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Basic Attention Token BAT Coin Research Report Cryptocurrency Investment Report

Basic Attention Token (BAT) Cryptocurrency Investment Research Report

Basic Attention Token (BAT) Cryptocurrency Investment Research Report 1500 1383 CryptoInvestResearch

Introduction Basic Attention Token (BAT)

Basic Attention Token (BAT) is an Ethereum blockchain based advertising exchange platform connecting publishers, advertisers, and users. BAT is the ERC-20 utility token used on the platform and it is integrated with the Brave web browser. Basic Attention Token plans to significantly improve the efficiency of marketing on the internet, especially digital advertising by creating a new system that rewards users for viewing ads.

The Investment Story for Basic Attention Token (BAT)

Basic Attention Token (BAT) is a Top 36 Coin at Coinmarketcap at the time of writing.

Basic Attention Token (BAT) is designed to revolutionize the advertising industry. The idea behind the platform is brilliant. A revolutionary digital advertising and rewards platform that rewards users in BAT tokens for any ads they opt into seeing. BAT locally matches ads to users without any tracking or data collection required. Brave is a new, privacy browser that blocks all third-party ads and trackers by default.

Its a token for an industry estimated to turnover over $200 billion per year. The key issue of this industry is click fraud, view fraud and other forms of abuse. Generally, the advertising industry pays the content publishers (websites, youtubers, content producers, social media influencers) for the views or clicks they generate with their audience.

BAT enters this field to facilitate the transactions between publishers, the advertising industry and users for their attention. By adding the users to the process, registering everything on the blockchain, the process of view and click rewards becomes transparent and fraud gets minimized. User wins, they get a payment for their attention, advertisers win, they don’t have to pay for click fraud and publishers win, as they can fully monetize the content.

Investment Rating for Basic Attention Token BAT

 

ACCUMULATE

Mid term accumulation in the range of:
0.11 – 0.12 USD

Investment Valuation Scores for Basic Attention Token BAT

Project Fundamentals Score
Token Economics Score
Community / Social Attention Score

The Valuation Scores are based on the Cryptocurrency Valuation Model developed by The Coin Research Team. Please see below for more details.


Cryptocurrency Investment Strategy for Basic Attention Token (BAT)

Investment Rating: Accumulate Basic Attention Token (BAT)
Buy Up to Price / Accumulate: $0.11 – $0.12
Stop Loss: $0.08
Position Size: $500–1,000 if you’re a smaller investor or $1,000–2,000 if you’re a bigger investor


Cryptocurrency Exchanges: Where to buy Basic Attention Token (BAT)? 

Best Exchanges to buy Basic Attention Token (BAT): 

At the time of writing, BAT is being traded in 67 cryptocurrency pairs on key exchanges. The Exchanges with the biggest volume are 55 Global Markets from Korea, Binance and Coinbase.

Buy It On: Binance (RECOMMENDED), Coinbase

Coinbase exchange for beginners

binance cryptocurrency exchange for bitcoin altcoin trading        


How to store Basic Attention Tokens? 

BAT Tokens are ECR20 tokens, stored on the Ethereum blockchain. Every cryptocurrency wallet that works for Ethereum, will work for BAT too.

We recommend to not store the coins on cryptocurrency exchanges. It’s safer to use the own wallet, where you control the keys.

Store It On:  Nano Ledger (RECOMMENDED), MyEtherWallet

Price Scenarios and assumptions for Basic Attention Tokens BAT  

Bull Case Scenario:
Target price range 0.30 – 0.35 USD (250% – 292%)
(Assumes step by step acceptance of the business model through media companies and adoption of the Brave browser)

Base Scenario:
Target price range 0.25 – 0.30 USD (208% – 250%)
(Assumes that the market turns around and an average adoption rate of the browser that builds over time)

Risk Bear Scenario / Stop Loss Scenario:
Target price range 0.08 USD (-34%)
(Assumes low adoption of decentralized exchanges, competitors offer a better protocol, bear market environment for crypto)

Basic Attention Token(BAT)
$0.546 -6.95%(24H Vol)
$96,527,613.00
7D Chart

Time Horizon for Basic Attention Token (BAT)

Our target prices are based on mid-term to long-term scenario estimates.

Note that the current market development and the chart development of BAT do not indicate a turnaround from the downward trend. Cautious investors should wait for turnaround signs of the market and BAT.

Out mid-term definition means 6-12 month, long-term 12-18 month.
Short-term investments (less than 3-4 month) are the playground of traders, day traders, who are “always online” to monitor the live market’s developments based on Technical Analysis and Fundamentals.

Chart Development of Basic Attention Token (BAT)

  • basic-attention-token
  • Basic Attention Token
    (BAT)
  • Price
    $0.546
  • Market Cap
    $817,984,156.00


Key research findings: Basic Attention Token (BAT)

Part 1): Company Background and Recent Updates of Basic Attention Token (BAT)

It took a few decades of development to have fast internet, fast devices, new tracking methods in more or less every corner of the world. Digital advertising jumped on this train and used the developments to grow exponentially many years. It’s in the meantime the biggest segment of the advertising industry. TV, Radio, Sponsoring are generating as well high numbers, however, ranking below digital advertising.

Basic Attention Token market growth potential

And this industry is still growing rapidly. Advertising became very targeted during the last years. Personalized advertising, based on your interest and behavior has taken over the spill broad advertising we know from the past.

This is not the end of the growth trend. The higher the personalization and the better the tracking possibilities, the more money will be spent to target consumers. The industry analysts expect that digital advertising will again double during the next 2-3 years. This itself is exceptional news for an investor. However, to identify a player in the blockchain industry, that could add significant value to this billion industry, is even better news.

Basic Attention Token is the player who is extremely far in the process to come out with products and solutions, that can take the world of digital marketing like a Tsunami.

Our conclusion: Basix Attention Token (BAT) is a highly undervalued cryptocurrency project, with a real working product and a very strong and highly committed team.
If they manage to achieve adoption for the Brave Browser, we will see this project raising in the years to come. The success of the BAT Token depends on the adoption of Brave.

It is an amazing opportunity to buy this token for a long-term investor. Don’t expect that the revolution will happen fast. Expect a step by step development at the beginning, before it goes exponential.

The use case of Basic Attention Token BAT

BAT turns the current advertising model inside out. If you surf the internet today and you get bombarded with advertising, you do not get paid for your attention, your time, or the electrical power and data you’re consuming, to view that advertising.  Someone is just using you, to earn money for your attention. As long as this advertising is very helpful too and supports you in finding the right things, identifying solutions for your issues, this might be ok and acceptable.
But more often than not, you feel abused by the marketing industry, wanting to sell you another vacation, flight, book, hairdryer, you name it.

BAT is working to give users back the control over their own attention. Attention should become a conscious behavior, you decide what you what advertising you want to see and get rewarded for it.

cryptocurrency research how it works basic attention token bat

Source: Basicattentiontoken.org

 

How is Basic Attention Token BAT working?

In very simple words:  Today you surf the web with a Google Chrome, Microsoft Edge or Apple Safari browser.
And there are 2 options: Either you use an extension to block advertising or not. Most people have a regular installation and do not block advertising.

Basic Attention Token has developed an own browser called Brave Browser. The Brave Browser allows you to opt-out of not wanted advertisements. And in Brave, you get rewarded in BAT for seeing ads. Or you can tip content contributors, publishers, etc.

The mission and goal of BAT is to dramatically improve the efficiency of the digital advertising industry by using the power of the blockchain. The Brave market place, allows publishers and users to trade advertising and attention-based services.

The system works anonymously and there are no middlemen or service agencies to track, store and sell your private data with this model. This is probably the key reason why Google and Microsoft are not big fans of this advertising distribution model. Their business model consists of being a middleman and charging for the services to distribute advertising to users, by using private user data, they accumulated over time.

 

cryptocurrency Investment report basic attention token BAT

Source: Brave.com

 

BAT is a Robin Hood for the advertising industry

Advertising is expensive for the user. Yes, for the user. Some studies estimate that up to 79% of data traffic on mobiles comes from advertising and as much as 21% of battery life. In a nutshell, we the web users are being monetized but not rewarded.

The marketing industry is abusing us to achieve their financial goals. This is where Brave and BAT get attractive. If you use Brave and opt-in to receive ads with BAT, you will be able to receive some % of the ad revenue depending on the ad type the current publisher uses.

Part 2): The Team and the Investors of Basic Attention Token (BAT)

Bredan Eich (Founder and CEO) and Brian Bondy (Co-Founder) are highly rated in the Web industry. They are the creators of JavaScript, co-founders of Mozilla and Firefox which set their qualifications on the highest levels. The project was funded by Founders Fund, Foundation Capital, Propel Venture Partners, Pantera Capital, DCG, Danhua Capital, and Huiyin Blockchain Venture among others.

