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ICO Analysis: Power Ledger

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Renewable energies are all the rage, for good reason. It is not hard to imagine dozens of companies, globally, prospering exponentially into the future as they deliver cost-effective platforms which enable people to buy and sell their power without going through the traditional power grid.

There is an inconvenient truth facing the traditional energy supply industry: at some stage, it will be cheaper and more effective to self-supply than to rely on the network to provide low-cost and reliable and clean energy.

For those whom this statement is not true about, it will still be increasingly true over time that peer-to-peer markets offer much better prices for consumers. Ultimately legacy, vertically-integrated companies are embedded in the power grid, and so even if they begin to cede control to the decentralized and distributed networks of tomorrow, there will still be tolls and such owed to them. Disruption does not always mean the disrupted are without a parachute. According to a 2015 Deutche Bank study that Power Ledger notes in their whitepaper, in much of the developed world it is already the case that self-generated power is equal or less to the cost of delivered energy.

Brief Overview

In Power Ledger, we have a direct competitor to Suncontract. MyBit also has designs on this market, and others are sure to follow. They all are creating essentially the same product. Luckily for both of them, the budding market of “bi-directional energy flows” is large enough to sustain these two and many more to come. Their execution could be better than Suncontract, or not, and yet it could still turn out to be a prosperous endeavor. For those that have yet to investigate Suncontract or read our report on it, we’ll give here an overview of the concept:

As more and more people create their own energy, a growing class “prosumers” emerges. These are people who both buy and sell, based on their own lifestyle choices. An investment property owner might offset some of his costs by using huge portions of his rooftops for solar panels. More and more people will reach a point where it becomes cheaper for them to invest in the hardware to have their own solar operation, and doing so will create greater surpluses of energy. Currently when people do that, they do not have a great bargaining position – they can sell it for whatever the grid is willing to pay, or they can just not sell it. Power Ledger and similar plays aim to create marketplaces where people will be able to sell their energy to those who need it more – electric vehicle charging stations or even cryptocurrency miners might find particular use in such a market. To partake in said marketplaces, they’ll have to acquire the token of exchange in these markets, which is where the value of such tokens is derived – from the demand for such tokens.

Trends Support Notion

While it’s true that home consumption from the grid proper will only continue to decline, studies of the energy industry have shown that current levels of production as well as delivery networks may likely not be adequate to keep up with demand brought on by increasing reliance on electricity as opposed to other forms of energy. People will be creating their own energy, and selling surpluses to industries which need ever more of it. Bloomberg says 7 trillion dollars will go into renewable energy over the next decades. The Energy Information Administration recently announced that renewable energy production has surpassed nuclear energy for the first time. According to Power Ledger, their idea is ironically a way to give the legacy energy industry a new lease on life. By becoming participants in decentralized, trustless marketplaces which happen to be centered on an industry with which they are deeply familiar, revenues for traditional power companies could actually increase.

What Makes Power Ledger Unique?

Power Ledger is already in operation. This is the first key piece of information. In 2016, they launched the first peer-to-peer energy trading platform in Australia. The platform works by allowing individual markets to exchange fiat currencies for Sparkz, which can be used to exchange for POWR tokens. POWR tokens are the base unit of the ecosystem, whereas Sparkz are earned and sold in practice by the energy producers and buyers. Earlier this year, they were able to get banks on board for this purpose. Also earlier this year, they were able to strike a deal with a large retailer in New Zealand to demonstrate the abilities of the Power Ledger platform. Since their first successful experiments, they’ve only increased the number of other companies interested in leveraging some aspect of the Power Ledger platform.

Power Ledger is maximizing use of decentralization. Rather than giving itself an endless mission of improving the ecosystem, Power Ledger would like to see applications developed on top of its, for lack of a better word, protocol. While they are developing applications in a number of categories themselves, others could develop competing efforts which made use of the system. Having a plug-in style base is better when trying to approach large, established companies about working with you – often enough, they might be willing to work with a new outfit if they believe they can be mostly autonomous. Therefore, being able to simply develop their own stuff on top of the API is better for all.

