Why You Should Consider Investing in These Three Cryptocurrencies

Why You Should Consider Investing in These Three Cryptocurrencies

Key points

  • Given the unique attributes of Dogecoin, Toncoin, and Shiba Inu, each offers distinct investment opportunities.
  • However, due to the high volatility of the cryptocurrency market, investors are advised to diversify their portfolios and conduct thorough research before making any decision.

Cryptocurrency investors are constantly on the lookout for the next big opportunity. While Bitcoin and Ethereum often dominate the headlines, other digital assets have garnered significant attention and support. Among these are Dogecoin, Toncoin, and Shiba Inu. Each of these cryptocurrencies has unique attributes and backing that make them intriguing options for investors.

I will share the reasons why one might consider adding these three coins to their portfolio in the current market environment. Not financial advice, of course.

Dogecoin: The Power of Community and Celebrity Endorsement

Dogecoin, originally created as a joke, has evolved into a serious player in the cryptocurrency market. Launched in December 2013 by Billy Markus and Jackson Palmer, Dogecoin was inspired by the popular “Doge” meme featuring a Shiba Inu dog. Despite its humorous beginnings, Dogecoin has built a robust community and has seen substantial growth over the years.

One of the most compelling reasons to consider investing in Dogecoin is its strong community support. The Dogecoin community is known for its charitable efforts and positive spirit. For instance, in 2014, the community raised $50,000 to help send the Jamaican bobsled team to the Winter Olympics. This sense of community and goodwill has helped Dogecoin maintain a loyal following.

Another significant factor contributing to Dogecoin’s appeal is the endorsement of high-profile individuals, most notably Elon Musk. The CEO of Tesla and SpaceX has frequently tweeted about Dogecoin, often causing its price to surge. Musk’s influence cannot be understated; his tweets have the power to move markets, and his support for Dogecoin has brought it into the mainstream spotlight.

In May 2021, Musk referred to Dogecoin as “the people’s crypto,” further solidifying its status as a legitimate investment option.

From a financial perspective, Dogecoin has shown impressive growth. As of 6 June 2024, Dogecoin’s market capitalization stands at approximately $15.8 billion, making it one of the top 10 cryptocurrencies by market cap. While its price is highly volatile, the potential for significant returns is evident. For example, in early 2021, Dogecoin’s price surged by over 12,000%, reaching an all-time high of $0.73 in May of that year.

I am waiting for Elon Musk’s plan for $DOGE. And I know he will do something to it.

Toncoin: The Telegram Connection and Growing Ecosystem

Toncoin, the native cryptocurrency of the TON (Telegram Open Network) blockchain, is another digital asset worth considering. Originally developed by the team behind the popular messaging app Telegram, TON aims to provide a fast, secure, and scalable blockchain platform. Although Telegram officially withdrew from the project in 2020 due to regulatory issues, the TON community has continued to develop and expand the network.

One of the primary reasons to invest in Toncoin is its strong user base. Telegram boasts over 700 million monthly active users as of 2023, and the integration of TON into the messaging app has the potential to drive significant adoption. The seamless integration of cryptocurrency transactions within a widely used messaging platform could revolutionize the way people send and receive money, making Toncoin a valuable asset.

The TON ecosystem is rapidly growing, with numerous projects being built on the platform. One notable example is Hamster Kombat, a decentralized game that leverages the TON blockchain for in-game transactions and rewards. The success of such projects highlights the versatility and potential of the TON network.

Many new projects are building on TON. For example, in just three months, 239 million users subscribed to the Hamster Kombat app.

Pavel Durov, the founder of Telegram, pointed out that four to five million new users join the game daily, making it the fastest-growing digital service in the world. “It took Hamster only 73 days to reach 100 million monthly users. Each day, 4-5 million new users join Hamster Kombat, making it the fastest-growing digital service in the world.”

