Why Investors Should Be Paying Attention to Lambda
It would be an understatement to say that cryptocurrencies are subject to high volatility. I check CoinMarketCap’s biggest gainers and losers every few days, and am always shocked by the swings in prices that can occur in such a short period of time.
For example, Lambda, which is a relatively unknown storage and mining cryptocurrency, has recently jumped 495% in its price over the last week. With daily volume of $18.9 million, the price has already pumped up enough to bring it to be 83rd in terms of market capitalization.
A New Player
The fundamentals of the company are still not well-known, and it is clearly still very much in its infancy. The website is basic, and there aren’t even any explainer articles or analysis on it anywhere else.
The first thing I tend to ask when I see this is whether the shift is justified or not. Sometimes it is just a fluke pump that occurs in a day and disappears. And with recent revelations regarding CoinMarketCap’s poor accuracy when it comes to volume tracking, this could be some over-reported volume. However, looking at the last week of performance, the price does seem to have been a steady increase, with a slight spike occurring on the night of the 10th, but nothing unbelievable.
It seems like this run up in price is mostly due to the announcement of several new partnerships. It was announced Lambda would be listed on DragonEX on April 8th, and trading started later that day. Then, on the morning of the 10th, the Lambda Twitter account tweeted that LAMB would be listed on BISS Exchange. More progress is expected for the protocol, as the mainnet is expected to be released later this year, with a full research white paper to come out in Q2 of 2019.
The primary token listing for LAMB occurred in late December 2018, and was executed through BitMax.io. With the lowest transaction fees on the market (approximately 0.04%), BitMax also boasts some of the fastest transaction speeds. At its core, Lambda is about trading storage related services between parties. Using a decentralized blockchain network where LAMB is the currency used in all transactions, it can guarantee the security and integrity of the data by implementing the proper incentives.
Playing to the Future Sector Developments
Lambda’s main services are multi-chain data, co-storage, cross-chain data management, data privacy, provable data possession (PDP), and distributed intelligent computing. These services are all tangential to IoT data storage and artificial intelligence, which signals the strong demand we can expect for similar services in the future. Whether Lambda will be the dominant player in this space is undetermined, but there is definitely room for growth in any area servicing the AI and IoT sectors.
With smaller coins like this, there is always the opportunity for arbitrage, as price inefficiencies are bound to pop up when so few exchanges are involved. This is one method traders could take to gain a profit, or they could go for a longer-term approach.
My recommendation is to keep an eye on LAMB. If this is not a price pump and is really just the reflection of an improvement in the liquidity of the coin, then it could be worth purchasing once the volatility slows down in the next week.
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.