N.B: In the spirit of full transparency, the following Coin Report on V-ID is a Sponsored Post. This is an updated report following my 2019 publication on V-ID.
Welcome to the 56th 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!
As regular readers of the blog will know, I first published a Coin Report on V-ID in July 2019. The report certainly opened my eyes to the great work being done by the team and the very attractive tokenomics for a speculator, but a year in crypto is equivalent to a decade elsewhere and so there is plenty of out-dated information to be clarified and progress to be highlighted. As such, I hope that this updated report will fill in the gaps since that original publication and I will do my utmost to accurately evaluate the state of V-ID as it currently is.
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:
Algorithm: ERC-20 and BEP-2
Sector: Data Validation
Exchanges: Kucoin, Hoo, Hotbit, IDEX, Bilaxy, Binance DEX, Fatbtc and Uniswap (and Kyber Network soon)
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 on-boarded 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. $3.4mn 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.
VIDT was launched as an ERC-20 token with an original maximum supply of 100,000,000, but following the early token burn and the current quarterly buy-back-and-burn mechanism, the maximum supply is ~58.5mn VIDT. This figure is ever-decreasing due to the aforementioned burn mechanism, which shall be discussed at length later in the report.
The VIDT token itself is integral to the V-ID ecosystem, providing the means by which data validation can occur.
V-ID has now been in existence for over a year and so there is a moderate amount of price-history available to us. There has been one distinct market cycle that has played out, which I shall analyse in detail in the Technical Analysis section. For now, it will suffice to say that the all-time high formed at 4,955 satoshis in late June 2019, coinciding with its all-time high against the Dollar of $0.55. Regarding its all-time low, this was formed at 575 satoshis in May 2019 and at $0.044 in March 2020 against the Dollar.
V-ID is primarily focused on file verification and data validation, seeking to become the market leader in these sectors, with the V-ID software already having over 40 clients and currently processing ~82,200 validations per month, as per June data.
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.”
Given that V-ID already has a working product, a client base and transparent data on the growth of the business, I look forward to evaluating the progress made since its inception.
Let’s begin with some Metric Analysis:
Below are listed a number of important metrics, all of which are accurate as of 28th July 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.
Price: $0.3684 (3,310 satoshis)
Circulating Supply: 43,398,884 VIDT (source)
Total Supply: 57,698,564 VIDT
Exchange Volume: $2.795mn
Network Value: $15.98mn (1436.50 BTC)
Maximum Supply: 57,698,564 VIDT (-3.9mn VIDT on July 2019 figure)
% of Max. Supply Minted: 100% (deflationary mechanism, where maximum supply is ever-decreasing)
Network Value at Max. Supply: $21.25mn
Exchange Volume-to-Network Value: 17.48%
Average Price (30-Day): $0.2937
Average Exchange Volume (30-Day): $2.228mn
Average Network Value (30-Day): $13.75mn
Average Exchange Volume (30-Day)-to-Network Value: 16.2%
Volatility* (30-Day): -0.1291
Average Daily On-Chain Transactions (7-Day): 291
Average Daily Transactional Value** (7-Day): $235,456 (source)
NVT*** (30-Day): 67.90
% Price Change USD (30-Day): +91.4%
% Price Change USD (1-Year): +72.1%
USD All-Time High: $0.55
% From USD All-Time High: -34%
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): 4.15 BTC (+2.6 BTC on July 2019 figure)
Liquidity-to-Network Value %: 0.29% (+0.1% on July 2019 figure)
Supply Available on Exchanges: 873,016 VIDT (+190k VIDT on July 2019 figure)
% of Circulating Supply Available on Exchanges: 2.01% (-0.55% on July 2019 figure)
*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
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: $0.25
Total Tokens Burned: ~36,000,000 VIDT
Address Count: 5,466 (ERC-20) (+1,270 since July 2019) and 2,752 (BEP-2)
Supply Held By Top 10 Addresses: 31.39%*
Supply Held By Top 20 Addresses: 38.01%
Supply Held By Top 100 Addresses: 51.16% (-29.55% since July 2019)
Inactive Address Count in Top 20 (30 Days of No Activity): 5**
*Excluding exchange addresses; thus, the top 10 is calculated as addresses #2, #3, #4, #6, #7 and #10-#14. Addresses #1 and #5 are Kucoin-owned; address #8 is IDEX; and #9 is Hotbit.
