Nothing tells you that crypto is back like seeing top coins pop 70%+ in a matter of minutes.
As I said back in May:
In a bear market good news has no effect on the price, only bad news.
In a bull market bad news had no effect on the price, only good news.
Well, since I said that, we’ve seen a number of the crypto community’s favourite projects pop on good news going public… or even on seemingly no news at all.
First there was Nebulas, which on 10 June surged 53% in less than 24 hours.
Why? News that Nebulas’ team was initiating a $10 million buyback over the next few months.
It’s still up 27% from that initial announcement.
Three days later came the big one – on 13 June Chainlink popped 72% in the space of 1 hour and 45 minutes.
Between 18:04 and 19:49 Chainlink’s price went from $1.13 to $1.94… and stayed up. It’s currently at $2.09.
Why? A blog post Google Cloud published saying it was working on using Ethereum and Chainlink in its projects.
Then last weekend, NEO – a key player in the 2017 bull run – jumped 32% in less than 24 hours, with much of that gain happening in less than 65 minutes.
As I write, it’s still up 28% from before that surge.
And most recently, VeChain jumped 43% in the space of an hour, late on Monday evening.
Why? Walmart China and PwC announced the “Walmart China Blockchain Traceability Platform”, which will see VeChain used to prove authenticity and manage supply chain in many lines of products.
The announcement of the Walmart China Blockchain Traceability Platform came with the introduction to the first batch of 23 product lines that have been tested and launched on the Platform.
The Platform is expected to scale by another 100 product lines by the end of the year covering more than 10 product categories including fresh meat product, rice, mushrooms, cooking oil, etc. It is expected that the Walmart China’s traceability system will see traceable fresh meat account for 50% of the total sales of packaged fresh meat, traceable vegetables will account for 40% of the total sales of packaged vegetables, traceable seafood will account for 12.5% of the total sales of seafood by the end of 2020.
None of these are obscure projects jumping on pure price manipulation. NEO, Chainlink and VeChain are among the most well-known in the entire of crypto.
And as I’ve written before, the potential of crypto – and in particular VeChain – in the supply chain is huge.
From my article back in February:
In the food, drink and fashion industries forgeries are a huge problem.
In fact, it’s not just in those industries. The electronics industry is rife with fakes. If you’ve ever had a memory card fail or a battery run out way before it should have, the chances are it was a fake.
Forgeries have always been a problem for companies, but over the last few years they are becoming more and more commonplace.
From the Guardian:
In a 2016 lawsuit against the former Amazon supplier Mobile Star, Apple described buying more than 100 iPhones, power adapters and lightning cables sold as genuine, to discover that almost 90% of the products were counterfeit.
So, what’s the solution?
If you’re a regular reader, you can probably guess…
Blockchain, crypto, distributed ledger technology (DLT). Call it what you will.
This is the best solution to this multi-billion dollar global problem.
Because blockchain is immutable, manufacturers can use it to prove an item is real.
When a company manufactures an item, it attaches an RFID tag which corresponds to its record in the blockchain.
These tags can be customised and can included things like temperature and accelerometer data, which can be used in pharmaceutical and food shipments.
Manufacturers can ensure their foods and medicine have been handled with appropriate care throughout the shipping process.
This tech also works in the opposite way.
It can be used to prove a fake is a fake in the same way it can prove a real item is real. No RFID chip with an authenticity record on the blockchain? Then it’s clearly a fake.
The reason the blockchain is key to this is because it is publically searchable and cannot be tampered with.
The tags can also be made so that they are destroyed if someone tries to remove them.
It’s clear that we’re firmly back in a bull market, when good news stories can launch major projects as much as 70% up in hours, or even minutes.
But the interesting thing this time around is that this news doesn’t tend to merely be about a “partnership” but a live, working product.
Chainlink is already live on the Ethereum mainnet. And Walmart China already has products on its shelves that are tagged and entered in the VeChain blockchain.
Whereas the 2017 bull run was built on pure hype, in 2019 projects are putting out working products that really are “changing the world”.
And when news surfaces about these products, prices are surging.
Maybe for once that fabled phrase is true: this time it’s different…
Or maybe not.
To get back to something more practical, how do you position yourself to profit when these promising crypto projects pop?
For that, I can recommend Sam Volkering’s book: Crypto Revolution.
It tells you everything you need to know to start investing in crypto. From buying, selling and storing crypto, to how it all began and where it’s heading. It’s all there.
Whether you’re completely new to this world or a seasoned vet, you’re sure to find Sam’s insight valuable. See exactly how valuable here.
Until next time,
Editor, Exponential Investor