From a technical standpoint, TON offers several advantages over other blockchain platforms. It utilizes a unique consensus mechanism called “Byzantine Fault Tolerant” (BFT) proof-of-stake, which enhances security and scalability. Additionally, TON’s multi-chain architecture allows for parallel transaction processing, significantly increasing throughput. These technical innovations position TON as a formidable competitor in the blockchain space.

Financially, Toncoin has shown promising growth. As of the point of writing, Toncoin’s market capitalization is around $38.5 billion, reflecting its increasing adoption and potential for future growth. While it may not yet be as well-known as some other cryptocurrencies, its strong fundamentals and growing ecosystem make it a compelling investment option.

Shiba Inu: The Power of Community and Strategic Partnerships

Shiba Inu, often referred to as the “Dogecoin killer,” is another cryptocurrency that has captured the attention of investors. Launched in August 2020 by an anonymous developer known as “Ryoshi,” Shiba Inu was created as an experiment in decentralized community building. Despite its relatively short history, Shiba Inu has quickly gained a massive following and has become one of the most talked-about cryptocurrencies.

One of the key reasons to consider investing in Shiba Inu is its strong and passionate community. The Shiba Inu community, known as the “Shib Army,” is highly active on social media and has played a crucial role in promoting the coin. This grassroots support has helped Shiba Inu achieve significant milestones, such as being listed on major cryptocurrency exchanges like Binance and Coinbase.

Another factor contributing to Shiba Inu’s appeal is its strategic partnerships and endorsements. Notably, Ethereum co-founder Vitalik Buterin has been associated with Shiba Inu. In May 2021, Buterin donated 50 trillion SHIB tokens (worth approximately $1 billion at the time) to the India COVID-Crypto Relief Fund, bringing significant attention to the project.

Additionally, Shiba Inu has formed partnerships with various companies and platforms, further enhancing its credibility and adoption.

From a financial perspective, Shiba Inu has demonstrated remarkable growth. Its market capitalization is approximately $9.3 billion, making it one of the top 20 cryptocurrencies by market cap. The coin’s price has the potential for high returns. For instance, in 2021, Shiba Inu’s price surged by over 1,000% in just one month, reaching an all-time high.

Furthermore, Shiba Inu’s ecosystem is expanding with the development of various projects and initiatives. One notable example is ShibaSwap, a decentralized exchange (DEX) that allows users to trade, stake, and earn rewards with SHIB tokens. The success of ShibaSwap and other projects within the Shiba Inu ecosystem highlights the coin’s potential for long-term growth and utility.

More recently, I see Shytoshi Kusama making his first public appearance in Kyoto to meet the Shiba Inu community. This means they are working hard on the ground. I hope to see more price action soon.

Conclusion: A Diversified Approach to Cryptocurrency Investment

In conclusion, Dogecoin, Toncoin, and Shiba Inu each offer unique attributes and potential benefits for investors. Dogecoin’s strong community support and celebrity endorsements, Toncoin’s integration with Telegram and growing ecosystem, and Shiba Inu’s passionate community and strategic partnerships make them compelling options in the current market.

However, it is essential to approach cryptocurrency investment with caution. The market is highly volatile, and prices can fluctuate dramatically. Diversifying one’s portfolio and conducting thorough research are crucial steps to mitigate risks and maximize potential returns.

Ultimately, the decision to invest in Dogecoin, Toncoin, or Shiba Inu should be based on a careful assessment of one’s risk tolerance, investment goals, and market conditions. By staying informed and making strategic decisions, investors can navigate the dynamic world of cryptocurrency and potentially reap significant rewards.

 

Source: https://www.financemagnates.com/cryptocurrency/why-you-should-consider-investing-in-these-three-cryptocurrencies/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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What Are Crypto Venture Capitalists (VCs) Investing in This Bearish Market?

What Are Crypto Venture Capitalists (VCs) Investing in This Bearish Market?

(Image credits: A Golden Bear Market by Anndy Lian)

 

The value of a cryptocurrency can be influenced by various factors, including news about the cryptocurrency and its underlying technology, government regulations, and overall market conditions.

