investment report

binance bnb cryptocurrency investment report 2

Binance (BNB) Cryptocurrency Investment Research Report

Binance (BNB) Cryptocurrency Investment Research Report 1500 1383 CryptoInvestResearch

Introduction Binance Token (BNB)

Binance Exchange is by far the no. 1 cryptocurrency exchange worldwide that offers to trade in more than 50 crypto coins including the leading pairs of Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and of course Binance Coin (BNB). The name of the exchange Binance is based on a combination of “Binary and Finance”.  Its based in Tokyo, Japan and has been launched during summer 2017.

Binance BNB token is the use token of the Binance exchange. BNB is an ECR 20 token based on the Ethereum Blockchain protocol. The BNB token has quickly gained popularity and high trade volumes, trading at the time of writing around a market cap of around $800m (no. 12 on Coinmarketcap). The onboarding of new users is standard for exchanges. Users have to complete the Know Your Customer (KYC) forms. Upon successful account creation, users can add crypto funds to the wallet address provided by Binance to start trading.

In addition to the exchange, Binance has a blockchain startup incubator called Binance Labs, which focuses on the development of promising early-stage projects. It helps highly selected cryptocurrency project teams by providing necessary funding for development, management, and advisory resources, and a launch pad for financing or fundraising exercises.

The Investment Story for Binance Exchange Token (BNB)

Binance (BNB) Token is a Top 12 Coin at Coinmarketcap at the time of writing.

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Binance (BNB) is the next Amazon on the rise. Some compared Binance with Google. This is wrong. Google offers services to the consumers, however, makes the profit in a B2B model, as an intermediate for the advertising industry. They sell the data (profiles, demographics, etc) of their customers to the advertising industry.

Amazon offers a product to the consumer and physically sells/delivers value to the consumer. Big difference to Google. Amazon deals with the consumer directly and is working hard to offer the best service, best user experience. The direct contact and direct execution of the sale, the roll-out country by country, the trust required from the masses, that’s what makes the difference.

Binance has very good chances to become the next Amazon!

Why? Simply because their retail product is awesome fast, trustworthy, have a lot of open communication, offer the relevant products (pairs of trading), zero hassle approach. Good customer service, that cares about the customer itself, a respected, open and charming CEO, open communication to the communities.

The biggest weakness of Binance? They are a centralized organization. And like every centralized company, it can be seized, governments can take over control of the exchange, software, funds in wallets, etc. And of course, your funds are always under risk, if you deposit them in a central exchange. If you don’t control your keys, you don’t control your crypto. Binance, however, has implemented a #SAFU funds, to deal with emergencies, where customers lose their money.

Binance cryptocurrency investment report 01.19

Binance (BNB): Probably the strongest investment story on cryptocurrency 

The development of Binance as an exchange platform is dependent on the cryptocurrency market development. High volatility generally speaking is good for Binance, because it means high volume trading. When Bitcoin jumped towards $20,000 in December 2017, Binance made record profits. The trading of retail investors, smaller institutions and whales led to record quarterly EBIT results.

This has calmed down during 2018. Sales pressure and low buy volumes take a toll of Binance profits. Not to forget: the collapse of the ICO market, losses on Altcoins or Shitcoins over 90%, have a negative impact on the investor’s sentiment. Still, Binance trades between $500 – 700 million per day.

Extremes are always temporary events. The cryptocurrency market will soon balance out and find its midpoint, where sales and buy orders level out. Those investors with the guts to buy when blood is on the street, will be rewarded just like the people who sold in times of euphoria.

Not everyone is going to survive this carnage. Some exchanges will have to give up, Liqui.io is just one of them. One company that is definitely going to survive and is prospering during the bear market is Binance (BNB). The token has significantly outperformed other cryptocurrencies during this bear market. Binance lost as well in value, compared to the peak performance, however, the recovery after the bottoming out, looks very promising and strong for me.

