Nano is delegated proof-of-stake (DPoS) blockchain with directed acyclic graphs (DAG) designed to service instant, fee-less payments without offering a robust smart contract platform or reliable store of value. Nano targets a popularized market niche by working to build a protocol to with record transactions processing speeds, low latencies, and easy scalability. Nano is built to decentralize ownership of on-chain assets primarily via a captcha-solving distribution event without mining rewards or a coin offering.
How to evaluate fundamentals of a crypto project
We should consider crypto valuations like educated gambling, a ‘prediction market’ where we are betting on the odds of project and token success. There are some catalysts of success we can identify:
- Project success drivers (user traction, strong financial bottomline, good treasury management, network effects/synergies between users and token investors)
Real user traction is the most important driver of success, that is what most of holders call “adoption”. If people start using certain crypto project because they find it useful and it makes their life easier, that is a guarantee of success. So far, almost no crypto project can claim to have done so.
Strong financial warchest that will enable teams behind the project to develop their visions, incentivize other developers to join them and start using their product is also a crucial aspect of any project. Tied into it is treasury management – especially for the project that had big ICO proceeds. Temptation to squander all those millions into “conferences and events” (read hard-core partying on yachts and luxury hotels) was massive, especially if we consider that majority of token projects founders were no-names and ordinary employees that worked for a paycheck before the ICO fairy-tale happened to them.
Another adoption indicator – network effects, where every additional user of a good or service adds to the value of that product to others. When a network effect is present, the value of a product or service increases according to the number of others using it.
If you can objectively notice that your favorite token project has some of these traits happening for it, be happy – you might have found a winner.
- Token success drivers (favourable demand-supply dynamics, programmable incentives on token, aligned incentives with management team and consensus on token as common unit of value creation).
Token success is completely dependent on tokenomics. As defined by infloat.co, tokenomics involves the incentivization of certain stakeholders to ensure particular behavior.
So, tokenomics is essentially an incentive structure designed to ensure that a token has a purpose and utility within its native network. It is the study of how coins/tokens work within the broader ecosystem that can be considered as a sovereign micro-economy. This includes such things like token distribution as well as how they can be used to incentivize positive behaviour in the network.
For example, bitcoin is designed to ensure that bitcoin miners have a reason to mine new bitcoin. Miners validate bitcoin transactions and receive (or create) newly minted bitcoin in the process.
On the other hand, individuals, businesses and other bitcoin users pay a transaction fee for miners to include their transaction in the next block. This ensures that even when all bitcoin have been minted (to the tune of 21 million, which should happen in around 2140), bitcoin miners are still incentivized to keep ‘mining’ (i.e. validating transactions).
To paraphrase all of the above in the simplest terms: if you, after weeks of research and reading, can’t figure out why the project needs to have a token, it probably doesn’t.
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So why does the token exist then?
– To make the project founders rich.
But there are some people on Twitter, Reddit, Telegram claiming otherwise.
-Yes, they are either: paid to do so by those same founders, they are desperate and delusional bad holders or they are just stroking their own ego with newly learned fancy economic terms and jargon.
Needless to say – stay clear of such projects.
Captainaltcoin’s NANO Price Prediction 2021
NANO, as the rest of the market, is tied at the hip of bitcoin’s price action. If bitcoin embarks on another bull run, NANO can hope for one as well. Bitcoin usually has a cool-off phase after its mega bull runs and that is when the altcoins take over and have a field day with the bulls, often doubling or tripling their price within days.
With the pandemic breakout, the world was sent into hybernation for couple of mNANOhs and it reflected negatively on the cryptocurrencies, sending bitcoin downhill as we witnessed even 40% daily losses. However, situation quickly stabilized and bitcoin as the flagbearer took the crypto market back up. We are in a major bull run since the summer and, if we are listening to the analytics from social media and journalistic desks, we are far away from its local zenith.
What this means for NANO price in 2021?
As long as bitcoin is in the main role and pulling upwards, there is little room for NANO to shine. It will, however, increase its USD denominated value thanks to the overall rise in crypto prices. Nevertheless, NANO to BTC ratio will probably slump, possibly to all-time lows. This means that it is best to keep your funds in bitcoin until it reaches its provisional peak, opening the doors for the altcoin to enter the scene. NANO should be among the top candidates to record big gains, as the money usually flows from bitcoin profits to bluechip altcoins and big cap coins before trickling down to the less known and smaller projects.
