Coin Report #51: Energi

Coin Report #51: Energi

N.B: In the spirit of full transparency, the following Coin Report on Energi is a Sponsored Post.

Welcome to the 51st Coin Report. In today’s report, I will be assessing the fundamental and technical strengths and weaknesses of Energi. This will be comprised of an analysis of a number of significant metrics, an evaluation of the project’s community and development and an overview of its price-history. The report will conclude with a grading out of 10. I hope you enjoy the read!

Introduction

Energi has been around for quite some time now, but, prior to conducting the research for this report, I had not spent much time looking into it. Most of my familiarity with the project stemmed from what appeared to be a strong social media presence, with their community often vocal and the team itself consistent in its efforts to make sure the cryptosphere was aware of Energi. Beyond this, I only knew that they were a Proof-of-Stake cryptocurrency that also operated a masternode network, as I was thorough in my awareness of masternode projects back in 2018…

I hope this report will prove objective where it must be and fair on more subjective matters. For those who’d like to learn a little more about Energi prior to reading this report, here are some primary links:


Fundamental Analysis

General:

Name: Energi

Ticker: NRG

Algorithm: Energihash (Proof-of-Stake)

Sector: Self-Funded Cryptocurrency Platform

Exchanges: DigiFinex, WhiteBit, Coinex, Kucoin, Coinall, Mercatox, HitBTC, Bithumb Global and Citex

Launch Overview

The project itself was conceptualised in 2017, with development beginning in July that year. This was followed by the launch of the testnet in Q1 2018 and then the mainnet on April 14th, 2018.

Energi was originally a Proof-of-Work cryptocurrency utilising Energihash for its hashing algorithm, but later switched to Proof-of-Stake in Q1 2019, subsequent to the launch of a masternode network  in Q3 2018.

There was no premine or ICO, but Energi did opt to self-fund development via a partial block reward donation (40%) to the Energi Treasury, which allowed for decentralised governance of the project’s development.

Regarding coin supply, NRG is emitted at a rate of ~1m per month, or just over 12mn NRG annually, with a reward split of 10/10/40/40 between the stakers, the Energi Backbone, the masternode network and the Energi Treasury. These rewards are static and there is no maximum supply.

Price-History Overview

As Energi has been in existence for around two years at this point, there is plenty of available price-history and there are some fairly distinct market cycles that have played out in that time, which I will come to in the Technical Analysis section.

For now, it will suffice to say that Energi formed its all-time high against BTC in April this year at 91,721 satoshis; its all-time high against the Dollar formed in June 2019 at $9.88. Its all-time low printed shortly after initial trading in September 2018 at 3580 satoshis, coinciding with the USD all-time low of $0.23.

Project Overview

Energi, despite its numerous facets, has a rather straightforward aim, and that is to become the foremost cryptocurrency platform, encompassing smart contracts, achieved by ensuring seamless adoption via user-friendliness and decentralised governance.

As stated in their whitepaper:

Energi is cryptocurrency for world adoption.

Energi will achieve this by fostering a self-funding and governance system, absorbing and innovating the most advanced technology in the space – including full Smart Contract capabilities and infinite scalability. Further, by removing the cryptocurrency space’s common barriers to entry, Energi will become the most user-friendly, secure and trusted platform for building and trading value.”

I look forward to evaluating their progress in this respect.

Let’s begin with some Metric Analysis:


Metric Analysis:

Below are listed a number of important metrics, all of which are accurate as of 24th May 2020. For anyone reading this who has yet to read a Coin Report, it might be worth reading this section of the first report, where any potentially unfamiliar terms are explained. For any terms or metrics specific to this post, I will provide explanations besides the figures.

