Introduction
This presentation of the best lowcaps does not constitute an investment advice, but simply my vision of the best potential altcoins on the market at the time I write these lines. Most of them are recent projects (less than 3 years), between the 200th and 1300th place in the marketcap, and therefore risky from an investment point of view. I don’t try to find the altcoins with the strongest fundamentals but try to find those that meet technical, fundamental AND speculative criteria. And the last point is very important (Tokenomic, Influencers and investors networks, narrative, storytelling)
I also added the most promising layer-1s at the speculative level. Indeed for me it is a very powerful narrative/hype at every bullmarket and Ethereum’s inertia, technical limitations and Solana’s collapse are factors that will further encourage speculation towards other layer-1 projects. Moreover, Ethereum’s choice to sacrifice decentralization and incensurability in favor of scalability and « green marketing » will allow other projects to propose alternatives that are also scalable and decentralized. The slow technical evolution of Ethereum (quite understandable), and the latest technical and strategic choices (more criticizable) will once again feed the narrative « The next Ethereum » for a few years. That’s why I decided in this article to highlight the layer-1 projects that seem to me the most promising. Their marketcap is often higher, the risk is also lower than lowcap (although still risky), but the marketcap potential they can reach is also much higher, which makes them very good speculative investments.
list of the items analyzed:
- Marketing/communication (and potential growth/network/subscribers)
- Community (dynamics, management)
- Tokenomics (available supply, maximum supply, inflation…)
- Context and history of the project (potential story telling)
- Project business model (funding capacity)
- Governance of the project and development funds
- Daily trading volume
- Identification of sector positioning and potential hypess
This may allow you to discover some projects, or to give you the desire to deepen your research on some altcoins. I’m giving you a synthesis of my research, and not a complete fundamental analysis of each of these lowcoins. Moreover, these are speculative and personal analyses, and my horizon never goes beyond the next bullmarket.
Once this is clarified with my readers, enjoy your reading!
– Overall project evaluation: Between B- and A+
– Risk assessment scale: from 1 to 5 (1= Low risk 5= High risk)
– Evaluation of ROI potential: between 1 and 5 (1 = low ROI potential, 5= very high ROI potential)
– Price target: This is my theoretical target selling price for each lowcap. It is estimated in relation to the current marketcap, its estimated speculative potential and the marketcap it can reach given the market conditions. It is, in essence, very subjective. This price will condition, in part, my selling strategies. (summary of price targets at the end of the article)
1. GRIN (Tradeogre)
Launch date : january 2019
Consensus : Proof of work
Algorithm : New algorithm Cuckoo cycle
Community : Grin is very mysterious and its community reflects that. A lot of the conversation takes place on their own forum or on Keybase, unusual places compared to other cryptos. However it is possible to find some of the community in more conventional places like Telegram (1100 people) or on Discord (9300 members).
Economic model : Grin is certainly the project that comes closest to Bitcoin and its origins. It started with a fair launch (no ICO, premine, or developer fees) after months of research and development. There are no funds to finance the project except donations from anonymous investors.
Speculative potential : Grin has an unusual history that could be found in history books just like Bitcoin, so much so that it is marked by fantasy and imagination. The analogies between Bitcoin and Grin are very important, both in the process of creation and in the enigmatic disappearance of the founder. What is even more interesting is that Grin corrects two elements often criticized for Bitcoin: the transparency of its transactions and the deflationary economic model. Grin is therefore anonymous (mimble wimble protocol) and above all the emission model is linear and inflationary, which means that inflation will always be 1 grin/second, without a maximum emission ceiling. The inflation percentage is therefore very high in the first years but will become less and less important over time. Objectively, Grin is the perfect complement to Bitcoin in terms of both anonymity and its associated issuance model, and its story should be of interest to many of Bitcoin’s historical investors. Its storytelling combined with its anonymous characteristics may allow it, in my opinion, to achieve an outstanding speculative performance. Grin is aesthetically pleasing, light, simple and uncluttered. It also has the same philosophical design as Bitcoin, having a default privacy, although not the strongest, and an inflation model that is more equitably distributed over the long term. It is important to note that structuring governance for community projects takes time to set up. Today the governance is solid and the development is progressing well. For me, this is the only project, after Bitcoin, that really carries the cypherpunk spirit, with decentralization, simple and efficient code, and community management of development as its primary objectives.
