Coin Report #27: V-ID

Coin Report #27: V-ID

AD: Before I begin this post, I’d like to briefly mention Bitcoin.Live, who are sponsoring my blog.

Bitcoin.Live offers regular, detailed content on their free-to-access blog, created by a panel of analysts (including Peter Brandt), and covering all manner of market-related topics. I found both the video material and the blog posts to be genuinely insightful, with many differing analytical perspectives available for viewers and readers. The platform also offers premium content for paying subscribers who find value in the free material, with daily videos, alerts and support provided. Check it out and bookmark the blog.


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

Welcome to the 27th Coin Report. In today’s report, I will be assessing the fundamental and technical strengths and weaknesses of V-ID. 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

With the number of altcoins and tokens in existence growing exponentially by the day, it becomes more and more difficult to keep up and sort the wheat from the chaff, inevitably leading to missed opportunities. Further, there are only so many hours in the day, so even those projects that do appear interesting often get neglected.

I have seen V-ID posted all over my Twitter feed in recent weeks, much like I did with Fantom and Quant, both of which got shining reviews. That said, I certainly don’t expect all projects that get a lot of attention to be fundamentally strong, and V-ID had a lot to prove if it was to get a similar grading to those. You’ll have to wait and see if this was the case… or I guess you could just scroll to the bottom of the page, but no one likes a spoiler.

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 V-ID prior to reading this report, here are some primary links:


Fundamental

General:

Name: V-ID

Ticker: VIDT

Algorithm: ERC-20

Sector: Fraud Protection + Document Validation

Exchanges: Hotbit, IDEX, LAToken & CoinExchange

Launch Overview

V-ID was conceptualised in early 2017, as a subsidiary of WIDIDI; a software developer in the Netherlands and the U.K. The company has branches in both countries and WIDIDI own the full rights to the V-ID software.

As a company, V-ID took the uncommon path of developing a product before raising funding. Further, they onboarded several clients during this period. This was followed by a private sale of 12% of the total 100,000,000 VIDT tokens being created, and, in Q3-Q4 2018, V-ID launched an ICO, offering 50,000,000 VIDT to the public. $3.6mn was raised during this period, with 36mn unsold tokens burned and 14mn distributed to investors, equating to an average price per VIDT of $0.25. As of this month, V-ID has spent $1.8mn of this capital, but the project states it has a 24-month runway, excluding positive cash flow from revenues generated moving forward.

Currently, VIDT is an ERC-20 token with a total supply of 62,787,519, but with 25mn VIDT of that set aside for the validation pool that will never be circulated. Thus, maximum circulating supply is 38,044,522 VIDT.

Price-History Overview

As V-ID has only been listed on exchanges from April 2019, there is only a few months of price-history available for analysis, though one distinct short-term market cycle can be observed, as I shall cover in the Technical section. For now, it will suffice to say that V-ID formed its all-time high against Bitcoin at ~5,000 satoshis at the beginning of this month, coinciding with its all-time high against the Dollar of $0.545. It is currently trading at ~2,000 satoshis, however.

Project Overview

V-ID has a great deal of ambition as a company, but a clear purpose and value proposition, which is more often than not a winning combination (if the development matches the ambition).

They are seeking to become the market leader in file protection and validation, with the V-ID software already having 30 clients and currently processing ~50,000 validations per month.

As stated in their whitepaper:

“V-ID is built to help prevent document fraud and add value by validating and verifying documents using blockchain technology. Our mission is to safely certify and secure all digital assets, so fraud and errors no longer hold back society’s innovations in digitalization. The service utilizes generic and trusted principles to enable validation and verification for any digital file, of any publisher. This is possible thanks to the immutable and transparent nature of blockchain.”

Grand ambitions require grand efforts. I look forward to evaluating V-ID’s progress in this regard.

Let’s begin with some Metric Analysis:


Metric Analysis:

Below are listed a number of important metrics, all of which are accurate as of 15th July 2019. 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: $0.20 (1978 satoshis)

Circulating Supply: 26,862,293 VIDT

Total Supply: 62,787,293 VIDT

Exchange Volume: $2,328,376

Network Value: $5,473,294

Maximum Supply: 62,787,293 VIDT

% of Max. Supply Minted: 100%

Network Value at Max. Supply: $12,793,194

Exchange Volume-to-Network Value: 42.54%

Category: Lowcap

Average Price (30-Day): $0.312

Average Exchange Volume (30-Day): $5,988,247

Average Network Value (30-Day): $8,619,470

Average Exchange Volume (30-Day)-to-Network Value: 69.55%

Volatility* (30-Day): -0.2064

Average Daily On-Chain Transactions (5-Day): ~600

Average Daily Transactional Value** (5-Day): $295,307 (source)