Metrics:

General:

Price: $2.47 (27,503 satoshis)

Circulating Supply: 29,308,653 NRG

Total Supply: 29,308,653 NRG

Exchange Volume: $1.121mn ($142,812 excluding wash)

Network Value: $72.466mn (8061 BTC)

Maximum Supply: N/A (no maximum supply)

% of Max. Supply Minted: N/A

Network Value at Max. Supply: N/A

Exchange Volume-to-Network Value: 1.55% (0.2% excluding wash)

Category: Midcap

Average Price (30-Day): $3.14

Average Exchange Volume (30-Day): $1.358mn 

Average Network Value (30-Day): $90.301mn 

Average Exchange Volume (30-Day)-to-Network Value: 1.5% (0.19% excluding wash)

Volatility* (30-Day): -0.0629

Average Daily On-Chain Transactions (since Gen 3 launch ~75 days ago): 24,576 (source)

Average Daily Transactional Value (30-Day): N/A

NVT (30-Day): N/A

% Price Change USD (30-Day): -4%

% Price Change USD (1-Year): +5.7%

USD All-Time High: $9.88

% From USD All-Time High: -75.1%

Premine % of Max. Supply: 0

Premine Location: N/A

Liquidity (calculated as the sum of BTC in the buy-side with 10% of current price across all exchanges): 7.581 BTC

Liquidity-to-Network Value %: 0.09%

Supply Available on Exchanges: 117,302 NRG

% of Circulating Supply Available on Exchanges: 0.4%

*Volatility is calculated by taking the average price over the given time-period, calculating the difference between it and the highest price and it and the lowest price over that same time-period, and multiplying those figures together. The closer to 0, the less volatility during that period, and vice-versa. Read this for more on volatility.

 

Supply Emission & Inflation:

Block Reward Schedule: 10% of the block reward goes to stakers; 10% to the Energi Backbones; 40% to masternodes and 40% to the Energi Treasury. This amounts to 22.84 NRG per block, minted every minute on average. There is no maximum supply and rewards are static.

Average Block Time: 1 minute

Current Block Height: 107,980

Annual Supply Emission: 12,004,704 NRG (3301.65 BTC at current prices)

Annual Inflation Rate40.96%

Circulating Supply in 365 Days: 41,313,357 NRG

 

Staking & Masternodes:

Network Staking Weight: N/A

Staking ROI (Annual): 23% 

Masternode Collateral Size: 1,000 NRG

Masternode Count: 1186

Masternode Count Growth (30-Day): +4

Supply Locked in Masternodes: 13.37mn NRG

Masternode ROI (Annual): 35.92%

Masternode Reward / Block Reward: 40%

Masternode Network Value$33.057mn

MNV / Network Value: 45.62%

 

Distribution:

Address Count: 65,088

Total Supply Held By Top 10 Addresses: 41.29%*

Total Supply Held By Top 20 Addresses: 45.2%

Total Supply Held By Top 100 Addresses: 49.15%

Inactive Address Count in Top 20 (30 Days of No Activity): 5**

*Excluding the top address, which contains the masternode collateral contract.

**Excluding the top 3 addresses, which are the masternode collateral address, the Energi Treasury and the Gen 3 migration smart contract, respectively. Also excluding address #8 and #14, which are smart contracts.

 

Analysis:

Given the existence of both staking and masternodes for Energi, there is quite a lot to cover in this section, with other recent reports having had lighter metric analysis due to the lack of these aspects, as well as a lack of supply emission.

To begin, let’s take a look at the transaction-related metrics, as these give us an indication of non-speculative usage of the token. The caveat here is that I was unable to find relevant and recent data on actual value being transacted on-chain, but I was able to find the Average Daily On-Chain Transactions since the migration to Gen 3 of the network (more on this later). This figure came out at a colossal 24,576, which may well be the highest such figure. Again, without knowing the value of these transactions, it is difficult to make any concrete judgments, but it can be said that the network is clearly in high usage.

Now, I was able to find value data preceding the migration to Gen 3 via the TokenView block explorer, which, though out-dated, is better than nothing. Looking at the available information, we find that the Average Daily Transactional Value pre-migration was around $23mn, which is huge when one considers that Energi’s network value is $72.4mn. This would give Energi an NVT of around 3.15, which is quite frankly well beyond undervaluation, given that Bitcoin’s network value is around 71 times that of its average daily transactional value. Now, if we look at the average number of transactions occurring pre-migration, they seem to align very well with the figures available post-migration, mentioned earlier in this section. As such, a crude assessment might be that if transaction counts have stayed relatively steady since the migration, one could make the case that transactional value has followed suit and thus Energi would be an extremely undervalued network.