There is a saying, the bank always wins. During a recession or boom periods, the bank always earns a solid profit on the services provided. Same applies for Binance. Be it a bull or bear market, the exchange always profits from trading fees. The trading fees might be higher during bull periods of course. So are the costs, like more customer service, support, IT, data, servers, etc… Therefore an exchange will, of course, adjust the cost basis during a bear market to manage the level of profitability, For sure, at the moment, there are only very few more lucrative businesses in blockchain than Binance.

Binance has the realistic chance to dominate the cryptocurrency exchanges in future and become an Amazon for blockchain. A strong exchange business, the development of a decentralized exchange on top, Binance lab as an incubator for blockchain projects are the key arguments that support this bet.

Investment Rating for Binance Token BNB 

Time of writing: 29/01/2019

BUY 

Short to mid-term buy in the range of:
5.50 – 8.50 USD

Investment Valuation Scores for Binance Token BNB 

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 Binance (BNB) Token

Investment Rating: Buy Binance Token (BNB)
Buy Up to Price / Accumulate: $5.50 – $8.50
Stop Loss: $4.80
Position Size: $500–1,000 if you’re a smaller investor or $1,000–2,000 if you’re a bigger investor

Time of writing 29/01/2019


Cryptocurrency Exchanges: Where to buy Binance (BNB) Token? 

Best Exchanges to buy Binance Token (BNB): 

At the time of writing, BNB is being traded in 106 cryptocurrency pairs on key exchanges. The Exchanges with the biggest volume is Binance.

Buy It On:  Binance (RECOMMENDED)

binance cryptocurrency exchange for bitcoin altcoin trading        

Coinbase exchange for beginners


How to store Binance Tokens (BNB)? 

BNB Tokens are ECR20 tokens, stored on the Ethereum blockchain. Every cryptocurrency wallet that works for Ethereum, will work for BNB 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 Binance Token (BNB)  

Bull Case Scenario:
Target price range 15.10 – 22.00 USD
(Assumes recovery of the cryptocurrency market)

Base Scenario:
Target price range 9.25 – 10.30 USD

(Assumes that the market turns around and no significant negative impact from launches of competitive exchanges)

Risk Bear Scenario / Stop Loss Scenario:
Target price range 4,80 USD (-23%)
(Assumes continuing bear market, competitors offer a better protocol)

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You have not selected any currency to display

Time Horizon for Binance Token (BNB)

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

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

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 Binance Token (BNB)

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Key research findings: Binance Coin (BNB)

Part 1): Company Background and Recent Updates of Binance Token (BNB)

Binance has been founded in during Summer 2017 by Mr. Changpeng Zhao, well known among the Twitter community as @CZ_binance. At the point of launching, Binance provided very compelling reasons for investors and traders to use the platform:

  • fast order execution
  • transparent order book
  • broad pairs of cryptocurrency pairs
  • high liquidity
  • simple onboarding process
  • straightforward UX

In addition to this Binance somehow managed to stay away from the bad press, e.g Pump & Dumps, hacks, fake ICOs, etc. Today Binance can transact over 1.4 million transactions per second (according to their website). That’s probably record-breaking among the crypto exchanges. Binance managed to increase very quickly the user base, estimated to be around 10.000.000 by end of 2018 and developing very fast.

And Binance continues in the race of dominating the cryptocurrency trading. Or as CZ said during a conference in Singapore: „Fiat is still where all the money is in. … And we’ve got to open that gate“. They plan to open 5-10 crypto exchanges during 2019.

In addition, CZ from Binance launched a venture called Binance Labs in September 2018. This is an Incubator program for Blockchain projects with the aim to bootstrap cryptocurrency start-ups of all kinds. Similar to what the Silicon Valley corporations have been doing over the last 20 years. They acquired various companies with interesting products to absorb their solutions. Binance goes the route of early-stage Venture Capitalists by funding start-ups in-house. More than 500 applications were sent to Binance in the first season of the Incubator program. From that number, Binance chose only eight teams they will support.

The use cases of Binance Token BNB

The blockchain is still a very young industry and in today’s landscape, a lot of cryptocurrencies exist as token bets on services that have yet to translate to actual use cases and products. Only few Cryptocurrency Coins have a clear use case linked to the blockchain, like Bitcoin (store of value), Ether (powering transactions and smart contracts), Monero (privacy coin).