**As above, this excludes the activity of exchange addresses and so the top 20 is inclusive of the 10 addresses listed above plus addresses #15-24.
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 more accurate means to determine this, which we shall come to later in the report, as V-ID has a transparent dashboard for tracking validation processing and other useful data. This will be covered in its own section towards the conclusion of the report.
Using the past 7 days of data, I worked out that V-ID has been experiencing ~291 daily on-chain transactions, amounting to Daily Transactional Value of $235,456. This gives V-ID a NVT (7-day) of 67.9; for context, Bitcoin’s (albeit 14-day) NVT is around 84. As such, V-ID is transacting more volume on-chain per $ of Network Value than Bitcoin.
Now, let’s work through the remaining General metrics, 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 relatively volatile at present, with 30-day Volatility of -0.1291; the 16th-highest reading of any coin from prior reports. This indicates a move away from accumulation areas into the middle of a new cycle, which can be confirmed by looking at the chart (see the Technical Analysis section for more on this).
Moving on, let’s take a look at the Liquidity-related metrics:
V-ID was calculated to have buy-side Liquidity of 4.15 BTC, which equates to 0.29% of its Network Value. Though this is a modest degree of liquidity relative to projects in prior reports, what I found quite interesting is that despite the project being valued over 3x higher than my original publication in July, liquidity has not really diluted relative to network value, which suggests that buy-side demand is growing alongside the project. This is, of course, a healthy sign for growth.
As for its sell-side Liquidity, I found there to be 873,016 VIDT listed for sale on exchanges, equating to 2.01% of its Circulating Supply. Again, this is very much average relative to other projects, but it is interesting to note that this figure has increased by ~190k VIDT since July 2019, but relative to circulating supply the ratio has fallen. Overall, I would argue that both buy-side and sell-side liquidity at present is moderate.
Moving onto volume, I found that V-ID traded $2.795mn over the past 24 hours, equating to a huge 17.48% of its Network Value. Moreover, the bulk of this volume is being traded on Kucoin, which, unlike in my July report where $2mn+ was reported to have been traded daily on Hotbit, is not known for a high degree of wash-trading. As such, this is very much reflective of the rising speculative interest in V-ID.
As for its Average Daily Exchange Volume, I calculated this to be $2.23mn, equating to an equally impressive 16.2% of its Average Network Value for the 30-day period. This is the 5th-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 great 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, as we have already established, V-ID is in deflation, whereby each year the maximum supply is decreasing as tokens are burned alongside the growth of the business, as we shall discuss at length a little later).
Finally, let’s take a look at the V-ID Distribution:
Using the rich-list, I found that there are currently 5,466 holders of V-ID on ERC-20 and 2,752 on BEP-2. For the former figure, this is an increase of 1,270 addresses over the past year, or +~30%.
Moving beyond this, the top 10 addresses control 31.39% of the total supply; the top 20 control 38.01%; and the top 100 control 51.16%. This is accounting for the fact that a number of the top addresses are exchange-owned, thus discounted from our analysis; instead, the top 20 privately-owned ERC-20 addresses consist of addresses #2, 3, 4, 6, 7 and 10-24. The exchange addresses cumulatively hold 18.37mn VIDT.
(As a side note, the BEP-2 chain is primarily used for the burn address, which occupies the #1 spot.)
As for the activity of the top 20 richest privately-owned addresses, I found that 5 were inactive over the past 30 days, and that, of the remaining 13 addresses, 3 were distributing from their positions and 12 were accumulating. When coupled with the exchange volume ratios discussed above, as well as liquidity, transactional volume and the lack of inflation, it is safe to say that the speculative prospects for V-ID remain high.
Now, let’s take a look at their 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.
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: 12,077 (+9,233 since July 2019 or +324%)
Tweets: 535 (+291 since July 2019)
Average Twitter Engagement: 1.71% (-3.89% since July 2019)
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.
