The markets are in a major dip right now. HODL memes aside, we all know to buy the dip and sell the peak, and this dip has lined up perfectly with a low-cap token that, as long as the crypto market grows, will continue to grow as well.
There are a few things I look for when it comes to timing:
- Product potential
- Road Map
- Exchange Listings
- Current Market Cap
- Time in market
- Historical price trends
- Competitor’s performance
- Social Media/Marketing presence
- Concerns
I’m going to cover all of these on why Bounty0x is the best buy right now, especially during the current dip (a dip that we will most definitely break out of in the near future).
1. Product Potential
Bounty0x is a decentralized bounty hunting network that utilizes its own token. They have an alpha product here where you can list a software bug bounty, or a social media bounty, or whatever kind of freelance task you want. There were a few issues I had with it before I wanted to invest, but the community clarified them for me:
- You can get paid in any currency (fiat, Monero, Ethereum, Raiblocks, whatever). The BNTY token is not the only payment option.
- What’s the token for, then? We all know that the price depends on supply and demand, so what’s creating the demand? Well, it’s used as a staking mechanism to keep participants honest because you have to “stake” some BNTY tokens to participate.
- It incentivizes quality bounty requests, because if your bounty post gets rejected for being against the guidelines, a portion of the BNTY tokens you submitted gets burned. This encourages people to only post high quality, fully fleshed out requests.
- It is used by “bounty hunters” (freelancers) to participate in super bounties (super bounties are tasks that are usually subjective and/or highly technical). If the bounty hunter’s submission is rejected (for example, if they claim a typo in a third-party code comment is a bug <- you guys should definitely read that one), then a portion of their BNTY tokens are burned. This encourages bounty hunters/freelancers to only submit legitimate solutions.
- It is used by the sheriffs (yeah I know, cheesy name, they’re basically the moderators) to participate in determining whether a bounty has been performed correctly—if they are the lone dissenter in the group of sheriffs (right now, it requires a majority decision with at least three sheriffs) then a portion of their BNTY tokens are burned.
From a timing perspective, the fact that they already have a working product while in alpha tells me that when it's in beta or fully released, it's going to be even bigger--and it’s already paying out real world bounties. Given their niche market, and the lack of competitors, I'm more than confident that there will continue to be a growing demand for Bounty0x. And we all know that, especially in the crypto world, early adopters are rewarded.
2. Roadmap
- Feb 2018: Integrating with social media and redesigning the platform. What makes this unique is that they’re getting live feedback from the alpha version of their product, which is a whole lot more than what most tokens can say. It’s a very good sign that they’re taking their time, learning their lessons, and not releasing a bug-filled final product.
- Mar 2018: Complete automated payment distribution.
- 2018 Q2: Launching the Beta product, and the staking mechanism that defines the BNTY token. Sheriffs will actually be able to earn Bounty0x too, as payment for good conduct.
- 2018 Q3 and Q4: Incorporate machine learning to further smooth out the product, support external modules/plugins, initiate a buy back program (the buy back program ensures that the price does not fall below a certain limit), and finalize the Bounty0x network.
- 2019 and beyond: Release the mobile apps, and enable crosschain support.
From a timing perspective, this is an unusual opportunity, because even though it’s “the long game,” they already have a working product right now, which is a rare thing for a crypto token. So being an early adopter right now pays off both in the short term and long term. I'd also expect there to be incremental jumps every quarter with every update.
3. Exchange Listings
It’s not on very many exchanges, and KuCoin is really the best option (and EtherDelta if you so wish). What does that mean? Just like with RaiBlocks three weeks ago, the limited exchange options artificially limits the demand, thus artificially keeping the price low. Right now, the next exchange could be Bit-Z, with a $400 million daily trading volume (compared to KuCoin's $340 million).
From a timing perspective, you absolutely have to get in before it comes to the masses (à la Binance, et. al.). All one has to do is look at Raiblocks' history over the past few weeks to know how important this is.
4. Current Market Cap
Currently at $78,135,634 which ranks 233 on Coinmarketcap. I don't look at this as "it's undervalued," because it's a little difficult to guess what its actual value is due to lack of competitors. Instead, I see this more as a testament to its potential--meaning, it's growth is far from over, and whatever its end valuation will be will certainly be much higher than #233.
From a timing perspective, you want to get in on coins before they break the top 100. It isn't too late if you do, but you're set to be in a better position if you buy in while it's still a small cap.
5. Time in Market
It's been out for two weeks, but it's also just starting to get featured in mainstream articles.
6. Historical Price Trends
Past performance is not an indicator of future performance. Every investor knows this. But we can also take a look at other cryptos to dispel certain myths. For instance, when Bounty0x was released, it traded for $0.10 and it's now at ~$0.70--that's a growth of 700%! Many people see that percent change and think that they missed the boat. But I'd argue the opposite--that the boat is still taking on passengers, especially when you look at its short time in market and its small market cap.
For example, DragonChain grew by 400% in its first two weeks! You may have thought you missed the boat on that too, but had you bought in at the peak of that growth, you'd have seen 650% gain just a few weeks later. The point is, seeing how much it's grown in the past two weeks is not an indication that it will keep growing at its current rate, but it is also not a reason to think it's done growing.
From a timing perspective, you never want to buy at the all time high. Bounty0x is currently down 20% from its ATH, meaning this is the time you want to buy.
7. Competitor’s Performance
As far as I know, it has no competitors. Maybe Fiverr, but they don't use crypto. It's on a bull run all by itself, just like Bitcoin was back in the day.
8. Social Media/Marketing Presence
Bounty0x has been leveraged to find the EtherDelta hacker, which is still an open case. Bounty0x has partnered up with SwissBorg, a Swiss crypto investment platform (and it's not just for a one-time bounty). See this very insightful post on uses outside of software bug bounties with respect to social media. It's only a matter of time before one of the big bounties gets fulfilled and publicized. Once that happens (say, the EtherDelta hacker was caught, and Bounty0x was utilized)--that's when the boat will have finally left.
From a timing perspective, you want to get in before it reaches that critical mass on social media. You want to get in before your hairdresser starts talking about it.
9. Concerns
As much as I'm excited about Bounty0x, I do have a few concerns. One, their team is super young and inexperienced. That's not really easy to objectively quantify, since these days age doesn't seem to matter (see Facebook, Snapchat, etc...). But this is the weakest part of Bounty0x. I'd like to see a bit more experience on the core team, which they're trying to resolve right now by using their recent growth to fund new hires.
Bounties getting overrun by stupid shit. I'm talking about the bounty platform being full of bullshit bounties like "write a blog post and link to my article and I'll give you four RaiBlocks." If the quality of the bounties goes to shit, then I think it'll scare people away from making new, legit bounties, kind of like how YouTube comments scare people away from rational discourse.
10. Timing is Everything
This isn't the next Bitcoin. I highly doubt it would ever get into the top 20 given its niche market. But it's rare to find a crypto with all the following:
- Only two weeks old
- Real world use
- Working product
- No competitors
- Small marketcap
- Currently in the dip
I'd like to re-emphasize that I am not a crypto genius or wizard or anything. I'm just a regular dude who happens to have a lot of free time on his hands, and who looks mainly for the right entry points into promising projects. If you look carefully, you can capitalize on the dips. This is what I see in Bounty0x right now.
Good luck with all your future endeavors, and have a wonderful bullish day. :)