The majority of projects will fail — some startups are created just to gather funds and disappear, some would not handle the competition, but most are just ideas that look good on paper, but in reality, are useless for the market.
Vitalik Buterin, co-founder of Ethereum said:
“There are some good ideas, there are a lot of very bad ideas, and there are a lot of very, very bad ideas, and quite a few scams as well”
NANO Future Outlook
As a result, over 95% of successful ICOs and cryptocurrency projects will fail and their investors will lose money. The other 5% of projects will become the new Apple, Google or Alibaba in the cryptoindustry. Will NANO be among those 5%?
That is a tough question to answer.
From technology perspective, NANO does look very solid and unique in their solving of archetypal blockchain problems like scalability and decentralization. However, Nano is very weak in terms of business growth, they have almost no merchant market penetration and noone outside of crypto circles knows about them, ergo – their brand presence is very weak, almost non-existent.
Considering Nano is competing with other payment coins, which is an arena full of heavyweights, starting from the king itself – bitcoin and followed by a whole bevy of projects like bitcoin cash, litecoin, dash, monero etc. its chances of success are meager.
Nano is also infamous for their poor marketing efforts, or to be more precise complete lack of such. Nano team apparently took an approach “build it and they will come”, fully relying on the technology and neglecting all other business aspects of a project of this magnitude.
They did step up their promotion game a bit, especially on Reddit where you can see Nano posts on r/cryptocurrency fairly often but that still doesn’t reach the users outside of the crypto bubble and considering crypto community’s toxicity towards overpromotion, Nano might see counterproductive results from its efforts.
All of this gives Nano pretty slim chances of actually succeeding, unless their mantra of “build it and they will come” actually surprises everyone and they land some big corporation to implement them as a payment rail. Probability for this to happen, though, is levitating around zero.
Why will NANO succeed?
Why will NANO fail?
Can NANO reach $100?
Is Nano dead?
No, judging by the team activity on social media, github, their own website. Their communities on Reddit and Telegram are also active, although much lower engagement levels are noticeable when compared to 2017. Coin is also still listed on all major exchanges which indicates that NANO is far from a dead project.
All of this summed up means one thing: NANO might live through couple of orchestrated and, for a regular trader, completely unpredictable pumps but the majority of time will be murky sideways trading with small volume and no significant interest from the market.
Price will heavily depend on what BTC will do and since many analysts think BTC will not be making big moves in this year, it is hard to expect NANO will do them either. The price will probably stagnate and record slow-moving depreciation or appreciation depending on the team activity, potential technological breakthrough or high-level partnership
Market prediction for NANO Price 2021
With the market being completely unpredictable, forecasting the cryptocurrency price is really more of a gamble and luck rather than a data driven guesstimate.
Let’s throw a glance at the eminent publications and personalities, and their predictions regarding the Nano price, which will give us another point of view to consider:
Walletinvestor is a popular website that does technical analysis-based price predictions of various cryptocurrencies. According to them, Nano is expected to go down to $0.08 in one year. This price prediction is very skeptical and probably inaccurate as the current price is a whole order of magnitude greater and NANO would need to totally implode to drop that heavily.
Trading Beasts Nano Price Prediction
TradingBeasts algorithm is traditionally much more optimistic in its forecasts and it sees Nano reaching $3.53 by December 2021 which means it will do a solid 4.5x jump from its current price.
Cryptoground predicts that Nano might reach $3.10 by the end of 2020. They even added their version of Nano price prediction 2024, where they stated that Nano might reach $27 by 2024.
Digitalcoinprice gave a slightly positive prediction saying that by 2021 end, Nano might be just a shred more valuable than now – $1.10 per coin.
NANO Future: 2023, 2025
NANO Price Prediction 2023
Nano Price Prediction 2023
NANO Price Prediction 2025
Nano Price Prediction 2023
Realistic NANO Price Prediction
Realistic Nano Price Prediction
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com