Market sentiment swings the crypto markets with more force than most realize. The remaining weeks in March should provide the perfect culmination of events to provide a boost to the crypto markets. A few very specific coins should yield above-average returns based on their positioning for March.
The State of the Market
Monday, Tuesday, and Wednesday this week saw FUD at an unprecedented level. The SEC spoke further about upcoming regulations and what they mean for the cryptocurrency markets. The SEC has stated they intend to get involved regulating crypto. If individuals and institutions want scams to be filtered out, they have to respect the entrance of regulators into the space. Instead of boosting the price of cryptos the presence of regulators is interpreted as harmful when it should be the inverse. Scams collapse the crypto markets, and so do regulations? The space will either be rampant with scams and fraud or have proper regulations to allow for market functions to occur.
Rumors of a Binance hack coupled with further SEC comments drove bitcoin (BTC) from a high of over $11,500 on March 4, to under $8,400 on March 9. The second piece of FUD that came out this week impacting the markets dramatically was that Binance was allegedly hacked. This was a rumor Binance repeatedly denied. Binance has commented that no funds have been lost, their site is working great, and there was an issue with traders using bots and APIs. Even if the SEC news was brand new or if Binance was indeed hacked, the result of the crypto market cap falling from over $500 million to under $350 million in one week is absurd. The crypto markets are fickle, volatile, and overreact to the slightest change in sentiment. Articles repeating old news and framing it in a negative light this week (SEC) caused panic and a market correction.
Even with a steady stream of FUD, March is packed with significant events with the benefit of the Chinese New Year having just concluded. The month of March should continue to provide many catalysts to boost both the price of bitcoin and the entire cryptocurrency markets.
From the end of January to the beginning of February BTC suffered one of its greatest corrections in history having fallen more than 70 percent since it’s high of almost $20,000. BTC bottomed out at a low of just under $6,000. Since this moment of panic, BTC has rebounded nicely. This initial rebound generally precedes a bull run in the entire crypto markets. To take advantage of this bull run make sure to be holding; NEO (NEO), GAS (GAS), Bread (BRD), Dragonchain (DRGN), Oyster (PRL), and Metal (MTL).
Buy low, sell high. This is the standard rule for all investors. However, fading public sentiment is always difficult to do. Currently, the public hates cryptocurrencies like NEO that specialize in ICOs (given the SEC comments). NEO suffered dramatic losses this week due to FUD regarding the SEC and Binance. NEO is known as the Asian Ether (or Chinese Ether) and regulations in the United States along with the largest Asian exchange possibly being hacked did not fare well for NEO. NEO specializes in the releasing of ICOs, very similarly to Ethereum. With the SEC reiterating their new regulations directly impacting ICOs; the coins that host ICOs took significant beatings. However, NEO was impacted by the SEC news, Binance news, and the passing of the ONT airdrop. This cluster of negative events has left NEO at a price point of $89 per coin with a market cap of $5.7 billion.
February 27, 2018, NEO was trading above $140 per crypto, heading into the ONT airdrop. This price point factored in the SEC regulations that have been discussed for months. Airdrops tend to artificially inflate prices temporarily as they provide a nice dividend and a reason to seek a specific coin for short-term ownership. However, the ONT airdrop was worth nowhere near $60 per coin and currently NEO is trading $60 less than where it was pre-ONT 11 days prior. The passing of the airdrop resulted in a sell-off of NEO. This was immediately followed by negative SEC news reiterated throughout the mainstream media and a possible Binance issue. Market sentiment could not be more adverse toward NEO than at this exact moment.
This is precisely why it is time to buy. Buy low, sell high. Fading market sentiment is difficult, but it will produce the highest returns in the short term. NEO is the suffering from a trifecta of adverse events all occurring in under two weeks. This has provided the true investors in the market a great opportunity to accumulate. Those who sold NEO this week are those with weak hands. This market correction coupled with a trifecta of negative NEO news is not an exit point from NEO, but an entry point.
