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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.

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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?

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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 1 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: Coins Remain Under Pressure but Supports Still Hold

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The correction of the post-crash rally is still dominant in the cryptocurrency segment, despite the encouraging bounce on Friday, as Bitcoin is dragging the market lower. The coin turned relatively weak in recent days after an extended period of outperformance, but even BTC is holding up well, with the bearish momentum being far from disastrous.

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Ethereum’s relative strength, on the other hand, is slowly building, as we first noted it during the Thursday sell-off, and the second largest could be spearhead the next leg higher. The early leaders of the rally, Ethereum Classic and Litecoin are also acting bullish, and the overall picture remains in line with the orderly correction scenario.

BTC/USD, 4-Hour Chart Analysis

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Bitcoin still hasn’t tested the key $9000-$9200 zone despite several waves of selling that hit the coin, but it’s still stuck below the $10,000 level. We expect a short-term bottom in the coming week, as the momentum of the decline suggests accumulation, and investors should use the dip to add to their holdings, even if a test of the primary support zone is still possible here, with further resistance levels ahead above $10,000 at $11,300, $11,750, and $13,000.

LTC/USD, 4-Hour Chart Analysis

Litecoin put in a higher short-term low during the weekend, retaining its leading position in the rally from a technical standpoint. The MACD indicator already gave a bullish signal after dipping into negative territory, but should Bitcoin continue to struggle, LTC could be in for more consolidation before despite the relative strength. The $200 level is still in focus with a strong resistance zone just ahead between $220 and $235, with the rally high at $250, while further key support is at $180.

Altcoins Mixed in Quiet Trading

ETH/USD, 4-Hour Chart Analysis

Percentage changes are not significant today following yesterday’s decline, and most of the majors are holding up above or near key support levels, with relatively low volatility and notable divergence between the coins.

As for the recently weaker coins, Ripple is still trading well below the $1 level, while IOTA managed to bounce hard off the correction low reaching back to the $1.9 resistance, and edging closer to a break-out from the still dominant downtrend.

The rest of most established coins are still drifting lower, with no major moves in the last few days, so without notable red flags, we remain positive regarding the long-term setup.

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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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Analysis

Daily Analysis: Oil Extends Rally as Nasdaq Leads Stocks Higher

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Friday Market Recap

Asset Current Value Daily Change
S&P 500 2749 1.38%
DAX 12,483 0.18%
WTI Crude Oil 63.58 1.29%
GOLD 1330.00 -0.16%
Bitcoin 10,14 -0.09%
EUR/USD 1.2295 -0.28%

US equities built up some bullish momentum towards the end of the week, ignoring the technical damage that the volatility-crash caused, and the major US indices rallied into the close today, squeezing the shorts. The Nasdaq, which led the rally as we expected, took out the key 6850 level in late trading and added another percent to, incredibly enough, finish only a hundred point of the all-time high.

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NASDAQ 100 Futures, 4-Hour Chart Analysis

Should the tech benchmark retest the high next week, it will be amid very strong negative divergences, but hey, those divergences have been building for months now. The rally in equities was boosted by the dip in Treasury yields, especially at the long end of the curve, while Amazon continued ot lead the charge, closing right at the historic $1500 per share level.

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Russell 2000 (Small Cap) Index, 4-Hour Chart Analysis

The advance in the Dow and the S&P 500 is much less convincing and with small caps also lagging the tech-behemoth juggernaut, we remain skeptical regarding the sustainability of the move. That said, if the broader indices stay above the key levels, we will be trading the long side in equities, even as from an investment standpoint, valuations are still way above acceptable.

Forex Markets and Commodities

The lackluster performance of European and Asian stocks adds to the negative divergences, especially as the Euro stopped appreciating against the Greenback, and that should be helping stocks of the old continent. Of course, the DAX and the EuroStoxx 50 could play catch-up next week, barring another surge in the common currency.

EUR/USD, 4-Hour Chart Analysis

The most-traded forex pair remains in a short-term downtrend, as it failed to recapture the previously broken rising trendline, and the commodity related risk-on currencies also remained under pressure. The Canadian Dollar did bounce back off yesterday’s 8-week lows, boosted by the much hihger than expected inflation release and the jump in the price of crude oil.

USD/CAD, 4-Hour Chart Analysis

Oil benefited from the positive shift in sentiment, while the Syrian situation, which took a backseat in the headlines, still supports the rally. The Japanese Yen and gold were stable amid the risk-rally and that adds to our suspicions regarding the upside potential form these levels.

Cryptocurrencies

The segment started out the day with a strong bounce that carried the major coins higher by around 10%, but given the recent steep short-term pullback, even that wasn’t enough to turn the tide, and the day ended with an (almost usual) sell-off after the US close. Despite the recent volatility, the overall picture is still encouraging, with most of the majors being safely above the crash lows, likely in a new bullish cycle that has the potential to last for several more weeks or even months.

While new all-time highs are it guaranteed following the 60-70% declines among the largest coins, but even without those, plenty of upside potential is left for investors. With that in mind, investors should hold on to their coins and even add to their holdings on the short-term dips like the current one.

ETH/USD, 4-Hour Chart Analysis

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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 116 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

Technical Analysis: Majors Stage Rally but Strong Levels Still Ahead

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The cryptocurrency segment has recovered from a broad correction today in early trading, with the most valuable coins all turning into green during the session, despite the bearish start to the overnight session. With bottom-to-top gains of up to 15%, the rally helped in easing the worries of bulls, especially in the case of the relatively weaker coins.

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Bitcoin and most of the largest altcoins remained stable during the selloff, and BTC recaptured the $10,000 level quickly after trading as low as $9600 overnight. The initial rally topped out near $10,400, and the coin is trading back near the $10,000 level, as the bullish momentum faded away somewhat.

BTC/USD, 4-Hour Chart Analysis

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That said, we expect the uptrend to continue even if the correction could still carry Bitcoin lower. Further strong support is found between $9000 and $9200, while targets are ahead at $11,300, $13,000, and $14,250.

ETH/USD, 4-Hour Chart Analysis

Ethereum showed strength during the bounce again after yesterday, together with the early leaders of the rally, and although the coin dipped below the $845 level in the second half of the session, the signs remain positive for bulls. Support levels are now found at $780, $740, $625 and $575, while resistance is ahead near $910 and $1000.

(more…)

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 116 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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