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Cryptocurrencies are attractive for many reasons, but the primary reason is paradoxically the main pitfall that haunts many crypto investors. Volatility.
Last year, crypto saw everything from 7,000% gains to catastrophic failures, where anyone investing would have got a better return if they'd burned their assets to keep warm. Even Bitcoin fell sharply by more than 50% in the middle of 2021, somewhat due to social media messages from rocket-wielding billionaires. That's right - sometimes all it takes is a tweet to
Platforms that help investors make the right decisions aren't new.
It makes this area intriguing to observe, and in particular, I've been keeping an eye on
For investors, the use of artificial intelligence could be interesting. The idea is that through predictive analytics algorithms, Sonar can help you to make good decisions through data, sentiment, and growth metrics. It claims that it also looks at all news (which means you can use it as a dashboard for the latest press for each project) and even smart-contract safety.
In particular, I've been enamored with its ability to show the events and other influences on a project, where it is easy to look at everything from a potentially insignificant individual transaction or social message through to large movements, like prominent news articles, and anything else that could significantly move the needle.
It is still early days for tools like Sonar Platform. So far, what I've witnessed covers at least the most active cryptocurrencies and the markets that show consistent action, such as NFTs, the metaverse, and those projects with real, functional utility. Still, it does appear to be gaining new abilities all the time.
I make a note of the transparency of all blockchain teams these days. Sonar impresses in this area and has been working under what it terms a "Build-in-Public" approach, improving the solution gradually while keeping investors and users involved in the roadmap and new features. If there's one thing the blockchain industry needs more of, it's transparency in everything - the whole sector has been negatively affected by too many vaporware products and scams, so this is refreshing.
In addition to the likes of those already mentioned and other data aggregators like LunarCrush, Nansen, and IntoTheBlock, the predictive insights space is starting to look extremely attractive. It should help everyone have at least a good indicator or success before putting everything into the latest meme coin, only to watch it disappear when the wrong celebrity says a bad thing about it.
Alyze Sam is a refreshing blockchain strategist, a novel educator, award-winning author, serial co-founder, and a vehemently driven advocate. Sam’s book ‘Stablecoin Economy’ was published by DonTapscott at The Blockchain Research Institute in January 2021. The Bad Crypto Podcast developed a Blockchain Hero NFT inspired by her work: Mz. Stability. Check out Stablecoin Economy releasing Jan 2022 on Amazon.