With the Binance (BNB) token you can:

Pay for the exchange fees on Binance for your cryptocurrency trading orders. The use of BNB to pay for transaction fees give users at the beginning a 50% discount compared with the prevailing rate for other cryptocurrencies. That discount has changed to 25% recently, as stated in the Binance whitepaper, but it’s still a great deal for the cryptocurrency traders.

Pay with BNB for services or goods across many websites.
Binance managed to convince some first adopters to implement payments with BNB. They have a clear focus to increase the network of merchants and establishments that accept BNB. We expect use cases to grow further, as they support more blockchain innovators via Binance Labs and Binance Launchpad.

On CryptocurrencyInvestment.org you can pay the Membership fee with Cryptocurrencies (including BNB) too.

And until further use cases are developed, Binance has an ongoing commitment to decrease the total supply of BNB in the market. Every quarter since it launched, Binance committed to using 20% of the profit to buy back Binance Tokens and burn them permanently.


Twitter Feed Binance Token (BNB)

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Part 2): The Team and the Investors of Binance (BNB)

The Binance team is comprised of members from a wide variety of backgrounds and experiences including blockchain engineering, investment banking, strategy consulting, academic research, and data science. CEO is as mentioned Mr. Changpeng Zhao. On LinkedIn we found 673 employees worldwide.

This is most probably one of the largest teams in cryptocurrency.

Part 3): Valuation of Binance Coin (BNB)

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 Binance Coin (BNB) and How to Mitigate Them?

The invest concept of a cryptocurrency is still novel and, compared to traditional investments, Binance 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 LOW for Binance (BNB). 

 

Risk 1: Market Volatility for Binance Token 

Cryptocurrencies and BNB included, are highly volatile assets. The 2-3% fluctuation you might know from the stock market, can easily translate to 8-12% fluctuation in Cryptocurrencies. During the same day!

Indeed, the value of the BNB Token has seen wild swings in price over its short existence.

The volatility of BNB Token fluctuates between 2.00 USD to 22.00 USD. Larger swings on a daily basis between 2-5% are rather usual than exceptional.

We see the Binance BNB cryptocurrency coin currently in a side-trend, consolidating around 5.80-6.50.

 

side chart binance cryptocurrency investment report

Source: Coinmarketcap

 

Risk 2: Company Inherent Risks for Binance BNB  

Company inherent risks are:

  • Security breaches and hacks of the Binance exchange. 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 and especially of the CEO CZ_Binance at BNB is crucial for success.
  • Decentralized exchanges could win over trading volume from Binance over time if Binance can not offer an adequate decentralized offer.

The BNB 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 BNB.

 

Risk 3: Regulatory Risk for Binance BNB Token

BAT raised money through an ICO (Initial Coin Offering) (15m USD, Summer 2017). As a result, governments may conclude that BNB 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 Binance.

 

Risk 4: Investors Risk Binance BNB 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 Binance BNB 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. 4.80 USD for BNB, 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 4.80 USD, your Stop Loss Order will be executed and you would automatically sell at 4.80 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 of the Binance cryptocurrency investment report. We will publish updates to Binance BNB on a regular basis.

Disclosures:

The Authors do own small quantities of BNB tokens for trading on Binance. 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.

Stellar Lumens (XLM) cryptocurrency investment strategy and report

Stellar (XLM) Cryptocurrency Investment Research Report

Stellar (XLM) Cryptocurrency Investment Research Report 1500 1383 CryptoInvestResearch

Introduction Stellar (XLM) Lumens

The Stellar network is a mix of a blockchain based ledger and database that allows cross-asset transfers and crypto payments. The crypto token of the Stellar blockchain is called Lumens (XLM). Stellar is the blockchain and the payment network and Lumens (XLM) is the cryptocurrency. Both are governed by the non-profit organization Stellar.org.

Stellar describes itself as a platform that connects banks, payments systems and people. The main use case should be to move money across borders quickly, reliably, and for at almost no cost.

