You are currently viewing Coin Report #82: Gather

Coin Report #82: Gather

Welcome to the 82nd Coin Report. In today’s report, I will be assessing the fundamental and technical strengths and weaknesses of Gather. 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

For the third Coin Report of 2022, I will be covering Gather, as the winner of the April community poll, narrowly beating out Dero. I will refrain from too much preamble but I would like to mention that prior to the publication of this report I had little to no idea as to what Gather is, beyond having seen its ticker on Twitter from time to time.

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 Gather prior to reading this report, here are some primary links:


Fundamental Analysis

General:

Name: Gather

Ticker: GTH

Algorithm: GTHash on Mainnet

Sector: Digital Advertising

Exchanges: Uniswap, PancakeSwap, Gate.io, AscendEX, BKEX, Bithumb Global and Hoo.com

Launch Overview

Gather was conceptualised as early as Q2 2018, building relatively silently until the announcement of its IEO in May 2019, which ultimately was cancelled following the over-subscription of its private sale in September 2020. Gather ultimately raised $1,285,000 across a seed round in 2018 priced at $0.0144 per GTH for a total of 22,600,000 GTH, and a private sale for $0.032 per GTH for a total of 30,000,000 GTH. All of this has now been vested. GTH was issued as an ERC-20 token, with a maximum supply of 400,000,000 GTH, with the supply distributed as follows: 5.6% Seed Round; 7.5% Private Sale; 7.5% Platform and Partnerships; 12.5% Team Tokens; 12.5% Marketing; 48.4% Gather Foundation; and 6% Advisor Tokens. 200,000,000 GTH is expected to join circulation in addition to this via supply emissions from use of the protocol.

Gather launched its initial mainnet – dubbed Mercury – in May 2021, allowing publishers to integrate Gather to their websites and begin generative revenue via GTH rewards.

Price-History Overview

There is a lot of price-history available as Gather has now been traded for 18 months, with the all-time high forming against Bitcoin at 1200 satoshis, and at $0.67 against the Dollar, in March 2021. Prior to this, in November 2020, Gather formed its all-time low at 70 satoshis and $0.0125 around the same time. I will take a much closer look at this price-history and the cycles that have played out later in this report.

Project Overview

The aims of Gather are rather straightforward: to provide users and website owners with revenues from online activities and to provide enterprises with low-cost processing power.

As stated in its whitepaper:

“Three layers build the backbone of the Gather Ecosystem:

Layer 0: Gather Online – The hardware layer, where processing power is collected from publishers.

Layer 1: Gather Network – The protocol layer, a hybrid proof of work and proof of stake blockchain, where stakeholders are incentivized to maintain transparency and security.

Layer 2: Gather Cloud – The application layer, where processing power is redistributed to enterprises at lower costs and to blockchain developers to secure their networks without sourcing miners.

Our Ecosystem is derived from processing power generated by the hardware layer and flowing securely back to the application layer, via the protocol layer.

The stakeholders are incentivized with Gather ($GTH) coin to generate revenue by providing processing power for the hardware layer and to maintain a healthy network for the application layer.”

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 29th April 2022. 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: $0.0303 (78 satoshis)

Circulating Supply: 169,013,287 GTH

Total Supply: 600,000,000 GTH (400mn from ERC-20 + 200mn mainnet emissions over 12 years from use of the protocol).

Maximum Supply: 577,162,013 GTH (including 22.8m GTH burn)

% of Max. Supply Minted: 29.28%

Network Value: $5,120,291 (131.83 BTC)

Network Value at Max. Supply: $17,485,239

Exchange Volume: $822,157 ($332,521 excluding wash)

Exchange Volume-to-Network Value: 6.49% excluding wash

Category: Microcap

Average Price (30-Day): $0.0362

Average Exchange Volume (30-Day): $291,062 excluding wash

Average Network Value (30-Day): $6,006,753

Average Exchange Volume (30-Day)-to-Network Value: 4.85%

Volatility* (30-Day): -0.0568

Average Daily On-Chain Transactions (30-Day): 45.78

Average Daily Transactional Value** (30-Day): $64,986 (source)

NVT*** (30-Day): 78.79

% Price Change USD (30-Day): -32%

% Price Change USD (1-Year): -92%

USD All-Time High: $0.683

% From USD All-Time High: -95.6%

Premine % of Max. Supply: N/A

Premine Location: N/A

Liquidity (calculated as the sum of BTC in the buy-side with 10% of current price across all exchanges): 2.77 BTC

Liquidity-to-Network Value %: 2.11%

Supply Available on Exchanges: 25,355,156 GTH

% of Circulating Supply Available on Exchanges: 15%

*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.