Part 3): Valuation of Basic Attention Token (BAT)

Like always the introductory reminder: Cryptocurrencies are a new asset class. The performance of these assets is based on a different set of fundamentals, compared to standard Stock or Bond assets. Most projects are in an early stage, very much comparable to startups during the Dot.com area. Therefore financial indicators (like Net Revenue, Margin, EBITDA, Cash Flow) would not provide valuable insights and are not available. Softer Key performance indicators are rarely available too, like the number of customers, adoption rate, etc. 

The Coin Research Team has developed a comprehensive CRYPTOCURRENCY VALUATION MODEL for Tokens and Crypto projects. We use a broad set of indicators and group them into 3 categories: 

  1. Project Fundamentals 
  2. Token Economics
  3. Community / Social attention   

The Score range is from 0 – 100 (maximum). Scores above 70 indicate very solid projects with strong indicators in the subsegments researched.

0

Project Fundamentals Score

0

Token Economics Score

0

Community / Social Attention Score

The Coin Research Valuation Model for Cryptocurrencies considers the following:

  • Fundamentals Score: Research of the Idea, Use Case, Whitepaper, Blockchain, Legal risk ICO, Funding level, Competitive situation, Roadmap, Github, Team, Leadership, Governance, Investors, Advisors, Transparency, Communication, and several others.
  • Token Economics Score: Token use case, Value from the use case, Incentive to use it, Inflation, Distribution, Decentralization of Ownership, Dividend Model, Governance model, Exchanges, Liquidity, Daily Volumes, Fluctuations, and many more.
  • Community and Social Attention Score: Followers, Hashtags, Mentions, Members Social Media channels, activity, quantity and quality, Tonality, Promotions, Educational material, Support Groups, etc.

Part 4): Investment Risks for Basic Attention Token (BAT) and How to Mitigate Them?

The invest concept of a cryptocurrency is still novel and, compared to traditional investments, Basic Attention Token doesn’t have much of a long-term track record or history of credibility to back it. With their increasing use, Cryptocurrency Coins and Tokens are becoming less experimental every day, but remain in a development phase and extremely volatile.

Please note and unchanged: Cryptocurrencies are pretty much the highest-risk, highest-return investment that you can possibly make.

Our overall risk evaluation is MEDIUM for Basic Attention Token (BAT). 

 

Risk 1: Market Volatility for Basic Attention Token 

Cryptocurrencies and BAT included, are highly volatile assets. The 2-3% fluctuation you might know from the stock market, can easily translate to 15-25% fluctuation in Cryptocurrencies. During the same day!

Indeed, the value of the BAT Token has seen wild swings in price over its short existence. Subject to high volume buying and selling on exchanges, it has a high sensitivity to “news.

The volatility of BAT Token fluctuates between 0.07 USD to 0.83 USD. Huge swings on a daily basis between 5-10% are rather usual than exceptional.

We see the BAT token currently in a downward trend, that seems to stabilize around 0.11 – 0.12 USD.

Basic Attention Token BAT development cryptocurrency investment chart

Source: Coinmarketcap

 

Risk 2: Company Inherent Risks for Basic Attention Token (BAT) 

Company inherent risks are:

  • Security breaches and hacks of the Basic Attention Token blockchain and protocol. Note this is a “Software Only” company and the software/ protocol is everything they produce. Entirely digital companies and all cryptocurrencies face a high risk from hackers, malware, and operational glitches.
  • Important team members could leave the project. The best ideas are worth nothing if there are no high skilled people to execute. The expertise of the leadership team at BAT is crucial for success.
  • The Brave browser suffers a lack of acceptance and the economic model behind the token will not prosper. The Browser market is dominated by Google. And Goolge might not allow BAT to develop an extension for Google Chrome that blocks Googles Business model.

The BAT Basic Attention Token price is quite dependent on the total market situation and the development of the cryptocurrency / blockchain industry. Negative developments in the industry, e,g, on Bitcoin, Ethereum and other main Cryptocurrencies will affect the price development of BAT.

 

Risk 3: Regulatory Risk for BAT Basic Attention Token

BAT raised money through an ICO (Initial Coin Offering) (15m USD, May 2017). As a result, governments may conclude that BAT tokens are securities and might seek to regulate, restrict or ban the use and sale of tokens. Or the SEC might enter into a legal dispute with BAT Basic Attention Token.

 

Risk 4: Investors Risk BAT Basic Attention Token – Consumer Protection

Unlike traditional banks, cryptocurrency doesn’t have any official safeguards or insurances. Your wallet is not a bank! Your exchange is not a bank!

For example, whereas the Federal Deposit Insurance Corporation underwrites depositors’ savings to the value of $250,000 each in both banks and brokerages, crypto exchanges are not part of the program. If your exchange becomes insolvent, you will lose everything.

Ultimately, buying cryptocurrencies could result in losing everything you invested in them. You should never invest more than you can afford to lose.

Part 4): The Worst Case Scenario and How to Avoid it?

The worst-case scenario for Basic Attention Token (BAT) is that the coin falls to zero. Or nearly zero. This can happen if the Software would be hacked, the issue is not solvable and the company would not be viable. However, the probability is extremely low for this.

Form an investors point of view, the risk is that the investment does not develop positively and the coin drops in value.

How to avoid losses with cryptocurrencies? (BAT)

We recommend working with a clear Loss limit Strategy. Means, when the coin reaches a level you set, e.g. 0.08 USD for BAT, you sell the investment.

This can be executed via Stop Loss Orders if you keep the coins in exchange. Stop Loss Orders allow you to set a price at which you want to sell a coin. Stop-loss orders are designed to limit an investor’s loss on a position in a security.

Example: if the coin reaches 0.18 USD, your Stop Loss Order will be executed and you would automatically sell at 0.18 USD.  Note that if the price of the coin never reaches your limit price, your trade won’t be executed.

Stay tuned to The Coin Research and check our updates. We will publish updates to BAT Basic Attention Token on a regular basis.

Disclosures:

The Authors do not own BAT  tokens. This research report is strictly informational and is not investment advice. Please refer to our Legal Notices for further information.  The Coin Research and the author did not receive compensation to create this research report, outside of our customers and subscription paying members. We have not been hired by the covered company or other third parties (e.g. consultants, advisors, VC) to prepare this research report.

Forward-Looking Statements and Projections:

Any estimates, projections, forecasts included in this document are speculative and based upon analysis of publicly available information. The targets, recommendations, thoughts shared in the report are subject to known and unknown risks, uncertainties and other unpredictable factors. The report might not cover all risks, might be materially wrong and forecasts might not materialize. No representations or warranties are made as to the accuracy of such forward-looking statements.

final report monero cryptocurrency investment research

Monero (XMR) Cryptocurrency Investment Research Report

Monero (XMR) Cryptocurrency Investment Research Report 1500 1383 CryptoInvestResearch

Introduction to Monero (XMR)

Let’s start with a question: How would you feel if anyone was allowed to check your bank account and how much money you had? And what if they could see how many transactions you did yesterday and to whom? Sounds like a nightmare to you too?

Money anonymity and financial transaction privacy are some of the most sought after things.

Monero (XMR) is a secure, private, untraceable cryptocurrency build on open source. It has been created to offer the anonymity that couldn’t be achieved with Bitcoin. In their own words: “Monero is cash for a connected world. It’s fast, private, and secure. With Monero, you are your own bank. You can spend safely, knowing that others cannot see your balances or track your activity.” Monero (XMR) is not directly comparable to Bitcoin. It uses a different kind of cryptography to allow for the privacy attributes.

 

cryptocurrency investment monero xmr the coin research logo monero

Source: Reddit

Monero has a bit of history, compared to the very young new cryptocurrency coins or ECR20 tokens. Monero was built upon a strong set of ethics and principles of decentralization and scalability. It was launched in the first quarter of 2014, without an ICO, or pre-mining. The governance and community approach behind the development of Monero is completely based upon donations from the token users themselves.

The Monero developers aim towards creating a cryptocurrency that works just like cash including complete privacy of all transactions and the parties involved in it. While on the Bitcoin blockchain you can see Address XYZ sent 5 BTC to Address ABC on Monero you will not be able to see anything. Not the addresses, not the amounts. Monero uses unique one-time addresses for each transaction so that only the receiver knows where the money went.

The Investment Story for Monero (XMR)

Monero (XMR) is a Top 14 Coin at Coinmarketcap at the time of writing.

