It feels like New Year's Eve all over again...
The team at Verge has been campaigning over the last number of days to its fanbase - appealing to the community to donate 75 million XVG in order to secure a secret partnership - veiled under the conditions of an apparent NDA. Thus far, they have reached a quantity of around 17 million XVG in donations. The deadline for raising the funds? March 26. That's pretty soon.
Rumours abound regarding the nature of the partnership, but it's all pure speculation - the team at Verge suggests it could be the biggest partnership in crypto ever. This is a team that has been known to use hyperbole and deadlines to create massive FOMO in the past. In December, riding a wave of excitement as the currency had increased in value by many thousands of percentage points over the year 2017, the Wraith protocol was to be launched on New Year's Eve, enabling greater privacy for transactions with the coin. The launch did not happen on time, and the price of the currency plummeted as reality set in. Weeks later, when the Wraith protocol finally did launch, excitement was considerably more subdued in the depressed crypto market.
As a day-trader, this is a tricky one to play correctly. My thought, as I hold a little bit of Verge, is to sell about half of it before March 26, as it reaches a crescendo in excitement, and hold about half for after the announcement - good or bad. If it turns out that the partnership is axed, at least I would be able to cut my losses. There is no doubt, if this partnership fails, the value of XVG will fall severely, at least in the short term. The Verge team is assuring donors that the funds would be used for further development anyway, so the money would not go to waste, technically. On the other hand, if the partnership succeeds, then I can still make some decent gains.
The problem with this, is its likely what pretty much any other day-trader holding Verge is thinking. So I could instead take the contrarian approach, hold or sell off all my Verge before Monday, and buy up more if it crashes following a failed partnership (which seems quite likely to me, the more I think about it). This assumes the hope that Verge will indeed recover at some point in the future again, of course, but I'm not so sure Verge has a lot of tries left at this whole deadline - FOMO - announcement formula. Let's hope March 26 isn't another "Not-So-Happy New Year" fiasco.
*This is not professional trading advice - it's just my opinion!
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