**Transactional Value in $ is calculated by taking the daily transactional value in GTH and multiplying it by price.

***NVT is calculated by dividing the Network Value by the Average Daily Transactional Value. See here for more on NVT.

Supply Emission & Inflation:

Block Reward Schedule: Whilst all ERC-20 GTH is in existence, 200mn of mainnet GTH joins circulation with an emission schedule as follows: halvings every 5.5mn blocks with 17.3 GTH block rewards.

Average Block Time: 13 seconds

Current Block Height: 1,888,483

Annual Supply Emission: 42,046,946 GTH (32.8 BTC at current prices)

Annual Inflation Rate24.88%

Circulating Supply in 365 Days: ~211,060,233 GTH

 

Token Sale:

The following details were taken from this source.

Public Sale Period: N/A (only private sales)

Total Tokens: 400,000,000 GTH

Total Tokens Available for Public SaleN/A

Average IEO Price Per Token: N/A

Total Raised: $1,285,000 

Total Tokens Sold: 52,600,000 GTH

Further Details:

  • Gather raised all funding via seed and private sales, raising $325,400 in its seed at $0.0144 per GTH for 22.6mn GTH, and $960,000 in its private sale for $0.032 per GTH for 30mn GTH.
  • Token Distribution is as follows: 5.6% Seed Round; 7.5% Private Sale; 7.5% Platform and Partnerships; 12.5% Team Tokens; 12.5% Marketing; 48.4% Gather Foundation; and 6% Advisor Tokens. 

 

Distribution:

Address Count: 3,857 + 98 addresses on mainnet

Supply Held By Top 10 Addresses: 30.4%*

Supply Held By Top 20 Addresses: 36.35%*

Supply Held By Top 100 Addresses: 52.03%*

Inactive Address Count in Top 20 (30 Days of No Activity): 12**

*Excludes exchange, team and smart contract addresses and calculated as a percentage of circulating supply.

**Excludes exchange, team and smart contract addresses.

 

Analysis:

If we begin by taking a look at on-chain data, we find that Gather has averaged 45.8 daily transactions for the past 30 days, equating to an average daily transactional value of $64,986, which gives it a 30-day NVT of 78.8, which is moderate – around half the NVT of Bitcoin at present, for example.

Now, looking at the remaining General metrics, let’s take a look at Volatility:

I calculated this to be -0.0568 for the past 30 days, which is very low, and thus indicative of an accumulation range. It is possible that Gather is being accumulated here but we will need to look more deeply at both holder activity and the chart later in this report.

Next up, we have the metrics relating to Liquidity:

Firstly, I found that there was 2.78 BTC of buy-side liquidity within 10% of current prices to be found across all exchanges, equating to 2.11% of its Network Value. This places Gather in the top quarter of all projects previously featured in these reports, which is promising.

As for sell-side liquidity, I found that 25,355,156 GTH was available for purchase in the orderbooks, equating to 15% of the circulating supply. This is the highest figure recorded in these reports, but it must be stated that 22.5mn GTH of this is liquidity on Uniswap and PancakeSwap and only 3mn GTH is on centralised exchange orderbooks. Nonetheless, there is plenty of Gather available to purchase.

Moving onto volume, Gather is reported to have traded $822,157 of Exchange Volume over the past 24 hours, equating to 16.06% of its Network Value. However, much of this is wash trading on less reputable exchanges, and if we discount the wash, the actual traded volume appears closer to $332,521, which is 6.49% of its Network Value (or market cap). Further, Average Exchange Volume was $291,062 (accounting for wash) for the past 30 days, equating to 4.85% of Gather’s Average Network Value for the same period. This indicates a high level of speculative interest of late.

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

If we consider the supply emission schedule, we find that there is a block halving every 5.5mn blocks with 13-second block times and 17.3 GTH per block reward from the off, and thus we can calculate that over the forthcoming year there will be a maximum of 42,046,946 GTH of supply joining circulation, equating to 32.8 BTC, which provides 24.88% of annual inflation, which is not too bad at all. This puts circulating supply at 211,060,233 GTH in a year’s time. This is, of course, excluding vesting unlocks but having looked over these, most of the supply has vested at this point anyway. However, it is important to note that the aforementioned emissions are in addition to the 400mn original supply, but also that recently a proposal was accepted to halt this block reward schedule in favour of a dynamic ratio of burn-to-emissions, beginning at 90% burn and 10% rewards, and shifting until a 100% ratio is achieved. As such, these figures presented are the maximum we can expect.

Now, more important than the nominal figures for emission alone are their relationship with traded volume and liquidity.

If we take the above figure of 42mn GTH joining circulation in the forthcoming year, we can work out that average daily supply emission during that period will be 115,197 GTH. This equates to 0.089 BTC, or $3,490-worth. Given this, Gather’s 24-hour traded volume of $332,521 is plenty sufficient to support such emission. Further, its buy-side liquidity is 31x greater than that daily emission, which is very supportive of prices. Headwinds for future price growth are thus low.