NVT*** (5-Day): 18.53

% Price Change USD (30-Day): +20.1%

% Price Change USD (1-Year): N/A

USD All-Time High: $0.545

% From USD All-Time High: -63.4%

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): 1.48 BTC

Liquidity-to-Network Value %: 0.28%

Supply Available on Exchanges: 683,210 VIDT

% of Circulating Supply Available on Exchanges: 2.54%

*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 VIDT 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: N/A

Average Block Time: N/A

Current Block Height: N/A

Annual Supply Emission: 0

Annual Inflation Rate: 0%

Circulating Supply in 365 Days: N/A

 

ICO:

The following details were taken from this source.

ICO Period: September 2018 – December 2018

Total Tokens: 100,000,000 VIDT

Tokens Available For Sale: 50,000,000 VIDT

Total Raised: $3.4mn

Total Tokens Sold: ~14,000,000 VIDT

Average ICO Price Per Token: $0.257

Total Tokens Burned: ~36,000,000 VIDT

 

Distribution:

Address Count: 4,196

Supply Held By Top 10 Addresses: 69.79%*

Supply Held By Top 20 Addresses: 73.46%

Supply Held By Top 100 Addresses: 80.7%

Inactive Address Count in Top 20 (30 Days of No Activity): 7

*The richest address is team-owned and reserved for the validation pool, and it equates to 37.2% of the total supply. Further, the 4th-richest is IDEX and the 5th is Hotbit, which control 8.32% and 2.13%, respectively. Excluding these addresses, the next 10 richest addresses control 23.22%. The 18th-richest address is LAToken, which controls 0.25%; excluding this the top 20 control 26.21%.

Analysis:

Well, there’s rather a lot of interesting data to work through here, but let’s begin with the most important metrics for a utility token: NVT and its related metrics. Utility tokens derive their fundamental value from their on-chain demand, so looking at these figures helps us determine whether V-ID is currently primarily being used for speculation or whether the token is being employed for its intended purpose. Of course, there are other means to determine this, also, as we shall come to a little later.

Using the past 5 days of data (the limit for a single download from Etherscan is 3,000 transaction records), I worked out that V-ID has been experiencing over 600 daily on-chain transactions, amounting to Daily Transactional Value of $295,307. This gives V-ID an uncommonly low NVT (5-day) of 18.53; for context, Bitcoin’s (albeit 14-day) NVT is around 60. As such, V-ID is transacting more volume on-chain per $ of Network Value than Bitcoin. Impressive stuff, indeed.

Now, let’s work through the remaining General metrics and see if they’re equally strong, before moving onto Supply Emission and concluding this section with some Distribution analysis.

The first thing I’d like to point out is that V-ID is rather volatile lately, with  30-day Volatility of -0.2064; the 3rd-highest reading of any coin from prior reports.

Moving on, let’s take a look at the Liquidity-related metrics:

V-ID was calculated to have buy-side Liquidity of 1.48 BTC, which equates to 0.28% of its Network Value. This is the 7th-highest degree of buy-side liquidity, which is quite impressive given that VIDT is not listed on any of the larger exchanges.

As for its sell-side Liquidity, I found there to be 683,210 VIDT listed for sale on exchanges, equating to 2.54% of its Circulating Supply, which is the 6th-highest of any project previously reported on. Thus, despite there being relatively high demand at current prices, there is also a relatively high desire to sell the token. Considering that there is no real incentive to hold VIDT off exchanges besides the expectation of future price appreciation, this is still somewhat impressive.

Moving onto volume, I found that V-ID traded $2.328mn over the past 24 hours, equating to a whopping 42.54% of its Network Value, which, if it were real volume, would be the second-highest amongst all previously reported-on projects. However, as we found with 0xBitcoin in its report (which had the highest Exchange Volume-to-Network Value), the vast majority of the volume is coming from Hotbit, which is often comprised of wash-trading. As such, it is better to discount this figure, leaving us with around $190,000 of Exchange Volume, giving V-ID an Exchange Volume-to-Network Value of 3.48%; a much more reasonable figure, and still one indicative of significant interest.

As for its Average Daily Exchange Volume, I calculated this to be $5.988mn, equating to an even more unbelievable 69.55% of its Average Network Value for the 30-day period. If you discount the ~90% of trading volume that comes from Hotbit, this leaves around $600,000 of Average Daily Exchange Volume, which equates to 6.96% of its Network Value. This is the 6th-highest figure of all previous reports, which is a very positive sign.