Speculative risk : The main risk lies, as with all altcoins with high inflation, in the choice of entry point. Inflation is still currently high (25%), and even if at the time of writing it seems to have formed a bottom, the risk remains as to the right time to invest. Moreover, the anonymous Mimble wimble technology is not yet mature, and the very high inflation in the first years has already caused a loss of investor interest and some supporters of Bitcoin and its deflationary inflation policy have shown a certain rejection, not for the technology and history of Grin but for its issuance model. Despite the similarity of their genesis, it is not clear that Grin has the same support, both in donations for the development of the project and in price support in the market.
Hype identified and sectoral orientation : Full privacy, cypherpunk story
Marketcap: 8 millions
Actual supply/total supply: 130 millions (25% inflation)
Actual price 11/05/20 : 0,06$
Target price: 30$
Overall project evaluation : A+
Scale risk : 5
Some links for further research :
https://ggmesh.medium.com/the-wizard-and-marvelous-dr-maxwell-77a84dc51097
https://download.wpsoftware.net/bitcoin/wizardry/mimblewimble.txt
https://crypto-lowcap.com/grin-mimblewimble-interview-with-john-tromp/
2. AZERO (Kucoin)
Launch date: October 2021
Consensus : proof-of-stake AlephBFT consensus mechanism and a Directed Auxiliary Graph (DAG) auxiliary structure
Economic model : ICO with funds for several years, more than enough to reach the year 2025. Today, all seed investor funds have been released which reduces supply pressure on the markets and the risk of spillover. Inflation remains high at 20% at present. Staking is profitable but requires Azero tokens to be tied up for 15 days. 64% of the total supply is already in circulation which is a positive factor.
Community : 11000 members on Discord, 16000 members on telegram and 126 000 followers on twitter.
Marketing/communication : The communication is extremely professional and dynamic. The visuals are very well done and there is a real graphic consistency. The visual universe is well defined
Speculative potential : The Aleph Zero (Azero) project has been peer-reviewed since 2019 and was born, like Hathor, in a university setting. The foundation is based in Zug, Switzerland. Azero has a very interesting value proposition since the technology combines speed, anonymity (DAG/POS and Zk-Snark) and decentralization. Azero supports smart contract privacy by default. The team is composed of more than 40 people with strong skills. The smart contracts have not been deployed yet, and there are already many projects in incubation for their ecosystem, which demonstrates the project’s dynamic and its ability to attract developers. The project is also supported by investment funds and benefits from very strong marketing on social networks. In my opinion, it is one of the most solid and promising projects for the next bullmarket. Given its rather high market cap (300 million), the potential return is lower but the risk is much lower too.
Speculative risk : There is little risk in investing in this project from my point of view. The right entry points are ideally under $1 knowing that the seeds were priced at $0.1. There is little chance that the price will return to ICO levels. Favoring projects with no price history for the next bullmarket always carry the same risk: what is the ideal entry price if you have not invested in the ICO? For the rest, this is one of the most solid and promising projects for the next bullmarket.
Hype identified and sectoral orientation : Layer-1, DAG/POS, scalabilité, privacy smart contract by défault, DeFi, NFT
Marketcap: 300 millions
Actual supply/total supply: 200 millions/300 millions (60% inflation)
Actual price : 1,5
Price 20/08/2021:
Price target: 100/150$
Overall project evaluation : A+
Risk scale : 2
Some links for further research :
3. Nexa (Tradeogre)
Launch date: November 2022
Consensus : Proof of work
Algorithm : NexScalePOW’, combination of SHA256 hashing and Schnorr signature creation.
Community : Their discord is composed of 6700 members, the telegram of 4000 people and their twitter account has 6700 followers. On their discord, the community is very active and a fundraiser of 100 000$ has been realized from the community in 1 week. This proves the involvement and the important contribution of the members. The project is young, the management of this dynamic will be very important to create a real army of supporters of the project. It is the members of the community who strongly contribute to the marketing, to the communication around the project thanks to social networks.