Finally, let us take a look at some Distribution:

Using the rich-list, I found that there are currently 3,857 holders of GTH.

Of the maximum supply of 400,000,000 GTH, if we look specifically at circulating supply and exclude team, exchange and smart-contract addresses, the top 10 control 30.4%; the top 20 control 36.35%; and the top 100 control 52.03%.

Among the top 20 non-exchange, privately-owned addresses, 12 were inactive over the past 30 days, whilst only 2 addresses were found to be distributing and 6 were accumulating, with net inflows into these addresses of 3,343,205 GTH over that period, equating to 1.99% of circulating supply. This is very promising from a speculator’s perspective.

And that concludes this section. Onto the Gather 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.

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

Twitter Followers: 11,680

Tweets: 1,249

Average Twitter Engagement: 0.36%

Facebook Likes: 4,740

Facebook Posts (30-Day): 25

Average Facebook Engagement: 0.0042%

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

Twitter:

Gather has a moderately-sized audience of 11,680 followers. Its engagement rate, however, is quite poor at 0.36%. Relative to global benchmarks, this is 8x greater than the average across all industries of 0.045% and 13.3x greater than the average in the Tech and Software industry of 0.027%. That being said, relative to other projects featured in these reports, it is in the bottom quarter. Whilst I can see that there is a commitment to publishing content here, there is clearly a disconnect between the commitment to publication and the commitment to fostering engagement.

Facebook:

Gather has a much smaller audience of 4,740 on Facebook, but surprisingly has a vastly lower engagement rate, with most of the 25 posts of the past 30 days showing zero engagement, and with average engagement at 0.0042%. I am not sure why this is the case when there are nearly 5,000 people following the page and clearly they are regularly posting here, but something is not working for Gather regarding getting those that view the content to engage with it. Relative to global benchmarks, this is also vastly below the all-industry average of 0.064%, and the Tech and Software average of 0.02%.

Discord:

There is no Discord for Gather.

Telegram:

There are 3,959 members of the Gather Telegram group.

Below, I have summarised my takeaways from the past week of activity:

  • Whilst there is certainly some degree of activity on a daily basis, it is by no means a highly active group, with a dozen or so messages post on average daily.
  • The team are very active in responding to support queries and conversing with the engage members of the group regarding development of Gather and future plans and expectations, which is good to see.
  • LibertyDex – a decentralised exchange powered by Gather – is in development.
  • Beyond this, there really is not a lot to gleam from the group, as much of the conversation is simply responding to support, which is a shame.

BitcoinTalk:

There is no BitcoinTalk thread for Gather.

And that concludes my evaluation of the Gather community.

Let’s take a look at its development:


Development:

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

Project Leadership:

There are 15 team members listed on the website and 7 advisors, with Gather currently having 12 vacancies and 25+ employees listed on LinkedIn.

More specifically, the team is comprised of:

Whitepaper:

The whitepaper can be found here.

I have provided the key takeaways below:

  • Advertising is critical to Internet revenues. More than half of all ad revenue is earned by Google and Facebook.
  • Ad revenue models are considered intrusive and adversely affect user experience.
  • Users have opted for ad blockers in recent years, reducing ad revenues.
  • Cloud computing is the primary practice for hosting and management of web data, with Amazon AWS, Google Cloud and Microsoft Azure the major players. The market is worth over $200bn.
  • Computing cost is actually increasing due to centralisation of service providers.
  • Cryptocurrency mining via traditional proof-of-work requires too much computing power.
  • The Gather solution to these problems is three-tiered: Layer 0 is Gather Online, which is the hardware layer, collecting processing power from publishers; Layer 1 is the Gather Network, which is a Proof-of-Work/Proof-of-Stake hybrid protocol that incentivises stakeholders to maintain security and transparency; and Layer 2 is the Gather Cloud, which is the application layer that redistributes processing power to enterprises at a reduced cost, as well as to developers to secure their blockchains.
  • In short, processing power is generated by the hardware layer and re-routed to the application layer through the protocol.
  • An example given is a user visiting a website -> opting in with 1-click -> processing power collected by Gather -> distributed to enterprises -> users and website owners earn rewards.
  • In-browser miners have grown in recent years as a supplemental income stream to advertising. This gives users an ad-free experience.
  • The potential of this is huge given that there are 2.5bn live websites, with cryptocurrency making the integration of this model seamless.
  • Transparency is key here from website owners to ensure user experience is not affected.
  • Gather Online is a new approach to in-browser mining with merged mining and the GTH native coin. New and existing coins can use the Gather hash-rate, allowing for increased decentralisation and improved profitability.
  • Website and app owners can integrate Gather and earn revenue via user CPU and GPU. Pay-outs are possible in GTH, BTC or local currencies where permissible.
  • The Gather Network layer will comprise a web staking wallet, masternodes and lite nodes, merged mining and auxiliary chains and smart contracts.
  • Smart contracts will be introduced to allow for unification of blockchains through Gather and private masternode networks, with each auxiliary chain increasing the interoperability of Gather.
  • The subsequent block reward schedule in the Whitepaper does not align with that of the website, and having checked the explorer it appears the website schedule is the accurate one.
  • Gather is planning to provide a one-stop shop for crypto issuance requirements by enterprises, allowing them to develop and launch on Gather.
  • The Gather Foundation will hold raised funds and provide grants for builders within the ecosystem. Only two members of the Gather Enterprise have a seat at the 12-seat Foundation, with 10 made up of third party stakeholders.
  • It is expected that masternodes will make 38% APR based on 100 live nodes, with 15% APR for staking.

