The winter of 2018 is exceptionally cold with the total market cap of global digital assets falling to 112.1 billion dollars. Compared to the 760 billion dollars market cap in early 2018, 85% of its value has been wiped out, along with massive fluctuations in tokens’ price. Among all, Bitcoin [BTC]’s price bottomed out at 3300 USD after plummeting from 6400 USD, and showed sign of rebounding from 3300 USD.
What can investors learn from this volatile market, and hopefully make every penny they lost worth it? My suggestion would be: get ready to make wave in the market rebounding.
The first rebound after a series of falling always means opportunities. If a person chose a good stock, he/she may offset the loss in a short period of time, or he may even make unexpected profits and vice verse. Therefore, in current market, choosing a good investment target is critical.
First of all, let’s dissolve the term “value depression”:
During the digital assets’ bull market, whichever token issuer’s story-telling skill surpassed the others, the related token price went hype. The irrational hype sounds not strange. Experienced stock investors remember the “price-to-whatever-ratio” leading to the stock market crash in 2015. To be an out-performer in investing, “understanding the market” is no longer an advantage. Public chain who used to “make dreams” are experiencing the “low valuation”. Whereupon, thorough understanding of market and real use cases become extraordinary important.
Which token will be understood by all and has wide use case? My answer is tokens issued by crypto exchanges. People know, understand and accept the tokens, especially those with a history of project operation, top ranked trading volume, multinational management, legal licenses, a wide range of business lines and a myriad of application scenarios.
Some investors think some exchange tokens’ price are relatively high? Indeed! Market capitalization of these tokens are higher on the whole as they are being adopted, applied and recognized. Investors should notice that, only those relatively undervalued exchange tokens worth an investment, not those absolutely cheap ones.
How to dissolve the term “relatively undervalued”? The most fundamental indicator of crypto exchanges is trading volume. Let’s have a look at the top 3 in term of trading volume on CoinMarketCap.
It’s not surprising to see that the top 3 exchanges are “old faces” who launched their own tokens. Let’s check their total market capitalization on “FeiXiaoHao”, a source for tracking market capitalization of crypto exchanges:
- No. 1: 567 million dollars of trading volume in 24 hours, with total market capitalization of 630 million dollars of its tokens, ranking 15.
- No. 2: 535 million dollars of trading volume in 24 hours, with total market capitalization of 210 million dollars of its tokens, ranking 25.
- No. 3: 450 million dollars of trading volume in 24 hours, with total market capitalization of 330 million dollars of its tokens, ranking 19.
We may get a ratio as below if we divide 24-hour trading volume by its tokens’ market capitalization:
Then we search for exchanges along with the ranking on CoinMarketCap and calculate their ratios with the same formula above. If the ratio of any exchanges is higher than the above top 3 ones, it is safe to say the price is being “relatively undervalued”.
By doing so, we can quickly find out the token that is seriously being undervalued. BIX, a platform token issued by Bibox, an AI enhanced encrypted digital asset exchange, with operation centers in the US, Canada, Estonia, China, Singapore, South Korea, Japan, Vietnam, etc. Per its official statement, the registered users of Bibox have reached more than 2 million. We can also see that, in accordance with CoinMarketCap, the 24-hour trading volume of Bibox amounts to 210 million dollars, but only has a 20 million dollars market capitalization of BIX, merely taking up a fraction of integers of the above exchanges. It would be more obvious if we do the ratio calculation, and compare it with the above ones.
The trading volume/market capitalization ratio of tokens of the top 3 well-known exchanges is around 1 to 2.5, while that of BIX reaches up to 10.5, which explains why the market capitalization of BIX is remarkably low. That’s precisely what we called “value depression” .
Second, circulation is the key:
Stock market veterans might say, even with low PE ratio, it would be hard to see the price of iron and bank shares to go up when market rebounds.
People familiar with stock market know that those stocks rebounding fast are the ones with small market capitalization, which has two meanings, first, the number of circulation stocks is small, it’s easy to move; second, the number of stocks being locked is small, or stocks at high price are not sold out. Both of them resulted in the less sell-off as the price goes up, so the stock price is quite easily to elevate.
In stock market, equity pledge means reduced shares circulation, which can be considered as positive news. It is the same case in crypto space/market, if a considerable part of a certain token is locked, it will narrow its circulation. Therefore, many project teams came up with a variety of ways to reduce the token circulation, such as repurchasing with proceedings, token burn, depositing money to earn interest in the “Cui Bi Bao” program, etc.
Take Bibox token, BIX, as an example. As mentioned previously, the market capitalization of BIX is only around 200 million dollars. Bibox was the first in the industry to take out 25% of its profits for buy-back tokens in the secondary market to burn when Bibox competitors unanimously agreed to take out only 20%. According to Bibox website announcement on November 1, 2018, Bibox bought back and burnt 1,954,452 BIX in the third quarter, adding up to 5,533,352 BIX in three quarters totally, that is to say, Bibox has already burnt 4.23% of its circulating BIX in three quarters alone.
It’s plausible to believe Bibox token is one worth an investment. The scale of its token buying-back and burning outperformed the other exchanges by 5%. And recently Bibox launched its token bond on the run – BIX Bonds with a 200% over-collateralization and 2.5 million BIX-denominated total face value. In other words, 5 million BIX will be locked as collateral.