Marketing/communication : For the moment, the communication is regular and intensive but the marketing is not very elaborate. The infographics and visuals are not of good quality and there is a lot of room for improvement. However, it should be noted that there are many relays on social networks to develop a hype around the project and communicate on the Nexa project. I think that the history and competence of the developers generates a transfer of fan base from Bitcoin Cash, which favors the communication around the project.
Economic model : It is a community-based model, with no fund raising. However, given the development team, Nexa has strong backing and a network of strong investors. Bitcoin Unlimited is self-financing with the commitment and funding of the development team for at least five years. Mining can also allow them to generate the Nexa cash flow to maintain community engagement through rewards. Moreover, the indexing on the MEXC exchange, only 4 months after the launch of the project, proves their ability to raise funds easily from investors and the community.
Speculative potential : Nexa is a next generation layer-1 project that seeks to solve the blockchain trilemma. Typically blockchains wishing to improve scalability sacrifice decentralization (DPOS). The Bitcoin Unlimited team believes it will solve this problem with a new mining algorithm (NexScalePOW), and by improving the Bitcoin UTXO architecture. Beyond the promises, and the layer-1 « next ethereum » narrative, it is the ability of the development team, and the network of investors behind the project that may allow Nexa to have a very high speculative potential. The choice of a very, very high supply also encourages novice investors to buy altcoins where they have a larger quantity of tokens. In the long run, this strategy can generate absurd behavior and accelerate the hype train. Tokenomics still have significant impacts. Nexa ticks a lot of speculative criteria that could allow it to be one of the best bets for the next bullmarket (tokenomics, OG developers, very strong network of investors and influencers, recent project with no price history, powerful narrative).
Speculative risk : In reality there is little risk except the time of purchase. It is better to DCA given the inflation of the project and its relative youth (- 6 months). Currently, the equivalent of $100k of NEXA (7 billion Nexa) is created every day, which means that a significant volume is needed to absorb the daily supply. Until today the daily volumes are significant for such a new altcoin. The 30 million capitalization (not high) encourages buying, but the youth of the project and the inflation demands caution. There is little risk that the project will be abandoned given the OG developers (reputation) that make up the project, but the difficulty lies in the timing of the purchase and this can have a strong impact on the profitability and ROI of the investment.
Hype identified and sectoral orientation : Layer-1 next gen, DeFi, NFT
Current marketcap: 30 millions
Actual supply/total supply: 1997 billion/21000 billion (12% inflation)
Actual price : 0,000014$
Price target: 0,003$
Overall project evaluation : A+
Risk scale : 3
Some links for further research :
4. Conceal (Tradeogre)
Launch date: December 2018
Consensus : Proof of work
Algorithm: Cryptonight-GPU
Community : Discord (3000 people) and Telegram (2650 people) and 6444 followers on Twitter. The activity is very dynamic and participative.
Economic model : Its an economic model with a low initial premine (6%). 400k CCX are released quarterly by the network using HTLC (Hash Time-Locked Contracts) for development and maintenance. Inflation is very low (0.7%/year).
Communication/marketing : The project strategy is clear and the communication around the project is coherent. The marketing is good even if it deserves to be more worked. Conceal is a very good project technically, and the only videos where the project is presented are made in the framework of the mining promotion. It could also be interesting to better promote the innovations implemented and to focus more strongly on marketing developments related to speculative hypes (DeFi, stable deposit). The potential for growth remains important and the foundations are very solid (website, medium, social networks). However, I think there is room for growth in the development of a network of growth relays (investors and social network influencers).
Speculative potential: Conceal is an innovative project from its inception. It is the first project to have deployed paid deposits via Hash-Timelocked-Contracts on a QT wallet. They are at the origin of many technical innovations, all the more important because they are based on crypto technology (Monero) and not Bitcoin: Banking deposit, Cross-chain asset exchange/swap platform, Blockchain nicknames, Encrypted Messages,… Their strategy is based on the defense of privacy as a fundamental right, which means that their development will be done without concessions, with a permanent will to develop a completely private and all-inclusive ecosystem. Moreover, the current development on stable deposits demonstrates their development skills as well as their ability to offer innovative features oriented on the fluctuating appetites of the crypto market (DeFi, banking, stable features,…). Personally I think that the development strategy, its execution, and the marketing and communication step up will be the key factors that will allow (or not) Conceal to capture market share in the privacy sector.
