Throughout the history of the financial markets, investors have always scoured the universe in the hopes of generating outsized returns. The dream, of course, is to stumble upon a promising space which has the potential of generating alpha for years before the returns begin to diminish.
Cryptocurrencies appeared to be the next great frontier in 2017. Millionaires were born over night and exotic car dealerships couldn’t seem to seem to keep up with new limbo orders. When Bitcoin (BTC-USD) reached 20,000, and the rest of the alternative cryptos followed, the market seemed unstoppable. Unfortunately, it soon became a nightmare for new investors.
2018 has been an extremely rough year for crypto investors. Many cryptocurrencies have dropped more than 90%. Unfortunate traders who entered the market at the beginning of the year have seen most of their initial investment completely wiped out. Where do crypto traders go from here? Is there any hope for investors who’ve lost nearly everything? The answer is yes.
Before 2018, nearly every cryptocurrency soared to levels unimaginable just a few years prior. But it seems that the gravy train has ended. So what’s next?
Going forward, it is very likely that only the strongest and most versatile projects will survive. Those projects that have an actual real world use will rise from the darkness and reward both investors and participants.
Many projects have seen dramatic drops in value because they have missed deadlines and failed to live up to expectations. This is why it’s critically important for companies to set realistic roadmaps and be honest and transparent with token holders. Investors need to be even more careful and research driven in the future before deciding to risk their hard earned savings.
I have spent countless hours and weeks scouring the crypto landscape looking for promising tokens and one that recently came to my attention is Encrypgen (DNA-USD).
Encrypgen is a genomic blockchain network that provides customers and partners with best-in-class, next generation, blockchain security for protecting, sharing and re-marketing genomic data. This creates a fair marketplace for a person’s DNA that can be stored privately and sold.
One popular option for selling one’s genomic data has been through 23andMe. However, the company has suffered a series of missteps including some security and privacy concerns. Given that, consumers should take into account other solutions. Encrypgen is perhaps the strongest alternative because the company has made securing one’s data the number one priority. I wouldn’t hesitate to store my data with Encrypgen and other consumers shouldn’t either.
As I mentioned earlier, looking for crypto projects that have real world usage should be #1 on the list of what to look for in a new investment. In August, Encrypgen reached a major milestone when the company released its beta version of the Gene-Chain. The Gene-Chain is the actual platform in which consumers can upload their genomic data and then re-sell it to researchers (should they wish to). It will be extremely useful as consumers will be able to earn passive income.
Going forward, Encrypgen plans to release the full working version of the Gene-Chain in Q4 2018. Once the full version is live, researchers will be able to purchase data directly from consumers with DNA tokens.
Impact on DNA Token Value
Although 2018 hasn’t been kind to DNA token holders, much like the rest of crypto, token holders shouldn’t be concerned. Because DNA is a utility token, its value will only be determined by actual usage. This means that investors shouldn’t expect massive returns until the working version of the Gene-Chain is live and researchers begin to purchase data from consumers.
Encrypgen plans to allow researchers to buy DNA tokens directly from the company in exchange for FIAT. This feature is expected to be implemented shortly. The purchase of the tokens will come at a small premium compared to the market price. With the premium generated, Encrypgen will then participate in the market and submit market orders to replenish its supply of DNA tokens that researchers can continue to purchase.
Once this system is running seamlessly, the price of the DNA token will begin to rise. Within the next 12 months, I fully expect that the price of the DNA token will be above $1.00, which would represent a return of approximately 2000% from today’s levels.
Genetic Data Sets
One of the most important areas for Encrypgen to excel at will be persuading consumers to upload their genomic data to the Gene-Chain. The more data sets that exist in the Gene-Chain, the more valuable the DNA token will become.
David Koepsell, Encrypgen's CEO, has spent a significant amount of time generating leads for acquiring these data sets and has set a preliminary goal of having at least 5,000 data sets uploaded to the Gene-Chain. My hope is that these data sets will be uploaded within the next 12 months, but it is entirely possible that could be achieved much sooner.
Although there are a lot of moving parts that will have an impact on the DNA token price, the benefits definitely seem to outweigh the negatives. No investment is risk free and no guarantees exist, but I’m as confident in Encrypgen as I have been about any investment in my entire life.
For investors that want to ask questions about the company, one of the best resources is the company's reddit page which has a nice following of other Encrypgen investors.
Disclosure: I am/we are long DNA-USD, BTC-USD.