Moving on, I’d like to take a look at Volatility, which I calculated to be -0.0629 for the past 30 days; this places Energi somewhere in the middle amongst prior reports for 30-day volatility, giving little indication as to whether an accumulation range has formed or not, at least against the Dollar.

Next up, we have the metrics relating to Liquidity:

Firstly, I found that there was ~7.58 BTC of buy-side liquidity within 10% of current prices to be found across all exchanges, equating to 0.09% of its Network Value. This places Energi joint 8th-lowest for buy-side liquidity, which suggests that there is not a great deal of demand at current prices. This is a little disappointing, particularly in the context of the transaction-related data from above.

As for sell-side liquidity, I found that 117,302 NRG were available for purchase in the order-books, equating to 0.4% of the circulating supply. This is the 2nd-lowest figure ever recorded in these reports, indicating an even more underwhelming desire to sell among holders of Energi, with so little being kept in the order-books at any price. This is perhaps due to the financial incentives to hold NRG off-exchange, as will bee discussed when we come to masternodes.

So, we have a case of low demand at current prices along with basically no supply available to be purchased – this suggests to me that there isn’t much speculative interest in NRG at present.

Moving onto volume, Energi is reported to have traded $1.12mn of Exchange Volume over the past 24 hours, equating to 1.55% of its Network Value. Unfortunately, this is inaccurate and when we take a deeper look at the exchanges trading NRG, we can clearly see that almost 90% of this is on exchanges that heavily wash-trade. This is, of course, not a defect of Energi, but rather of the exchanges, and it is now common practice among exchanges regardless of the token traded. Nonetheless, the real figure for Exchange Volume is likely closer to $142,812. equating to a much more modest 0.2% of Network Value.

The same is true of its Average Exchange Volume for the past 30 days of $1.35mn, equating to 1.5% of its Average Network Value for the same period. When we discount wash-trading, this figure is likely closer to ~$176k, equating to 0.19% of its Average Network Value. This is within the lower-third of projects previously reported on, again suggesting that there is not a great deal of speculative interest in NRG at present.

Now, let’s take a look at the Supply Emission:

Given that Energi has a static block reward schedule with 1-minute block times and a cumulative average block reward of 22.84 NRG, split 10/10/40/40 between the stakers, Energi Backbone, masternodes and Treasury, respectively, I calculated Energi’s annual supply emission to be 12,004,704 NRG, equating to 3301 BTC at current prices. This would give Energi an annual inflation rate of 40.96%, decreasing annually.

What is more important than emission alone, however, is the relationship between it and traded volume:

Using the above figures, we can calculate that Average Daily Supply Emission will be 32,889 NRG, equating to ~9 BTC, or $81k-worth. When we compare this to traded volume (discounting wash), these emissions are covered by less than 2x. This is not particularly strong and does suggest that Energi will be quite vulnerable to its emissions, which will act as headwinds to price growth. Further, Energi’s liquidity of 7.58 BTC is not sufficient to cover these daily emissions. 

However, it is equally important to clarify that 40% of the annual emission goes directly to the Treasury and thus does not come onto the market often (in fact, the team made the point that 15-20% of the Treasury funds are likely put directly into circulation). As such, excluding this 40%, we can work out that the Average Daily Supply Emission is $48,600 or so, or 5.4 BTC, which would in fact be covered by current buy-side liquidity.

Now, let us move on to masternodes – a primary aspect of the Energi ecosystem:

Regarding masternodes, the first thing to mention is that there are 1186 masternodes, with an increase in the count of 4 over the past month. This is, in effect, a stable network. It equates to 13,37mn NRG locked in masternodes, giving holders an annual ROI of 35.92%. Again, though better than the minimum staking ROI, it does not beat inflation, at least not for the forthcoming year.

Energi’s Masternode Network Value is $33.057mn at current prices, equating to 45.62% of its Network ValueThis is indicative of a strong masternode network.

To conclude our metric analysis, let’s take a look at Distribution:

I found that there are 65,088 holders of NRG on the Gen 3 explorer.

Further, I found that the top 10% control 86.91% of the total supply; the top 20 control 90.82%; and the top 100 control 94.77% – at least, at first glance.

It is important to note, however, that the top address is the masternode collateral address and thus consists of almost half the total supply. Excluding this address, the top 10 addresses control 41.29% and the top 20 control 45.2%; a more decentralised concentration of supply than at first glance.