Monero (XMR) is designed to offer private digital money transfers. However, secure, private and untraceable transactions of funds are not the only thing that this cryptocurrency ecosystem can offer. Since 2014, the Monero blockchain has been upgraded with other services, like smart contracts.

Smart contracts on Monero are based on the same anonymity and ethical principles. Smart contracts are one of the key drivers of the blockchain ecosystem. However, smart contracts with added anonymity and confidentiality which are absolutely not traceable, are new and only available at Monero.

From a technical point of view, the way Monero is able to make transactions untraceable is through a technology called ring signatures. It essentially mixes an individual’s set of transactions with others so it is not clear to the public eye who owns which addresses. Additionally, the technology hides balances completely through stealth addresses which are random one-time addresses that can’t be associated with an individual or a history of transactions.

Investment Rating for Monero (XMR)

NEUTRAL (keep it – if you have it)

No action recommended. Keep it, if you have it.
Wait for a turnaround, before buy.

Info: Our investment recommendations
SELL, NEUTRAL, ACCUMULATE, BUY

Investment Valuation Scores for Monero (XMR)

Project Fundamentals Score
Token Economics Score
Community / Social Attention Score

The Valuation Scores are based on the Cryptocurrency Valuation Model developed by The Coin Research Team. Please see below for more details.


Cryptocurrency Investment Strategy for Monero (XMR)

Investment Rating: NEUTRAL for Monero (XMR)
Buy Up to Price: no buy recommendation, waiting for a turnaround
Stop Loss:
Position Size:


Cryptocurrency Exchanges: Where to buy Monero (XMR)? 

Best Exchanges to buy Monero (XMR): 

At the time of writing, XMR is being traded in 116 cryptocurrency pairs on key exchanges. The Exchanges with the biggest volume are Bithumb, CHAOEX and Binance.

Buy It On: Binance (RECOMMENDED), Enter Cryptocurrency on Binance and Coinbase

BUY MONERO (XMR)

binance cryptocurrency exchange for bitcoin altcoin trading 

ENTER CRYPTOCURRENCY

Coinbase Cryptocurrency Exchange for 0x Protocol ZRX, Bitcoin, Ethereum


How to store Monero (XMR)? 

Monero (XMR) Coins are stored on the Blockchain in proprietary Wallets.

We recommend to not store the coins on cryptocurrency exchanges. It’s safer to use the own wallet, where you control the keys.

Store It On:  Nano Ledger (RECOMMENDED)

ledger nano hardware wallet from the coin research store 0x protocol zrx

cryptocurrency investment and hardware wallet ledger best hardware ledger

Price Scenarios and assumptions for Monero (XMR)  

Bull Case Scenario:
Target price range: NEUTRAL rating, no price targets

Base Scenario:
Target price range: Rating NEUTRAL, no price targets

Risk Bear Scenario / Stop Loss Scenario:
Target price range: Rating NEUTRAL, no price targets

Monero(XMR)
$242.28 -7.70%(24H Vol)
$245,731,828.00
7D Chart
monero
Monero
$ 242.28
Supply 17,936,468.18 XMR
Volume $245,731,828.00
Market Cap $4,345,649,299.00
Change -7.70%

Time Horizon for Monero (XMR)

We do not recommend a new investment in Monero (XMR) for the time being.

Need to monitor the development of other privacy coins and the development of the total market.

Chart Development of Monero (XMR)

  • monero
  • Monero
    (XMR)
  • Price
    $242.28
  • Market Cap
    $4,345,649,299.00


Key research findings: Monero (XMR)

Part 1): Company Background and Recent Updates of Monero (XMR)

Monero, like all other cryptocurrencies, lost ground since January 2018. It is in a steady decline since then, with no noticeable attempt to bounce back.  For cryptocurrency investors, the big question is whether Monero is a worthwhile investment especially now that it’s at a low price.

Monero XMR is considered as the best coin for crypto investors looking for an anonymous coin. Its distribution and adoption in the darknet are still substantial.

The development and marketing of Monero XMR are very quiet. Again, we speak about a community financed by donations with less financial power compared to the big ICO coins. However Monero has not been known for lots of hype anyhow, it’s more a humble coin, choosing silent routes, that loves the “understatement”.

Question is how will Monero now deal with the upcoming new cryptocurrencies fighting for the title of the best anonymous coin.

cryptocurrencies investments monero xmr privacy coin

Key competitors for Monero are Z-cash Komodo, PIVX,  and to some extent, Verge and Dash have privacy features included as well. Additionally Republic Protocol (REN) develops a new blockchain layer, that would add privacy and anonymity to every available blockchain.

Moneros developers are focused on the technology, working to improve the reliability of the cryptocurrency as an anonymous coin. Marketing and education are not key in their strategies and roadmap for the time being, leading to a deterioration in value and to become undervalued for quite some time now.

Obviously, the negative price development is not great news for Monero, like it’s not for the other cryptocurrencies too. Having other cryptocurrencies implementing privacy features and being loud and active in communication, there is a risk that this might further erode the position of Monero over time.

The use case of Monero (XMR)

Let’s start with the benefits of Monero (XMR) Cryptocurrency:

  • Private: No one can see how much balance you have by looking at the blockchain.
  • Secure: Irreversible cryptographic math secures Monero transactions and wallets.
  • Untraceable: Monero coins can’t be traced back to the blockchain due to encryption.
  • Decentralized: All nodes or wallets are equally eligible to verify Monero coins.
  • Fungible: All coins have the same market value irrespective of time or place.

Monero is special because not all crypto coins are private by design. They’re of course better than your bank account, credit cards or PayPal. Most cryptocurrencies like Bitcoin, Ethereum, EOS, etc. rely on public ledgers and it’s quite easy to monitor transactions of wallets, the history, etc. Public blockchains used for money transactions are like distributing flyers with your bank account statement. Most people are not going to take a look, however, some might.

For business transactions, public ledgers are an even higher risk. Cryptocurrency addresses of the company would be public (because you would like to receive transfers from your customers). Every transaction that goes out of the wallet, linked addresses etc can be traced and tracked. And your competitors will derive some intelligence of it.

Monero has no public transparency on the transactions, addresses are designed for one-time use and assigned to each transaction. Only the receiver knows where the money went. Transactions in Monero (XMR) can be made optionally transparent. Read-only keys can provide a view on historical transactions, useful for auditors, your accountant, tax advisor, etc.


Twitter Feed Monero (XMR)

Load More...

Part 2): The Team and the Investors of Monero (XMR)

Monero XMR is entirely open-source. It has a dedicated team and over 350 people have made contributions since launch. It’ s probably one of the largest open source teams on Github.

There is no aggressive development or management on Mondero. The currency will continue to develop at a steady pace, rolling out new usability features and adapting to changes in the industry as they arrive. Monero doesn’t have a detailed public roadmap, but its contributors consistently deliver the upgrades they promise.

xmr monero team for cryptocurrencies investments and the coin research

Part 3): Valuation of Monero (XMR)

Like always the introductory reminder: Cryptocurrencies are a new asset class. The performance of these assets is based on a different set of fundamentals, compared to standard Stock or Bond assets. Most projects are in an early stage, very much comparable to startups during the Dot.com area. Therefore financial indicators (like Net Revenue, Margin, EBITDA, Cash Flow) would not provide valuable insights and are not available. Softer Key performance indicators are rarely available too, like the number of customers, adoption rate, etc. 

The Coin Research Team has developed a comprehensive CRYPTOCURRENCY VALUATION MODEL for Tokens and Crypto projects. We use a broad set of indicators and group them into 3 categories: 

  1. Project Fundamentals 
  2. Token Economics
  3. Community / Social attention   

The Score range is from 0 – 100 (maximum). Scores above 70 indicate very solid projects with strong indicators in the subsegments researched.

0

Project Fundamentals Score

0

Token Economics Score

0

Community / Social Attention Score

The Coin Research Valuation Model for Cryptocurrencies considers the following:

  • Fundamentals Score: Research of the Idea, Use Case, Whitepaper, Blockchain, Legal risk ICO, Funding level, Competitive situation, Roadmap, Github, Team, Leadership, Governance, Investors, Advisors, Transparency, Communication, and several others.
  • Token Economics Score: Token use case, Value from the use case, Incentive to use it, Inflation, Distribution, Decentralization of Ownership, Dividend Model, Governance model, Exchanges, Liquidity, Daily Volumes, Fluctuations, and many more.
  • Community and Social Attention Score: Followers, Hashtags, Mentions, Members Social Media channels, activity, quantity and quality, Tonality, Promotions, Educational material, Support Groups, etc.

Part 4): Investment Risks for Monero (XMR) and How to Mitigate Them?