Now, what about Supply Emission:

Well, to put it briefly, there is none. As is the case with the majority of ICOs, the maximum supply is that which is created upon the close of the token sale, so there is never any further supply emission for price to contend with. This is golden for speculators, as it means that there are no headwinds for price appreciation. As such, V-ID’s Annual Inflation Rate is 0%. (In fact, it is likely negative, due to a burn mechanism that we shall cover later).

Finally, let’s take a look at the V-ID Distribution:

Using the rich-list, I found that there are currently 4,196 holders of V-ID, which is actually the 4th-lowest for any project previously reported on.

Moving beyond this, the top 10 addresses control 69.79% of the total supply; the top 20 control 73.46%; and the top 100 control 80.7%. However, as mentioned above, the richest address is team-owned and #4, #5 and #18 are exchange addresses. If these are discounted, the next top 10 controls 23.22% and the top 20 controls 26.21%; indicating much more decentralisation of supply than initially found.

As for the activity of the top 20 richest addresses, I found that 7 were inactive over the past 30 days, and that, of the remaining 13 addresses, 1 was net unchanged despite many transactions, 4 were distributing from their positions at a cumulative total of 550k VIDT and 8 were accumulating, with a cumulative total of over 1mn VIDT added over the past month.

Now, let’s take a look at their 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.

V-ID is present on two of these platforms: Twitter and Telegram.

To begin, let’s look at the various social metrics that I calculated from the V-ID Twitter account:

Twitter Followers: 2,844

Tweets: 244

Average Twitter Engagement: 5.6%

Facebook Likes: N/A

Facebook Posts (30-Day): N/A

Average Facebook Engagement: N/A

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

Twitter:

V-ID has a small Twitter audience of 2,844, which places it around the middle of the pack amongst projects from prior reports. However, it has very strong engagement, with its average engagement rate at 5.6%. This is 116.7x greater than the average across all industries and 622.2x greater than the average of the Media industry. Further, and more importantly, it is the 2nd-highest engagement level of all previous reports, beaten only by 0xBitcoin, which has a significantly smaller Twitter audience of 178 followers that boosts its engagement rate a great deal. In effect, I would say V-ID has the most engaged Twitter community of any project I’ve written a report on. Promising stuff.

The one negative here is scale; the community is small, and efforts clearly need to be made on community growth. That said, as V-ID is a company rather than a fully-decentralised Proof-of-Work project (or the like). with a focus on generating revenues as a business from other businesses, I would not expect this to be a priority nor should it be one, given that the success of V-ID will not be tied to the growth of its community but rather its customer base. Nonetheless, it is always helpful to have a large group of individuals committed to ensuring word spreads about any given project or business.

Facebook:

There is no Facebook page, which is rather surprising, as Facebook tends to have a larger audience for ICOs than Twitter. Plus, given how engaged the Twitter audience is, I feel that an opportunity is being missed here to scale the V-ID community.

Discord:

There is no Discord group.

Telegram:

There are two Telegram groups: one for team-led updates, which has 2,669 members; and one for the community, which has 652 members.

The former is primarily comprised of announcements and news, with new updates posted pretty much every day. Over the past week, these have included a proposal being submitted to Binance DEX; a partnership being announced with Morpheus Labs whereby V-ID will validate the DApps on the App Platform, as well as creating certificates for hackathon participants; and a bridge being created for ERC-20 and BEP-2 interoperability.

As for the community group, despite there being only 652 members, discussion is constant, with hundreds of daily messages being posted and conversation thriving. Over the past week, there has been some back-and-forth regarding IOTA’s recent announcement of a zero-cost API of their certification service, with arguments against this model being that free services get flooded with spam, and that V-ID has a cash-flowing business model to keep it afloat, whereas IOTA does not. Further, V-ID offers three levels of screening of the validating party, ensuring legitimacy of the authentication.

There is also some discussion on the lack of exchange listings, but many within the community are comfortable with this given that V-ID already has paying customers for their product. Further, as would be expected in a community-run group, there is a lot of price talk.

Overall, however, discussion is positive and there is palpable excitement about V-ID.

BitcoinTalk:

The V-ID BitcoinTalk thread was created on August 18th, 2018 and has since generated 113 posts spanning 6 pages in 333 days. This equates to 0.34 posts per day, on average. However, in the past 90 days, the thread has had 22 posts via 12 individual posters, giving an average of 0.24 posts per day.

