07 October 2020 | ZebPay Trade-Desk
It’s been a busy past month at ZebPay. We have launched three new coins, and initiated one relaunch. In case you missed the action in September, here is a coin launch summary with everything you need to know. The ZebPay Trade team is proud to announce the launch of ATOM, UniSwap and MKR, and the relaunch of OMG, to our offerings.
New Launches in September:
COSMOS – ATOM:
Cosmos is a network of parallel independent blockchains, all powered by BFT consensus algorithms. It enables an ecosystem that can scale and integrate blockchains, through zones and provide a highly efficient, consistent and secure infrastructure to transact.
Cosmos’ vision is to make it easy for developers to build blockchains and break the barriers between blockchains by allowing them to transact with each other.
The project identifies three core areas of improvement for the present-day blockchain ecosystem:
- Scalability: Proof-of-Work protocols are slow, expensive and difficult to scale up. DApps built on top of Ethereum are inhibited by a shared rate of 15 transactions per second.
- Usability: Blockchain applications are complex and difficult to understand for developers.
- Interoperability: Blockchain economies operate in isolation and cannot transfer assets between each other.
Cosmos Atoms are currently the only trading token on the Cosmos Hub. As of today, there is no cap on the number of ATOM that will be released. Since launch, and despite its limited upgrades, the ATOM token remains the 18th largest token by market cap, highlighting the community’s belief in the project. ATOM can easily be bought, as it is already listed on several big exchanges.
UUISWAP – UNI:
The Uniswap is a decentralized automated liquidity pool that is established on the Ethereum blockchain. It has been developed to act as a governance protocol. Uniswap will be accessible to all, and will also ease the way in which traders can participate in the financial marketplace. Uniswap is an innovative exchange protocol built on Ethereum. It allows anyone with an Ethereum wallet to exchange tokens without the involvement of any central party.
UNI is the native token of the Uniswap protocol, and it entitles its holders to governance rights. Hence, users can vote on the development of the protocol.
Uniswap has challenged the status quo, in the sense that there is no order book, or centralized party required to make trades. The protocol uses automated market makers and smart contracts that hold liquidity reserves that traders use to trade against.
There is no listing process involved with the Uniswap network. Essentially any UNI token can be launched provided a liquidity pool is available for traders. Hence, Uniswap doesn’t charge any listing fees.
MAKER – MKR:
Maker imbibes the characteristics of a smart contract, and is built on the Ethereum blockchain. Its key role is to support, and strengthen the value of the stablecoin, DAI. It employs a sophisticated and dynamic system of Collateralized Debt Positions (CDP), coupled with autonomous feedback mechanisms, as well as incentivized external participants.MKR tokens are brought into supply, and then eliminated, keeping the price volatility of the DAI in mind. The token’s main aim is to keep the DAI value as close to $1 USD as possible at all times.
In addition to that, MKR tokens are also used to pay transaction fees on the Maker system, and provides holders with voting rights. This enables users to play an active role in the development of the Maker smart contract, and it’s native token MKR.
Built on the Maker Protocol, MKR brings a lot to the table:
- Financial freedom with very low volatility – A price stable currency, that allows users to instantly generate DAI, on their own terms. Value is derived as one can obtain liquidity without having to forgo any of their ETH tokens.
- Decentralized Governance – MKR token holders community control and govern the Maker Protocol, the smart contracts that powers Dai.
- Rapidly expanding ecosystem – Currently 400+ applications have integrated Dai, including wallets, DeFi platforms, games and more.
- Limited supply, and growing demand – MKR is burned with each transaction, which means that the number of MKR coins in circulation will decrease over time. This could be a classic demand/supply issue, like the BitCoin, as it’s supply diminishes, the value of MKR and DAI, is likely to increase.
One Re-launch in September:
OMISEGO – OMG:
OMG is built on the Ethereum blockchain, its full name is OmiseGo. Users can transfer coins from one blockchain to another without employing a transitional exchange. Moreover, funds can be transferred between blockchains and traditional payment providers like VISA and SWIFT.
OMG Network seeks to solve one of the basic problems crypto was designed to solve: value transfer – by creating a value transfer layer on top of the Ethereum network that bundles transactions together. Transactions are sent in batches. The plasma network enables much faster transaction processing at a fraction of the cost.