Notable Applications

Artificial intelligence and remotely deployed properties come to mind when thinking of increased energy demand moving into the future. One application that Power Ledger has in mind is what they call autonomous asset management. Imagine being able to deploy a vending machine virtually anywhere, not even having to include the cost of its energy use in agreements with property owners? Power Ledger can enable this by allowing your machines or a separate machine which could handle it for you, to purchase their own energy. This goes in tandem with several other unique visions of the future, including automatic restocking.

Most of the rest of its applications are more energy-industry facing, but consumer-facing applications usually follow industry-facing ones anyway. Having generated so much activity and buzz around their product already, and having a minimum viable product long before they’ve even bothered to ask us for any money, is a huge plus for Power Ledger.

Having already analyzed Suncontract, we have something to compare Power Ledger to. We will try not to focus too heavily on a competing effort, but inherently one has to be a better play than the others. Therefore there are two areas we will focus heavily on. One is the technical nature of their plan – is it more detailed than the very high-level offering of Suncontract? Secondly, the team. Is Power Ledger’s team more or less experienced and competent? These factors and others will determine what the safety of Power Ledger as opposed to Suncontract.

Ledger Assets

Last year, the same group of people propelled the Ledger Assets program forward. This is an ongoing proof-of-stake blockchain for Australian companies to settle transfers and manage assets. It made a lot of headlines.

Power Ledger Team

Co-founder and Chairperson Jemma Green has a keen awareness of the needs of 21st century power consumers. “Jemma is a research fellow at Curtin University Sustainability Policy (CUSP) Institute, whose doctoral research into “Citizen Utilities” has produced unique insights into the challenges and opportunities for the deployment of roof-top solar PV and battery storage within multi-unit developments and the application of the blockchain.” Her role is more in guidance of the company, having experience in risk management.

Day to day operations are conducted by David Martin, whose two-decade career in the electricity industry lends credence to his abilities. Most his electricity career was at Horizon Power, but he also spent six years with Western Power, both Australian power providers. The insights that are developed over a career like this are valuable, and it would seem that many of the early successes of Power Ledger to date can be attributed to the connections made during Green and Martin’s careers, among others. The thing stands on its own legs, as well, but knowing who to talk to about trying something experimental, within other companies, is a valuable asset.

CTO Nuno Martins is listened concurrently as a blockchain expert and the CTO. Most articles related to him which present themselves have to do with his current endeavor. This is partly because an established professor at the University of Maryland shares his name in an also technological field of study. We were able to find a 2013 presentation made by Martins, although the contents of it were not available. This presentation is in relation to the Cloogy software, a smart home application regarding power consumption from a company called Intelligent Sensing Anywhere. The presentation lists him as a Product Manager in Portugal at that time. Martins does not give a bio, so we must mostly guess, considering his LinkedIn profile is also basically blank.

Senior software developer Garry Hasler spent twenty years at IBM in what we today called DevOps. Mainframe and large systems experience like is is absolutely a necessity for the scope of the project Power Ledger is engaging itself in, and a successful career at Big Blue is far and above anything we noted about the team at Suncontract.

POWR / Distribution Details

There are two token distribution models that come into play with the POWR/Sparkz dynamic. They draw it as such:

In the first model, where traditional power companies already have the footing and often the legal control of the grid, the model allows them to play the part of generating the Sparkz tokens, if they choose, and then selling them. People buy and sell Sparkz within the platform, as these tokens are generated by the actual token of the platform that you will speculate on – the POWR token. “Prosumers” are paid in Sparkz. Under this model, the Sparkz may then also be redeemed with the gateway or “Application Host” which issued them. As such, many people could interact with the platform and never have a clue what cryptocurrency was at all. Which is fine.