V-ID now has a moderately large Twitter audience of 12,077, which is the 18th-highest figure recorded in these reports, placing it among the top-third of projects. I am pleased to find such impressive growth in the size of the audience, and, naturally, this had led to a decline in overall engagement rate as the audience has swelled to four times its July 2019 size. Given this fact, I actually think 1.71% engagement is pretty good, particularly when we consider that it is the 16th-highest engagement rate among prior reports; roughly aligned with its relative audience size position.
There is no Facebook page for V-ID.
There is no Discord group for V-ID.
Below, I have summarised my key takeaways from the past week of discussion in the group:
- There is constant discussion within the group, with activity levels sky-high.
- Much of the discussion is general, focused on crypto overall as opposed to just V-ID.
- Amsterdam Vintage Watches worked with V-ID and Fantom for the first ever blockchain-certified watch. This is a Audemars Piguet Royal Oak that has had its authenticity made immutable via V-ID.
- Updates on validation processing are often pushed to the group from the dedicated validations tracker channel, with over 80k documents validated in July, with a daily average of ~2,850.
- The community do regularly engage in the ongoing developments of the project and the progress being made by the team, particularly regarding the ever-growing utility of the VIDT token for validation.
- The team are conducting an AMA, where the community have asked dozens of questions and these will be responded to over the coming week.
- The community had an active discussion about the possibilities of a staking model being integrated with the current buy-back-and-burn mechanism to ensure the deflationary model continues – at present, there are no plans to introduce staking to VIDT.
- VIDT will be listed on Kyber Network.
- The tokenomics are considered some of the best in crypto by the community, given the deflationary burn mechanism that grows as the business grows.
They also have a trader-specific Telegram, which can be found here.
Overall, the community seem very much committed to V-ID and there is a great deal of palpable excitement about the next 6-12 months of progress.
The V-ID BitcoinTalk thread was created on August 18th, 2018 and has since generated 124 posts spanning 7 pages in 711 days. This equates to 0.17 posts per day, on average. However, in the past 90 days, the thread has had 6 posts, giving an average of 0.06 posts per day. Clearly, the thread is no longer in active use.
Regarding the announcement itself, it is concise and fairly 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.
And that concludes this section on the Community.
Let’s take a look at its 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:
There are currently 9 employees listed on the website and 6 advisors, plus all 9 employees are listed on LinkedIn.
Those listed on the website include:
- Marnix van den Berg, Founder and CEO
- Pim Voets, Founder and Lead Concept Design
- Ceciel van Helden, Founder and Lead Programming
- Wico van Helden, Founder and Board Member
- Gert-Jan Huizer, Lead Growth and Strategy
- Joshua Jenster, Lead Business Development
- Wil van Groesen, Lead Engineering
- Thijs Calkhoven, Lead Product Management
- Edwin van der Lee, Lead Customer Support
There are also 6 advisors listed, including:
- Bastiaan Oosterdam, Advisor, Alterdax (Business Dev Director)
- Jolanda ter Maten, Advisor, Ter Maten (CEO)
- Magnus Dufwa, Advisor, Blockalize (CEO) and Shipchain (Lead Dev)
- Dr Alan Whitfield, Advisor, WIDIDI UK (CEO)
- Willem-Jan Smits, Advisor, Watson Law (Lawyer)
- Chris Robinson, Advisor, LendSend (CEO and American Express (ex-VP and CTO)
There isn’t too much to discuss regarding the V-ID website itself, as it is quite similar to the previous website in its informational capacity, with pages detailing V-ID itself, data validation, partners and case studies (including CMS, Airbus, IBM, AmSpec, Douwes Fine Art and the DBC) and more. There are informational videos, tutorials and a dedicated section for developers, plus a link to the actual verification platform where files can be verified as authentic.
Given the above, I’d like to navigate to the Medium blog, which is regularly updated, and highlight some key updates over the past few months:
Recent announcements on the Medium blog include:
- A partnership with Waves Platform that will begin with an integration of the VIDT DataLink to Waves that will allow for anchorage and certification of documents with a drag&drop dashboard.
- An update on V-ID’s joint collaboration with Fantom to work with the Afghan Ministry of Health to help combat counterfeiting of medicines.
