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Sunken Ships Of The Crypto World: Why Luxury Coins Have Ceased To Be A Business

12 December 2018 18:39, UTC
Sunken Ships Of The Crypto World: Why Luxury Coins Have Ceased To Be A Business
By Daria Piotrovskaya

In November of this year, the crypto world, pausing, watched the bitcoin going into a hard peak. His fall clearly showed which currencies are firmly held on the crypto market, and which are demolished even by the lightest wind. We decided to check the strength of the coin, whose value is several times higher than the "royal currency", to understand whether they should be considered as their own asset.

Reducing the cost of bitcoin from $6 345 to $3 746 is considered by many to be fatal, but in fact, the crypto market is familiar with the jumps and dumps of a higher range. The ups and downs of more expensive virtual assets do not generate such a resounding echo because they are less liquid, less popular, and have fewer applications. However, their volatility is ten times higher and the interval between price jumps can be measured in hours or even minutes.

According to Coinmarketcap on December 10, the top 3 most expensive cryptocurrencies are Project-X (NANOX), 42-coin (42) and Smart Bitcoin (BTC). In recent weeks, circles on the water from the collapsed bitcoin in one way or another passed on these assets, and so unstable afloat. We traced their fate starting from November 24, the eve of Bitcoin Crash, to December 10.

Nanox - expensive and useless

The purpose of Nanox, issued in the amount of one coin, is not entirely clear. It is traded only on the Yobit exchange – many people think that the anonymous creators of the currency are the owners of the same exchange. Only 0.078264 part of Nanox is in circulation. Capitalization of the asset - $1 389, negligible compared to its value – $18 006.6. However, this is the bottom for Nanox, because at the end of December 2017 its price was $2.5 million (180 bitcoins)! With this money you can buy a cello Rostropovich or a private island in Brazil. But on January 9, 2018 the rate fell below $200 000, and the on the 17th again rose above $1 million. When the price collapsed again, many traders decided to buy a miracle currency. But since the new takeoff did not happen, this experiment has brought them huge losses. It gave the participants in the crypto community the reason to talk about artificial price swinging – especially at the beginning of the existence of the coin.

The initial volatility of the course allowed Nanox to become a godsend for speculators: it was not difficult to become rich or completely bankrupt with its help. However, now that the excitement about the super-expensive currency has subsided, the rate fluctuations are not so noticeable - in December, they average $2,000 - $3,000.

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The queue of those wishing to invest money in this crypto asset is clearly not built. Obviously, the owners of the currency tried to pump on the wave of confidence loss in bitcoin. The trend towards reducing the cost of Nanox is unlikely that anything will interrupt. During the week from November 30 to December 5, the price fell by almost 18%, reaching $18 006.6. But all these ups and downs are no more than a storm in a glass of water.

In the comments of the participants of the crypto community, a negative assessment of the coin prevails. "Project-X is an almost dead shitcoin," many users of BitcoinTalk and other forums believe. Although Nanox is more expensive than bitcoin, it is almost useless.

42-coin: he knows the secrets of the galaxy, but not of a good trade

Another giant in the world of digital assets 42-coin, has almost the same price tag. At the same time, its capitalization is much higher: $723 706, and trading volumes are not so microscopic. This cryptocurrency also has a limited supply: the maximum supply of coins is 42. It is traded on the following cryptocurrency exchanges: Cryptopia, Livecoin and Trade Satoshi.

In 2014, the price of 42-coin was about $1 million (1,197 bitcoins) – thanks to the small number of coins (which was news for the market) and speculative advertising. 42-coin was lucky at the peak of cryptorally in January 2018: coin some time kept in the average of $100 000. But this streak of luck did not last long. Now, like the Nanox, a 42-coin on average sticks to $20,000 - $22,000, dangling between 15 and 29. And coins, rumor has it, more than 42-x. It's time to change the name.

On the website of the asset you can not find the white paper, but you can find "the answer to life, the universe and everything else". According to the writer Douglas Adams, whose work "The Hitchhiker’s Guide to the Galaxy" is used for marketing purposes by the creators of coin, these answers are among 42. Nevertheless, the answer to the question of what is the task of creating a coin and why it costs space, the site does not give.

According to the authors of the project, 42-coin should be a digital asset similar to rare earth metals. And obviously, to adorn someone's collection, as unique as the samurai sword from the movie "Kill Bill".

"This cryptocurrency is very fast," says the programmer with the nickname HENDO, the Creator of 42-coin. – It is unique, and probably no one will ever have one coin in its entirety." However, in the summer of 2017 one 42-coin could be bought for only $20. And at that time it would be a profitable investment, taking into account the current cost – $17,231. And against the background of bitcoin crash to sell the bought at the price of a bottle of wine 42-coin could be even more profitable.

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Many traders believe that this crypto asset has no practical meaning, and its creation had only manipulative purposes. “Please avoid this dead coin, - writes a user of BitcoinTalk. - “42-coin was created in 2014, in the era of pumping / dumping, like many coins in this period”. So, 42-coin looks more convincing than Nanox, but is still a controversial investment.

RBTC: a new branch of bitcoin development

Each token or coin that has ever bypassed bitcoin in value has its own history. Smart Bitcoin (RBTC), which occupies the third line of the Coinmarketcap rating, in fact, is not an independent cryptocurrency, so it can be included in our rating only conditionally. This token is used to pay for smart contracts in the RSC network, and it has a binding to bitcoin in the ratio of 1:1. Therefore, its value, plus or minus 0.1 BTC, is equal to the value of the first cryptocurrency. From November of the current year RBTC has been traded on crypto exchanges Huobi Global, Bitfinex. Its cost on December 10 is $3 552, capitalization is unknown. Trading volumes are significantly higher than those of Nanox and 42-coin - $389 352.

The main advantage of smart bitcoin is the ability to quickly convert bitcoins to any other cryptocurrency. By and large, this coin is a stablecoin for bitcoin, and it is the only one on our list that has a clear purpose.

Sunken ships of the crypto world

The most expensive cryptocurrencies, on the one hand, are in sight, on the top lines of the price rating, on the other - they are completely inconspicuous. The possible goal of creating such cryptocurrencies could be to facilitate the process of transferring money abroad, bypassing bureaucratic red tape and Bank fees. In the fiat world, the analogue of this method is offshore schemes. It is, customary to talk, about offshore companies with a negative connotation, but this is a convenient space, in particular, for financial experiments. And expensive cryptocurrencies could really be created for similar purposes, but since this year the legislation has become more complicated and, probably, it has become unprofitable to “surpass” fiat through such tokens. Due to changes in legislation, expensive virtual assets could lose their original purpose (if it was), respectively, losing in price. These currencies still adorn the price ratings, but, in fact, no one needs them.

Over the years, the market is getting smarter – judging by the trading volumes of the leaders of the hit parade, beginners are no longer conducted on beautiful marketing and “painted” prices; they prefer, if they take risks, then not with such expensive currencies. Coins, like any other product, cost as much as they are willing to pay for them - but only on the wave of hype or fashion. Therefore, many cryptocurrencies that once overcame the record for bitcoin mark of $20 thousand, now either fell in value or are no longer traded at all. After all, in addition to the high price, there are other indicators of the importance of the coin, which provide it with demand: the purpose, practical value, liquidity, the number of owners, the maximum possible stability in the daily changing crypto world.

As for 42-coin, Nanox and the like, balancing on the verge of elitism and uselessness, these cryptocurrencies can be earned, but a deep analysis of the project and the overall situation on the market is required. Therefore, they are for the most risky sharks of the crypto ocean.



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