Regarding the announcement itself, it is concise and informative though clearly has not been updated since it was posted, as it still refers to the token sale. Further, there is a lack of detail regarding the token specification, such as supply metrics. All relevant resources are linked, however, and there is a short introductory video linked, explaining the purpose of the project. I believe it would be helpful for potential investors to link to more recent updates and significant news within this ANN.

As for the content of the thread, there are development updates posted, such as the Dutch National Register of Architectural Inspectors using V-ID for document validation, links to PR materials and detailed monthly reports, a new roadmap and the joining of the Binance Chain ecosystem for the VIDT token.

And that concludes this section on the Community.

Let’s take a look at its 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 14 individuals listed on the website, though 6 of these are advisors. There are also 9 employees on LinkedIn.

Most significantly, the team have worked together for over a decade, and there is experience in all fields of required expertise, but with a development-heavy focus, as would be expected. Full transparency is provided on those working on V-ID, which is great to see. Further, advisors include the ex-VP and CTO of American Express, Chris Robinson, as well the CEO of WIDIDI and the CEO of Blockalize.

Perhaps the only negative is that it seems the most neglected area of expertise is in marketing, which I believe is evident by the relatively small community that has been built around the project since the token sale around 9 months ago.

They are also currently hiring.

Website:

about.v-id.org

Let me begin by stating that the website is fantastic. It is well-branded and designed, with clean, effective UI/UX, and it is extremely informative, catering for all sorts of visitors, including corporate clients and individual investors or members of the community. Navigation is smooth, with relevant tabs in the menu, as well as across the site itself. Further, information is made readily accessible and seamless; one click and I found myself learning about exactly what I wanted to know.

Moving through the homepage, the call-to-action is prominent, with potential clients invited to schedule a call with the team, with current clients listed beneath this, including: Airbus Defence and Space; Douwes Fine Art; Krohne; NRBI; Maritime Cyber Alliance; AmSpec; and numerous others. After this, we are told the purpose of V-ID, which is to “secure any digital file against unlawful manipulation, protecting businesses against digital fraud, and letting people focus on innovation.” How this works exactly is made simple for those unfamiliar with blockchain technology, with the focus being on “efficiency through automation”, with V-ID’s API allowing for automated file validation. Following this, we find a promotional video and a brief outline of example use-cases, such as certification and diplomas, invoice protection and shareable, verified legal documents. There are also videos provided with current case-studies, such as Rembrandt On Chain, in conjunction with Douwes Fine Art. Towards the footer of the homepage, we find exchange listings and social links, as well as further navigation.

The Validation page describes in great detail the process of document validation, including how V-ID streamlines this process with a 5-second verification, with no plugins or logins required on their validation platform and a drag-and-drop service available, as well as their API. Following validation, documents are uploaded to the blockchain and become immutable, allowing for swift verification of the contents of any validated file at any point in the future.

V-ID also provide their pricing for the services, with the Standard package priced at 49 Euros per month, billed annually, and providing 100 free validations and 2 Euros per extra file thereafter. There is a Self Validation Portal offered, also, with free document verification. The Plus package is 149 Euros per month, with 300 free files a 1.50 Euros per file thereafter, with 3 Self Validation Portals. The Enterprise package is negotiable, with pricing determined based on volume, with on-site training provided, an advanced API and white label interface.

The News section of the site provides regular, detailed updates, with recent updates including: the Binance DEX proposal and BEP-2 bridge creation; monthly development reports; partnerships with Digibyte and AXVECO; and a new and updated roadmap.

Overall, very impressed.

Roadmap:

about.v-id.org/bru/

The roadmap is equally fantastic, with a full history of V-ID available from 2017, segmented by month with concise details and visuals. Links are also provided with further reading.

I won’t go through the entire roadmap, but rather the sections beginning in 2019:

The first accomplishment of the year was listing on IDEX, which was VIDT’s first exchange. Shortly afterwards, LAToken also listed the token. Moving forward through March, V-ID provided a tokenomics update that discussed the burn mechanism and the discard dividend mechanism, which I shall discuss in greater detail a little later. New advisors joined the team in March, too, and in April V-ID got its third exchange listing on Hotbit. Further, they announced a partnership with LTO Network and validated a Rembrandt with Douwes Fine Art. In May, they deployed v2 of their API, launches their usage dashboard with useful metrics and bought back 2mn VIDT from an equity investor, 500k of which is being distributed to create awareness and 500k of which was added to the team’s wallet; the remaining 1mn VIDT was burned.