Roadmap:

There is no roadmap available for Gather.

Wallets:

As GTH is an ERC-20 token, it can be stored on any ERC-compatible wallet, including hardware wallets like Ledger and Trezor, web wallet and mobile wallets.

Developmental Progress:

From recent blog posts and Medium posts, I have summarised developmental progress of Gather below:

  • Gather launched their v1 Mainnet – Mercury – in May 2021.
  • Gather had 400+ businesses utilising their protocol as of June 2021.
  • Gather partnered with Aperteur, an OTT streaming platform, which will integrate the protocol for their platform.
  • On January 6th 2022, a new GTH contract went live following the hack of AscendEX.
  • On January 25th 2022, Gather Online resumed online activities, with reduced rewards amounting to 10% of the original allocated amount, with 90% (equivalent to 2.17mn GTH per month) being burned, with the reward allocation increasing as revenues increase until 100% is achieved.
  • Gather went live on BSC in January 2022, initiating a multi-chain Gather ecosystem.
  • Gather Minerva – the v2 Mainnet – went live in March 2022, bridging ERC-20 and BEP-20 to the native Layer 1, with functionality for cross-chain bridges, smart contract deployment, dApp deployment and GRC-20 token issuance.
  • Gather has over 630 live clients on its protocol as of April 2022.
  • 22,837,987 GTH has been burned of the 600mn maximum supply (400mn initial allocation + 200mn supply emissions over 12 years).

And that concludes my fundamental evaluation of Gather.


Technical Analysis

GTH/BTC

gthbtcweekly

GTH/USD

gthusdweekly

Beginning with GTH/BTC, we can see from the weekly that Gather began trading with an immediate downtrend of the initial high at 1000 satoshis, capitulating lower for a couple of months until it formed the all-time low at 70 satoshis in November 2020 that is just about holding to this day. Subsequently, the pair saw its first bull cycle, rallying through to March 2021, when it formed its all-time high at 1200 satoshis. Since then, price has been in its first major bear cycle, bleeding lower over the course of a year, spending several months rangebound between support at 105 satoshis and resistance at 415, though it wicked above that area on successive attempts and failed. Since December 2021, price has been bleeding lower into the all-time low, above which it currently sits, with volume having picked up since entering the range between 70 satoshis and 105. From here, if we are to expect a cyclical bottom to form, we need continued large holder buying whilst price continues to flatten out, and we may well see that all-time low taken out before it is reclaimed. If we see a weekly close below 70 and price continue lower, there is probably still bearish price discovery to come before the ultimate bottom is found, but, given that this is a microcap, I am willing to be a buyer here near the all-time low and continue to add to my position if we make new lows until I fill a 2% position, at which point it is moon or die for me and I will be willing to hold out for a new cycle.

Turning to GTH/USD, we can see again that price bled out into an all-time low at $0.0124 in November 2020 and then rallied for months until it formed an all-time high at $0.676, beginning its bear cycle there where price sold off into support around $0.045 before rallying once again to form a macro lower high into $0.35 in November 2021 and since bleeding lower, breaking below the July 2021 support into $0.028, where it currently sits. There is no real support in this area and I would expect to see a little deeper pull-back into that $0.0225 area, where there is support, before we start to see price potentially flatten out and form a bottom, with the all-time low the only level subsequent to that at $0.0125. Again, my strategy is the same here given how the BTC pair looks and the fact that large holders are buying. I am willing to start entering a position here and scale in as price potentially moves as low as that prior all-time low, which is still over a 50% decline away and would likely only be hit in the even that BTC/USD starts losing $29k, but again for me presents good value given the current fully diluted valuation relative to price and market cap all-time highs and the fact that the largest entities are not distributing here.

And that concludes my technical analysis of Gather.


Conclusion

This report is now approaching 4,000 words, and it is time to draw it to a close.

My final grading for Gather is 7 out of 10.

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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