The invest concept of a cryptocurrency is still novel and, compared to traditional investments. Monero is an established coin, with a proven and trustworthy protocol. With their increasing use, Cryptocurrency Coins and Tokens are becoming less experimental every day, but remain in a development phase and extremely volatile.

Please note and unchanged: Cryptocurrencies are pretty much the highest-risk, highest-return investment that you can possibly make.

Our overall risk evaluation is MEDIUM for Monero (XMR).  

 

Risk 1: Market Volatility for Basic Attention Token 

Cryptocurrencies and XMR included, are highly volatile assets. Monero has lower volatility, compared to the other newer cryptocurrencies. Still, a 2-3% fluctuation is quite normal and not exceptional. During the same day!

The volatility of XMR Cryptocurrency Coins fluctuated between 6 USD to 480 USD during the last 2 years.

We see the Monero XMR currently in a downward trend, that seems to stabilize between 40-50 USD.

Cryptocurrency investment Monero XMR coinmarketcap chart the coin research report

Source: Coinmarketcap

 

Risk 2: Company Inherent Risks for Monero (XMR) 

Company inherent risks are:

  • Security breaches and hacks of the Monero blockchain and software protocol. Note this is a “Software Only” company and the software/ protocol is everything they produce. Entirely digital companies and all cryptocurrencies face a high risk from hackers, malware, and operational glitches.
  • Important team members could leave the project. The project is open source and the contributors are not being paid. The best ideas are worth nothing if there are no high skilled people to execute. The ongoing development of the chain and protocol are crucial for success and survival of XMR.

The Monero price is quite dependent on the total market situation and the development of the cryptocurrency / blockchain industry. Many transactions on the blockchain demand for more privacy coins/volume. Upgrades, innovations, faster and cheaper transactions of competitive privacy coins might put Monero under significant pressure.

 

Risk 3: Regulatory Risk for Monero (XMR)

Monero did not raise money through an ICO. It has not been funded by professional investors and therefore there are no risks expected on this front.

However, there is a general concern among legal authorities that anonymous coins can be used for illegal activities, such as forbidden substances or money laundering.
There are several cases worldwide where Monero (XMR) has been used for criminal activities inluding attempted extortions and similar. And there is the famous case of FBI’s investigation on the Darknet marketplace Silk Road, that however used Bitcoin for illegal activities. There is a risk of a ban of privacy coins into niches, due to the misuse of the digital money.

 

Risk 4: Investors Risk Monero (XMR) – Consumer Protection

Unlike traditional banks, cryptocurrency doesn’t have any official safeguards or insurances. Your wallet is not a bank! Your exchange is not a bank!

For example, whereas the Federal Deposit Insurance Corporation underwrites depositors’ savings to the value of $250,000 each in both banks and brokerages, crypto exchanges are not part of the program. If your exchange becomes insolvent, you will lose everything.

Same applies for the access to your wallet. If you lose your keys, you lose access to your funds and they cannot be recovered. Reset password definitely does not work for Crypto wallets.

Ultimately, buying cryptocurrencies could result in losing everything you invested in them. You should never invest more than you can afford to lose.

cryptocurrency investments coins and tokens monero xmr legal

Part 4): The Worst Case Scenario and How to Avoid it?

The worst-case scenario for Monero (XMR) is that the coin falls to zero. Or nearly zero. This can happen if the Software would be hacked, the issue is not solvable and the company would not be viable. However, the probability is extremely low for this.

Form an investors point of view, the risk is that the investment does not develop positively and the coin drops in value.

How to avoid losses with cryptocurrencies? 

We recommend working with a clear Loss limit Strategy. Means, when the coin reaches a level you set, e.g. 40 USD for Monero, you sell the investment.

This can be executed via Stop Loss Orders if you keep the coins in exchange. Stop Loss Orders allow you to set a price at which you want to sell a coin. Stop-loss orders are designed to limit an investor’s loss on a position in a security.

Example: if the coin reaches 40 USD, your Stop Loss Order will be executed immediately and you would automatically sell at 40 USD.  Note that if the price of the coin never reaches your limit price, your trade won’t be executed.

Stay tuned to The Coin Research and check our updates. We will publish updates to Monero (XMR) on a regular basis.

Disclosures:

The Authors do not own XMR tokens. This research report is strictly informational and is not investment advice. Please refer to our Legal Notices for further information.  The Coin Research and the author did not receive compensation to create this research report, outside of our customers and subscription paying members. We have not been hired by the covered company or other third parties (e.g. consultants, advisors, VC) to prepare this research report.

Forward-Looking Statements and Projections:

Any estimates, projections, forecasts included in this document are speculative and based upon analysis of publicly available information. The targets, recommendations, thoughts shared in the report are subject to known and unknown risks, uncertainties and other unpredictable factors. The report might not cover all risks, might be materially wrong and forecasts might not materialize. No representations or warranties are made as to the accuracy of such forward-looking statements.

Basic Attention Token BAT Coin Research Report Cryptocurrency Investment Report

Basic Attention Token (BAT) Cryptocurrency Investment Research Report

Basic Attention Token (BAT) Cryptocurrency Investment Research Report 1500 1383 CryptoInvestResearch

Introduction Basic Attention Token (BAT)

Basic Attention Token (BAT) is an Ethereum blockchain based advertising exchange platform connecting publishers, advertisers, and users. BAT is the ERC-20 utility token used on the platform and it is integrated with the Brave web browser. Basic Attention Token plans to significantly improve the efficiency of marketing on the internet, especially digital advertising by creating a new system that rewards users for viewing ads.

The Investment Story for Basic Attention Token (BAT)

Basic Attention Token (BAT) is a Top 36 Coin at Coinmarketcap at the time of writing.

Basic Attention Token (BAT) is designed to revolutionize the advertising industry. The idea behind the platform is brilliant. A revolutionary digital advertising and rewards platform that rewards users in BAT tokens for any ads they opt into seeing. BAT locally matches ads to users without any tracking or data collection required. Brave is a new, privacy browser that blocks all third-party ads and trackers by default.

Its a token for an industry estimated to turnover over $200 billion per year. The key issue of this industry is click fraud, view fraud and other forms of abuse. Generally, the advertising industry pays the content publishers (websites, youtubers, content producers, social media influencers) for the views or clicks they generate with their audience.

BAT enters this field to facilitate the transactions between publishers, the advertising industry and users for their attention. By adding the users to the process, registering everything on the blockchain, the process of view and click rewards becomes transparent and fraud gets minimized. User wins, they get a payment for their attention, advertisers win, they don’t have to pay for click fraud and publishers win, as they can fully monetize the content.

Investment Rating for Basic Attention Token BAT

 

ACCUMULATE

Mid term accumulation in the range of:
0.11 – 0.12 USD

Investment Valuation Scores for Basic Attention Token BAT

Project Fundamentals Score
Token Economics Score
Community / Social Attention Score

The Valuation Scores are based on the Cryptocurrency Valuation Model developed by The Coin Research Team. Please see below for more details.


Cryptocurrency Investment Strategy for Basic Attention Token (BAT)

Investment Rating: Accumulate Basic Attention Token (BAT)
Buy Up to Price / Accumulate: $0.11 – $0.12
Stop Loss: $0.08
Position Size: $500–1,000 if you’re a smaller investor or $1,000–2,000 if you’re a bigger investor


Cryptocurrency Exchanges: Where to buy Basic Attention Token (BAT)? 

Best Exchanges to buy Basic Attention Token (BAT): 

At the time of writing, BAT is being traded in 67 cryptocurrency pairs on key exchanges. The Exchanges with the biggest volume are 55 Global Markets from Korea, Binance and Coinbase.

Buy It On: Binance (RECOMMENDED), Coinbase

Coinbase exchange for beginners

binance cryptocurrency exchange for bitcoin altcoin trading        


How to store Basic Attention Tokens? 

BAT Tokens are ECR20 tokens, stored on the Ethereum blockchain. Every cryptocurrency wallet that works for Ethereum, will work for BAT too.

We recommend to not store the coins on cryptocurrency exchanges. It’s safer to use the own wallet, where you control the keys.

Store It On:  Nano Ledger (RECOMMENDED), MyEtherWallet

Price Scenarios and assumptions for Basic Attention Tokens BAT  

Bull Case Scenario:
Target price range 0.30 – 0.35 USD (250% – 292%)
(Assumes step by step acceptance of the business model through media companies and adoption of the Brave browser)

Base Scenario:
Target price range 0.25 – 0.30 USD (208% – 250%)
(Assumes that the market turns around and an average adoption rate of the browser that builds over time)

Risk Bear Scenario / Stop Loss Scenario:
Target price range 0.08 USD (-34%)
(Assumes low adoption of decentralized exchanges, competitors offer a better protocol, bear market environment for crypto)

Basic Attention Token(BAT)
$0.546 -6.95%(24H Vol)
$96,527,613.00
7D Chart

Time Horizon for Basic Attention Token (BAT)

Our target prices are based on mid-term to long-term scenario estimates.

