I’ve underlined in pink the coins I’m familiar with to some extent and believe are great projects. This is the service of my blog and fund, underlining the right coins. The world of crypto is VAST with tons of projects to sift through and then when you find them, WHEN do you buy them? Ideabuds gives you both: the BEST investment coins and when to buy to minimize risk and maximize return.
Here’s the example: You better take this one down because it’s a good one.
Nick says: “The Graph (GRT) could get as big as LINK upon first glance.” It secures the decentralization of data for reference by oracles like Chain Link. What the heck does that mean? I think it’s a great practice to ask what is the centralized / traditional equivalent in the regular non-crypto world we all know.
Here is the analogy…
Crypto Company : Sector : Industry : Function : Fiat Company
AAVE : Finance /DeFi : Lending: Lends you $ : Chase Bank
LINK : Interoperability : Oracle : Ports Data On-Chain : Bloomberg Terminal
GRT : Interoperability : Indexer : Info Organizer : Google
Put another way, The Graph is the next Google or the Google of the decentralized web 3.0 (crypto economy) not in the sense that a user will go manually to the Graph to search for things, but in that it is creating a netowrk of the hard drives (nodes) on which the data is held that the bots (Chain Link oracles) will ask hey do you have the price for this coin? It’s similar to the servers on the NYSE with which the Bloomberg terminal needs to interact in order give traders the right prices. This is a major space of the Decentralized Crypto economy. (Think: an entire sector inside of 1 company). By the way, Interoperability and DeFi are 2 of the biggest sectors. DeFi is more developed and comprised into many industries (insurance, lending, derivatives, etc.) but the Interoperability sector is mostly Oracles until now. GRT as I’ve heard has no competition, much like Chain Link has become the dominant player in oracle sector. So there you go, some pretty nice technicals in a new hot issue and some awesome fundamentals to go with it.
COVER is the new solution to insurance against bugs / hacks on yield farms. Created by famed developer Andre Cronje who also created Yearn Finance (YFI) coin considered to be the “darling” of Defi, Cronje’s coin projects now number somewhere in the order of 8 various tokens if you include his “merger” with Cream, Pickle, Power Pool, Akropolis, et al. There is even an an index built to give you share of any future new projects he ever creates — the ACX token. COVER is the competitor to the old Nexus Mutual (wNXM). Cover seems to be eating the xNXM market cap, explosively up 400% upon first release and now has corrected by some 30%.
For this reason, I did not buy it, although am considering buying it here currently $950 or 52M market cap rank #169. I believe it will be a top 50 coin pretty easily by market cap. I wish it was not included in an index until its had a cycle to let the market discover price a while longer. So it needs to be a trade until it goes through a bear market and really discovers a bottom. Same can be said for GRT. Yes it looks hot but you don’t want to hold that thing while its trying to find a bottom. Let it find one, then jump on when it’s going up again. How do I tell? I use a weekly chart system with trend line breaks.
COVER is an 8% component in the Yearn Ecosystem Token Index (YETI) by Power Pool. This is important because demand for index YETI token creates increased demand for its underlying assets. As new capital is attracted to index protocols such as Power Pool, PieDAO, and Index Coop, and total value locked (TVL) increases for their funds, in this case YETI, the Index manager, Power Pool, must buy the underlying asset token, COVER, to keep the index in balance.
Therefore, being part of an index is a great reason to invest in the coin as it adds validity and stability to a coin. The index will attract investor demand for the other coins that are included in the index, so it’s kind of like being part of the popular crowd. This is the idea behind the CVP token and the reason Power Pool made the index PIPT token — to give CVP a source of continued demand. As users buy PIPT to get the index of other coins they like they must also buy CVP since it is also a 12.5% component of the index. Its influence being a farmable coin is reduced to a small portion of the fund so the investor can tolerate it not doing that well in exchange for the other 7 (hopefully) making up for it. It makes a lot of sense, and to me makes the most sense out of any way any protocol has gone about raising capital and trying to not devalue their own coin. Power Pool is probably my favorite project for this reason. It gives the investor something good in the index but also gives a way to pay high yielding farm token rewards without creating a pump and dump scam since investors want to leave their CVP token in the index since its necessary to have the index. This will be the model for future farm coins.
AAVE is a major Defi Coin in its own right and has an even larger index support: 12.5% component part of Power Pool’s Power Index (PIPT) of 11M TVL, 19% component to Defi Pulse Index (DPI) of 22M TVL, and 16% component of PieDAO’s Defi+L Index of 1.8M TVL. AAVE is the #3 lending platform in terms of TVL.
SWAP (Trustswap) is small payment service allowing companies to pay their workers and with crypto and is likely used by a small but growing number crypto companies. I have seen this having strong relative strength. I’ve missed buying it a few times and keep hoping it comes back for a chance to grab it but its only given me 2 chances and I missed both.
XRT (Robonomics) I’ll save for another post.