Week 28: July 9, 2019 - EOS Trades Sideways & The Voice May Have Trouble Being Heard

Negative Price Drivers:

• Early adopters of Voice platform outraged by customer identification procedures
• BTC dominance hits a 1.5 year high - causing other tokens to underperform. 

Price Report:

• EOS (0.0%) has underperformed both ETH (7.29%) and BTC (21.5%), but outperformed XRP (-1.53%) and LTC (-0.18%)

In this issue:

• Technical Analysis: Price has remained flat - it could move up to $6.30 or down to $5.55 but markets have offered no signal
• Sentiment Analysis: Sentiment remains in a lull as very little news has followed the announcement of the Voice platform
  
• What Twitter is Saying: Mostly short EOS/BTC
• Funny Crypto Memes: Even Elon Musk would approve of these
  

EOS Price Drivers:

1. EOS teams are educating developers and making accessibility to EOS easier - seeking to become the go-to protocol for smart contract development
2.  Increasing adoption strengthens the long term potential for EOSIO
   
3.  Privacy-focused developers continue building projects that put user security first - building trust in the EOSIO protocol
4. EOS’s Voice may have trouble being heard.

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XLM Price Analysis: EOS is a HOLD this week. Price has remained relatively level and has shown no clear indicator of whether it will rise or fall in the near term.

• Price has remained above the diagonal support (2) that is increasing the price's lows over the past week - A positive sign

• Price has been capped at the $6.00 resistance level (1) - A negative sign 

Should price rise past $6, upgrade EOS to a BUY - it will move to at least $6.30 from that point. On the other hand, if EOS drops below the rising support level(2), SELL. It will likely fall to $5.55.

XLM Price Drivers This Week:

#1 EOS teams are educating developers and making accessibility to EOS easier - seeking to become the go-to protocol for smart contract development

Switcheo Launches instant asset swaps between the EOS and ETH blockchain

• Switcheo continues to increase support for instant asset swaps among the largest blockchains - allowing users to move assets onto the EOS blockchain
• These swaps remove the risks inherent in trade

Block.one’s Developer Relations team announces a new learning opportunity for Developers - the EOSIO webinar series

• The series will feature free live online events for developers to learn new skills and keep up-to-date with the latest features and capabilities of EOSIO

Tradecipher Take: Increased access to EOS blockchain assets and increased ease of access to developer knowledge help programmers make the switch from other platforms like ETH to EOS - bringing value to the underlying protocol and increasing the price of EOS as RAM is needed to power these applications. 

XLM Price Drivers This Week:

#2 Increasing adoption strengthens the long term potential for EOSIO

ARXUM - which provides industrial manufacturers with blockchain solutions - recently received a sizeable investment from FinLab AG & Block.One through their joint venture VC firm.

Tradecipher Take: As we’ve seen with ETH - EOS has built credibility with institutional users. This specific usage of EOSIO protocol reaffirms our belief that EOS will retain its place as a top platform for smart contracts.

We will talk more about EOS adoption and how it’s outpacing ETH and other more established platforms in our quarterly report.

XLM Price Drivers This Week:

#3 Privacy-focused developers continue building projects that put user security first - building trust in the EOSIO protocol

WIZZ Network releases new encrypted messenger for EOS account holders.

pEOS plans to make their privacy smart contracts open source and implement a range of popular features to further obscure user identities. pEOS continues to provide funding of developers on their new privacy-enabled EOS platform

Tradecipher Take: Many crypto users are highly concerned about security and privacy. The more that EOS incorporates privacy focused protocols, The more successful it will be at attracting users of existing privacy-focused coins - such as ZCash. Most so-called privacy coins only act as payment tokens, and have no underlying value. If users of privacy coins switch to pEOS - due to its underlying utility - demand for EOS will rise.

XLM Price Drivers This Week:

 #3 EOS’s Voice may have trouble being heard.

Users are expressing their dissatisfaction with the new EOS platform Voice.com for a variety of reasons:

• It’s restricted to users in specific countries
• It requires identity verification to sign up
• It creates restrictions not present on other social media platforms
• It conflicts with the sensibilities of crypto communities which seek both anonymity and openness

Tradecipher Take: EOS’s Voice is an attempt to create a decentralized social network - and it’s trying to lure both users and content creators by promising payouts of up to $100M to top influencers. EOS has chosen to implement identity verification on this platform - unsurprisingly upsetting its privacy focused community. People in the cryptocurrency community tend to value their own anonymity exceptionally highly.

This makes it clear that Block.One is not seeking to build a platform that attracts these users - or that they’ve spectacularly failed to understand their own market. Block.One will need to recruit top influencers, outside of crypto spaces, to Voice in the hopes of drawing in mainstream users. If it can do so, it will still find success. If not - this may be a $150M waste of money and a serious blemish on EOS’s record

Sentiment: Sentiment has continued to decline (2) since the announcement of the EOS Voice platform. (3)

Despite numerous headlines about EOS adoption, EOS sentiment has remained at a lull. Most of the conversation around crypto is currently centering around BTC’s rising dominance. 

In order to issue a buy rating - we’d like to see some indicator that people are talking about EOS as we did immediately prior to (1). 

What Twitter is Saying:

@CryptoSopranoo with 7,057 followers believes EOS/BTC will continue to decline as it underperforms BTC.

@BTC_JackSparrow with 9,635 followers points out the potential for a significant price decline.

@Murfski_ with 4,419 followers believes our consolidation above support on declining volume will lead to future price decline - to as low as $4.50.

Some (not many) are optimistic though:

@TraderX0X0 with 14.3k followers believes that if current support holds there is plenty of room for a large price increase

 Thanks for reading this far! Here are some dank memes:

That’s it for the EOS weekly report from July 2 - July 9, 2019. Make sure to subscribe to get Thursdays Industry report. Full reports are free until July 9, 2019, at which they will only be available for Tradecipher Members.

Additional Readings And Sources

#1: EOS teams are educating developers and making accessibility to EOS easier - seeking to become the go-to protocol for smart contract development

• https://medium.com/switcheo/switcheo-launches-cross-chain-atomic-swaps-on-eos-and-eth-916abcaa86d5
• https://medium.com/eosio/introducing-the-eosio-webinar-series-2ae9cc0f4982

#2: Increasing adoption strengthens the long term potential for EOSIO

• https://markets.businessinsider.com/news/stocks/dgap-news-arxum-a-global-provider-of-blockchain-solutions-for-connecting-the-manufacturing-industry--1028323413

#3: Privacy-focused developers continue building projects that put user security first - building trust in the EOSIO protocol

• https://cointelegraph.com/news/mixed-cryptocurrency-transactions-up-300-as-crypto-users-pursue-anonymity
• https://medium.com/@pEOS_one/peos-q2-update-16db6d13ce43
• https://www.reddit.com/r/eos/comments/c95qhl/wizz_network_just_released_new_chat_encrypted
• https://wizz.network/

#4: EOS’s Voice may have trouble being heard.

• https://www.reddit.com/r/eos/comments/c8knai/voice_token_restriction/