Speculative risk : There is little speculative risk in this project. Like other lowcap/microcap projects, the abandonment of the project or a hack can interrupt the speculative path of the project but the work done for almost 3 years, and the solidity of the innovations demonstrate the seriousness, the skills and the confidence of the community towards the developers. The privacy sector remains, in essence, attractive to speculators but differentiating oneself is becoming increasingly complicated in view of the competition and it is certainly the ability of developers to maintain a high level of innovation that will make it possible to stand out and increase the visibility of the project.
Hype identified and sectoral orientation : Privacy, Banking, DeFi
Marketcap: 1 million
Actual supply/total supply : 19,5 millions / 200 millions
Price 20/08/2021 : 0,05$
Price target: 10$
Overall project evaluation : A+
Risk scale : 3
Some links for further research :
https://bitcointalk.org/index.php?topic=5086106
https://crypto-lowcap.com/exclusive-interview-conceal/
https://ggmesh.medium.com/conceal-me-if-you-can-a-ccx-interview-c9432ad01a3a
5. Ergo (Kucoin)
Launch date: 2019
Consensus : Proof of work
Community : The places of community activities are their Discord (10700 people) and their Telegram (12500 people). It is dynamic and the exchanges are numerous. Their twitter account has 654,000 followers. It’s a very community-oriented project that recaptures a bit of the original spirit without ICO promoting community and future decentralization.
Communication/marketing : The communication and marketing are of very good quality, and the information is very regular. The rebranding has been very well done and the communication materials are qualitative and professional. Note that the militant commitment (cypherpunk) of the project is described in the official document « Ergo manifesto » (https://ergoplatform.org/en/blog/2021-04-26-the-ergo-manifesto/)
Economic model : The project was launched without ICO. It is a proof of work project, and miners have been able to accumulate Ergo since its inception. The funds from some of the block rewards represent 4.5% of Ergo’s total supply and have already been fully distributed. Unlike all other smart contract altcoins, there has been no fundraising and no preferred investor. This is the only smart contract project, to my knowledge, that has had a fair launch without initial coin offering.
Speculative potential: The Ergo project was started in 2016 by Alexander Chepurnoy: Co-founder of ERGO, he was also co-founder of smartcontract.com (now Chainlink), lead developer at NXT, and one of the first employees at IOHK, where he was a researcher and leader of the Scorex team. Charles Hoskinson, founder of ADA, has expressed his enthusiasm for Ergo on several occasions. Ergo is also intended to be interoperable with Cardano since both projects are based on eUTXO. The project has had a remarkable development and offers solutions such as: Ergo Mixer, Sigma protocol, NiPoPoWs, Oracle pools, SigmaUSD. Like Azero, Ergo offers smart contract privacy by default. On a fundamental level, it is a very solid and innovative project, which can provide unique solutions as an Oracle, for the coding of complex smart contracts, or the realization of more sophisticated DEX. On the other hand Ergo may, because of the Ethereum update that sacrifices decentralization and controllability at the expense of scalability and energy consumption, take a place in investors who want an alternative that retains the core values of Ethereum (and not an empty shell like classic Ethereum).
Risk potential : The development team is focused on taking the time and developing reliable code. Like Cardano, the products develop slowly, but Ergo does not have the same fan base. Today the project, although exceptional in its technical qualities, does not have a strong market following. This is also the downside of not having venture capital/VC on the project, and not having funding to increase visibility, attract new investors, or developers who could build on top of the Ergo blockchain. Ethereum’s « The merge » update has brought the project into the spotlight, as Ergo mining is possible with graphics cards and not ASICS. The hashrate has indeed increased significantly but the tractiion could have been more important. The risk of investing in Ergo is therefore in the ability of the project to attract investors and application developers, and to develop a reliable and attractive ecosystem (DEX, NFT, DeFi).