Of the top 20, 5 addresses are not useful for our purposes: #1, as mentioned above; #2, which is the Treasury address; #3, which is the Gen 3 migration contract; and #8 and #14, both of which are smart contracts. Of the remaining 15 addresses, 5 were inactive over the past 30 days.

Of the active 10, 6 addresses were in accumulation, adding a cumulative 1.166mn NRG to their balances over the past 30 days; 2 addresses were in distribution, shedding 385k in total over the same period. The remaining 2 were effectively flat. Overall, net inflows to the active addresses among the top 20 were +781k NRG, equating to 2.66% of the total supply. This paints a different picture to that of the liquidity and volume metrics detailed above…

And that concludes this section; onto the Energi Community:


Community:

There are two primary aspects of community analysis: social media presence and Bitcointalk threads. I’ll begin with the former before moving on to the latter.

Social Media:

Concerning social media presence, there are four main platforms to examine: Twitter, Facebook, Telegram and Discord.

Energi is present on all four platforms. To begin, let’s look at the various social metrics that I calculated from the Energi Twitter and Facebook accounts:

Twitter Followers: 43,195

Tweets: 1,622

Average Twitter Engagement: 1.17%

Facebook Likes: 39,361

Facebook Posts (30-Day): 23

Average Facebook Engagement: 0.38%

As usual, I will be using RivalIQ‘s social benchmark report for evaluation purposes.

Twitter:

Energi has a relatively large audience on Twitter of 43,195 followers, which places it 5th amongst prior reports. Equally impressively, it has fairly strong engagement despite the size of its audience. The average engagement rate is 1.17%, which is in the top half, relative to projects in prior reports. Again, this is more impressive because it has one of the five largest audiences recorded in these reports – usually, a large audience dilutes engagement. I was also quite impressed at the consistency of the efforts by the team to post regularly to the platform, producing informative content and branding it all cohesively. This is a rarity among cryptocurrency projects, having combed over 50+ projects social media platforms at this point. Relative to global benchmarks, Energi’s engagement is 26x greater than the average across all industries.

Facebook:

Where I would usually find either a lack of a Facebook page or, if one did exist, a poorly-kept one, instead I found an equally-consistent effort from the team to publish to the audience of 39,361 that they have on the platform. With almost a post per day over the past month and (albeit slightly weaker) engagement of 0.38%, Energi seem to me to be doing a very good job at marketing themselves and keeping their community informed and, importantly, growing.

Discord:

There are 42,297 members of the Energi Discord group.

This is one of the largest Discord groups that I have ever come across, and it contains dozens of channels – far too many for me to possibly cover here. There are channels for all manner of topics, including an Energi Rain channel in which users are airdropped NRG, but for our purposes I will cover General and Announcements. 

Prior to this, however, I’d like to briefly mention the existence of a specific section of channels dedicated to Community Engagement, which contains contests, promotions, games and memes, all intended to benefit the community whilst simultaneously spreading the word on Energi. This is something I am always looking for when I evaluate project communities but I rarely find an organised effort to continue the spread and growth of the community itself. The most recent contest actually invites community members to create their own contests and be paid for it if the contest idea is selected. Good work!

Moving onto General, here we find constant daily discussion, with clear commitment to Energi by many within the group. That said, there has been some FUD recently surrounding exchange deposits being closed for a while (although these are now open) and some community members are concerned at the banning of others that haven’t conformed to community rules. There does seem to be productive debate between community members on the nature of Energi and its future, which is good to see.

Turning to Announcements, inclusive of Tech Announcements, here we find regular updates and releases. There tend to be a few updates each month published to the channel, with recent updates including the release of v1.3.16 of MyEnergiWallet following a DDoS attack last week and an updated release of the Nexus portal for masternodes. The desktop version of MyEnergiWallet was also released. Moreover, infographics are provided on masternode rewards, with Energi beating out Horizen, PIVX and ZCoin. There is also a link provided to the Energi Impact website, which is a self-funded charity platform that I will cover in more depth a little later.

Telegram:

There are 14,066 members of the Energi Telegram group and 14,353 in the Energi Announcement channel.