Note that the current market development and the chart development of BAT do not indicate a turnaround from the downward trend. Cautious investors should wait for turnaround signs of the market and BAT.

Out mid-term definition means 6-12 month, long-term 12-18 month.
Short-term investments (less than 3-4 month) are the playground of traders, day traders, who are “always online” to monitor the live market’s developments based on Technical Analysis and Fundamentals.

Chart Development of Basic Attention Token (BAT)

  • basic-attention-token
  • Basic Attention Token
    (BAT)
  • Price
    $0.546
  • Market Cap
    $817,984,156.00


Key research findings: Basic Attention Token (BAT)

Part 1): Company Background and Recent Updates of Basic Attention Token (BAT)

It took a few decades of development to have fast internet, fast devices, new tracking methods in more or less every corner of the world. Digital advertising jumped on this train and used the developments to grow exponentially many years. It’s in the meantime the biggest segment of the advertising industry. TV, Radio, Sponsoring are generating as well high numbers, however, ranking below digital advertising.

Basic Attention Token market growth potential

And this industry is still growing rapidly. Advertising became very targeted during the last years. Personalized advertising, based on your interest and behavior has taken over the spill broad advertising we know from the past.

This is not the end of the growth trend. The higher the personalization and the better the tracking possibilities, the more money will be spent to target consumers. The industry analysts expect that digital advertising will again double during the next 2-3 years. This itself is exceptional news for an investor. However, to identify a player in the blockchain industry, that could add significant value to this billion industry, is even better news.

Basic Attention Token is the player who is extremely far in the process to come out with products and solutions, that can take the world of digital marketing like a Tsunami.

Our conclusion: Basix Attention Token (BAT) is a highly undervalued cryptocurrency project, with a real working product and a very strong and highly committed team.
If they manage to achieve adoption for the Brave Browser, we will see this project raising in the years to come. The success of the BAT Token depends on the adoption of Brave.

It is an amazing opportunity to buy this token for a long-term investor. Don’t expect that the revolution will happen fast. Expect a step by step development at the beginning, before it goes exponential.

The use case of Basic Attention Token BAT

BAT turns the current advertising model inside out. If you surf the internet today and you get bombarded with advertising, you do not get paid for your attention, your time, or the electrical power and data you’re consuming, to view that advertising.  Someone is just using you, to earn money for your attention. As long as this advertising is very helpful too and supports you in finding the right things, identifying solutions for your issues, this might be ok and acceptable.
But more often than not, you feel abused by the marketing industry, wanting to sell you another vacation, flight, book, hairdryer, you name it.

BAT is working to give users back the control over their own attention. Attention should become a conscious behavior, you decide what you what advertising you want to see and get rewarded for it.

cryptocurrency research how it works basic attention token bat

Source: Basicattentiontoken.org

 

How is Basic Attention Token BAT working?

In very simple words:  Today you surf the web with a Google Chrome, Microsoft Edge or Apple Safari browser.
And there are 2 options: Either you use an extension to block advertising or not. Most people have a regular installation and do not block advertising.

Basic Attention Token has developed an own browser called Brave Browser. The Brave Browser allows you to opt-out of not wanted advertisements. And in Brave, you get rewarded in BAT for seeing ads. Or you can tip content contributors, publishers, etc.

The mission and goal of BAT is to dramatically improve the efficiency of the digital advertising industry by using the power of the blockchain. The Brave market place, allows publishers and users to trade advertising and attention-based services.

The system works anonymously and there are no middlemen or service agencies to track, store and sell your private data with this model. This is probably the key reason why Google and Microsoft are not big fans of this advertising distribution model. Their business model consists of being a middleman and charging for the services to distribute advertising to users, by using private user data, they accumulated over time.

 

cryptocurrency Investment report basic attention token BAT

Source: Brave.com

 

BAT is a Robin Hood for the advertising industry

Advertising is expensive for the user. Yes, for the user. Some studies estimate that up to 79% of data traffic on mobiles comes from advertising and as much as 21% of battery life. In a nutshell, we the web users are being monetized but not rewarded.

The marketing industry is abusing us to achieve their financial goals. This is where Brave and BAT get attractive. If you use Brave and opt-in to receive ads with BAT, you will be able to receive some % of the ad revenue depending on the ad type the current publisher uses.

Part 2): The Team and the Investors of Basic Attention Token (BAT)

Bredan Eich (Founder and CEO) and Brian Bondy (Co-Founder) are highly rated in the Web industry. They are the creators of JavaScript, co-founders of Mozilla and Firefox which set their qualifications on the highest levels. The project was funded by Founders Fund, Foundation Capital, Propel Venture Partners, Pantera Capital, DCG, Danhua Capital, and Huiyin Blockchain Venture among others.

Part 3): Valuation of Basic Attention Token (BAT)

Like always the introductory reminder: Cryptocurrencies are a new asset class. The performance of these assets is based on a different set of fundamentals, compared to standard Stock or Bond assets. Most projects are in an early stage, very much comparable to startups during the Dot.com area. Therefore financial indicators (like Net Revenue, Margin, EBITDA, Cash Flow) would not provide valuable insights and are not available. Softer Key performance indicators are rarely available too, like the number of customers, adoption rate, etc. 

The Coin Research Team has developed a comprehensive CRYPTOCURRENCY VALUATION MODEL for Tokens and Crypto projects. We use a broad set of indicators and group them into 3 categories: 

  1. Project Fundamentals 
  2. Token Economics
  3. Community / Social attention   

The Score range is from 0 – 100 (maximum). Scores above 70 indicate very solid projects with strong indicators in the subsegments researched.

0

Project Fundamentals Score

0

Token Economics Score

0

Community / Social Attention Score

The Coin Research Valuation Model for Cryptocurrencies considers the following:

  • Fundamentals Score: Research of the Idea, Use Case, Whitepaper, Blockchain, Legal risk ICO, Funding level, Competitive situation, Roadmap, Github, Team, Leadership, Governance, Investors, Advisors, Transparency, Communication, and several others.
  • Token Economics Score: Token use case, Value from the use case, Incentive to use it, Inflation, Distribution, Decentralization of Ownership, Dividend Model, Governance model, Exchanges, Liquidity, Daily Volumes, Fluctuations, and many more.
  • Community and Social Attention Score: Followers, Hashtags, Mentions, Members Social Media channels, activity, quantity and quality, Tonality, Promotions, Educational material, Support Groups, etc.

Part 4): Investment Risks for Basic Attention Token (BAT) and How to Mitigate Them?

The invest concept of a cryptocurrency is still novel and, compared to traditional investments, Basic Attention Token doesn’t have much of a long-term track record or history of credibility to back it. With their increasing use, Cryptocurrency Coins and Tokens are becoming less experimental every day, but remain in a development phase and extremely volatile.

Please note and unchanged: Cryptocurrencies are pretty much the highest-risk, highest-return investment that you can possibly make.

Our overall risk evaluation is MEDIUM for Basic Attention Token (BAT). 

 

Risk 1: Market Volatility for Basic Attention Token 

Cryptocurrencies and BAT included, are highly volatile assets. The 2-3% fluctuation you might know from the stock market, can easily translate to 15-25% fluctuation in Cryptocurrencies. During the same day!

Indeed, the value of the BAT Token has seen wild swings in price over its short existence. Subject to high volume buying and selling on exchanges, it has a high sensitivity to “news.

The volatility of BAT Token fluctuates between 0.07 USD to 0.83 USD. Huge swings on a daily basis between 5-10% are rather usual than exceptional.

We see the BAT token currently in a downward trend, that seems to stabilize around 0.11 – 0.12 USD.

Basic Attention Token BAT development cryptocurrency investment chart

Source: Coinmarketcap

 

Risk 2: Company Inherent Risks for Basic Attention Token (BAT) 

Company inherent risks are:

  • Security breaches and hacks of the Basic Attention Token blockchain and protocol. Note this is a “Software Only” company and the software/ protocol is everything they produce. Entirely digital companies and all cryptocurrencies face a high risk from hackers, malware, and operational glitches.
  • Important team members could leave the project. The best ideas are worth nothing if there are no high skilled people to execute. The expertise of the leadership team at BAT is crucial for success.
  • The Brave browser suffers a lack of acceptance and the economic model behind the token will not prosper. The Browser market is dominated by Google. And Goolge might not allow BAT to develop an extension for Google Chrome that blocks Googles Business model.