The software of the Stellar network is open source and developed by the community. Stellar was originally based on the Ripple (XRP) protocol. After a fork from Ripple, Stellar was formed by changing to a consensus code. The functions of Stellar are similar to Ripple. The Stellar network can handle exchanges between cryptocurrencies/tokens and FIAT currencies. Exchanges and transfers are very fast and similar to Ripple.

Although Stellar.org, the organization that supports Stellar and Lumens, is managed as non-profit, it is centralized like Ripple. Stellar.org is handling cross blockchains/platform transactions and very small microtransactions. Similar to Ripple (XRP) the Lumens token has a transactional role and serves for the transfer of value. Speculation on price increases of Lumen is, therefore, a bet on the adoption of the Stellar network.

The Investment Story for Stellar (XLM) Lumens Cryptocurrency

Stellar / Lumens (XLM) is a Top 9 Coin at Coinmarketcap at the time of writing.

Our team analyzed intensively the Stellar network and the use cases of (XLM) Lumens. Since Stellar is a fork of Ripple (XRP) it has similar “features and bugs”. In a nutshell, Stellar is comparable to a simple version of PayPal. You can transfer money in more or less every currency around the globe instantly. However, this comes at the price of a centralized organization.

The features are:

  1. Very fast transfers (close to real-time settlement 2-5 seconds, similar to credit card transactions)
  2. Low costs for small transfers ($0.01 fee handles 600,000 transactions)
  3. Fast transfers for different currencies (automatic currency exchange)
  4. The software is open source, organization managing Stellar is nonprofit.

The bugs are:

  1. It’s a centralized organization
  2. Trust-based system and not comparable to decentralized blockchain solutions

The Stellar Protocol operates on the basis of an open membership system: any user can serve as a validation node. However, there are no incentives for nodes and the validation process. Currently, the platform has about 30 nodes powering the Stellar network. On Stellar, there are no economic rewards for validators; they dedicate their resources to maintaining the network purely on free will or based on central guidance and financing.

From an investor point of view, the only reason to hold Stellar (XLM) Lumens is that you plan to transfer money to other users, pay for services etc. The value of the coin will most probably move “with the market”. Growth in value is only expected if the adoption of Stellar grows exponentially.

Stellar XLM Lumens cryptocurrency development XLM USDT

Stellar XLM Lumens is not a strong investment story

The Stellar protocol is designed to change the financial sector, like PayPal did. The platform fees are really low, and their approach in facilitating cross-border money transfers is certainly a remarkable point. However, Stellar is still very far from disrupting the banks or becoming a leading force for value transfer. It as well cannot repalce banks, since the services are limited to the very narrow “Cash transfer”.

By and large, the platform’s ultimate success absolutely depends on its adoption by the masses or other financial institutions. Financial institutions could however move to Ripple (XRP), which has the larger organisation and structure. Private people and retail investors have many alternatives to XLM. Many other blockchain projects offer similar speed, costs in transactions and are less centralized.

Based on these we do not recommend Stellar (XLM) Lumens as an investment for the time being.

Investment Rating for Stellar XLM Lumens  

 

SELL 

Sell during stronger demand periods.

Investment Valuation Scores for Stellar XLM Lumens Token 

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 Stellar (XLM) Token

Investment Rating: Sell Stellar XLM
Buy Up to Price / Accumulate:
Stop Loss:
Position Size:


Cryptocurrency Exchanges: Where to buy or sell Stellar (XLM) Token? 

Best Exchanges to buy Stellar XLM Coin: 

At the time of writing, XLM is being traded in 202 cryptocurrency pairs on key exchanges. The Exchanges with the biggest volume is ZB (Korean).

Buy It On:  Binance (RECOMMENDED)

binance cryptocurrency exchange for bitcoin altcoin trading        

Coinbase exchange for beginners


How to store Stellar XLM? 

XLM Tokens are proprietary tokens to the Stellar network. Wallets for Stellar to be downloaded only through reliable sources. Due to safety reasons, we do not include links to wallets. Please check Stellar.org.