Crypto is not for the faint-hearted. It is exceptionally volatile, it is very high risk, and it is barely better than rolling the dice at the craps table. However, more regulations coupled with a market rebound provide a great entry point for individuals to get back into the crypto space. NEO is a large cap cryptocurrency that has suffered beyond the standard losses many suffered this week resulting in a perfect buying opportunity.
GAS is a unique cryptocurrency as it is provided as a dividend to all NEO holders on a daily basis. This daily dividend is only provided by specific exchanges or specific wallets on a daily basis. Some exchanges, like Binance, provide this dividend once per month to the entire population of traders. This results in the Binance markets being flooded with GAS between the third and fifth of each month, depending on when the GAS dividend is given to NEO holders. Most NEO holders immediately rush to sell their GAS resulting in the price of GAS plummeting during the first week of every month.
However, GAS is required and essential to transact on the NEO network. Its importance does not fluctuate based on the time of the month, even though the supply on Binance fluctuates dramatically each month. Demand remains fairly stable all month long, but supply is pumped the first week of each month when the GAS dividend is paid. This allows the price to rise dramatically as the end of each month approaches. GAS holders have sold their small dividend positions yet still need GAS for NEO transactions. This results in GAS having a strong increase in price cyclically the final week of each month. GAS is tied directly to NEO and because NEO fell significantly this week, so did GAS.
GAS usually outpaces NEO from a percentage return perspective as it does not provide the dividend NEO provides. This allows smaller purchasers to purchase GAS and expect higher returns, from a percentage perspective, when compared to NEO. However, NEO provides airdrops and regular dividends, so there is a clear trade-off. More importantly is the situation GAS and NEO currently reside in. Their prices are tied to each other, and both overreacted to the SEC reiterating that they intend to regulate ICOs. NEO corrected, so GAS corrected. The following 25 days provide the perfect short-term hold opportunity to take advantage of the rebound in NEO and GAS.
Bread (BRD) is a unique token as their token is meant to support a platform which amounts to a portable wallet the owner holds the private keys to. What is so interesting is the Bread app for phones currently only can buy/sell BTC. An individual’s BRD tokens are not even available to transfer to your Bread wallet as the Bread app is not ERC-20 friendly yet. The Bread app is in its infancy with significant updates coming in the next few weeks. Their Twitter has hinted at big announcements regarding the addition of ERC-20 tokens, which should be expected because BRD is an ERC-20 token. They have also stated coins like LTC will be likely added very soon. BRD is trading for $0.61 per coin with a market cap of $45 million. This valuation is under where they started trading on Binance at.
It seems illogical the Bread app cannot hold the BRD token, but this logical fallacy provides the perfect buying opportunity. Clearly, the Bread app will integrate their BRD tokens very soon. This will pave the way for other ERC-20 tokens. What creates value more than anything else in crypto? When a cryptocurrency adds utility, they have the highest likelihood of being a top percentage gainer for the month. The month of February saw three huge percentage gainers, all of whom had added significant utility to their tokens in February. BRD’s utility will increase exponentially in the next few months, and the price similarly should correspond.
March provides many unique opportunities for BRD. Specifically, BRD is sponsoring TokenFest, March’s largest crypto event. The utility of the Bread app improved greatly this quarter with the addition of being able to buy BTC directly using your bank or credit card. As the utility of the BRD token and app continue to increase so will the price of BRD. The publicity accompanying TokenFest may provide the perfect situation for BRD to announce updates for their app.
Events like TokenFest provide the perfect opportunity for surprise announcements. BRD has hinted about adding Litecoin (LTC) and Ethereum (ETH) along with ERC-20 (BRD) based tokens to their wallet for many months. Even without a major announcement, the next step would be incorporating these other tokens into their platform. When the BRD app formally can hold BTC, LTC, ETH, ERC-20 supported tokens and more the price and utility of BRD will increase significantly. Utility creates value, and when the BRD app increases the number of features allowing for the redemption of BRD for specific promotions, the price of BRD will respond accordingly.