The market can also be influenced by investor sentiment, which can be affected by a wide range of events.

There are many different types of investments in the cryptocurrency space, and the popular specific investments can vary over time. In general, some of the most popular types of cryptocurrency investments include:

Bitcoin: Bitcoin is a decentralized cryptocurrency that was the first of its kind. It is often considered a store of value and is widely recognized and accepted as a form of payment.

Ethereum: Ethereum is a decentralized platform that runs smart contracts, which are applications that execute automatically when certain conditions are met. It is also used as a platform for building decentralized applications (dApps).

Decentralized finance (DeFi) tokens: DeFi refers to financial applications built on the blockchain and decentralized, meaning that they are not controlled by a single entity. DeFi tokens are often used to access or participate in these applications.

Security tokens: Security tokens are digital assets representing ownership in an asset, such as a company or real estate. They are subject to federal securities laws and are often issued through initial coin offerings (ICOs).

Stablecoins: Stablecoins are cryptocurrencies that are pegged to a stable asset, such as the US dollar, to reduce price volatility.

There are many different investment theses for cryptocurrencies. Some people believe that cryptocurrencies have the potential to replace traditional fiat currencies. In contrast, others think they will be used primarily as a store of value or a means of exchange.

Still, others believe that the underlying blockchain technology has the potential to revolutionize a wide range of industries, from supply chain management to identity verification.

These Are Some Specific Investment Theses for Cryptocurrencies:

The use of cryptocurrency as a means of exchange: Some people believe that cryptocurrencies will eventually be used as a primary means of exchange, replacing traditional fiat currencies.

The store of value thesis: Some people believe that cryptocurrencies will eventually be used as a store of value, similar to gold.

The blockchain revolution thesis: Some people believe that the underlying blockchain technology has the potential to revolutionize a wide range of industries and that investing in cryptocurrencies is a way to get in on the ground floor of this technological revolution.

The “greater fool” theory: Some people believe that the price of a cryptocurrency will continue to go up as long as someone is willing to buy it at a higher price, even if there is no intrinsic value to the cryptocurrency. This is sometimes referred to as the “greater fool” theory of investing.

Venture capitalists (VCs) are investors who provide capital to early-stage companies in exchange for equity ownership. In the cryptocurrency space and especially after witnessing the fall of FTX, many VCs have started to be interested in investing in companies that are working on infrastructure and applications for the blockchain, rather than investing directly in cryptocurrencies themselves.

Some Specific Areas of Interest for VCs in the Cryptocurrency Space.

Blockchain infrastructure: VCs have invested in companies working on building out the infrastructure for the blockchain, such as companies that are developing new consensus algorithms or building out decentralized storage solutions.

New blockchains get good support too. Shardeum is the world’s first EVM (Ethereum Virtual Machine)-based sharded blockchain mainnet.

With dynamic state sharding technology, the blockchain can linearly scale and increase TPS (transaction per second) with every node added to the network.

The network can maintain low gas fees indefinitely. It was co-founded by Nischal Shetty, a co-founder of WazirX, India’s largest crypto exchange by trading volume.

They have raised $18.2 million in a seed funding round from more than 50 investors, including Jane Street and The Spartan Group joined this seed round along with Wemade and others.

Web3 solutions: Web3, also known as Web 3.0, is the next iteration of the World Wide Web, and it is built on blockchain technology. It is designed to be more decentralized, secure, and open than the current Web.

VCs are looking for projects that align with the core principles of Web3 and have the potential to drive its adoption and growth. This is another rising trend.

The Venom Foundation, a Layer-1 blockchain licensed and regulated by the Abu Dhabi Global Market (ADGM), and Iceberg Capital, an ADGM-regulated investment manager, have announced a partnership to launch the Venom Ventures Fund (VVF), a $1 billion venture fund.

The fund aims to invest in innovative protocols and Web3 dApps, focusing on long-term trends such as payments, asset management, DeFi, banking services, and GameFi.

