similar to Ethereum will someday appear — offering new abilities, gaining market share, and offering competitive pricing — thus creating an environment conducive to experimentation and to inexpensive operation.

This part seems a bit ridiculous. No tech staff? What if something goes wrong in the client system? Who fixes it when it breaks? And therefore, what is the money for? Just build it once and run it forever? We reject this notion off-hand. In terms of our points, this disposition against actually building a product is expensive for bitJob.

bitJob Token

bitJob describes its acceptance of a variety of currencies as a good thing, but for the token holder, it makes the proposition sort of a non-starter. Their justification for the creation of the token is rather weak, perhaps the only valid or acceptable argument in that section of their whitepaper is that branding their own token gives people some incentive to be in some sort of exclusive network, and that it gives them help in approaching student unions and other affiliates. As we said before, we’re most interested in platforms which have foreseen the future disruptions they may themselves face, and we’re not noticing an awareness of that here at all.

A total of 128 million tokens are going up for sale today at a rate of 0.0011261261Eth each, with a tiered bonus structure related to the number of tokens sold, as shown below:

bitJob Flaw

The justification for the token goes like this: in the future, decentralized applications and blockchains are going to be commonplace, so we should be prepared for that. While this is true, it does mean that if you are not going to provide some forced inherent value for your token (such as a limited supply complimented with a specific purpose that no other token can perform, to put it in very few words), and therefore can’t float a good demand proposition for said token, it’s hard to see why investors should throw Ether at it.

bitJob Team

What they lack in experience, they make up for in numbers. bitJob has a fairly large team to compensate. We must stress that our problems with bitJob are not in the implementation of the business strategy itself, but in the way that the token is assigned insufficient importance to really drum up demand. This is to say, we’re going to give them the team points, at least. The four co-founders are Dror Medalion, Bogdan Fiedur, Aviad Gindi, and Elad Kofman. Two have experience in blockchain development, one has spent most of his career building affiliate systems (intermediaries between customer and producer), and one is a currently active mutual fund manager. Collectively, they appear to be in the right positions.

As we noted earlier, the company has no intention of building a staff to maintain the software going forward. Perhaps their intent is to hire out the work through the platform? There’s a thought, but we don’t get that impression in our overview. Nevertheless, hype is a powerful force, and we note that with the current buzz around cryptocurrencies, it’s highly likely that student association and individual student interest will increase the talent pool sufficiently. The rubber hits the road when companies actually begin to use the service – bitJob may casually allude to partnerships with companies that are eager, but none of these are listed on the website, nor in the whitepaper. We certainly believe that companies can make use of a service which enables part-time jobs and micro-transactions, but we need a bit more proof than that.

The Verdict

We think the only play is a short play with this token, because on the long-scale, unless they force the use of the token in the system, and only focus on making it easy for the students to get to fiat cash, preference for the token will be hard to develop, and demand for it is what makes it actually valuable. Students may find themselves getting paid an increasingly worthless token, and just choose the fiat option where available. Commitment to the system seems hard to develop when it’s as trivial to go elsewhere. All of this is bad news for anyone aiming to hold this token long-term.

Risk

  • See directly above, we think it elucidates a deduction of 5.75 (possible 6) points.

Growth Potential

  • We think they gathered the right people, which is important, this model allows up to 4 points for that.
  • We think their marketing is strong, and that marketing is the primary measuring stick for these types of marketplaces. We give 3 points on these grounds.
  • For short-term traders, our primary focus here, we think the bonus structure may provide enough arbitrage for an early exit, but wouldn’t hold our breath on this one. +2
  • We do see student participation actually happening, and we applaud them laying the groundwork to get partnerships with student associations in place. As mentioned in the main body of this article, we fear that the several layers of mediation may fatigue actual providers and even clients. +1.5

Disposition

We’re not overly excited about bitJob. We arrive at a 4.75, with the caveat that short traders who are flexible enough should be able to take a small profit, if they’re interested, but there’s a hazard of a total drop-off that would make this difficult. At a base token price of over .001 (no matter the bonus structure), we see a potential immediate depression with little hope of recovery. Fair warning is considered served.

Investment Details

The sale opens in a few hours, and information about on how to contribute is copiously available at https://stu.bitjob.io/.

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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5 stars on average, based on 2 rated postsP. H. Madore has covered the cryptocurrency beat over the course of hundreds of articles for Hacked's sister site, CryptoCoinsNews, as well as some of her competitors. He is a major contributing developer to the Woodcoin project, and has made technical contributions on a number of other cryptocurrency projects. In spare time, he recently began a more personalized, weekly newsletter at http://ico.phm.link




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Analysis

Crypto Update: Another Rally Attempt in Crypto-Land

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The major cryptocurrencies are all trading slightly higher today, following two bearish days that brought them back to last week lows, and for now, another breakdown has been avoided, despite the overwhelmingly bearish broader picture. The modest bounce left our trend model on sell signals across the board, and odds continue to favor new lows in the coming period, so traders and investors should remain defensive here.