- V-ID becoming an official partner of the Dutch Blockchain Coalition, which will mean that the team actively collaborates with the DBC to improve blockchain innovation in Dutch industries.
- The launch of VIDT Datalink to ensure limitless compatibility between businesses and blockchains by utilising the VIDT API, VIDT Private Cloud and VIDT Smart contract for anchoring data from publisher platforms and cloud services to multiple blockchains.
The roadmap found on the website is separated by goal, focuses on Q2-Q3 2020 (there used to be a more comprehensive roadmap covering events since inception) and does not have any means of progress tracking or further reading. That said, the goals presented are informative enough. We also find a brief introductory passage that states that V-ID is focused on integrations for this period, with a particular focus on growing the usage of VIDT via the certifications sector.
Beginning with Q2:
- A new website, an updated promotional video and a migration to Microsoft Teams to improve workflows during Covid.
- Project TIC, which involves V-ID working with 3 organisations that have certification as part of their core business.
- IoE Scale-up (Internet of Environments), which involves roof-mounted sensors, such as that which V-ID have mounted to the top of IBM Netherlands HQ, being pushed to more organisations to allow for greater data connectivity.
- Fantom Government Projects, which is an assignment gained through Fantom Foundations to anchor certificates within the Afghan ministry, though this is currently on hold due to Covid (initial certificates have been anchored and will be resumed immediately post-crisis).
- IBM Cloud Integration: This involves the integration of the VIDT API to IBM cloud, enabling any process that utilises the IBM Cloud Catalog to be integrated with V-ID’s data integrity tech. Thus, data integrity could be ensured at every step.
- Diamond Consortium: Similarly to the Internet of Environments, V-ID are leveraging their contacts in the diamond industry to develop improvements within this sector, with plans to release an MVP. As per this recent Medium post, V-ID, alongside Deltamas, have created the Diamond Verification Association, where diamonds will be certified and validated for their authenticity.
For Q3, the team are working on the following:
- Round Table Oil & Gas Volume 2: This is simply a second round table discussion with companies in the Oil and Gas sector that will take place following the Covid-crisis.
- Hardware project, which is an integration that is expected to dramatically increase the number of validations being processed. This will be announced at Hannover Messe.
- DataLink, which is V-ID’s platform that allows for limitless compatibility between businesses and blockchains. The VIDT API, Private Cloud and Smart Contract will anchor data from publishers and cloud services to multiple blockchains. As stated in this recent Medium post, “Datalink is the ultimate architecture to handle any volume of files, with any level of secure blockchain anchoring, all with sufficient speed.”
- V-ID-powered B2C applications: Due to costly nature of these applications, V-ID will be looking to partner with VCs moving forward to scale these applications within prospective niches.
- Lastly, though it isn’t directly referenced in the roadmap, V-ID are working with Digibyte on a joint SSI (self-sovereign identity) project, Soyyo, with V-ID assisting in the provision of validated digital entities. This was formerly known as Veritas. The idea is that once a profile has been validated on Soyyo, users will be able to determine the authenticity of the account or identify a fake account instantly.
Overall, the progress is evident, the ambition is high and the execution is clearly working in V-ID’s favour.
The whitepaper is lengthy at 48 pages, so I won’t cover the entire thing here. Importantly, it hasn’t been updated since March 2017.
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.
As V-ID is currently an ERC-20 token, so it can be stored on all ERC-20 compatible wallets, including hardware wallets.
For this V-ID-specific section, I wanted to dig a little deeper on the utility of VIDT and the underlying data validation business.
So, looking at the official dashboard firstly, we can see here the clear token distribution, with a maximum circulating supply of 46.4mn VIDT once team and advisor tokens amounting to 3mn VIDT are fully unlocked, placing circulating supply at 43.4mn VIDT. There is also a 1.2mn VIDT fund for marketing and listings and a validation pool that is locked out of circulation perpetually of 11.3mn VIDT. Thus, the total supply is ~57.7mn VIDT.
Now, firstly, it’s already commendable that the team, advisors and the fund cumulatively own 7% of the total supply, where this figure is often much higher for many projects that raised via ICOs, but that isn’t the point of this section.