Short term BRD holders should be very pleased regardless of which catalyst sets the BRD price in motion.
Dragonchain (DRGN) is a blockchain-based enterprise solution to simplify the process of incorporating the blockchain into already existing businesses. DRGN looks to help already profitable businesses to bring the benefits of the blockchain to their company. Their specialty is either incorporating the benefits of a company-specific blockchain for the underlying company or helping them host an initial coin offering (ICO) to raise capital. DRGN is currently trading at $1.08 and was above $4.00 during the bull run in January. The total market cap of DRGN is $255 million. Similarly, to NEO and ETH, DRGN specializes in ICOs and blockchain based solutions resulting in it taking a pummeling this week. The SEC reiteration impacted cryptocurrencies hosting ICOs the most.
DRGN started off as a project sponsored by Disney. Soon after Disney undertook such a significant blockchain project, they lost interest in DRGN as they did not quite know what to do with their brainchild. Even having lost interest, Disney’s proximity to DRGN should not go unnoticed. Disney’s teams build very solid projects, and Dragon Chain was their first real venture into the blockchain.
DRGN is in the process of hosting their first few ICOs while attempting to get added to the big exchanges. Any successful ICO DRGN holds, or announcement regarding a leading exchange will result in a significant pump in the price of DRGN. DRGN’s price is suppressed
Major speculation regarding DRGN’s first “big” exchange is taking place. Most notably it recently surfaced that Bittrex owns a supported wallet. 102 days ago Bittrex created a wallet specifically for DRGN. Speculation could easily lead one to believe a move like this was signaling the addition of DRGN to their exchange. However, nothing happened with the new Bittrex wallet, until nine days ago. It may seem insignificant, but the transferring of 1 DRGN into the wallet demonstrates Bittrex is continuing to test it, likely meaning they are preparing to add DRGN or DRGN based ICOs to their exchange. If this is announced in a formal manner of any kind, expect a great increase in value from DRGN to occur.
DRGN is only traded on minor exchanges with the largest being KuCoin. The addition to a big exchange while they are releasing their first round of ICOs and implementing business blockchains would greatly increase DRGN’s coin value.
The last week saw FUD impact DRGN’s price significantly. 2018 should see DRGN trend North rapidly as they are added to a leading exchange and continue to release ICOs.
Oyster (PRL) is hosting an airdrop of the SHL token April 6, 2018. Crypto is fairly unique as money regularly rotates to the “next best thing.” Forks, airdrops, and other big news constantly have individuals rotating their funds to new coins. Recently ZCL forked with BTC, following this fork the price of ZCL plummeted as people rotated money to new opportunities. These included the XMR fork or ETC airdrop. PRL also recently announced being added to NextExchange which is determined by the community voting. PRL has a massive community behind it able to do things like add PRL to exchanges. Oyster (PRL) is a great cryptocurrency, but their important news is occurring in three weeks providing the short term to accumulate.
PRL specializes in providing methods for web hosts to profit from users visiting their sites. Most would assume the only way to profit is through paid advertisements. However, PRL has created a unique line of code on the blockchain that allows for the individual’s computer to contribute an unnoticeable amount of hashing power to the website. This will allow for the confirmation of transactions on the PRL network, providing a stream of income to the webhost. The webhost and individual are both satisfied as advertisements disappear yet hosting remains profitable.
PRL is on the cusp of accomplishing their goals. They just launched their Testnet B. The Oyster blockchain uses a very miniscule percentage of the user’s computer for confirmations in transactions being sent on their network. Their testnet has demonstrated this is not only possible but feasible. Imagine an internet without advertisements.
The next few weeks provide multiple catalysts for why PRL should be accumulated in the immediate short term. PRL has an airdrop coming up of the SHL token at a 1:1 ratio for PRLs held on April 6, 2018. The SHL token will not be sold through an ICO and is only being provided to PRL holders that have their PRL in a supported wallet or exchange.