The top coins are trading well below the weekend bounce-highs and without new swing highs, the short-term trend also remains clearly bearish, even considering the deeply oversold long-term momentum readings and the abysmal sentiment. So while a larger scale bounce remains possible in the coming weeks, perhaps following a failed breakdown pattern, bulls should still be patient until we sell clear technical improvements in the segment.

With that in mind, traders and investors shouldn’t enter positions even in the slightly stronger coins, and odds still favor the continuation of the bear market, with new lows likely in the coming days. That said, a successful test or a failed breakdown could trigger a larger scale correction, with the broader picture still being deeply oversold and with investor sentiment still being very negative. For now, there is no sign of an imminent rally, with all eyes on the $3000 in Bitcoin.

BTC/USD, 4-Hour Chart Analysis

Bitcoin rallied as high as $3450 today, but it failed to get close to the $3600 resistance and the weekend high, so the short-term downtrend remains intact despite the bounce. For now, our trend model is still on sell signals on both time-frames, and traders should stay away from entering new positions here, with the long-term picture also being clearly bearish.  Further resistance is ahead in the $4000-$4050 zone, while key long-term support is found near the $3000 price level.

ETH/USD, 4-Hour Chart Analysis

Ethereum is stuck below the key $95-$100 zone even following today’s bounce, keeping the coin on a short-term sell signal in our trend model. Odds still favor a move towards the next major support zone between $73 and $75, and only a quick recovery above the primary resistance zone could change the short-term trend.

The steep long-term downtrend is clearly intact in the coin, and traders and investors should still not enter new positions here, with further strong resistance zones ahead near $120 and $130.

Altcoins Avoid Breakdown but Strong Resistance Zones Lie Ahead

Dash/USDT, 4-Hour Chart Analysis

Despite yesterday’s weakness, last week’s lows held up even in the relatively weaker majors, and although that’s an early sign of stability, it’s not enough to warrant upgrades in our trend model. With still no bullish leadership present in the segment the continued technical weakness in the lagging coins, such as Dash reinforces our bearish long-term view.

XRP/USDT, 4-Hour Chart Analysis

Ripple only experienced a weak bounce, and although it continues to trade near the $0.30 level, the coin is still among the relatively weak coins from a short-term perspective and the renewed long-term sell signal is also in place.

We still expect a move towards the prior bear market low near $0.26, with a weaker support level found above that near $0.28, and traders and investors shouldn’t enter positions here, with resistance levels above $0.30 ahead at $0.32, $0.3550, and $0.3750.

Litecoin/USD, 4-Hour Chart Analysis

While Litecoin managed to hold up above its recent swing low and the $23 support level, it remains in steep short- and long-term downtrends, and we would need to see significant technical strength for even a short-term trend change.

Our trend model is on sell signals on both time-frames, and below $23, the next major support zone is found between $20 and $20.50 with strong resistance ahead near $26 and between $30 and $30.50.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

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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4.7 stars on average, based on 413 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Analysis

NEM Update: Good Time to Buy the Dip

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What would you think if we told you that NEM (XEM/BTC) is a crypto leader in terms of chart analysis? Many would think that this statement is preposterous. After all, the market is still down by 85% from the 2018 peak of 0.000137. In September, it was even down further by over 90% when it dropped to 0.00001257. Saying that it is a crypto frontrunner may sound absurd.

In reality, however, it is.

NEM reversed its trend before any other large-cap altcoin. On top of that, it provides us a roadmap as to how large-cap cryptos can jump-start their bull cycle. In this article, we reveal why it is a good time to buy the dip.

Accumulation at the Parabolic Support

Market cycles often end where they began. In the case of NEM, the bear market ended when it dropped to the parabolic support area. If you look at the weekly chart, the range between 0.000014 and 0.000016 was the market’s resistance back in March 2017. When the market took out the resistance, it blasted off to 0.00013980 in May 2017.

In addition, this level provided much-needed support back in December 2017. NEM wicked down to this parabolic support area and briefly breached it. When the market recovered the support, NEM skyrocketed.

Weekly chart of NEM

This price action tells us that the range between 0.000014 and 0.000016 is important for market makers. They have defended that area in the last two market cycles. It appears they are doing the same now.

A look at the weekly chart shows that NEM traded within that range from August to November 2018. NEM has never moved within a relatively narrow range since March 2017. This tells us that the smart money used the parabolic support to accumulate positions. With a new base established, the market should soon be ready to launch the markup stage of the new cycle.