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

Store It On:  Nano Ledger (RECOMMENDED)

Price Scenarios and assumptions for Stellar (XLM)  

Bull Case Scenario:
Target price range 0.10 – 0.11 USD (125% – 137%)
(Assumes recovery of the cryptocurrency market)

Base Scenario:
Target price range 0.08 – 0.09 USD
(Assumes that the market turns around and no significant negative impact from launches of competitive exchanges)

Risk Bear Scenario / Stop Loss Scenario:
Target price range 0.05-0.06 USD (-38%)
(Assumes continuing bear market, competitors offer a better protocol)

stellar
Stellar
$0.271

Chart Development of Stellar Lumens (XLM)

  • stellar
  • Stellar
    (XLM)
  • Price
    $0.271
  • Market Cap
    $6,286,279,384.00


Key research findings: Stellar Lumens (XLM)

Research Background and Recent Updates of Stellar XLM

 

Stellar network aims to a global payment platform, an alternative to existing financial institutions.

They have a Ripple XRP like working product with extensive documentation and tooling, including an API and developer-centric platform. Big advantages are quick transaction times and very low fees.

Less positive are the central way of working for Stellar. Similar to Ripple, about 30 nodes control the network. There is no reward for independent nodes to participate in the validation process.

How does Stellar Inflation work?

Stellar does not use proof-of-work (PoW like Bitcoin) or proof-of-stake (PoS) like Qtum. It also does not use a dividend reward system such as Neo’s Gas generation. So you are asking how do you receive rewards, the answer is inflation. The Stellar distributed network has a built-in, fixed, nominal inflation mechanism. New lumens are added to the network at a rate of 1% each year. Each week, the protocol distributes these lumens to any account that gets over 0.05% of the “votes” from other accounts in the network.

Means in order to participate in the voting, you must own a minimum 0.05% of the coins (roughly $1,000,000 in XLM). This sounds like a rewards programme for the owners or whales, less for normal users. Small retail investors can, however, attend voting pools and stake their coins.

Summarized: Strong technology might not be enough if it runs on centralized nodes. Quick transactions “speak for itself”, but might be copied by other projects.

Stellar has to develop a route to adopt masses in order to have a long-term future. The very nature of cryptocurrency is so unpredictable that good projects may find themselves swept away with the rest of the 99% of projects that will fail.


Twitter Feed Stellar Lumens (XLM)

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Valuation of Stellar XLM

Please note 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.

Investment Risks for Stellar XLM and How to Mitigate Them?

The invest concept of a cryptocurrency is still novel and, compared to traditional investments, Binance 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 HIGH for Stellar (XLM). 

 

Risk 1: Market Volatility for Stellar XLM Token 

Cryptocurrencies and XLM included, are highly volatile assets. The 2-3% fluctuation you might know from the stock market, can easily translate to 8-12% fluctuation in Cryptocurrencies. During the same day!

Indeed, the value of the XLM Token has seen wild swings in price over its short existence.

The volatility of Stellar XLM fluctuates between 0.015 USD to 0.85 USD. Larger swings on a daily basis between 2-5% are rather usual than exceptional.

We see the Stellar XLM cryptocurrency coin currently in a downward trend, no consolidation in sight.

 

Stellar Lumens XLM development cryptocurrency investment strategy

Source: Coinmarketcap

 

Company Inherent Risks for Stellar XLM  

Company inherent risks are:

  • Security breaches and hacks of the Stellar 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.
  • Decentralized cryptocurrencies could develop their software and offer similar execution time, low fees.

The XLM 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 XLM.

 

Investors Risk Stellar XLM (Lumens) – 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.

The Worst Case Scenario and How to Avoid it?

The worst-case scenario for Stellar XLM 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 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. 0.08 USD for XLM, 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 0.08 USD, your Stop Loss Order will be executed and you would automatically sell at 0.08 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 of the Stellar (XLM) Lumens cryptocurrency investment report. We will publish updates to Stellar XLM on a regular basis.

Disclosures:

The Authors do not own Stellar XLM. 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.


Twitter Feed Basic Attention Token (BAT)

Load More...

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:

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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