Hype identified and sectoral orientation : Layer-1, privacy, Oracle, NFT, DEX
Current marketcap: 100 millions
Actual supply/total supply: 66 millions/97 millions (70%)
Actual price: 1,7$
Price target: 120$
Overall project evaluation : A+
Risk scale : 4
Some links for further research :
6. ZANO (Tradeogre, Stex)
Launch date: December 2018
Consensus : hybride POW/POS
Algorithm: ProgPowZ
Community : 1500 members on Discord, 1100 people on Telegram and 3300 followers on Twitter. The community is mainly present on Discord. It is active and contains many people with experience in cryptos since the project originated from Boolberry. There are also notable players in the cryptosphere: Notsofast, RockSteady, Bitcoindad, Gigabyted,…
Economic model : Zano has a 3.7 million premine to fund the development of the project. There is no development fee.
Speculative potential : Zano has a long history since he is the creator of Boolberry who finally decided to create his own crypto currency after a long discussion on the bitcointalk forum (Boolberry). crypto_zoidberg, that’s his stage name, is also one of the best cryptonote coders (Bytecoin/Monero) since he realized a big part of the development of Bytecoin which is the first implementation of the cryptonote protocol. Zano is therefore an anonymous crypto with a team that includes a lot of experience. For several months, the team has also been enriched by Sowle who is a very famous cryptographer. This addition has allowed the development of leading research work including Zarcanum. Zarcanum is the world’s first private proof-of-stake system with confidential transactions and hidden amounts. Something that was only possible on PoW coins, until now. The technology has been reviewed by Dr. Sarang Noether, former principal investigator of the Monero Lab. Finally other developments are being finalized, such as confidential assets, a P2P marketplace and a decentralized exchange. Zano brings an important innovation in the privacy sector with a very high level of research and development. It is also worth noting the low inflation (525k Zano / year or 4.8%).
Speculative risk : The price has performed very well during the last bear market. Daily volumes are low, which makes buying very complicated. Concerning the risk of the project, it is low from a technical point of view, rigor, and reliability of the development team. Despite the technical prowess in the development of the project (Zarcanum), the project does not manage to get out of the anonymity. Moreover, the project has a very casual community and for the moment does not manage to attract more than a private circle (including Roger VER). The Zarcanum fork, the other developments in progress in the roadmap (marketplace, confidential asset) should give a marketing boost to the project and thus encourage an increase in volumes and price. The gap is therefore at the level of communication, marketing and growth relays (investors, influencers) that could allow Zano to gain visibility and financial means thanks to the increase in price (and therefore in the value of the project’s financing fund). This could also allow Zano to be indexed on better exchanges like Kucoin or MexC. Some big investors prefer not to invest on small exchanges.
Hype identified and sectoral orientation :Full privacy, privacy marketplace, Zarcanum, confidential asset,..
Marketcap : 10 millions
Actual supply/total supply : 13,7 millions (inflation 4,8%)
Actual price: 0,7$
Price target: 80$
Overall project evaluation : A+
Risk scale : 3
Some links for further research :
https://crypto-lowcap.com/exclusive-interview-zano/
https://ggmesh.medium.com/andrey-sabelnikov-from-cryptonote-to-zano-f2305001bc23
7. IDENA (Bitmart, Hotbit)
Launch date: October 2018
Consensus : Proof-of-Person
Community : 2700 people on the discord, 8400 on Telegram and 5600 followers on Twitter. The community is very dynamic. When they take place, the ceremonies give rise to a lot of activity.
Economic model : The project is financed by a substantial premine of 36 million IDNA. These funds are distributed through a timelock smart contract system (https://docs.idena.io/docs/wp/economics). Today, more than half of these funds, 18 million, have already been distributed since they were spread over a period of 3/5 years from the launch of the project. Nevertheless, this significant premine, added to an anonymous team, has contributed to the mistrust towards this innovative project. As time has passed, trust in the developers has increased and this point is no longer a real red flag as it was at the launch of the project.
