Full Transcript:
Hi to fellow subscribers and new viewers. It is now Sunday July 16th in the United States. My name is Nick and welcome to the Sobuka blog. I will try to give a general global market synopsis each day with respect to crypto currency prices being covered on the regions I talk about mostly on my channel that include Africa, Latin America, and the Middle East leading up to the Aug 1st upgrade of the Bitcoin infrastructure. Topics I will cover today is the Aug 1st date, Bad ICOs going out of business sale, ICO liquidity test, bailout, and strong cryptos.
Disclaimer: This is strictly my opinion, and nothing I talk about here is financial advice. Please talk to a financial advisor when investing in cryptocurrencies.
Everyone should be excited about Aug 1st with the arrival of Segwit. After Aug 1st the real consensus is that we will see faster Bitcoin transaction times and hopefully lower transactions costs. From the consensus of people I listen to, the bloodbath that we are experiencing in the crypto market is coming from a bunch of FUD or noise from Asia, specifically from China. There is all types of weird rumors spreading around different types of coins coming out or forking from Bitcoin. I am not here to denounce this as rumor, but it's been bleeding into the social media space within the United States pop news. And like anything that gets broadcasted from the US, it eventually ends up spreading to other parts of the world and causing this panic we are seeing. So to help put these crazy rumors in perspective, the big players are looking out for Bitcoin the best way possible. There’s already been millions of dollars invested into companies, exchanges, retail stores, and online merchants to make it possible to transact in Bitcoin. So it does not make any financial sense at this point in time to do anything stupid that would jeopardize the Bitcoin infrastructure.
Next item to cover guys. Do not be surprised to see some of these ICOs closing shop soon or staying dormant for a long while. Some of these ICOs captured under coinmarketcap have lost more than 70% of their value since their high. Since these are not publically traded companies with financial reports, it’s hard to measure how much liquidity these companies have left. Some of these ICOs supposedly did keep their coins or tokens during the pre-sale for liquidity reasons, but there is no guarantee of that even happening or any law saying you have to abide by what you promised on your with papers. Either these ICOs could have been greedy and already cashed out their coins or tokens. Or they are still in this game and they have lost more than 50 to 70 percent of market share.
I’ve been questioned by a few close folks (friends and family) on if they should jump into these ICOs. I have recommended them to do their own liquidity test. Since these ICOs do not have any financials at all the following things you should look at is the following:
How many people are on their website. Assign a cost of $100,000 per year on each of their salary. This includes programmers, board, advisors… Basically the more people on their website the more administrative fixed and variable cost to assume.
Next what was their token or coin trading at it’s high this year pre or post ICO. What is the value of their coin now with respect to market share.
If the additive cost of 1 is much greater than the value of 2, then that startup has a liquidity issue.
This is just a basic metric I came up with. You guys can come up with your own metrics. You can take into account if their board members/management offer any intrinsic value of goodwill for the company. You may also want to look at if they are being backed by a special alliance group made up of big banks and tech companies. That is just a hint.
Alright so next subject on my list is bailout. Don’t expect a bailout guys. Don’t expect the federal reserve of Japan or Janet Yellen to buy up these cryptos and put a blanket under this market. As of today, that will not happen. There won’t be any QE, quantitative easing, handouts, or welfare money. This market is like 1930’s stock market. Back in the 1930’s there was no draconian policies set up in place to support or socialize any market as we see today. The bloodbath is healthy. It punishes/discipline weak hands, bad ICOs, and speculative investors. The strong cryptos are consolidating. For new YouTubers pushing ICOs in a bear market it's not wise, and they need to stop it. This pullback will discourage new ICOs from coming out and focus on better white papers while giving the market time to breathe. Now looking back similar to the 1930’s stock market, it took a few decades for the market to catch up ignoring inflation obviously. But if you look at the 2000, 2008, and even the Bitcoin 2013 crash, each one of those crashes corrected in shorter time frame and went higher. So this whole crypto market thing does not panic me at all. If you are panicking, please educate yourself on cryptocurrencies. There are millions of YouTubers out here with all sorts of education.
Lastly I do have a watchlist of cryptos that I am currently looking at closely. As of this date, I have not sold any of my cryptos even since their high because I like their fundamentals. I will however be acquiring more if they go below this level and this is not to say that I expect them to fall lower to these prices. And I do not expect them to fall at these prices at all. I am just saying that I’d be very greedy at these levels from a fundamental perspective.
Bitcoin - Under $750.00
Ethereum - Under $70.00
Litecoin - Under $25.00
Ethereum Classic Under $5.00.
Ripple Under $0.07.
Iota Under $0.05.
Bitshares Under $0.04
AntShares Under $2.00
Zclassic Under $0.50
Zen Under $1.50
14 Days left till Aug 1st. Folks stay excited. Aug 1st means faster Bitcoin transactions and lower transaction cost.
Again all of this is my own opinion and please talk to a licensed financial advisor before investing in cryptocurrencies. If you like this video, please click on the like/upvote button or feel free to subscribe/follow on YouTube or Steemit.