The BAT Basic Attention Token price is quite dependent on the total market situation and the development of the cryptocurrency / blockchain industry. Negative developments in the industry, e,g, on Bitcoin, Ethereum and other main Cryptocurrencies will affect the price development of BAT.

 

Risk 3: Regulatory Risk for BAT Basic Attention Token

BAT raised money through an ICO (Initial Coin Offering) (15m USD, May 2017). As a result, governments may conclude that BAT tokens are securities and might seek to regulate, restrict or ban the use and sale of tokens. Or the SEC might enter into a legal dispute with BAT Basic Attention Token.

 

Risk 4: Investors Risk BAT Basic Attention Token – Consumer Protection

Unlike traditional banks, cryptocurrency doesn’t have any official safeguards or insurances. Your wallet is not a bank! Your exchange is not a bank!

For example, whereas the Federal Deposit Insurance Corporation underwrites depositors’ savings to the value of $250,000 each in both banks and brokerages, crypto exchanges are not part of the program. If your exchange becomes insolvent, you will lose everything.

Ultimately, buying cryptocurrencies could result in losing everything you invested in them. You should never invest more than you can afford to lose.

Part 4): The Worst Case Scenario and How to Avoid it?

The worst-case scenario for Basic Attention Token (BAT) is that the coin falls to zero. Or nearly zero. This can happen if the Software would be hacked, the issue is not solvable and the company would not be viable. However, the probability is extremely low for this.

Form an investors point of view, the risk is that the investment does not develop positively and the coin drops in value.

How to avoid losses with cryptocurrencies? (BAT)

We recommend working with a clear Loss limit Strategy. Means, when the coin reaches a level you set, e.g. 0.08 USD for BAT, you sell the investment.

This can be executed via Stop Loss Orders if you keep the coins in exchange. Stop Loss Orders allow you to set a price at which you want to sell a coin. Stop-loss orders are designed to limit an investor’s loss on a position in a security.

Example: if the coin reaches 0.18 USD, your Stop Loss Order will be executed and you would automatically sell at 0.18 USD.  Note that if the price of the coin never reaches your limit price, your trade won’t be executed.

Stay tuned to The Coin Research and check our updates. We will publish updates to BAT Basic Attention Token on a regular basis.

Disclosures:

The Authors do not own BAT  tokens. This research report is strictly informational and is not investment advice. Please refer to our Legal Notices for further information.  The Coin Research and the author did not receive compensation to create this research report, outside of our customers and subscription paying members. We have not been hired by the covered company or other third parties (e.g. consultants, advisors, VC) to prepare this research report.

Forward-Looking Statements and Projections:

Any estimates, projections, forecasts included in this document are speculative and based upon analysis of publicly available information. The targets, recommendations, thoughts shared in the report are subject to known and unknown risks, uncertainties and other unpredictable factors. The report might not cover all risks, might be materially wrong and forecasts might not materialize. No representations or warranties are made as to the accuracy of such forward-looking statements.

MakerDAO MKR cryptocurrency investment research report 3d

MakerDAO (MKR) Cryptocurrency Investment Research Report

MakerDAO (MKR) Cryptocurrency Investment Research Report 1500 1383 Oliver R. George

Introduction MakerDAO (MKR)

The slogan of MakerDAO (MKR) is: realizing the potential of the blockchain. And this is what they are striving for. MakerDAO is comprised of a stable coin, collateral loans, and decentralized governance on the blockchain. Dai (the product of MakerDAO) stands to transform the financial industry by creating a stable and decentralized currency that will allow businesses to realize the future of money. A cryptocurrency investment in Maker (MKR) will participate in the value development of this cryptocurrency coin and give you access to the governance model of MakerDAO.

The Investment Story for MakerDAO (MKR)

MakerDAO (MKR) is a Top 19 Coin at Coinmarketcap at the time of writing.

What is MakerDAO or Maker (MKR)? And what is DAI?

Unless you’ve been studying the blockchain space and the Ethereum ecosystem closely over the past 2-3 years, you most likely haven’t heard of MakerDAO. There was no hype, no ICO, you couldn’t trade the MKR token on popular exchanges until recently. No shilling of the project by the community, no memes, no scandals, no pump & dump. There is, however, an expert community of high professionals working on the project.

Maker is the cryptocurrency coin that powers the creation and stability of Dai. Dai is the product of MakerDAO. It’s a resilient stable coin, linked to the US $. (1 DAI = 1 US$). Dai is an Ethereum backed cryptocurrency for the blockchain. It is designed, tested and has proven it during 3 years of testing and since the launch during last year, that it maintains a stable value in all market circumstances and without restrictions.

Technically, its a bit complex to explain how MKR and Dai work, we will try it later in the report.

In a nutshell: Maker keeps Dai at 1 US$ using a system of collateral in Ethereum and price feeds. This collateral is carefully managed by the MKR token holders, locked in a Smart Contract and MKR holders act as a buyer of last resort.

Investment Rating for MakerDAO (MKR)

 

BUY / ACCUMULATE

Buy/accumulate in the price range of:
450.00 – 480.00 USD

Investment Valuation Scores for MakerDAO (MKR)

Project Fundamentals Score
Token Economics Score
Community / Social Attention Score

The Valuation Scores are based on the Cryptocurrency Valuation Model developed by The Coin Research Team. Please see below for more details.


Cryptocurrency Investment Strategy for MakerDAO (MKR)

Investment Rating: Buy/Accumulate MakerDAO (MKR)
Buy Up to Price / Accumulate: $450.00 – $480.00
Stop Loss: $390.00
Position Size: $1,000–2,000 if you’re a smaller investor or $2,000–3,000 if you’re a bigger investor


Cryptocurrency Exchanges: Where to buy MakerDAO (MKR)? 

Best Exchanges to buy MakerDAO (MKR): 

At the time of writing, MKR is being traded in 48 cryptocurrency pairs on different exchanges. The Exchange with the biggest volume OKex.

Buy It On: OKex


How to store MakerDAO (MKR) Coins? 

MKR Coins are ECR20 tokens, stored on the Ethereum blockchain. Every cryptocurrency wallet that works for Ethereum, will work for MKR too.

We recommend to not store the coins on cryptocurrency exchanges. It’s safer to use the own wallet, where you control the keys.

Store It On:  Nano Ledger (RECOMMENDED), MyEtherWallet

ledger nano hardware wallet from the coin research store 0x protocol zrx

Price Scenarios and assumptions for MakerDAO (MKR)  

Bull Case Scenario:
Target price range 720 – 850 USD (153% – 181%)
(Assumes turnaround of the Cryptocurrency Market and adoption of Dai as a stable coin)

Base Scenario:
Target price range 590 – 670 USD (126% – 143%)
(Assumes that the market turns around and the adoption rate of Dai grows slowly but steady)

Risk Bear Scenario / Stop Loss Scenario:
Target price range 390 USD (-17%)
(Assumes bear market environment for crypto)

Maker(MKR)
$2,385.12 -7.49%(24H Vol)
$122,028,923.00

maker
Maker
-7.49%24H
$2,385.12

Time Horizon for MakerDAO (MKR)

Our target prices are based on mid-term to long-term scenario estimates. MakerDAO is a project that will develop adoption over time and is a solid pick for a long-term investment.

Out mid-term definition means 6-12 month, long-term 12-18 month.
Short-term investments (less than 3-4 month) are the playground of traders, day traders, who are “always online” to monitor the live market’s developments based on Technical Analysis and Fundamentals.

Chart Development of MakerDAO (MKR)

  • maker
  • Maker
    (MKR)
  • Price
    $2,385.12
  • Market Cap
    $2,149,730,825.00


Key research findings: MakerDAO (MKR)

Part 1): Company Background and MakerDAO (MKR)

Maker (MKR) is the cryptocurrency coin that powers the creation and stability of Dai. Dai is the product of MakerDAO. It’s a resilient stable coin, linked to the US $. (1 DAI = 1 US$). Dai is an Ethereum backed cryptocurrency for the blockchain.

Let’ explain MKR and DAI a little bit. If you are not interested in the technical side of the project, you can skip this part.

The easiest way to explain MakerDAO (MKR) is to start with the product, the Dai stable coin. The concept of stable coins is fairly straight forward and easy to understand. It is a cryptocurrency coin (like Bitcoin, Ether, Dash or Monero) that is created and exists on a blockchain. But its not created through a TGE (Token Generation Event) that ICOs are doing, it’s created by an Ether investor on a case by case basis. Dai has unlike to other cryptocurrencies no volatility. It’s always around 1 US$. (+/- 0.02 US$)

How does the Maker / Dai smart contract achieve stability in fast changing and high volatile markets?