In the peer-to-peer model, POWR tokens operate on parameters defined in the smart contract and convert the tokens purchased to Sparkz tokens based on the local market. This is explained in a bit more detail:

Sparkz tokens are priced, issued and redeemed in the local currency of the Platform Participant. […] Purchasing a sufficient amount of POWR tokens allows Application Host’s access to the Ecosystem from where they can convert their POWR tokens to Sparkz and on-board their customer base. […] POWR tokens are required to generate Sparkz. Sparkz are a local market level token and are priced for the exchange market they are deployed in, e.g. In Australia 1 Sparkz = 1 cent AUD. They allow for frictionless transacting […] .

In short, POWR tokens are a proof-of-stake staking coins, and rather than generating more POWR tokens, they generate Sparkz. Existing industries are one where we can see Proof-of-Stake being a viable approach, because such industries are filled with companies who have capital they can put up as stake. The problem with many proof of stake coins has been lack of economic incentive to actually stick with the program – fluctuations in the market encourage dumping and so forth. In the case of this project, this risk is lessened by the idea that a great many of the POWR token holders will be directly invested in the economy, in that a quick exit on speculation is not ideal for them. This will also increase the long-term demand for the tokens to be taken back off the market, making it easier to sell at higher prices. Like many ICO tokens, POWR tokens will have a utility and they will be the only way to achieve it. Therefore holding a bag of them when others go in search of them is not the worst position to be in.

The Verdict

So very much to like about Power Ledger. Definitely one to watch. They are running an ICO in the coming months in order to expand global operations, and details are still forthcoming on that.

Risk

Risk here is significantly less than with Suncontract. We have a working, minimum viable product. We have an in-depth plan of execution. We have working technology, rather than theory. Regulatory pushback could slow Power Ledger and Ledger Assets down from realizing their potential in the short-term, but long-term they will probably overcome as many obstacles put before them, like most innovators are forced to do.

Another potential risk is that the entrance into the ICO market, and the issuance of new tokens for sale with the purpose of raising funds, could destabilize the market they’ve already got going. This probably explains why they are approaching their ICO stage very carefully.

For this relatively minor problems, we deduct a 1 point for the unknowns.

Growth Potential

Limitless. In the future there will be more robots than human beings. It’s not crazy to say that analyst predictions on energy consumption are even conservative, being that the rise of cryptocurrency mining doesn’t play a serious role in their calculations, but a sustained push in this direction could make it a cultural normality to get your power from a decentralized market and use some of it to mine decentralized currencies which you spend on other decentralize markets as well. Power Ledger has the right execution and great timing. Their growth potential is massive. We give them the same 5 points granted to Suncontract, plus 2 more for having a minimum viable product with a lot of buzz around it, plus a half-point for ingratiating themselves with literally dozens of partners in the industry they seek to disrupt.

Disposition

Thus we reach the conclusion of 6.5 out of 10 on Power Ledger. This is a great opportunity if it’s within your interests, but probably not a low-hanging fruit. Despite everything going right, actually being able to liquidate any tokens you might acquire during their ICO could prove problematic once the market has its way with the influx of tokens. Long-term profitability is probably there, though, with little reservation from the author in that statement.

Investment Details

Hacked reached out to the team at Power Ledger, and they said they should have more details within “the coming weeks” regarding their ICO. If Power Ledger has piqued your interest, you’re encouraged to get on their mailing list.

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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Litecoin Price Analysis: LTC/USD on a Potential Launchpad for Another Rocket to the North

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  • The Litecoin (LTC) price remains elevated, as the bulls look at continuing the strong recent run higher.
  • Coinbase Wallet announces support for Litecoin, joining the likes of bitcoin (BTC), bitcoin cash (BCH), Ethereum (ETH) and Ethereum Classic (ETH).

LTC/USD: Recent Price Behavior

The LTC/USD bulls have resumed upside momentum, following brief and minor pullback observed in the session on Thursday. At the time of writing Litecoin is seen trading up in minor positive territory, with gains of around 1.5%. It is worth noting, since 8th February the price has gained as much as 60%, with the high print up at $53.65 produced on 20th February.