Launch of the Initial Pump

A big bullish breakout is the most reliable signal that the accumulation phase is over. In the cycle of market emotions, this is the stage where participants view the pump as a sucker’s rally. Having spent almost all year in the bear market and watching NEM get devalued by more than 90%, people have been conditioned to be pessimistic. Many won’t buy the breakout because they believe that the market will eventually resume its slump.

NEM’s initial pump just proved this point.

On November 12, the market printed volume that’s over 1,214% of its daily average. That’s an astronomical volume surge! This triggered the breakout from an inverse head and shoulders pattern on the daily chart.

Daily chart of NEM

One can only assume that the smart money is behind this move because there’s no way retail traders would instigate such a breakout. On top of that, observe how volume significantly declined after the pump. This is another signal that retail investors are yet to get a piece of the action. For them, this is nothing but a sucker’s rally.

However, a closer look at the market reveals that the rally to 0.00002249 on December 10 created NEM’s first higher high this year. This is a technical signal indicating that the market has turned slightly bullish. We know it’s hard to believe but the next section should help clear your bearish bias.

Anticipate the Higher Low

Basically, a market is considered bullish when it generates a higher high and a higher low. So far, NEM has given us a higher high. Technically, the low of 0.00001385 on October 29 is also a higher low as it acted as the right shoulder. Nevertheless, a higher low that’s above the accumulation range should be very convincing.

Fibonacci levels of the current range

If the market creates a higher low near the breakout, then NEM has sufficiently met the basic definition of a bullish market. This will be a good time to buy the dip.

Bottom Line

NEM acting as an altcoin leader may sound far fetched. However, the accumulation at the parabolic support and the technical reversal show that NEM is ahead of its peers. Also, its bullishness can be further solidified once it manages to print another higher low. That would be the point at which to buy the dip.

 

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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3.8 stars on average, based on 286 rated postsKiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.




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Altcoins

EOS Price Analysis: Cardano Founder Charles Hoskinson Warns of Regulatory Action Against EOS

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  • Charles Hoskinson projects some form of action from the SEC on EOS.
  • EOS/USD enjoys a relief rally on Wednesday, as price moves further north following recent bounce.

The EOS price hasn’t done much but decline of late. Back in August, EOS/USD entered into a very stubborn narrowing range. The price had been confined within this mode of trading right up until November. The range was seen from the $6 territory down $4 area. On the 19th November, EOS/USD bears had finally pushed for a breakout to the downside, from this mentioned range-block. Following this fall, the price plummeted over 60%, over the course of 3 weeks.

Cardano Founder Hoskinson Expresses EOS Regulatory Concerns

The Cardano (ADA) founder, Charles Hoskinson, has beliefs that EOS chief developer of the network is likely to face strong action from regulatory bodies. The SEC would be a potential regulator that investigates their $4bln ICO, as he has described as “egregious.”

Speaking at a press conference in Edinburgh, Charles Hoskinson has made a projection that the Securities and Exchange Commission will look at taking firm measures against Block.One. He believes that this would be done due to the way it had run and hosted the EOS ICO.  Hoskinson further detailed how the EOS token sale sits within the remit of the regulators for them to review the potential for harm of retail investors in the United States.

Charles Hoskinson Anticipating SEC Action on EOS

Hoskinson predicted that the SEC will likely bring punitive measures against Block.One for the way it ran the EOS Initial Coin Offering. The IOHK leader explained that EOS’ token sale falls well within the regulator’s remit to take action against any financial activity which harms US retail investors.

There were several fundamental issues with the EOS ICO, which clearly raise red flags, from Hoskinson’s view. He expressed for particular focus on the amount they had raised over the course of a year, in addition to their “utter lack of respect” for investors. Hoskinson said, the SEC “needed” to take action.

Technical Review – EOS/USD

EOS/USD daily chart

Most recently, the price has managed to stabilize, which could be due to sellers exhaustion. A bounce was seen on 7th December, after falling to a low of around $1.55. The bulls are attempting to make a convincing push back into the $2 territory. Demand in the near-term should now be observed from that recent low, $1.55 up to $1.80.

It is interesting to note the area of which EOS/USD received some comfort on 7th December (this is a known acting support). Back in November 2017 during the big bull run, the price consolidated within the mentioned demand zone for a brief period. This came before continuing its strong move to the north.

Downside Observations

EOS/USD daily chart

Should the near-term area of support fail to hold, then there could be some devastating moves to the downside. A breach of the $1 mark could very well be seen. The next major demand area will be within the depths of $0.90 region. EOS/USD had last traded down here again within the early part of Nov 2017 bull run.

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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4.5 stars on average, based on 80 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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