To create Dai you will have to deposit Ether as a collateral. First step is, that you send an amount of Ether (ETH) to a smart contract as a CDP (collateralized debt position). This CDP is now locked in a smart contract, that is a piece of software on the Ethereum blockchain. Means you sent your Ether to a prison on the blockchain. You can use now this CDP to create Dai.

To make this scenario a bit easier, let me explain Dai and MKR with an example.

Let’s assume that Ether (ETH) is worth $100. And you decide to send 10 ETH to the Maker smart contract as a collateral debt position (CDP). Your ETH will be locked (prison) and you will receive Dai.

For the example we assume that you get Dai based on a ratio of 5:1, means for 10 ETH = $1,000 you will get $200 in Dai = 200 Dai. No worries, you still own the 10 ETH, however, in addition, you have now $200 in Dai that you can use for whatever you like.

Your collateral remains locked until you paid back the 200 Dai + 0.5% annual fee. If you pay back the 200 Dai + 0.5% annual fee, you get your 10 ETH back again and the Dai will be burned (destroyed).

Why should you do this? The incentive to create Dai is that you can give yourself a loan based on your collateral. Out of the 1,000 US$, you had in ETH you made now 1,200 US$ (the 1,000 US$ in ETH + 200 US$ in Dai)

What are the Risks of issuing Dai?

In a stable cryptocurrency market envorinment, there are no risks to issue Dai.

But what if the Ether (ETH) goes significantly down? In this case, as long as the Ether stays above a threshold, nothing happens.

In the example from above: ETH is at $100, you have locked 10 ETH and issued 200 Dai (Ratio 5:1). If ETH drops to $20, your 10 ETH collateral debt position will have a value of $200. In this case, the smart contract will liquidate your ETH and you would lose it. However, that’s quite a drop for ETH from 100 US$ to 20 US$.

This is how the Maker system ensures there is always enough Ether (ETH) in deposits collateral debt positions to cover the outstanding debts of Dai.

Now what if Ether (ETH) moves in a positive direction, let’s say from $100 to $200 or higher?
In this case, the system still works unchanged: You can always unlock your 10 ETH from the colateral debt position for paying back the 200 Dai + 0.5% MKR fee. You get your 10 ETH back, worth now $200 x 10 ETH = $2,000.

Nice story of a stable coin right? But how is this linked to MakerDAO (MKR) and why is this important for a MKR cryptocurrency investment?

how makerdao mkr works whitepaper cryptocurrency research

Why will Maker (MKR) grow in value?

As you might recall, we mentioned a few times the 0.5% annual fee, when you create Dai. These annual fee amounts will be invested by the smart contract in Maker (MKR) and the MKR will be burnt immediately.

Means the smart contract from Maker (MKR) buys at decentralized exchanges an amount of MKR corresponding to the annual fee and burns the MKR immediately.

Did I mention that the total supply of Maker (MKR) has been fixed at 1,000,000 and cannot be increased?

Right now 728,000 MKR are in circulation. Means the available supply of Maker (MKR) will have long-term only one direction: down!
This will automatically increase the value of the remaining Maker Coins. The higher the adoption of Dai and the more investors generate Dai the more Maker MKR tokens will be burned and holders of MKR will benefit from it.

Part 2): The Team and the Investors MakerDAO (MKR)

The team and the leadership of the project are key decision factors in our investment evaluation. They’re the key to success. You can’t hire a standard manager to execute a highly complex project, with many unknowns, working on the edge of what’s technologically possible.

The Maker Team is a team of experts. Very humble, honest, direct. They discuss openly in the Telegram group about the issues and challenges they face. And they respond to every “stupid” question. For sure they are no marketing people. Maker (MKR) doesn’t seem to have a marketing department. They attend conferences, write blogs, communicate on social media. But no loud screaming, pumping, aggressive communication. That’s not Maker.

Cryptocurrency investment MakerDAO MKR Team coin research

Source: MakerDAO.org

The CEO is Rune Christensen, Danish with a bit of experience as a founder. Check a video on Youtube, where he presents MakerDAO.  (Video starts on minute 3.00)

The CTO is Andy Milenius. You will find many videos from him on Youtube presenting MakerDAO. The total MakerDAO team is for the time being about 45 members. Mainly high-end developers, engineers, etc.

MakerDAO (MKR) did not sell the MKR coins during an ICO / Token Generation Event. They have been funded by professional investors.

The actual investors in MakerDAO are:

  • Andreessen Horowitz
  • Walden Bridge Capital
  • Scanate
  • Polychain
  • Distributed Capital Partners
  • FBG Capital
  • Wyre Capital

Part 3): Valuation of MakerDAO (MKR)

Like always the introductory reminder: Cryptocurrencies are a new asset class. And MakerDAO is no exception! The performance of these assets is based on a different set of fundamentals, compared to standard Stock or Bond assets. Most projects are in an early stage, very much comparable to startups during the Dot.com area. Therefore financial indicators (like Net Revenue, Margin, EBITDA, Cash Flow) would not provide valuable insights and are not available. Softer Key performance indicators are rarely available too, like the number of customers, adoption rate, etc. 

The Coin Research Team has developed a comprehensive CRYPTOCURRENCY VALUATION MODEL for Tokens and Crypto projects. We use a broad set of indicators and group them into 3 categories: 

  1. Project Fundamentals 
  2. Token Economics
  3. Community / Social attention   

The Score range is from 0 – 100 (maximum). Scores above 70 indicate very solid projects with strong indicators in the subsegments researched.

0

Project Fundamentals Score

0

Token Economics Score

0

Community / Social Attention Score

The Coin Research Valuation Model for Cryptocurrencies considers the following:

  • Fundamentals Score: Research of the Idea, Use Case, Whitepaper, Blockchain, Legal risk ICO, Funding level, Competitive situation, Roadmap, Github, Team, Leadership, Governance, Investors, Advisors, Transparency, Communication, and several others.
  • Token Economics Score: Token use case, Value from the use case, Incentive to use it, Inflation, Distribution, Decentralization of Ownership, Dividend Model, Governance model, Exchanges, Liquidity, Daily Volumes, Fluctuations, and many more.
  • Community and Social Attention Score: Followers, Hashtags, Mentions, Members Social Media channels, activity, quantity and quality, Tonality, Promotions, Educational material, Support Groups, etc.

Part 4): Investment Risks for MakerDAO and How to Mitigate Them?

The invest concept of a cryptocurrency is still novel and, compared to traditional investments, MAkerDAO doesn’t have much of a long-term track record or history of credibility to back it. It has been launched December 2017.

With their increasing use, Cryptocurrency Coins and Tokens are becoming less experimental every day, but remain in a development phase and extremely volatile.

Please note and unchanged: Cryptocurrencies are pretty much the highest-risk, highest-return investment that you can possibly make.

Our overall risk evaluation is LOW for MakerDAO (MKR). 

 

Risk 1: Market Volatility for MakerDAO 

Cryptocurrencies and MKR included, are highly volatile assets. The 2-3% fluctuation you might know from the stock market, can easily translate to 15-25% fluctuation in Cryptocurrencies. During the same day!

Indeed, the value of the MakerDAO Coin has seen some stronger swings in price over its short existence. The overall market development is the key influence factor. High trading activity in Cryptocurrency coins requires high amounts of stable coins (Dai).

The volatility of MakerDAO fluctuates between 270 USD to 1,600 USD. The volatility on a daily basis is between 2-5% and lower than the crypto average.

We see the MakerDAO token currently in a slight turnaround trend, that seems to stabilize around 400-450 USD.

cryptocurrency investment makerdao mkr coin research report

Source: Coinmarketcap

 

Risk 2: Company Inherent Risks for MakerDAO (MKR) 

Company inherent risks are:

  • Security breaches and hacks of the MKR coin or the Dai stable coin protocol. Note this is a “Software Only” company and the software/ protocol is everything they produce. Entirely digital companies and all cryptocurrencies face a high risk from hackers, malware, and operational glitches.
  • Important team members could leave the project. If the founders would leave the project, this would probably hurt the development significantly.
  • There are many other stable coins, backed like Tether (they claim to back it with USD), USD Coin, TrueUSD and others. These stable coins could become a risk for the Dai development if the access and availability are broader than Dai.

Risk 3: Regulatory Risk for MakerDAO (MKR)

Like many other projects, MakerDAO did not raise money through an ICO. They were fully financed by investors. Early adopters were able to obtain Maker tokens only through private sales and their forum. Therefore we don’t see risks from a regulatory side, compared to other ICO projects.