The big chunky jump north came after the price managed to escape a narrowing daily range block formation. LTC/USD was moving within the confinements of this for 11 January to 8th February. The breakout higher was very much explosive, given the prolonged period it has traded within. In terms of the initial spike observed on the 8th, it was a gain of around 45% in a single session.

Coinbase Wallet to Support Litecoin

Coinbase, the leading U.S. cryptocurrency exchange, announced it will now support LTC on their native Coinbase Wallet. This will allow users to store their LTC directly on the app. The fifth largest cryptocurrency by market capitalization will be joining the likes of bitcoin (BTC), bitcoin cash (BCH), Ethereum (ETH) and Ethereum Classic (ETH).

Users of the Coinbase Wallet are going to have the ability to download a required update with Litecoin support in the coming weeks via the Apple Store or Google Play Store. Storing LTC will be immediately available upon the completion of the update. Users will need to choose the ‘Receive’ option; this can be observed on the main wallet page to deposit LTC into the wallet.

In the official blog announcement, Coinbase said:

“The new Wallet update with Litecoin support will roll out to all users on iOS and Android over the next few weeks. LTC support is activated by default — all you need to do is tap ‘Receive’ on the main wallet tab and select Litecoin to send LTC to your Coinbase Wallet.”

Technical Review – LTC/USD

LTC/USD daily chart.

The Litecoin price has stabilized at heights above the psychological $50 price mark. A near-term area of demand is seen from the $50-$47 price range, which is helping keep LTC/USD propped up. The next upside targets for the bulls are seen just above a supply zone tracking from $55-$57. It last traded up at these heights back in November 2018. Should the bulls manage to maintain upside momentum, then eyes will be on a return into $65 territory, where the next area of supply is tracking.

In terms of support, as detailed earlier, immediate relief is found within the $50-$47 range. If this fails to hold, then a potential chunky wave of selling pressure would likely come into play. The next demand area to the downside runs from $42.50-$39.50; price last traded here between 9-16th February. LTC/USD had briefly consolidated within this zone before a further squeeze to the north occurred.

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 126 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: Coins Hold Their Ground as Bulls Take a Breather

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The major cryptocurrencies settled down following yesterday’s Litecoin-led pullback, and as the coins respected the key trendlines and support levels, odds favor the continuation of the short-term uptrend. The leaders of the rally remained strong amid the shallow correction, and although the long-term setup remains clearly bearish, the traders could enter smaller speculative positions, still using strict risk management rules.

While the top coins haven confirmed the short-term swing lows yet, the coming days could see new highs, with all eyes on the $4000-$4050 zone in Bitcoin and the $160 price level in Ethereum. The majors still have to form a pattern of higher highs and higher lows on the long-term charts to change the long-term outlook, so our trend model remains on sell signals on that time-frame. That said, the overbought short-term momentum readings are quickly being cleared, so the short-term outlook remains positive.

BTC/USD, 4-Hour Chart Analysis

Bitcoin has formed a bullish consolidation pattern in the past day, and the $3850 level has been clearly supporting the coin, leaving the relatively weak short-term uptrend firmly intact. The MACD indicator is still pointing to an ongoing correction, but our trend model remained on a buy signal on the short-term time frame, and the uptrend could soon resume.

Despite the positive immediate outlook, the $4000-$4050 resistance zone is still very strong, and further consolidation is also possible before a successful break-out. A move above that zone could open up the way towards the $4450 level, but even that wouldn’t change the bearish long-term setup in the most valuable coin’s market.

XRP/USDT, 4-Hour Chart Analysis

Ripple has been trading near the $0.32 support level in the past 24 hours, still being relatively weak compared to its major peers.  The coin remains stuck below the dominant declining short-term trendline that it tested during the recent upswing, and our trend model continues to be on a short-term sell signal.