It has a lot in common with the pledge of share right. Once stock shares are pledged, price will increase later on. However, in the case of BIX, the original circulation is already relatively small with substantial buyback and tokens burnt. Combined with over-collateralization, BIX token’s circulation is much smaller. Investors can stay optimal about BIX price because market rebounding can push its price up easily.
Third, observe if the exchange has further growth potential in bearish market:
Picking a good stock means picking a good company. Besides low valuation and small market capitalization, people are more concerned about the fundamentals, that is, whether the company’s performance is good or not. It is true for selecting tokens. Most of the blockchain projects, to be frank, are far from making real profits. However, most exchanges in the market are making profits and their tokens’ price are directly linked to their corresponding exchange’s growth potential.
It’s well-known that the main profit of exchange comes from tokens listing and transaction. The price of listing in bull market will be hard to replicate but still take a large portion of exchanges’ profits. As spot trading volume shrinks and the demand of hedging increases, futures contract trading is gradually valued by every crypto exchange. And the transaction fee of futures contract will become the stable source of profits growth.
Bibox is of no exception. On the summit held on 29 November in Singapore, Bibox disclosed that they would launch derivatives like perpetual contract trading, aiming to meet the demands of market investors and to bring considerable profit growth.
It should be pointed out that we can’t contribute token price’s growing to profit growth only. For instance, the launch of perpetual contract will also increase the trading volume tremendously, making the trading volume/market capitalization ratio of BIX token higher, and in the meantime, the growing profit will expedite the token buy-back and burning, then making the circulation smaller, lighter and token more valuable. Profit growth, total circulation reduction and good token ratio should always be the three indicators in forecasting an exchange token’s price [see the graph above].
In conclusion, the above three indicators fueled the growth force for future rebounding and price lifting. It’s reasonable to believe, once the market stabilizes, BIX price will bounce back and outperform most tokens in the market.
Vid App Lets Users and Influencers Monetize Personal Videos
We’re visual creatures. That’s why we’re captivated by films and shows that have great storytelling. According to reports from Insivia and Cisco, mobile video consumption doubles every year, and by 2021, videos will comprise 82% of internet traffic.
One venture believes it’s possible to make money from our personal video collection through tokenized rewards.
According to Jag Singh, CEO, and co-founder of the Los Angeles, California, based startup:
“Vid is a social app that empowers users to create beautiful videos, control their data, and monetize their memories. We use artificial intelligence [AI] to generate memories from a user’s video feed. These are then organized into an interactive calendar. The resulting video journal can be edited with a patented editing tool before users publish their captured memory.”
Privacy and Protecting Data
Publishing personal journals on public platforms is tricky. But Singh says Vid places a premium on privacy.
“We use zero-knowledge encryption as well as blockchain tech to give users complete control of their data. It also gives them opportunities to monetize their videos with brands—without interference from us or anyone else.”
Bad data practices [e.g. Experian hack] and harvesting user data without consent [e.g. Facebook] have led to regulatory actions such as GDPR [“General Data Protection Regulation”]. Vid’s solution is to encrypt data and let people select what data to make available. Moreover, the app lets users connect directly with brands that might be interested in their video journals or creative talent.
“Users who opt-in to generate video memories in conjunction with an advertiser will receive 100% of the advertising revenue,” whose app can be found at. “No cut is taken by Vid or any third-party ad marketplace.”
So what are the implications of a 24/7 connected world?
People now view one billion hours of YouTube videos each day. There are several large platforms that are capitalizing on viewing trends. With this massive shift, influencers and brands have much to gain: Audiences retain 95% of a message when delivered in video format compared to just 10% when reading in the text, according to Insivia.
Opportunity for Users and Influencers
Vid’s CEO launched the venture in December 2016. He says the app is a unique opportunity to offer a superior, privacy-protected social experience to a massive crowd.
According to Singh:
“We launched a test version in early 2018 and added more than 30,000 users within a month. We were trending up the social media application rankings before taking the app offline again for further development. No marketing dollars were spent on the test launch. It was purely organic.”
The firm has boarded more than 50 top Influencers across social channels to support the app’s public release. The Influencers have more than 250 million followers, and they know they can increase their revenue from brands by using Vid. The app has a swipe-up ad model where ad revenue flows directly to the Influencers.
The app’s target audience is younger generations [Millennials and Generation Z] since they prefer short-form video content.
“We poured more than $1.5 million of our own funds into product development and have been working on the platform since the end of 2016, we have filed seven patents for the technology underpinning our platform.”
The team consists of Jag and Josh Singh, and now includes computer scientists, engineers, financial experts, marketers, and business development professionals. Maciej Dziedziela, another co-founder, is Chief Technology Officer. He has a background working in major enterprise firms.
Before Vid, Jag and Josh launched and exited a company that grew to nearly $30 million in annual revenue over four years.
Singh also detailed about:
“Contrary to the pump-and-dump ICO and IEO models of most cryptocurrency and blockchain platforms, we have opted for a five-year rollout of the Vid native token. The details of our tokenomics can be found in our whitepaper, which is accessible from our main website.”
The Vid token pre-sale is scheduled for launch on June 14, 2019, and will conclude on August 9. There is no soft cap, and the presale hard cap is $60 million. There will be no airdrops. Smart contracts are audited by Certik.
For further details contact here.