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ICO Analysis: Hero

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The current state of cryptocurrency gambling is not yet the best it could be. While we have the option to bet sports at the likes of CloudBet and others, or to provably fairly roll dice at PrimeDice and others, what we don’t have is enough ways to bet against each other. For most people, the concept of sports betting doesn’t extend beyond betting with each other. This is the concept behind Hero, which wants to enable people to, in a decentralized manner, bet with each other on sporting events. That’s how simple it is at the base layer, but there are a few things yet to go over.

A high amount of untrustworthy and off-shore providers has lowered the trust of people in the current betting market. It is never completely guaranteed that users receive their winnings. All these problems have one common ground—centralization. Centralized systems create excessive risks for users like exploitation of user data, prohibitive legal regulations, vulnerability to manipulation and denial of withdrawals. That is where the blockchain and the HERO coin (‘HERO’) come into play. […] The smart contracts of HERO are designed to not only enable decentralized betting, but to manage whole contests without a middleman. With HERO, there is no need of bookmakers anymore.

It may still be hard to see what they’re talking about. Basically, Hero is going to be a platform that allows people to make fair bets between each other, with no brokers or bookmakers.

What if the community becomes the middleman? […] Here‘s where the blockchain technology comes in place. The HERO Network allows peer-2-peer predictions of the outcome of games to take place independent of middlemen, such as bookkeepers or betting providers. The system relies on an innovative pooling system that makes it possible for players to challenge their friends or the community directly instead of using the services of bookmakers. The objective is to revolutionize the monotonous betting market and to bring back the lost social thought of betting.

Elsewhere in this paper, Hero claim that the system of online gambling hasn’t changed for 15 years. Now, in general, it can be assumed that many things do not change because they simply work. Indoor plumbing, for instance, hasn’t had to improve very much at the base of it. Similarly, one really has to ask: is the current online gambling and bookie system not working? Well, perhaps that’s not truly relevant. Perhaps the question we actually want to ask is: will enough people be willing to try this alternative method?

Enter the Herosphere, which is briefly mentioned elsewhere in the paper, and is an existing community of 200,00 people. In a moment we’ll discuss more about it, but the bottom line is if this community is immediately converted to the token, and they have to buy more of them to place more bets, then it would seem that the token will have a demand out of the gate. This is a positive sign, to say the least, but we’ll have to continue looking here before we can decide if we feel positively or not.

The above being said, what we conclude, really, is that what we’re dealing with is in fact a situation wherein anyone can participate, and the network becomes the bookie. Anyone can offer bets, however. They give the example of a Twitch streamer who might incentivize the audience and be compensated through the network for offering a contest amongst them.

Herosphere

The HERO Network will first be implemented and tested on the Developer‘s own esports platform herosphere.gg where HERO will be exposed to an existing user base of over 200,000 active players.

While it is not made totally clear if the issue will be forced, one thing that is made clear is that every contest will pay 1% of its proceeds to the network as a whole. This is an interesting scheme which may encourage people to hold the token. If that becomes the case, demand for it will only increase, and ability to meet that demand will decline, as holders just continue to collect their rewards.

If this were to happen and a significant number of coins were kept off market, the price would probably increase just by natural market economics. That would be an interesting way to increase the value of a coin, so it will be a good experiment to watch. In any case, the prospect of a dividend on the token is probably a plus for most long-term investors, but short-term investors won’t be in it long enough to care about that part of it. Nevertheless, as previously described, this coin might see solid gains as a result of people trying to hold it for the dividend.

We know that Hero’s team have successfully run their company at Herosphere.gg since 2014. We see no reason they won’t be able to handle the actual implementation of the software. Instead, we’ll focus our attention on the project itself, in this case.

Hero Token

As stated, all token holders will receive a 1% rake back of everything done on the network. This will incentivize at least a small population of investors to hold long-term, stacking up these gains and riding the charts.

We know that 600 million tokens will be issued, but 2 billion will exist in sum total, which is quite a few, but if enough betting activity takes place on the network, then it won’t actually matter how many coins are out there. Additionally, if a lot of coins are held off the market, then the demand for those that are on the market will float the price a bit higher, at least. Tokens will be around 2 and a half cents at opening, giving room for growth. However, with 2 billion coins in the wind, if the price hits 10 cents, you’re talking about a $200 million market cap. If the price hits $20, you’re talking about many billions. So it’s unlikely that we’ll see an extreme upward valuation, but there will definitely be enough play that you can make something.

Distribution

Only 600 million coins are coming out in the crowd sale. The rest will be held back. They give their various explanations, but this is just absurd. The ICO firms that are coming out are increasingly thinking this is just the time to grab free money. We can’t abide these distribution schemes. If there are going to be 2 billion coins in total, then all of them should be available for sale immediately. It doesn’t matter if that lowers the price, or if the target raise is only several million dollars. The coins should be available to the public, since you’re taking the funds that you get from selling the tokens and using those funds, by keeping the tokens as well, you double dip. By keeping that many tokens, you deeply double-dip.