Below the primary support zone, further levels are found near $0.30, $0.28, and $0.26, while short-term targets for a possible break-out are still ahead near $0.3550, and $0.3750, but traders should still stay away from XRP

Litecoin, Ethereum, and EOS Look Ready to Lead Again

LTC/USD, 4-Hour Chart Analysis

While Litecoin entered a correction after touching the $51 resistance level yesterday, the pullback has been contained so far and even the steep short-term uptrend line remained intact. Given the extent of the recent move higher, even a test of the $44 level would leave the break-out intact.

A move above the primary resistance zone could lead to a rally towards the $56 level, and as Litecoin has been leading the market during the current counter-trend advance, its performance should be monitored closely. Below $44 further strong support is found near $38, and $34.50, and our trend model is back on a short-term buy signal while being bearish from a long-term standpoint.

ETH/USD, 4-Hour Chart Analysis

Ethereum is still trading in a bullish short-term correction pattern near $145, working its way through the overbought short-term momentum readings. The short-term uptrend is clearly intact, and although a deeper pullback is still possible traders could already enter new positions here.

With the long-term downtrend in mind, strict risk management rules are still essential here, even as Ethereum is one of the strongest majors from a short-term technical point of view. Support levels below $145 are still found near $130 and $112, while above $160, the next major resistance zone is ahead near $180.

EOS/USD, 4-Hour Chart Analysis

EOS is still the strongest major from a short-term technical standpoint, and although it continues to be overbought according to the key momentum indicators, aggressive traders could enter positions here. Buying pressure is apparent in the coin, but a deeper pullback towards the $3.50 level is still in the cards. Support is also found near $3.80 and $3, while resistance is ahead near $4 and $4.50.

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 469 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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Binance Coin Price Analysis: BNB Bulls Maintain Elevation Following Testnet Launch for Binance DEX

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  • Binance Coin on Friday is holding healthy gains of around 3% in the early part of the session.
  • The decentralized exchange Binance DEX testnet was launched earlier this week. Binance will be looking to gather user feedback before an official roll-out of the platform.

Binance’s BNB price continues to somewhat outperform several of its peers. BNB/USDT is trading up over 3% in the early part of the session on Friday. Since the start of February, the BNB bulls have enjoyed a strong move north, having gained around 80%. The price is currently trading in proximity to its highest levels since October 2018, entering a zone that is known for sellers. The next significant technical barrier for the bulls is within reach; for greater upside it must be broken down.

Binance DEX Testnet Running

Earlier this week, Binance, the world largest cryptocurrency exchange by traded volume, launched the testnet for its decentralized trading platform. Binance DEX has been made available for public testing; users can create crypto wallets and start familiarizing themselves with the platform’s interface. The platform is running on the Binance Chain, which is their proprietary blockchain.

Furthermore, the company released a blockchain explorer for the testnet; this allows users to search by an individual block, transaction, asset, address and order ID via the blockchain. The community will be able to participate as individual nodes, in addition to holding their private keys.

Binance has noted it will need to start gathering much feedback from its community on this current testnet. The company can then look at the timeline for a major final step of rolling out the decentralized exchange.

The CEO and co-founder Changpeng Zhao commented following the announcement:

“With Binance DEX, we provide a different balance of security, freedom, and ease-of-use, where you take more responsibility and are in more control of personal assets.”

Technical Review – BNB/USDT

BNB/USDT daily chart.

Given current upside momentum, the areas of resistance must be noted as potential barriers to disrupt this bull run. Firstly, a supply area can be observed just ahead tracking from $10.90 up to $11.63. The BNB/USDT bulls faltered here on several occasions in August, September and October 2018. The damage occurred after the rejection in October, which gradually went on to lead to a steep bearish trend that commenced in November. The price went on to drop around 50%, throughout November up to early December.

Another chunky wave of buying pressure would likely come into play, should the bulls break the mentioned supply. Furthermore, eyes will then be on a return back towards the $14-$15 price range. BNB/USDT last traded up at these heights back in August 2018, just before the bear market kicked in again with intense selling pressure.

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 126 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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