Why Investors Should be Paying Attention to Cindicator
One of the common high-level strategies that investors follow is investing in trends rather than single companies. For example, you could be totally right about the high potential of medical marijuana or weed legalization, but if you choose the wrong company, then you’re out of luck and reap no reward.
This is why it might make sense to invest in competitors sometimes. If you’d invested in both Lyft and Uber early on, you would have made a ton of money. Now that they have IPO’d and are starting to compete over territory, we may hit a point where one going up means the other decreases, but that isn’t a total necessity.
Playing the Trends
Two of the biggest technology trends in the world right now are artificial intelligence and blockchain technology. So when you combine the two of them, you get a recipe for a great company. We’ve discussed Numeraire (NMR) before and how it uses “contests” for data scientists to continually improve their prediction models. It is basically a hedge fund with outsourced computing.
But there are other players in this market. One of them is Cindicator, which collects tons of data and uses it to predict the future prices of assets and commodities. Users and artificial intelligence provide different forecasts, and they are rewarded accordingly. In this sense, it is very much like Numeraire.
The actual approach is a lot less about providing encoded data, like Numeraire does, and more about finding analysts that work on what is essentially a contract basis. They are both fintech companies in their own way, but Cindicator employs more investing knowledge than pure data analytics. After aggregating the “wisdom of the crowd” forecast, it compares it with the AI forecast and continues to iterate.
The Business Model
The proprietary token, CND, IPO’d in September 2017 but had already been in operation since 2015. CND is used to reward users who have contributed to the platform, and depending on their holdings, these users are able to access different types of intelligence and analytical tools. So it turns into a virtuous cycle where the more CND you have, the better tools you’ll get for investing. And if you contribute to the platform, you get more coins.
With more than 50,000 financial analysts employing a broad spectrum of expertise, and a strong hold on the “hybrid intelligence” area, Cindicator is looking very interesting. It has been trading relatively flat against BTC for the last few months, but looks like it might be strengthening in terms of its technicals.
We might have missed the chance to acquire it around 310 satoshis, but a short term scalp may still be possible around current prices. The 420-430 satoshi range would be my short-term target, and if we were analyzing this on more of a long term basis, I think that with Cindicator currently ranked 144th in terms of market capitalization, it is well positioned to experience the next bull market.
The fact it has been around so long and has an actual use case that is proven to work is both good for CND and the blockchain industry as a whole. And if you want to play the trend, you could invest in Numeraire at the same time.
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.