What we have here is a detailed breakdown of the actual business that V-ID is getting, with transparent data on data validations. We can see that 42.3mn VIDT have been burned in total, including the 36mn that were burned post-ICO, which gives us a net figure of roughly 4.2mn VIDT that has been burned directly as a result of V-ID’s growing business (accounting for the 1.8mn VIDT burn on Valentine’s Day); that’s about 6% of the original maximum supply of 100mn VIDT.
Now, if we look at the VIDT fee chart on the right, we can see that the number of transactions for May, June and July total over 13k, with 2.1mn VIDT spent on a rolling 3-month period. That’s equivalent to ~$575k if we take the average price of VIDT during that period. Scrolling further down, we can see that, for May and June, we can see that 1mn+ VIDT in total was spent on validations each month. Now, where this gets interesting is when we factor in the buy-back-and-burn mechanism, which is based on the total VIDT spent each month.
20% of total spend is burned and 10% of total spend is bough back. So, for May and June, cumulatively 428k VIDT were burned and 214k VIDT were bought. If we just total the VIDT burned in 2020, it comes out at 1.834mn VIDT. If we assume no growth, then another 1.8mn VIDT will be burned over the next 6 months, equating to 3.2% of the total supply. The following year, assuming the Covid crisis is over and business is back to usual, let’s assume 50% annual growth on validations, which would put 2021 token burns at 5.45mn VIDT, which would be almost 10% of the forward total supply of ~55.7mn VIDT as per our last calculation.
Without getting bogged down by more sums, it’s quite clear to see just how strong the deflationary mechanism is here and how great that is for holders long-term!
And that concludes my fundamental analysis of V-ID.
As you can see from the above charts, VIDT has experienced quite a lot of movement since the July 2019 report, with price having printed an all-time high at 4,955 satoshis in late June last year and then experiencing its first full bear cycle.
Looking at the VIDT/BTC chart, it is this first full cycle that I’d like to start with, as we saw price form the all-time low at 575 satoshis in May 2019 before rallying almost 10x to the all-time high a few weeks later. Price then suffered prolonged bleeding as euphoria became complacency and so on, and eventually a new range support was found above the all-time low at 800 satoshis. This range support held for 232 days, with price also capped by range resistance at 1,545 satoshis for the bulk of that period. The only instance it broke the range was during potential listing on Binance that V-ID missed out on, which led to a retrace back into the range and re-accumulation. Most importantly, we can see that price broke out above the range resistance in June 2020, also overcoming the 360dMA. Since then, VIDT has been on a tear, rallying for weeks on continually rising volume, turning prior resistance at 2,700 satoshis into support. Price rallied all the way to within spitting distance of the all-time high, peaking at 4700 satoshis before falling back towards this support area, where it currently trades. I am not convinced at all that the bull cycle is over for VIDT, particularly given the rich-list analysis from earlier in the report. Looking at this, I feel as though price remains bullish whilst we remain above 2,700 satoshis; form a new base here and I’d expect new all-time highs to follow. If we do start to break below that critical pivot, I’d expect range resistance to be retested, which is where I’d look to add to my position for the coming months. This is a buy and hold for me.
Now, when one also takes into consideration the tokenomics and the validation data we covered just prior to this section, being a VIDT holder is a no-brainer for me, as speculative prospects continue to rise as the supply is consistently reduced over time with the growth of the business. That said, buying just anywhere makes absolutely no sense, as all projects are victim to cycles and I would never be a new buyer whilst price is mid-cycle without a clear stop-loss, which, as mentioned above, would be a loss of that 2,700 satoshi area.
Overall, it is difficult not to be bullish on V-ID moving forward; I am expecting new all-time highs at the very least by year-end.
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.*
*The growth of the community and, more importantly, the business over the past 12 months is certainly worthy of a 9; however, price is currently mid-cycle, which skews risk-reward for buyers at present (though the tokenomics most certainly favour speculators even at current prices), plus liquidity metrics have not really improved much. I do think V-ID is one of the most undervalued projects I have come across, but there remain minor gaps that, when improved, would warrant an overall of 9 based on my grading framework. I cannot fault the progress, however. It’s basically an 8.5.
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.