Bloc10 – Atlanta, GA — 99% of ICOs have went down by 99%. That’s a scary fact. So how do you trade this stuff, when you can’t short it? The quick answer is stick to the majors, i.e. Cryptos with Market Caps above 1 Billion. There’s more liquidity, and less movement. The volatility of BTC/USD has dropped to an all time low. Crypto Majors are starting to look more and more like stocks, and ICO upstarts are starting to look more and more like penny stocks.
We’ve been monitoring the new coins at Total Cryptos for a long time and while it’s an interesting phenomenon, seeing the gainers and losers tool where we can see coins up as much as 200% in a day or even 1000% in a day, it’s hard to know when to catch them. Some of the movement on the big movers is highly suspicious. Trading Crypto should be done by only well educated traders, as it resembles penny stock scams. The reason is because the founders control the ‘float’ – that means they can control the supply of the coin, but unlike the Fed, they can only sell. To be specific, they can buy too, but in reality the founders are really only on one side of the market: SELL.
In stocks though, you have statistics like insider trades which are available on Yahoo Finance publicly. So if an executive sells a huge chunk of shares it’s reported in real time. Executives also buy shares, a bullish indication that they know something and the stock will go up. In Crypto this simply doesn’t exist. So how to know – when there’s no disclosure, no due diligence rules? We are meant to ‘trust’ them – which can be difficult for Crypto investors who have been burned so much in the past.
So far in 2018 Crypto has created lots of losers and lots of hopers, and very few winners. In fact this year the winners have been mostly (with the exception of a few successful Crypto Day Traders) the ICO founders who used Blockchain as a means to raise a lot of capital. Some of them have tried to create good technology with the funds they raised, but the majority of ICOs used it for marketing to raise more capital, similar to a money pyramid.
One project we are following which is 100% engineering and 0% marketing is BOScoin.
What is interesting about the BOS project (BOS stands for Blockchain OS) is they are building on the Ethereum model, making an improved architecture that uses ‘trust contracts’ instead of ‘smart contracts.’ Bloc10 is monitoring BOS and other value play projects that may have long term investment prospects, who didn’t receive a lot of attention because they were busy developing rather than marketing.
The answer to the question how to trade S**t Coin is you don’t. For trading the small ‘penny’ cryptos a better method is to find valuable good projects and invest (not trade) for the long term, such as we have done with BOS. See BOScoin for more info.
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