Investors Should Use Caution Before Putting Money Into New Tokens
Scroll DownEven though the bulk of positions taken on the digital currency markets are highly speculative, there is an emerging segment of investors who are more interested in the potential value that new blockchain projects can generate based on their goals, governance, and business activity. In other words, the cryptocurrency market is no longer confined to active traders who base all their decisions on technical analysis.
When you look at tokens such as Ripple, it is clear to see that the management team behind the digital currency has a vision; furthermore, investors can see that plans are being executed in order to advance this vision. Ripple has tried to position itself as a viable alternative to the creaking SWIFT system of international money transfer, and it has done so through partnerships with the likes of Banco Santander and MoneyGram. Each time Ripple announces the successful completion of a test or a new financial partnership, this counts as a positive fundamental news update.
Smart cryptocurrency investors are riding a new wave of fundamental analysis as they seek for smaller projects that have a vision other than just releasing a token to compete against Bitcoin. One such project is the Morpheus Network, which is essentially a blockchain platform that supports logistics operations and efficient supply chain systems. We also have Bridge Mutual, which is a decentralized finance network catering to the insurance industry. Finally, we have Reef, another DeFi platform that aims to organize and improve liquidity pools for clients such as stock brokerages.
The three aforementioned projects have released their own tokens as a means of raising cash for their operations. Notice how none of these projects aim to become a circulating currency; in other words, they are not Litecoin-type tokens trying to compete against Bitcoin.
When you review recent news updates pertaining to Reef, Morpheus, and Bridge Mutual, it is clear to see that there are serious business development teams in charge of making progress and trying to gain larger market share. This is an important aspect of fundamental analysis and value investing, and it is not surprising to see that these three tokens are gradually increasing in terms of exchange value.
Comments