The VVF will be blockchain-agnostic, meaning it will not be limited to any specific blockchain and will invest in projects based on their potential regardless of the underlying blockchain. The fund aims to become the leading supporter of next-generation digital technologies and entrepreneurs.

I noted that the VCs in my network are also looking at blockchain applications.

VCs have also invested in companies that are using the blockchain to build new applications, such as supply chain management platforms, decentralized finance (DeFi) platforms, and decentralized identity solutions.

Interoperability and cross-chain solutions, for example, aim to enable different blockchain networks to communicate and interact with each other and are also one of the top investment choices.

When I showed this article to some of my friends before publishing, they asked me why didn’t VCs consider investing in crypto exchanges.

The truth is that most of the VCs who understand how the crypto market works would know that exchanges are facing tremendous stress from the regulators. Having a license does not necessarily mean good, honestly. There are new travel rules that will tighten how crypto moves.

The new rules may even force DEXs to new unknown territories where the realization of profits can be deemed a nuisance for many investors. The older existing exchanges usually have very high operating costs, overspending habits on marketing, sponsorships, and staffing.

Moreover, the valuation is way too high for a good entry point, in my humble opinion.

Therefore, I believe investing in blockchain infrastructure and applications will support the development and growth of the cryptocurrency ecosystem and potentially generate more sustainable returns for its investors in this bear run.

It is also important to note that VC investment in the cryptocurrency space is just one aspect of the broader cryptocurrency ecosystem.

There are many other types of investors, such as hedge funds, family offices, and individual investors, who may have different investment theses and strategies.

Having said this, there are still many opportunities in this volatile market. I commented in the South China Morning Post yesterday, “Gold may be a safe haven”, but there were many other [crypto] opportunities elsewhere for investors “to profit from price fluctuations.”

Take a recent market movement, for example. A fellow investor in Singapore reacted quickly to short bitcoin after the US report of 6.5% CPI inflation. He made money. During the same week, he noted that the resistance level had hit its low and would bounce upward soon.

He injected another $10m to long it. Bitcoin went over $21,000. He made money again. And when he heard rumors that PBOC might start to print more money as a stimulus, he sold his crypto holdings into Chinese A-shares as he saw a higher upside in the longer run.

As a licensed fund manager and a VC myself for over a decade, this is my humble note to all.

“Believe in the underlying technology, aim for community growth and ride on the right waves for the best crypto returns.”- Anndy Lian.

Not financial advice, of course.

 

 

Source: https://hackernoon.com/what-are-crypto-venture-capitalists-vcs-investing-in-this-bearish-market

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Regulating Cryptocurrencies: Are you Investing in Securities?

Regulating Cryptocurrencies: Are you Investing in Securities?

There is an ongoing legal case between SEC and Ripple Labs. In December 2020, the San Francisco-based corporation and its current and former senior executives were sued by the SEC on charges that they had been selling unregistered securities worth $1.3 billion since the token’s inception. The commission declared XRP as a security. You should have heard of this case if you are in the crypto industry. Many questioned how this happened and will this have any affect on the rest of the cryptocurrencies. What is a security? How SEC determine what is a security? I will try to break it down in this article.

What is Howey Test?

The Howey test is used by the U.S. Securities and Exchange Commission (SEC) to determine whether a particular financial product or transaction qualifies as an “investment contract.” If a product or transaction is deemed to be an investment contract, it is subject to certain regulatory requirements under federal securities laws.

The test is named after the 1946 Supreme Court case SEC v. W.J. Howey Co., in which the Court established a four-part test to determine whether a transaction qualifies as an investment contract:

  1. It involves an investment of money
  2. There is an expectation of profits from the investment
  3. The investment of money is in a common enterprise
  4. Any profit comes from the efforts of a promoter or third party

If all four of these criteria are met, the transaction is considered an investment contract and is subject to regulation as a security.

What is a Security?