Expect money positioned for the XMR fork to rotate into PRL once this month’s forks and air drops have concluded. PRL also just completed a token burn reducing their total circulating supply by more than ten percent. In the following thirty days expect exchange support to be announced. Bittrex waited until six hours before the ZCL fork to announce support of Bitcoin Private (BTCP). As money rotates into PRL as the ‘next best thing’ expect the price to trend North rapidly.
At $0.85 per coin with a market cap of $61 million, this is the perfect time to accumulate prior to the entire market rotating holdings into PRL. PRL has an airdrop, token burn, functioning Testnet B (almost at mainnet), and is the final of multiple airdrops/forks this month.
Metal (MTL) is a cryptocurrency working on increasing their utility in the immediate short term. Almost every coin that gets delisted from Bittrex takes a plunge in price while fading into oblivion. However, MTL will be the anomaly when compared to other delisted cryptocurrencies. The reasoning is because their delisting was due to MTL not having a functioning platform. Bittrex considers cryptos ‘useless’ or ‘inferior’ if they do not have a utility. MTL had no utility until they released their platform MetalPay. Bittrex provided MTL until the end of 2017 to complete a platform and create utility for their token. Dev teams do not generally abide by dates and if they attempt to the resulting product may have defects. Defects could cripple a platform which is why devs spend more time removing bugs than focusing on deadlines. The result?
MTL was removed from Bittrex in January, and the price had plummeted because of this. MTL’s dev team completely missed the Bittrex deadline and was unfortunately delisted. However, two months following their removal they remain on Binance and recently announced their platform was ready. Their digital wallet which will eventually have debit cards was released. The timing was, unfortunately, two-plus months after Bittrex delisted them but it shows the MTL team is not deterred. The MTL team is very important and will be discussed further shortly. Bittrex may or may not relist MTL, but one thing is very clear. Unlike the majority of coins delisted by Bittrex, MTL is the anomaly.
MetalPay is the platform in which users will be rewarded to spend crypto and convert fiat to crypto. MTL is also are working toward a debit card that crypto can be deposited onto, very similar to LitePay but are having similar regulatory hurdles. If MTL is able to beat LitePay to a debit card feature, expect the price of MTL to moon. The one man who may ensure regardless of timing and deadlines MTL succeeds; Marshall Hayner.
Marshall Hayner is the CEO and co-founder of MTL. He is also the co-founder of Stellar, QuickCoin, and Treesco. He boldly claims MTL is a payment processing platform that involves cryptocurrency in such a way that is may be compared to PayPal (for crypto). Hayner is a key player in the crypto space who will insure MTL is successful even after a minor deadline based setback.
Hayner is too important to let MTL fail, and with transaction fees plaguing crypto it is nice to see the inverse; being paid for using crypto.
Buy Low, Sell High
Timing buys and sells could not be more important in the crypto space. A common claim is that people do not have more liquidity to add to crypto when buying opportunities present themselves. If this is the case, it is likely the investor was greedy at some point and chose to hold well beyond a respectable percentage return. MTL, BRD, NEO, GAS, DRGN, and PRL should all outperform BTC and the overall crypto markets for the following few weeks. Each has key developments or cyclical trends that provide opportunistic prices to accumulate at.
The FUD regarding the SEC and Binance should have hopefully alleviated by the start of TokenFest. The major conferences this month should shift the mainstream media articles framing BTC and crypto in a negative light to ones where the benefits of regulation will be highlighted. Crypto can be frightening due to the massive fluctuations in pricing. However, if you are here, you are here for the long haul and need to understand the importance of timing buys and sells while always having liquidity on the sidelines for when opportunities present themselves. This month has provided opportunities in; MTL, BRD, NEO, GAS, DRGN, and PRL.
To read the King’s prior articles, to find out which ICOs he currently recommends, or to get in contact directly with the King, you can on Twitter (@JbtheCryptoKing) or Reddit (ICO updates and Daily Reports).