Speculative potential : Idena is based on a new consensus proof of person, allowing the implementation of a real unique crypto identity. This means that it is also one of the few projects that can achieve complete decentralization and exemplary onchain governance, with each node being a digital user. Proof-of-person mining is also egalitarian since it allows anyone with a computer, regardless of its power, to participate and earn income (universal income theory). Idena is thus very innovative with a break in the existing consensus mechanisms on the market. Beyond the intrinsic characteristics of proof-of-person consensus (crypto identity no KYC, onchain governance), Idena is developing a sharding system that allows for greater scalability, particularly in terms of the number of identities within the network, as well as smart contracts and a system of oracles. Beyond these technical characteristics, the Idena project team has the ability to federate and communicate around the project, whether through their regularly updated medium feed, the organization of hackathons or competitions to promote the project. All in all, Idena is not missing much to reach a more important exposure, as well as a sufficient recognition and trust from the market to pull the prize to new heights. Today Idena will deploy, through Hardfork Korean, the upgrade to enable the implementation of smart contracts on the project. This is a very important step and could attract more developers to the project.
Speculative risk : The major risk was in the purchase price because the project had a consequent inflation. Today this is more contained (about 10%). Currently the price seems to be stabilizing. Today the important premine and the anonymous team remain risk factors but time has allowed to reassure and consolidate the confidence of the first investors. It is a microcap which has the same risk as a project like Nyzo which was a failure and whose price was destroyed very quickly.
Hype identified and sectoral orientation : New consensus, Oracle, onchain gouvernance, crypto identity (no KYC), DAO
Marketcap : 2 million
Actual supply/total supply : 64 millions/96 millions
Price 11/05/20 : 0,03$
Target price: 10$
Overall project evaluation : A+
Scale risk : 4
Some links for further research :
https://bitcointalk.org/index.php?topic=5194871.0
https://ggmesh.medium.com/idena-and-the-oracle-problem-2988d082d5e1
8. HATHOR (Kucoin)
Launch date : January 2020
Consensus : POW/DAG
Community : The places of community activities are their Discord (5700 people) and their Telegram (13200 people). It is dynamic and the exchanges are numerous. Their twitter account has 32 000 followers.
Communication/marketing : The site is very well done, and there are very regular updates on the project medium. It is closely followed by twitter accounts with a very important influence.
Economic model: Like all ICOs, Hathor benefits from significant funds that will be released progressively over the years, in this case 6 and a half years. The use and the release of these funds on the market are therefore strategic for the valuation of the project both in terms of price and in terms of the confidence in the project that will be granted by investors.
Speculative potentiel : Hathor is a Layer-1 project. The technical basis is solid and comes from the thesis work of the founder Marcelo Brogliato. It is an innovative project born from the fusion of Bitcoin (POW and merge mining) and Miota/Nano (DAG) technologies in a completely new and open-source architecture. The idea is to take the best of both technologies in order to allow extended scalability and increased security while avoiding the problem of network centralization that can be found on many other Layer-1s. It therefore benefits from the merge mining of Bitcoin and Litecoin, which means that all miners can be paid in Hathor while continuing to mine Bitcoin (additional attractiveness). Beyond these technical features, the Hathor team wants to make token creation accessible to as many people as possible. To do this, they have created a solution that only requires a few clicks (https://www.youtube.com/watch?v=Bcpn8eIbwdQ&feature=youtu.be). Finally, their roadmap includes many innovative developments such as Nano contracts, dex of token, oracle, DAG sidechain, NFT… Hathor is thus a project of great technical scope benefiting from important marketing relays. Its history is recent but its current achievements as well as its promises place it among the best Layer-1 of the crypto market. Finally, these technical qualities put in relation with the environmental issues mentioned in the last few months may allow it to stand out from the other projects (https://green.hathor.network) and to attract a little more light on the project.
Speculative risk : Inflation was one of the few black spots in this project. It was 35% until 2022, now it is 10%/year (https://hathor-public-files.s3.amazonaws.com/hathor-token-economics.pdf). Also, personally I am not a big fan of projects where 80% of the tokens are in the hands of the project team and the primary investors. However, Hathor still has little exposure on the markets (Kucoin and Qtrade only). However, the sector is very competitive in the field, with projects like Kaspa or Azero with similar technical choices. It should be noted that due to the delay in nanocontract (premium feature) and the sudden aggressive market downturn in 2022, the price has fallen sharply and the speculative momentum as well. Some investors turned away from the project, moving on to other projects. Crypto investors are very volatile and very demanding of new projects all the time. This is the investor version of overconsumption. The Hathor team has to recreate a momentum, a speculative dynamic to attract investors back to the project.