Before we look further, let’s look at what is a security. A security is a financial instrument representing an ownership position in a publicly traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

There are several types of securities, including:

  1. Stocks: Stocks represent ownership in a company and entitle the holder to a share of the company’s profits.
  2. Bonds: Bonds are a type of debt security that involves borrowing money from an investor for a set period of time at a fixed interest rate.
  3. Options: Options are a type of derivative security that gives the holder the right, but not the obligation, to buy or sell a specific asset at a predetermined price within a specific time frame.
  4. Mutual funds: Mutual funds are investment vehicles that pool money from multiple investors and use that money to buy a diversified portfolio of stocks, bonds, or other securities.
  5. Exchange-traded funds (ETFs): ETFs are investment funds that are traded on stock exchanges, much like stocks. They typically track an index, such as the S&P 500, or a specific sector or theme.
  6. Derivatives: Derivatives are financial instruments that are derived from other assets, such as stocks, bonds, commodities, or currencies. They are used to hedge risk or speculate on the price movements of the underlying asset. Examples of derivatives include futures, options, and swaps.

Howey Test Applied to Cryptocurrencies

The Howey test is a well-established legal test used for decades to determine whether a financial product or transaction qualifies as an investment contract and is subject to regulation as a security. While the test was originally developed in the context of traditional securities, it has also been applied to cryptocurrency and initial coin offerings (ICOs).

The four-part test established by the Howey case has generally been applied to cryptocurrency in the same way as it has been used to traditional securities. However, there may be some nuances or specific considerations that apply specifically to cryptocurrency when applying the Howey test.

For example, the first prong of the test, which requires an investment of money, may be satisfied by the purchase of a cryptocurrency using fiat currency (such as U.S. dollars) or by the exchange of one cryptocurrency for another.

The second prong, which requires an expectation of profits, may be satisfied by the potential appreciation of the cryptocurrency’s value or by the ability to earn returns through the use of the cryptocurrency in a particular platform or network.

The third prong, which requires the investment of money to be in a common enterprise, may be satisfied by the pooling of resources or the use of a shared infrastructure or platform.

The fourth prong, which requires any profits to come from the efforts of a promoter or third party, may be satisfied by the involvement of a central authority or the use of a decentralized autonomous organization (DAO) to manage the cryptocurrency or ICO.

Modern-Day Version of Howey Test for Cryptocurrencies

The above pointers may sound familiar to you. You are a project owner and have spoken to a lawyer before; this is the same advice they gave you. My question now is, since the state of play in cryptocurrencies are changing rapidly, should there be an adapted version for the modern day?

The modern-day version might look something like this:

  1. Is there an investment of money?

If the crypto digital asset issuer has not sold any assets issued to build its project. It is most likely not considered a security.

  1. Is there an expectation of profits from the investment?

If the crypto asset is utility-based, for example, it is used for voting purposes. It is most likely not considered a security.

  1. Is the investment of money in a common enterprise?

If the project is decentralized, it is not controlled and operated by a centralized entity. It is most likely not considered a security.

  1. Are any profit comes from the efforts of a promoter or third party?

If the profit primarily comes from the community which has nothing to do with the issuance of the crypto asset. It is most likely not considered a security.

Reminding all again, when all four criteria are met, the investment is considered a security and is subject to regulatory requirements of the Securities Act of 1933. The application of the Howey test to cryptocurrency may involve considering the specific characteristics and features of the particular cryptocurrency or ICO in question, as well as the broader market and regulatory context in which it operates.

Take some time to do a self-evaluation based on the above thoughts shared. If you have time, you can ask yourself these questions about the tokens you invested. This is a good exercise for self-reference. I am not a lawyer, and none of the written content is formal advice.

“If you are a retail crypto investor- Do your crypto research. Learning about the regulation side of things can help you with your investment decision, avoiding unnecessary issues down the road.

If you are a project and you claim to be decentralized. Please stay decentralized. This will also avoid getting into any regulatory problems.” – Anndy Lian

 

Source: https://www.securities.io/regulating-cryptocurrencies-are-you-investing-in-securities/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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