The Verdict

We definitely don’t like the distribution on this one, despite the following explanation:

A total amount of 2 billion HERO will be created by the Developer. The Developer intends to exchange only 600 million HERO (or 30 percent of the Total Coin Amount) in this Initial Coin Offer for Ether. The remaining 1.4 billion HERO (or 70 percent of the Total Coin Amount) will be used for other purposes. The Developer explicitly reserves the right to exchange the retained portion of 1.4 billion HERO for other virtual currencies or sell it for Euro or any other fiat currency at a later point in time at any marketable price. However, the Developer will commit itself to adhere to the following restrictions in the use, exchange or selling of HERO on the market. Especially, the Developer will commit itself to only exchange or sell such amounts of HERO that, to the best knowledge of the Developer, would not have a visible impact on the market value of HERO.

So, overall, we probably wouldn’t get involved. Although there is a nice dividend, overall, there are problems we’d rather not get involved with – like the above.

Risk

  • Too many coins means that the 1% dividends split amongst all coins is a lot less money. -1
  • Moreover, since 1.4 billion of the 2 billion coins belong to the “Developer,” most token holders wouldn’t get much of the proceeds anyway. -1
  • There’s a risk that people may be comfortable where they are in terms of betting. -1

Growth Potential

  • Gambling is big money. +4
  • The established community is a positive. +2
  • We think this thing will work, the token will just always have a low value. +1

Disposition

We arrive at a 4, or less than thrilled, on Hero.

Investment Details

To get a piece of the 600 million coins being offered for sale, visit Herocoin.io on September 14, 2017 14:00 UTC.

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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  1. beaupain

    September 8, 2017 at 1:51 pm

    Thanks for the detailed en clear analysis!

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Tron Price Analysis: TRX/USD Bulls Dealt a Blow as Bearish Daily Candlestick Eyed

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  • Tron (TRX) was forced to give up the recent run higher after closure in the red on Tuesday.
  • TRX/USD saw a bearish candlestick formation on the daily chart yesterday, somewhat of a shooting or evening star.

The Tron price after a decent push north over the past few sessions saw a minor slowdown on 19th February. TRX/USD gained around 12% from 15th-19th February, as the price managed to find its feet following a break of key support. An ascending trend line was initially running from the back-end of December 2018 up until a breach on 11th February.

At the daily close on 19th February, the candlestick formed somewhat of a bearish shooting or evening star. Should this play by the textbook, then it signals some further potential downside pressure to come. A confirmation of the price moving back south and possibly reversing the recent run of gains would need to see another bearish closure on the daily.

BitGo to Support Tron

Tron announced that BitGo is adding TRX to the list of cryptocurrencies that it supports later this year. BitGo is a digital asset financial services organization offering wallet and custody support. The company already accommodates the likes of bitcoin and Ethereum, plus over 100 other cryptocurrencies.

The CEO and founder of Tron Justin Sun commented following the announced:

“As TRON and its subsidiary BitTorrent work toward our vision of creating a new internet economy that is fast, secure, and cost-effective, we need to work with the companies that can provide that secure foundation. With BitGo, TRX investors will have the most secure wallet and custody options.”

Elsewhere the chief technology officer at BitGo spoke on the latest update to support Tron:

“As TRON and its subsidiary BitTorrent work toward our vision of creating a new internet economy that is fast, secure, and cost-effective, we need to work with the companies that can provide that secure foundation. With BitGo, TRX investors will have the most secure wallet and custody options.”

Technical Review – TRX/USD

As detailed above, the daily candlestick observed yesterday was a bearish closure, ending the run of gains seen of late. If there is to be additional selling pressure, the bears would need to force another close in the red. Should the momentum to the downside pick up the pace, then eyes will be on the next area of support. Daily comfort is provided at $0.023550 $0.021500, $0.018700 and then $0.01750-$0.01600.

In terms of upside targets, the bulls would be looking to break back above the breached ascending trend line. The resistance is currently tracking around $0.027500, and a push north of this could put TRX/USD in an excellent running to retest $0.030000 territory. A large amount of supply is noted through much of this area. If this is successfully broken down, then a fast move could take place up to $0.040000 region.

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 125 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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Crypto Update: Bitcoin Touched $4000 as Broad Rally Continues

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Yesterday’s break-out to new short-term highs continued today in the cryptocurrency segment, with Bitcoin’s push towards the $4000 making headlines in the segment. The most valuable coin surged past the $3850 level, dragging most of the majors higher, but Ethereum and most of yesterday’s leaders lagged behind BTC during today’s session.

That said, the short-term trend remains positive in case of the majority of the coins, and even though some of the top currencies are overbought, the counter-trend move could continue. In light of the increased activity, trading volumes, and volatility in the market, the majors might be in for a more sustained bullish, move, and as now only Ripple is showing clear signs of relative weakness, despite today’s rally, the leadership of the short-term move looks healthy.

While the long-term picture is still clearly negative in the segment, until the newly established short-term uptrends remain intact, traders could still play the move, sticking to strict risk management rules and relatively small position sizes.

BTC/USD, 4-Hour Chart Analysis

While Bitcoin left behind the initial resistance level near $3850, and quickly rallied up to the strong longer-term zone between $4000 and $4050, it might need to consolidate before another push higher. BTC is slightly overbought from a short-term perspective, and given the significance of the resistance, traders could exit a part of their positions here.

