Before looking at a coin/token it’s imperative to look at the marketcap. In order to make significant money in cryptocurrency you want to invest before the major hype hits. I was an early heavy investor in both Iota (0.65 USD) and VeChain (0.17 USD) because I saw they were highly undervalued. There was zero hype surrounding those two currencies, and I saw major potential. My next target has been Cryptopia’s very own Dotcoin. When you look at the marketcap (which I’ll analyze below) you’ll see that there is so much room to run.
If you look at the major gainers this year you’ll see that BNB (Binance Coin) and KCS (KuCoin Shares) are always mentioned. Currently sitting at a 1.3 billion, and a 741 million marketcap respectively, these exchange tokens are both in the top 50. Cryptopia has it’s own token which they call Dotcoin, which is sitting at a 10.7 million marketcap, but the general population is not yet aware of this. From my analysis below, I believe this token can go 40x at the minimum from the current price.
Currently Dotcoin is used for listing fees. If somebody wants to list their coin on Cryptopia, they have to pay for this by buying and paying in Dotcoin. If you look at the past history of Cryptopia, they vary the amount of DOT’s needed to list according to the DOT price. Another feature of DOT is that DOT is rewarded to those that refer another individual. The individual that referred would receive 10% of the referred individuals trading fees with a payout in DOT.
The difference between Dotcoin & BNB/KCS right now is that Dotcoin doesn’t provide discounted trading fees like BNB or KCS. It’s not a matter of if, it’s a matter of when Cryptopia will add this functionality. It does not make sense for them not to add this to Dotcoin. They already have DOT being utilized as an incentive for those that refer individuals to Cryptopia, and they will follow suit of other exchanges like Binance, Kucoin, and Coss. Why would Cryptopia not want to increase their value and profits? Why would they not want to help their investors gain profits. From a business standpoint this is a no brainer. Below is a shortened quote from the Cryptopia team from January 6th, 2018:
“Obviously we didn’t shut down Cryptopia in January 2017, thanks to an investment we were able to keep pushing through. By the 1st of December we hit 500,000 users. On the 31st of December we hit 1,000,000 users. By the 3rd of January we hit 1,100,000 users. By the 4th of January even with registrations disabled for 3 hours, we hit 1,200,000 users. With registrations paused again we’re now sitting at 1,400,000 users. We’ve gone from just 2 people to over 50 people including contractors and consultants and we’re looking to at the very least double that as soon as we can, but that also brings with it its own set of hurdles.”
It’s evident from this news letter that the demand for Cryptopia is increasing. They had to shut down registrations because they had too many people signing up. In addition, they hired consultants, and more staff, and they are expanding. With an expanding business comes reason to generate more revenue. One way to do this would be to add functionality to Dotcoin.
In addition, another news letter was published on January 11th, 2018 regarding the closure of the LTC & DOGE pairings. This was it:
“ I understand that while this may not be the update many people want to hear, it at least will hopefully provide everyone with a clear understanding of the path forward. Cryptopia will be standing up new sister sites such as ltc.cryptopia.co.nz to handle base markets dedicated to LTC on their own trade engine and database to allow them to continue to trade, and allowing cryptopia.co.nz to resume registrations. You will still need to transfer funds between the different sites to trade on each of them but this will be able to be handled instantly by Cryptopia in the background with atomic swaps, so you’ll still have the single Cryptopia account that you use on the different exchanges. As such, we will be permanently closing the LTC basemarkets on cryptopia.co.nz. Users will have a month to cancel their open orders after which point the markets will be closed and your orders will be cancelled for you.”
It’s clearly stated in this news letter that Cryptopia has a path moving forwards (Those consultants they hired are making changes!). Why would they close LTC, as well as DOGE trading pairs on the main website, and move it to a sister website? I believe the answer to this is the fact that a market for DOT with reduced trading fees may be coming. Even if a market for DOT doesn’t come, adding functionality like KCS for holding DOT and receiving discounts on trading fees would serve equally good as well, and shoot the price up astronomically.
Analysis: Binance is now the number 1 exchange, with a 2.8 billion volume. Kucoin has a volume of 87 million whereas Cryptopia has a volume of 51 million. For the sake of comparison I will be comparing Cryptopia to Kucoin as the volumes are fairly close. Below you will see the current marketcap comparison.
As you can see Kucoin Shares marketcap is 69.1x that of Cryptopia’s. This means if Cryptopia were to incentivize trading by utilizing Dotcoin for fee reductions from holding a specific amount of DOT, or even pairing DOT, that the price of Dotcoin could potentially go 69.1x. To be conservative we can do some math and factor in exchange volume. Cryptopia has 58% of of the volume that KuCoin has, so we can take 58% of 69.1, and get 40x. This means from a conservative standpoint the price of a Dotcoin could be $1.54, and it’s a mere 3.8 cents right now. All that has to happen is Cryptopia needs to add functionality to Dotcoin which would be foolish of them not to. I’ve personally invested in Dotcoin. There’s just too much upside not to take the risk here. Lastly, I don’t see the price coming down for Dotcoin. With all the new consultants and employees Cryptopia has hired, this means that Cryptopia wants business. By buying Dotcoin you’re essentially betting that Cryptopia will become bigger, which all signs point to that they will.
Note: I am not a financial adviser. Please do your research.
BitcoinCryptopiaCryptocurrencyCryptoCryptocurrency Investment
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