Hype identified and sectoral orientation : Layer-1, scalability, Nano contracts, Oracle, NFT, DEX
Marketcap: 20 millions
Actual supply/total supply: 242 millions/870 millions
Price 20/08/21 : 0,09$
Target price: 30$
Overall project evaluation : A+
Scale risk : 3
Some links for further research :
https://medium.com/hathor-network
https://s3.amazonaws.com/hathor-public-files/hathor-white-paper.pdf
9. BEAM (Gate.io)
Launch date: January 2018
Consensus : POW
Algorithm : BeamHashIII
Community : 11 100 people on telegram, 5000 on the discord 22300 followers on Twitter. The activity is very good and the community is dynamic. Nevertheless, we can’t compare Beam’s community, which is a business oriented project, to community projects like Nexa.
Communication/marketing : This area is very professionalized at Beam. The visuals are well done and the graphic universe is clear.
Economic model : Funding with founders’ rewards system (like Zcash, Zcoin): also 20% but since inflation is very high at the beginning, this has generated considerable income for the founders. However, there is only one year left where the team will benefit from the 25% block rewards..
Technical aspects that differentiate Beam from Grin, Beam allows for auditability of transactions (« comply with relevant regulations ») and Beam has a cap on emissions (supply cap)
speculative potential : Mimble Wimble technology was very popular in the market in 2018/2019. It was the latest trendy anonymous technology, even though it had inherent technical limitations. Since then the hype has died down but the privacy sector remains a deeply embedded narrative in the market. The team is very competent and the project is financed by private firms. This model is a hindrance for historical Bitcoin aficionados, but the need for project funding is becoming more and more obvious for new projects especially when we know the harshness of bear markets on the crypto currency market. In addition, Beam is a project that has a decidedly pro-establishment orientation which could help it gain favor with the authorities in the event of legislation on anonymous crypto. Note also a maximum supply of 263 million (deflationary policy) unlike Grin which has an inflationary and unlimited policy. Finally, Beam is not positioned as a simple anonymous corner, but wants to develop a complete ecosystem with atomic swap, smart contract, DeFi, DAPP, DAO,… It is therefore a strategy similar to Zencash which became Horizen and which can generate additional marketing strategies. Finally, Beam has a team that is able to evolve the Mimblewimble protocol and improve anonymity.
Speculative risk : The Zcash-like entrepreneurial model repels the most fervent of community (bitcoinist) models. Especially since the 20% founding rewards take on a whole new dimension with such initial inflation. The risk associated with this inflation is mainly on the purchase levels because beyond this aspect, I find that this project has little risk of a speculative side. As it is already 440th in marketcap, it also has the least potential for profitability, all things considered in cryptos. Furthermore the project was delisted from Binance recently and the reasons for this remain unclear. I see this recent development as a significant risk factor but if there is no unclear reason for the delisting from Binance, then this price drop could be an excellent investment opportunity.
Hype identified and sectoral orientation : Mimblewimble protocol, privacy (etablishment compliant), DeFi, NFT
Marketcap: 6 millions
Actual supply/total supply: 134 millions/ 263 millions
Price 11/05/2020 : 0,043$
Price 20/08/2021: 0,73$
Price target: 10$
Overall project evaluation : A+
Risk scale : 4
Some links for further research :
https://bitcointalk.org/index.php?topic=5052151.0
Below is a summary of my price targets for all the altcoins I have discussed in this article:
Here is an additional list of projects that I also find interesting. They have attractive speculative features and could also have been included in this article :
- Raptoreum (Asset plateform/NFT – smart contract)
- Kaspa (Smart contract – DAG/POW)
- Ternoa (NFT, gaming)
- Pocket network
- Casper (Layer-1)
The presentations are now over, I hope you enjoyed reading them. It may have given you the desire to go and deepen your knowledge on some lowcap. The objective here was not to make complete presentations, or in-depth fundamental analyses, I simply wish to share with you the fruit of my research and deliver a synthetic version
To follow the news of my research and the follow-up of the projects presented here : :
https://twitter.com/CryptoRowenta01
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