Plasma scales Ethereum from the usual 14 transactions per second to thousands of transactions per second by compressing them into bundles.. Transactions conducted on OMG Network cost three times less than on Ethereum. Because plasma reduces the gas fees for transactions, it also reduces the amount of electricity required. OMG Network claims it could reduce electricity consumption as much as 99%.
This is what the OMG Network is aiming to offer: lower costs, faster transaction processing, and a better carbon footprint.
September Launch Summary Table (at the time of writing):
| ATOM | UNI | MKR | OMG | |
| Market Capitalization | $1,059,437,101 | $339,875,118 | $553,044,668 | $521,344,189 |
| Current Price | $5.20 | $3.51 | $549.98 | $3.72 |
| 24 HR Volume | $284,290,819 | $430,444,309 | $31,140,447 | $171,052,031 |
| All Time High/ Low | $8.86 / $1.13 | $8.44/$0.42 | $1,773.92/ $21.06 | $28.35/$0.32 |
| ROI (from ICO Price) | -19.28% | 219.14% | 2388.73% | 595.19% |
| Script in Circulation | 203,808,415 ATOM | 96,866,285 UNI | 1,005,577 MKR | 140,245,398 OMG |
| Unique Value Proposition | Scalability, Usability, Interoperability | Governance Rights, No Listing Fee, Voting Rights | Low Volatility, Great Network, Voting Rights | Traditional Payment Integration, Low Transaction Costs, Speed |
Investment Analysis:
| Holding Period | from launch – 05 Oct | 2017-2018 | 2018-2019 | 2019-2020 | 2020- Oct 05 | Sept 01 – Oct 05 |
| ATOM Returns | 18.23% | NA | NA | -7.17% | 22.72% | -25.51% |
| UNI Returns | 234.55% | NA | NA | NA | 234.55% | 234.55% |
| MKR Returns | 2482.90% | 4008.37% | -53.36% | -0.68% | 31.76% | -16.08% |
| OMG Returns | 578.85% | 2894.03% | -92.76% | -57.33% | 499.39% | -29.24% |
After the initial bout of very high volatility in euphoric early years, MKR, has started to trade with comparatively low volatility, while ATOM, UNI are still in early phase. This year all the four assets have appreciated with OMG gaining 499.39% on the higher side and MKR gaining 31.76% on the lower side.
Last month all four assets struggled, with expectation of UNI which was launched last month, thereby keeping up the tradition of euphoric jump in crypto assets in the initial years intact. UNI has jumped 234% in the first month, UNI can keep up this streak at least in the euphoric first year or so before it settles down.
After being down over last month, out of the three assets ATOM trades close to critical EMAs, with support at $4.65 in near term and resistance at a price close to $6, with high community belief in the coin, it remains something to watch out for. With Uniswap challenging the status quo as alluded to earlier, riding the euphoric wave in early years can be of value for the folks and institutions with a high risk appetite.
OMG was down but surely not out last month as it trades near a critical support of $3.5 with the resistance to watch out for at $4.6 as technical indicators are flashing green in the near term, price is trading above critical EMAs recently and MACD turning green on daily chart.
Last but not least with red ink being spilled last month, losing 16% in value, MKR’s technical turned favorable last month with it bouncing off from support of $450 level along with bullish divergence in MACD indicator making it ripe for reversal and reverse it did, the resistance to watch out for is $600. Interestingly, one factor investors should pay attention to is the fact that the more popular MKR or DAI becomes, the higher the demand for MKR and at the same time the number of MKR destroyed — this can lead to a sharp rise in the MKR price.
Note:
If you would like to read an in-depth analysis of the launches done at Zebpay in the month, please click the links below:
- ATOM Poised for Growth, and the Re – Launch of OMG
- The Launch of UniSwap at ZebPay
- Trade Analysis – MKR & DAI
References:
https://coinmarketcap.com/currencies/maker/
https://zebpay.com/what-is-cosmos/
Disclaimer : This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading & Investments in cryptocurrencies viz. Bitcoin, Bitcoin Cash, Ethereum etc.are very speculative and are subject to market risks. The analysis by Author is for informational purposes only and should not be treated as investment advice.