The group is much smaller than that of the Discord, but is still relatively large and very much active. Basic support is provided to those that have issues promptly, which comprises a fair amount of the activity in the group, as the Discord group does not offer support in the same manner for security reasons. (Side note: Energi actually have a dedicated support service for more complicated issues). I also found that the team are expecting public testing of Energi X to begin later this year, which will be a zero-fee futures exchange (more on this later). Development updates are also pushed out here. Beyond this, there is nothing to add to that which I discussed in the previous section.

BitcoinTalk:

The Energi BitcoinTalk thread was created on August 17th, 2018, and has since generated 645 posts spanning 33 pages in 648 days. This equates to just shy of 1 post per day, on average. However, in the past 90 days, the thread has had 187 posts, giving an average of 2.07 posts per day; a rare uptick in thread engagement since its creation.

The announcement itself is presented as an infographic, with the Introduction to Energi section discussing the self-funded governance system via the treasury, which is vital to understanding how Energi works. Below this, we find a brief overview of some key features, including wallet support for all desktop platforms, on-chain decentralised governance via masternode voting on proposals, no ICO or premine, a large treasury to allow for sustained development and a masternode network to oversee it all. Subsequently, we find the NRG emission schedule, with a 10/10/40/40 split of block reward between stakers, the Energi Backbone, masternodes and Energi Treasury, respectively, with 1 million NRG emitted per month on average in perpetuity. The reason provided for there being no maximum supply is that the masternode network and treasury are vital to the longevity of the project. Following this section, we are given an overview of the coin specification, and we are also provided with links to key resources such as explorers, the website, exchanges and social media.

And that concludes the community evaluation of Energi. Let’s take a look at some development:


Development:

For the following Development analysis, I will be evaluating project leadership, the website, the roadmap, the whitepaper, the wallets and finally providing a general overview:

Project Leadership:

There are 59 team members listed on the website and 52 employees listed on LinkedIn.

Following clarification with the team, there are currently 64 team members, with the majority of them full-time. Due to privacy, not all are listed.

Energi was founded by TommyWorldPower, a popular cryptocurrency educator on YouTube, who is now the CEO of Energi Core.

The full team consists of 8 members in Leadership roles, 12 members within Technology, 9 within Operations, 5 in Marketing, 15 within Community Management, 2 in People, 2 in Legal, and 2 in Defense. 6 of these team members work within Energi Impact. There are also 2 listed advisors.

Overall, this is a large and growing team, with 9 current opportunities available for new members. Further, they have quite clearly got expertise in all relevant fields, with no field neglected.

Website:

The website can be found here.

The Energi website is well-branded, modern in its design and easy to navigate, as one might expect given the strong marketing and social media presence seen thus far. The navigation menu contains a plethora of relevant links to pages on Energi itself and its other subsidiaries (Energi Impact and Energi Defense), as well as guides for new users, career opportunities, exchange links and wallet downloads, social platforms and other useful resources. Overall, it seems very much comprehensive and user-friendly.

Beginning with the homepage, the tagline reads Cryptocurrency for World Consciousness, which I think is an apt statement given the nature of the project. As we scroll down, we find an introductory video on Energi’s mission and one on their four pillars: Governance, Smart Contracts, Energi Treasury and Masternodes and Staking. We also find a video series on educating newer users on the basics of cryptocurrency, including videos on Energi itself. Further still, there is a brief section on how Energi is different, although nothing specific is stated in the excerpt (there is a further reading link provided). We also find a link to the Energi Impact site, which is a self-funded charitable platform. As we come towards the footer, we find the coin specification, a link to the roadmap (detailed below) and links to recent blog posts.

Now, returning to the navigation menu, there are two web pages I’d like to explore more: Energi Impact and Energi Defense.

Energi Defense is a dedicated security service created by Energi to support and protect the community from malicious actors and hackers, with educational information provided, along with bounties for specific incidents and assistance when incidents occur. Energi Defense will work with victims and law enforcement to find perpetrators and hopefully recover funds. This is a valuable service to provide, I believe, as it ensures the community is supported and assures them of Energi’s commitments and priorities. In fact, as I found out following communications with the team, hundreds of thousands of dollars have been recovered from scammers since its inception – this is something the cryptosphere needs in abundance.