Risk 4: Investors Risk MakerDAO (MKR) – Consumer Protection

The investor’s risks are linked to the loss of the investment on exchanges, loss of wallet keys, scamming, etc. Unlike traditional banks, cryptocurrency doesn’t have any official safeguards or insurances. Your wallet is not a bank! Your exchange is not a bank!

For example, whereas the Federal Deposit Insurance Corporation underwrites depositors’ savings to the value of $250,000 each in both banks and brokerages, crypto exchanges are not part of the program. If your exchange becomes insolvent, you will lose everything.

Ultimately, buying cryptocurrencies could result in losing everything you invested in them. You should never invest more than you can afford to lose.

Part 4): The Worst Case Scenario and How to Avoid it?

The worst-case scenario for MakerDAO is that the coin falls to zero. Or nearly zero. This can happen if the software would be hacked, the issue is not solvable and the company would not be viable. However, the probability is extremely low for this.

Form an investors point of view, the risk is that the investment does not develop positively and the coin drops in value.

How to avoid losses with cryptocurrencies? 

We recommend working with a clear loss limit Strategy. Means, when the coin reaches a level you set, e.g. 390 USD for MKR, you sell the investment.

This can be executed via Stop Loss Orders if you keep the coins in exchange. Stop Loss Orders allow you to set a price at which you want to sell a coin. Stop-loss orders are designed to limit an investor’s loss on a position in a security.

Example: if the coin reaches 390 USD, your Stop Loss Order will be executed and you would automatically sell at 390 USD or the next available price.  Note that if the price of the coin never reaches your limit price, your trade won’t be executed.

Stay tuned to The Coin Research and check our updates. We will publish updates to MakerDAO (MKR) on a regular basis.

Disclosures:

The Authors do not own MKR tokens. This research report is strictly informational and is not investment advice. Please refer to our Legal Notices for further information.  The Coin Research and the author did not receive compensation to create this research report, outside of our customers and subscription paying members. We have not been hired by the covered company or other third parties (e.g. consultants, advisors, VC) to prepare this research report.

Forward-Looking Statements and Projections:

Any estimates, projections, forecasts included in this document are speculative and based upon analysis of publicly available information. The targets, recommendations, thoughts shared in the report are subject to known and unknown risks, uncertainties and other unpredictable factors. The report might not cover all risks, might be materially wrong and forecasts might not materialize. No representations or warranties are made as to the accuracy of such forward-looking statements.

0x Protocol ZRX Coin Research Report Cryptocurrency Investment Report

0x Protocol (ZRX) Cryptocurrency Investment Research Report

0x Protocol (ZRX) Cryptocurrency Investment Research Report 1500 1383 CryptoInvestResearch

Introduction 0x Protocol (ZRX)

0x is an open protocol that enables the peer-to-peer exchange of assets on the Ethereum blockchain. The 0x (ZRX) is an ECR20 token traded on the Ethereum blockchain.

Anyone in the world can use 0x to service a wide variety of markets ranging from gaming items to financial instruments to assets that could have never existed before.

0x is an important infrastructure for the emerging crypto economy and enables markets to be created that couldn’t have existed before. As more assets become tokenized, public blockchains provide the opportunity to establish a new financial stack that is more efficient, transparent, and equitable than any system in the past. 0x ZRX Protocol will act as a critical piece of infrastructure for the token economy, allowing Ethereum smart contracts to programmatically and seamlessly exchange Ethereum-based assets.

Current Story for 0x Protocol (ZRX)

0x Protocol (ZRX) is a Top 33 Coin at Coinmarketcap at the time of writing.

In a world with thousands of Cryptocurrency Coins, decentralized exchange protocols will be game changers, because they are key pieces in the crypto infrastructure.

The 0x Token (ZRX) gives a solid opportunity to benefit from the rise of decentralized exchanges. Investing in 0x Protocol is not comparable to the investment into a centralized exchange, like Binance (BNB), Kucoin (KCS). 0x is more comparable to the investment into a portfolio of exchanges, in a focused ETF fund, where you can profit from the overall performance of the exchanges.

We can assume, that longterm some exchanges might be acquired by bigger players. E.g. Coinbase announced the purchase of Paradox in May 2018. Paradox is a decentralized exchange and runs on 0x Protocol.

Protocols have potential to develop crypto economies and help to push the ecosystem to new highs.

Investment Rating for 0x Protocol

 

ACCUMULATE / BUY

Mid term accumulation in the range of:
0.25 – 0.32 USD

Investment Valuation Scores for 0x ZRX Protocol

Project Fundamentals Score
Token Economics Score
Community / Social Attention Score

The Valuation Scores are based on the Cryptocurrency Valuation Model developed by The Coin Research Team. Please see below for more details.


Investment Strategy for 0x Protocol (ZRX)

Investment Rating: Buy / Accumulate 0x Protocol (ZRX)
Buy Up to Price / Accumulate: $0.25 – $0.32
Stop Loss: $0.18 – $0.20
Position Size: $500–1,000 if you’re a smaller investor or $1,000–2,000 if you’re a bigger investor


Cryptocurrency Exchanges: Where to buy 0x Protocol (ZRX)? 

Best Exchanges to buy 0x Protocol: 

At the time of writing, 0x is being traded in 118 cryptocurrency pairs on nearly all exchanges. The Exchanges with the biggest volume are 55 Global Markets from Korea, Binance and Coinbase.

Buy It On: Binance (RECOMMENDED), Coinbase

binance cryptocurrency exchange for bitcoin altcoin trading        Coinbase Cryptocurrency Exchange for 0x Protocol ZRX, Bitcoin, Ethereum


How to store 0x ZRX Protocol Tokens? 

0x Coins are ECR20 tokens, stored on the Ethereum blockchain. Every cryptocurrency wallet that works for Ethereum, will work for ZRX too.

We recommend to not store the coins on cryptocurrency exchanges. It’s safer to use the own wallet, where you control the keys.

Store It On:  Nano Ledger (RECOMMENDED), MyEtherWallet

ledger nano hardware wallet from the coin research store 0x protocol zrx

Price Scenarios and assumptions for 0x Protocol 

Bull Case Scenario:
Target price range 1.20 – 1.50 USD (413% – 517%)
(Assumes strong growth of decentralized exchanges, Binance builds their DEX on 0x Protocol)

Base Scenario:
Target price range 0.80 – 1.00 USD (275% – 345%)
(Assumes medium growth of decentralized exchanges, an average adoption rate that builds over time)

Risk Bear Scenario / Stop Loss Scenario:
Target price range 0.18 – 0.21 USD (-18% – 38%)
(Assumes low adoption of decentralized exchanges, competitors offer a better protocol, bear market environment for crypto)

0x(ZRX)
$0.700 -8.41%(24H Vol)
$90,486,374.00
7D Chart

Time Horizon for 0x Protocol Investment

Our target prices are based on mid-term to long-term scenario estimates.

Mid-term in this definition means 6-12 month, long-term 12-18 month.
Short-term investments (less than 3-4 month) are the playground of traders, day traders, who are “always online” to monitor the live market’s developments based on Technical Analysis and Fundamentals.

Development of 0x Protocol (ZRX)

  • 0x
  • 0x
    (ZRX)
  • Price
    $0.700
  • Market Cap
    $591,391,499.00


Key research findings: 0x Protocol (ZRX)

Part 1): Company Background and Recent Updates of 0x ZRX

The 0x team is focused on the development of the protocol, the infrastructure of the ZRX token. Currently, there are over 15 (fifteen!) 0x Relayers (these are exchanges build on top of the infrastructure) which drive the adoption of 0x ZRX. All Relayers are independent teams, who increase the chance of success for a 0x Token investment and the risk of failure is well diversified.

Only a few people know for the time being about decentralized exchanges. Once the world will learn, that you can anonymously trade coins on exchanges, the shift from centralised will gradually happen.

The 0x Team is one of the best in the Crypto industry. The leaders have all an excellent background and a huge network in the ecosystem. Like for every other project: The best idea is worth nothing if there are no right people behind it to execute it effectively.

Summarized: The fact that 0x is a protocol allows other teams and companies to build upon its protocol signalizes an exceptional growth potential. Furthermore, the market is discussing the probability, that Binance might implement their first DEX (Decentralized Exchange) on the 0x Protocol.

Our conclusion: 0x Protocol is a highly undervalued cryptocurrency project, with a real working product and a very strong and highly committed team. We will see this project raising in the years to come. The success of the 0x ZRX Token depends on the adoption of decentralized exchanges for Cryptocurrency.


Twitter Feed 0x Protocol (ZRX)