Now, beginning in July, V-ID have announced monthly buy-back-and-burns, rather than quarterly, with 20% of all VIDT spent by V-ID’s customers on validations being burned. Moving forward, V-ID are launching their v3 API this month, as well as v3 of their WebApp, They will also be doing a Deep Dive at CMS Amsterdam. In August 2019, they will be launching the closed beta of their B2C application and installing an end-to-end security layer for their client, Vitriumnet. In September, a learn-and-earn programme will be launched to distribute 500k VIDT to the community and Internet of Environments data will be secured by V-ID. Before the end of Q3, VIDT is expected to be listed on a top exchange.

In Q4 2019, V-ID will launch a KYC process and construct a best practice framework for GDPR with CMS Law, with a real-time GDPR compliance toolkit.

In 2020, V-ID will have a public release of their B2C app, allowing individuals to validate files using VIDT for payment, not just businesses. Further, a security token will be launched called VIDS, where VIDT will be exchangeable for VIDS, giving equity in the company.

Lots to look forward to, certainly.

Whitepaper:

Whitepaper

The whitepaper is rather lengthy at 48 pages, so I won’t cover the entire thing here.

However, there are a few things to point out, which I have noted below:

  • V-ID as a company and subsidiary of WIDIDI operate with zero debt capital, which is always good to know.
  • They have several paying clients already, including Airbus Defence & Space, Krohne and BaanVelgen (this has grown to many more than documented in the whitepaper).
  • Use-cases currently being explored include: diplomas and certificates, reports, legal documents, inspections, audits, logistics, photo material and video evidence.
  • V-ID is seeking to become ” a market leader in file fraud protection, just like SSL has become for secure internet connections”.
  • The team has over a century of cumulative experience.
  • The company has branches is the UK and in the Netherlands and has full software rights and licences.
  • File verification takes 5 seconds and only requires a browser and an internet connection to do so.
  • The primary problem being tackled in a world of digitalisation is document fraud.
  • There is a working product prior to a private sale or ICO being conducted.
  • WIDIDI have an existing global customer base, which V-ID will leverage.
  • 1 VIDT was valued at ~$0.20 in the token sale, so pricing per file validation is expected to be 7-9 VIDT for self-validation, with prices rising depending on V-ID’s involvement in the validation process. Following validation, verification is free.
  • The goal by Q4 2019 was 200,000 documents validated per year (currently surpassing this on an annual projection).
  • VIDT was launched as an ERC-20 token to facilitate a token sale.
  • VIDT is used to identify wallet addresses for validators and used as payment for validation.
  • The token price has to be high enough to cover operational costs.
  • Originally, a dividend was planned but later scrapped to comply with utility token status.
  • The business model is as follows: VIDT is issued from the Main Wallet to businesses for use in validations > this is spent by businesses on validations > 20% of the spent VIDT are burned, thus reducing supply > 80% return to the Main Wallet > VIDT is bought back on exchanges at a rate of 10% of VIDT spent.
  • A B2C consumer app is being developed by V-ID.
  • The token sale occurred between September – December 2018, with 50mn VIDT of a total 100mn VIDT available in the public sale, with all unsold tokens burned.
  • The distribution of tokens was originally: 50% to the public sale, 12% to the private sale, 25% to validation wallet, 3% to the team, 2% to advisors and 8% for bounties and airdrops.
  • The financial plan is as follows: Year 3 document validation is estimated at 500,000 and 1.5mn in Year 5, with revenues shifting from licences to turnover per document.
  • The ICO funds are distributed as follows: 30% on marketing, 25% on operations, 30% on development, 10% on the team and 5% on advisors.

Wallets:

As V-ID is currently an ERC-20 token, so it can be stored on all ERC-20 compatible wallets, including hardware wallets.

General:

One thing I’d like to discuss in this final section is the token economics and cash-generative business model that V-ID has constructed, which is particularly insightful for us speculators.

Here, you can find a very helpful dashboard where V-ID provide numerous statistics on transactions and validations that I will be referring to.

So, unlike the vast majority of cryptocurrency projects, particularly those that launched with token sales, it seems that V-ID has a working product and a customer base, thus has created a cash-flowing business. Looking at the figures on the Usage Dashboard, we can see that, in May, 708,647 VIDT was spent on file validations; in June, 731,227 VIDT was spent; and so far in July 225,375 VIDT has been spent (a drop-off from the prior two months). More significantly, we can see that in Q2, 1.77mn VIDT was spent on validations.