Energi Impact is the charitable arm of Energi, with its focus being the improvement of the welfare of the planet and impoverished communities. This work is entirely self-funded by the Treasury and the Backbone, with current projects including trash cleanups and working with a Bali orphanage. There are also educational resources available on the site.

Overall, the website is fantastic, providing a great deal of information for potential new users or speculators on the Energi ecosystem in a concise manner, with a user-friendly approach.

Roadmap:

The Energi roadmap can be found here.

The roadmap itself is presented in chronological form as a visual timeline, beginning with conceptualisation of the project in Q3 2017 and concluding in 2021 with future plans.

Though there are no further reading links provided for the individual milestones, there is some specificity here and a brief description is available.

Beginning in Q3 2017, Energi was conceptualised and later developed from July. In Q4, the Treasury and Backbone systems were implemented, along with Energihash, the ASIC-resistant hashing algorithm. By Q1 2018, Energi had released its testnet; by April 14th, 2018, Energi was live on its mainnet, with masternodes running and the governance system in place. In Q4 2018, Energi 3.0 began to be developed in its early stages, with Energi 2.0 released publicly along with the transition to Proof-of-Stake in Q1 2019. By Q2, Energi 3.0 was at 50% completion and work began on the development of Energi X, which is set to be a zero-fee futures exchange. As we come to Q3 2019, public testing began for Energi 3.0, along with an ongoing marketing campaign, and then in Q1 of 2020 Energi 3.0 was released publicly, with in-built smart contracts via the Ethereum codebase, allowing for all of Ethereum’s capabilities whilst simultaneously running the Energi masternode network and Treasury self-governance.

Following all of this historical achievement, we come to the present day, with Q3 2020 expected to be a quarter in which Energi begins to onboard blockchain projects and dApps, as well as provide grants and incubation support. In Q4 2020, they are expecting initial public testing of Energi X. In 2021, Energi expects to release Energi X in the first quarter, as well as the mobile wallet that will facilitate seamless payments much like Venmo or Cash App. The ultimate goal following all of this is for Energi to have thousands of full-time contributors, all working on the growth of the platform and network and the global adoption of cryptocurrency.

Whitepaper:

The Energi whitepaper can be found here, having been updated in August 2019.

It is a fairly concise document at 26 pages, beginning with introductory sections on the Mission and Existing Landscape. Here, we are told that Energi is focused on “world adoption”. This is expected to be achieved by utilising self-funding and decentralised governance, along with smart contracts and infinite scalability, all in one user-friendly platform. We also find sections that provide a brief overview of the current issues faced by cryptocurrencies in the pursuit of adoption; namely, reputation, complexity and stability. The latter is inclusive of financial stability, with Energi making the claim that one of the primary issues is the lack of funding for contributors to sustain development.

Moving on, we come to a brief outline of the solution proposed, with Energi utilising trust, awareness, usability and availability to promote adoption. They will build a growing Treasury system that self-funds development via on-chain governance, as well grow the community via marketing systems, plus financial incentives for masternode operators and stakers. Regarding the ecosystem itself, Energi will on-board dApps and focus on smart contract issuance, as well as launching incubator programs, an Energi Defense and Energi Bureau of Investigations (EBI) for platform security and support, Energi Development Portal and Energi Marketing Toolkit.

The four primary value propositions of Energi are its self-funding treasury system, allowing for the longevity of development; governance; equitability; and the smart contracts platform. Regarding use-cases, masternodes are financially incentivised to grow and stabilise the network, as are stakeholders. Also, partners such as dApps will benefit from the smart contracts platform, with Energi providing technical expertise and governance to drive value. For consumers, NRG will function as both a store-of-value and a utility.

Interestingly, we are also provided some statistics on social reach and web traffic, accurate as of June 2019, with Energi beating out Decred, Aion, PIVX and Horizen for 30-day web traffic.

There is subsequently a section on emission schedule, which has been covered in earlier sections of this report.

Following this, we find more detail on the Treasury and the Backbone, with the former functioning as the account from which proposals for development can be funded via on-chain governance, issuing the budget to those proposals if accepted by masternode holders. The Backbone is a 10% reward share allocated to the CEO, initially designed as a financial incentive, but now functioning as an extra source of funding for the growth of Energi via grants, such as to Energi Impact, which is the charitable arm of Energi.