The $4000-$4050 zone stopped the year-end rally (outside of a brief, failed break-out), and a move above it could open up the road towards the $4250 and the crucial $4450 levels. Below $3850, further support is found near $3600 and just above $3450, and our trend model remains on a short-term buy signal and long-term sell signal.

ETH/USD, 4-Hour Chart Analysis

Ethereum continues to trade near the $145 resistance level following yesterday’s surge, and bulls are still eyeing a test of the next major resistance zone near $160, which marked the top of the previous counter-trend move in the coin.

While the coin is still overbought form a short-term perspective, given the momentum if its recent move, the rally could continue after a brief consolidation period. The newly-established uptrend is intact in ETH, and traders could enter new positions should the overbought readings got cleared, with support levels found near $130 and $112.

XRP/USDT, 4-Hour Chart Analysis

Although Ripple continues to be relatively weak compared its major peers, today it spiked to a new 5-week high, riding the market-wide trend and testing a strong declining trendline in the process. The coin triggered a short-term buy signal in our trend model by topping its January swing high, but given its relative weakness, traders should focus on the more bullish coins during the current counter-trend move.

The long-term setup remains negative, and from a broader perspective, odds still favor the test of the key long-term $0.28 and $0.26 levels, with further support levels found near $0.32 and $0.30, and with short-term targets being ahead near $0.3550, and $$0.3750.

EOS Continues to Lead but Litecoin Struggles to Gain Ground

LTC/USD, 4-Hour Chart Analysis

LTC continues to trade slightly above last week’s highs but compared to the leaders of the current leg of the rally it remained relatively weak today. With that and the still negative long-term setup in mind, traders should exit a part of their positions here, even as the short-term uptrend is intact and a push towards the next major resistance level near $51 is still possible. Our trend model is still on a buy signal, as a failed break-out is not yet confirmed, with support levels still found near $44, $38, and $34.50.

EOS/USD, 4-Hour Chart Analysis

EOS remained relatively strong today, spiking above the $3.80 level after leaving behind the $3.50 resistance. Now, the coin is clearly overbought from a short-term perspective, and that led to a downgrade in our trend model as a pullback is now likely.

The short-term trend remains bullish despite the correction risks, and should the coin clear the overbought momentum readings traders could reenter their position following strict risk management rules. Support is now found near $3.50, $3, and $2,80 while strong resistance is ahead near $4.50 and $5.

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 467 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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XRP Price Analysis: Explosive Breakout from Pennant Confirmed; SBI Holdings CEO Bullish on XRP

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  • XRP/USD is enjoying three consecutive sessions of gains, having jumped around 17%.
  • SBI Holdings CEO believes XRP market capitalization will be higher than bitcoin’s.

Ripple’s XRP price has been enjoying a decent move to the north over the past few sessions, as life flows back into the bulls. XRP/USD is currently running at a third consecutive session in the green, having gained around 17% within this period. The explosion of buying pressure came after the price managed to escape a bullish pennant pattern.

XRP/USD: Price Recap

XRP/USD had initially been cooling since the big bull run at the back end of 2018. The price rallied on 24th December up to a high of around $0.4670, before quickly losing upside momentum. It was then forced to trade within the confinements of a descending wedge pattern. XRP lost over 30% in value before it was able to break out from the wedge.

On 8th February a chunky push higher from the bulls was observed, resulting in a breach of the upper acting trend line. XRP/USD jumped around 10% on this day but then eased south to retest the trend line for a few sessions. During the cooling period, price action has formed a pennant structure which saw an eventual big breakout to the upside, as described earlier.

SBI Holdings CEO Bullish on XRP

The SBI Holdings CEO, Yoshitaka Kitao, was recently speaking on XRP and said this year is a significant one for the so-called banker’s cryptocurrency. He believes that the market capitalization of XRP is likely to dwarf bitcoin’s at some point in the future. Kitao has firm belief in the future sucess of XRP and can see it being adopted on a global scale. He was quoted saying:

“Because XRP is already beginning to become international, xRapid will be used for fund transfers in 2019. By increasing the so-called XRP’s plastic use, we anticipate that the XRP market capitalization will easily exceed the market capitalization of bitcoin.”

SBI has many joint ventures set up with Ripple across the blockchain industry; it’s therefore not too surprising to see such comments. The organization will also be launching its very own cryptocurrency exchange called VCTRADE, scheduled for March. Deposits and withdrawals for bitcoin, XRP, and Ethereum (ETH) are already available on the platform.

Technical Review – XRP/USD

XRP/USD daily chart.

Given current upside, eyes must now be on the next likely barriers of resistance for the bulls. A supply area noted from $0.3450 up to $0.3600 is the next target; XRP has not traded comfortably above this region since 10th January. A break above this zone should put the bulls in an excellent position to retest the $0.4000 area. On several occasions, this price territory has caused issues for the bulls in their attempts to push further north. In terms of support, this is seen back down at the psychological $0.3000 mark. If that fails to hold, then there is a demand which runs from $0.3000 down to $0.2500.

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 125 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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