This equates to $360,929 of quarterly revenue at current prices. Further, the burn mechanism meant that 354k VIDT was reduced from the total supply, equating to a 0.56% reduction. Lastly, 177k VIDT was bought back on exchanges, currently equating to 3.5 BTC-worth of buy pressure; that’s 0.65% of VIDT’s Network Value.

Assuming no growth of the business moving forward, we can then determine that annual revenue will be $1.44mn. This means that, at present, you are paying 3.7x revenue for the business by buying VIDT. Further, there would be ~2.2% of annual supply reduction at current revenues.

Assuming a 50% increase in revenues on a 12-month basis, you would be paying 2.5x revenues for the business right now. Further, 2.12mn VIDT would be burned annually, equating to 3.4% of the total supply.

Now, couple this with the fact that VIDT will be exchangeable for VIDS (equity in the business) in 2020, and I believe the value proposition from a speculative standpoint is extremely clear.


Technical

VIDT/BTC

VIDTBTC4H

VIDT/ETH

VIDTETH4H

Whilst there is little price-history available for V-ID, it is quite clear to see that a short-term market cycle has played out.

Looking first at the VIDT/BTC chart, we can see that price bled from its initial listing on an exchange, finding its all-time low at 565 satoshis, and remaining range-bound between there and 1070 satoshis. This was the Depression phase of the cycle. Shortly after, price began to break out, turning resistance into support at 1070 satoshis, and then again at 1760 satoshis, consolidating about this old resistance for a few days. Disbelief turned into Hope and then into Optimism as price continued to rise, making new all-time highs all the way, and trading at 3500 satoshis, from which price rejected but quickly found new support. This was followed by the steepest leg of the bull cycle, with Euphoria ultimately coming in at just short of 5000 satoshis, which remains VIDT’s all-time high. This was followed by Complacency and all the subsequent emotions of a bear cycle, in quick succession, with price now trading above prior resistance turned support of 1800 satoshis. This entire bear cycle has occurred on declining volume, indicating that another swift cycle may follow this as part of a long-term bull cycle. For now, price is capped by trendline resistance, but it looks attractive to me.

Turning to VIDT/ETH, we can see a very similar pattern of price-action playing out, but with old resistance recently turning support at 0.0008 ETH. Trendline resistance is capping price, but an RSI divergence on the recent lows and the flattening out of volume makes me think that the lows may indeed be in for VIDT/ETH. If price can break above 0.0011 ETH on solid volume, I am very interested in buying a retrace as this resistance is flipped as support. A soft stop-loss could be placed at the 0.00078 ETH lows, with a target of new all-time highs.

However, regarding a long-term position, I believe there is a great deal of value to be had at an entry here for a number of reasons. Firstly, there is zero annual inflation; secondly, there is enforced deflation with the burn mechanism, which will only continue to grow in its efficacy as the business itself grows; and lastly, the Network Value of VIDT is currently $5.4mn and the projected annual revenue of the business, using Q2 data (which I covered in the previous section), is $1.438mn. You’re currently paying 3.7x revenues for the business, if we look at it as a security, which, in 2020, it will be.


Conclusion

This report is now over 5,000 words, and it is time to draw it to a close.

My final grading for V-ID is 8 out of 10.*

*I would without doubt give V-ID a 9 out of 10 if it wasn’t for the current lack of liquidity.

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.


 

Join my mailing list today to receive a free copy of my 23-page ebook, The Definitive Guide To Altcoin Selection, plus receive regular exclusive material I don't publish elsewhere:

This Post Has 6 Comments

  1. Good Review VIDT have very bright future!

    1. Cheers!

  2. Please stop saying “comprise of.”

    1. Typo. I’ve used it once. Didn’t even notice it was in the opening paragraph until you mentioned it, and as that’s part of the template it reappears. Corrected now.

  3. Informative and very help. I have been reading your reports for a while and my only critique is that your lowest rating has been a 6. Either you’ve only selected strong coins to review or you dislike giving low ratings

    Besides that, keep up the great work. This report helped solidify me to buy VIDT and hope for that Binance listing

    1. Hey, glad you enjoy the reports. Regarding grading, I have given a 5 before, but yes most projects score between 6-8.

      I have mentioned in the past that the likelihood of a score below 5 is very slim because of the time expense incurred to research and publish the reports; I tend to turn these projects away immediately, as they won’t meet sufficient volume/liquidity/exchange listing requirements or premines will be very high etc.

Leave a Reply

Close Menu
×
×

Basket