Moving on, we find a brief section on masternodes, stakeholders and NRG itself. Here, we learn that masternode operators will be rewarded with 400,000 NRG per month on average and stakeholders with approximately 100,000 NRG, distributed by staking weight.

Regarding partnerships, as of the mid-2019, Energi provides exchange listings and ranking sites, but no consumer or merchant partnerships.

The whitepaper concludes with the roadmap and information on the team, covered above.

Wallets:

NRG can be stored on a desktop wallet on Windows, Linux or MacOS. There is no hardware wallet support yet, nor mobile support following the move to Gen 3.

And that concludes my fundamental analysis of Energi.


Technical Analysis

NRG/BTC

NRG/USD

NRGUSD

As you can probably see from a quick glance at the two charts provided above, there is quite a lot of price-history available for NRG, with it having been traded since September 2018.

Beginning with NRG/BTC, we can see that price spent the first month of its market existence in a tight range between the all-time low at 3584 satoshis, which remains the all-time low to this day, and 6035 satoshis. This range-bound period was followed by its first bull cycle, culminating in a peak at 69,775 satoshis in December 2018, though price swiftly rejected these highs, reversing and falling to find new support at 14,860 satoshis in January 2019. This low held as a new support base until March, when price began another mini-cycle, this time printing a lower-high at 58,750 satoshis a couple of weeks later, culminating in a complacency shoulder at 40,480 satoshis and ultimately a new, higher support base once again at 20,250 satoshis in April 2019. Price had lost its 200-day moving average at this point, briefly breaking back above it only to fall to a new low for a day. This double bottom became the springboard for the largest bull cycle in Energi’s history, taking it to new all-time highs at 87k satoshis in June 2019, with a more protracted, classical bear market following.

This bear market lasted months and led to prices as low as the old support at 14,860 satoshis in late November 2019, before bouncing briefly and returning to this support to form another base in February of this year. As such, 14,860 satoshis once again served as the base for a new cycle to begin and price climbed for week, ultimately spiking to a new all-time high in late April at 91,700 satoshis before rejecting hard and trading back below old resistance at 40,480 satoshis. Price has since come off further and is now trading above the 200DMA at 27.5k satoshis.

Turning to NRG/USD, a more classical altcoin market cycle has played out here quite distinctly, with no real mini-cycles evident; if anything, the initial trading range in September just led to a larger accumulation range for several months between $0.50 and $1.93, which ultimately led to the all-time high at $9.88 in June 2019. Price then spent several months unwinding, forming a new support base at $1.12, before spiking last month, and is now returning towards the 200DMA.

If I’m honest, this doesn’t look like an attractive entry for me on either pair, although I desperately want to be a buyer. I am looking at 20k sats or below for an entry, or for price to form a new base here for several weeks, which I would consider to be re-accumulation at support. One thing that supports Energi’s speculative prospects is the rich-list activity discussed earlier in the report, but again I don’t feel comfortable entering in what I deem to be no man’s land.

Lastly, it is worth noting that, since initial trading in August 2018, NRG has seen ~450% growth against BTC. Clearly, there is prolonged demand within the market cycles, but I’d like to see the buy-side liquidity just creeping up a little.

And that concludes my technical analysis of Energi.


Conclusion

This report is now approaching 6,000 words, and it is time to draw it to a close.

My final grading for Energi is 7 out of 10.*

*This grading will be upgraded once liquidity improves, Energi X is launched and NRG has hardware wallet support.

Here, you can find my grading framework, for reference.

Lastly, here is a link to a Google Sheets file with any significant data from previous reports compiled for cross-comparative purposes. I will keep this updated as I continue to write these reports.

I hope this report has proved insightful and that you’ve enjoyed the read! Please do feel free to leave any questions in the Comments, and I’ll answer them as best I can.


 

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This Post Has 2 Comments

  1. chan 4chan

    Thank you for your deep analysis of tokens.

    I am really looking forward to your analysis on UOS(Ultraio) token.

    Will you be able to do it.

    Thank you

    1. Nik

      Hey, glad you enjoy the material – I can include Ultra in the exclusive subscriber poll for a Coin Report, or I can do some TA on it in next week’s Market Outlook for you.

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