Waves (WAVES)

Author: Kaloyan Roussev
Date: 17 September 2017

Do not make investment decisions based on this article – read the disclaimer before you proceed and leave the website if you disagree with it.

It is 17 September 2017 today. This review takes into consideration investing in WAVES at its current price at $3.56

How do I rate an investment in this project at the current price? (TL:DR)

We are obviously very very late on this one. As far as promising exchange projects go, Lykke at $0.30 and 0x at $0.20 are in my opinion better investment choices as of now, in terms of unrealized potential. Waves is now a fully functioning project, and a very high-quality one, at that. All aspects of it work. There is nothing major left on the roadmap that would account for an exponential price growth. There are several ongoing activities that could cause linear growth, though. My investment horizon is about 3 months, 6 months tops, because I am afraid of the crypto bubble bursting, and I think it might take longer than that to see Waves being adopted by the mass, if cryptos are still alive by this time next year.

It is a great project nevertheless, however unless they come up with a lot of money for a marketing campaign that would increase mass adoption, which would increase demand, which would increase the price, I am not buying, because I can see much more potential for exponential growth in other projects, rather than this one. I might be dead wrong on Waves though. It has many dimensions that are hard to evaluate.

On the other hand, Russia is big on crypto and if this thing gains traction there, supply might really surge. Russia, however, plans to ban selling crypto to regular people. So I don’t know. I am not certain enough to make a proactive decision. A user on bitcointalk makes a valid point about the price being possibly undervalued, saying that there are a lot of projects out there that are currently only selling a promise and their price and market caps are higher.

BTW, CryptoHydra’s other writer – Nikolai Dimitrov, is bullish on Waves, so if you need some reassurance, you can write him an email.

Project/token summary

It is a fully functional decentralized exchange that is very open to mass adoption – partially, it operates as a Chrome extension. They allow for tokenizing Fiat and trading cryptocurrencies. One can buy bitcoin directly with a credit card, deposit into their waves account, and then start buying. They also provide a fully developed feature that enables you to create your own cryptocurrency (token) after some KYC/AML processes. 4600 such tokens have been created, some quite prominent.

The new token feature can be a great tool for crowdfunding. This Forbes article goes into more detail of the possible bright future of this Russian project – https://www.forbes.com/sites/rogeraitken/2017/04/03/the-birth-of-a-blockchain-from-ripples-to-making-crypto-waves/#63aac961418b

Burger King’s Whoppercoin that made the news recently, is one token launched via the Waves platform.

Waves is in a way improvement of the NXT platform, which Waves’ founer Sasha Ivanov has also been involved with.

Branding/Positioning – It is the most prominent and widely adopted decentralized exchange. Lykke is too closed and 0x is just starting to power several such exchanges (ethfinex which could be big, radar relay and the0cean) Etherdelta is also DEX but it is for ERC20 tokens only and everyone hates it since the get go. So I think we could consider Waves to be the leader in the DEX category in the cryptosphere. From here on, they are to face centralized exchanges head on. Read a user’s commentary on that here: https://bitcointalk.org/index.php?topic=1387944.msg21390886#msg21390886

Waves is also an ICO platform, but on this front there is a lot of competition, and strong one to boot. Ethereum, NEO, Qtum, Rise, Komodo and others.

Branding-wise, I’m not keen on projects that try to be strong in more than one thing. It makes them hard-to-define and dilutes what they stand for.

Token utility –from what I gather it is a base currency in their exchange, and it is also used to pay for some utilities such as creating a new token. (So users pay for waves with bitcoin and then pay for the utility with waves)

Upcoming bullish events –This article informs us of something called NG-mining (oh I’m so excited about mining), smart contracts and some other features that would facilitate mass adoption – http://www.financemagnates.com/cryptocurrency/innovation/bitcoin-ng-like-mining-ethereum-like-smart-contracts-coming-waves/ and this might be the big one – “a compliant token crowdfunding platform, Tokenomica, is being launched”

If another international company launches their own token via the Waves platform, similar to Burger King’s Whoppercoin, Waves can start circulating the news again. But it is just a possibility – nothing certain. In the mean time thousands of tokens are being launched, some of them quite prosperous – read more on their home page. One of these days, something huge can happen.

Red flags – on their official youtube channel, they seem to have been uploading “Waves weekly” videos up to some point in the past and then they stopped doing that a few months ago – have they gotten lazy, too busy, or it was development updates that are now over, because the project is live? I read on bitcointalks, not sure how legit this is, that “Poloniex will never list Waves because they have some sort of personal beef with Sasha.” (Sasha is the founder) – not exactly a red flag but a missed opportunity. And they are already on Bittrex so who else can list them? Chinese exchanges? They haven’t done a lot of good to other projects that have been listed – they were the cause for a small temporary spike, nothing else (and some more liquidity).  No major red flags

Website: https://0xproject.com/
Coinmarketcap: https://coinmarketcap.com/currencies/waves/
Exchange: https://bittrex.com/Market/Index?MarketName=BTC-WAVES

General

  • Website: does it look good/presentable – clean, respectable, informative website. Their platform UI is great, although it is not apparent as to how to enter it at first – https://waveswallet.io/ – registration doesn’t even require email, it is SUPER easy. Walk in there and look around – it is great.
  • Roadmap – the only thing resembling a roadmap that I could find, is the “planned features” section that you will find if you scroll down on their home page – https://wavesplatform.com/
  • Whitepaper – yes – https://s3.ca-central-1.amazonaws.com/wavesdb.com/images/whitepaper_v0.pdf – a user friendly one, not a lot of technical detail.
  • What is their progress according to the roadmap – they are about to launch the NG update soon, and Tokenomica.
  • Website: Is it a quick wordpress template, a 2-hour html job or a custom design with lots of work, money and thought thrown at it – custom
  • What new does this cryptocurrency bring to the world, what problem does it solve, what does it stand for– decentralized exchange, a platform to create cryptocurrencies
  • How does the cryptocurrency name sound (does it sound legit and like a good brand name) – generic
  • How does the logo look – it’s alright
  • Is it a PoW, PoS or PoW/PoS coin, what is the mining difficulty or APR, does it suffer from inflation – Leased Proof of Stake. 100 000 000 tokens. https://bitcointalk.org/index.php?topic=1387944.msg21281297#msg21281297
  • Who is behind the cryptocurrency – are they shady figures, or have they placed their names and pictures on the website; what is their track record and reputation; do a quick google/github research on them – Russian Sasha Ivanov – https://www.crunchbase.com/person/sasha-ivanov#/entity – there is no information for the rest of the team on Waves’ website
  • What is the limit on supply of coins in circulation – 100 million, pre-minted.
  • Is there a link to the source code – there you go https://github.com/WAVESPLATFORM/
  • When was the last commit made, and how frequent are commits – daily commits, most recent one was yesterday. There’s a great amount of repositories and most are being worked on
  • How many developers participate in the coding – more than 30!
  • What the project survival relies on – nothing in particular. They have their own blockchain and dont depend on anything.
  • Will this project survive a cryptocurrency bubble burst and does/will it have enough of a following that needs it every day – it would survive a ban on centralized exchanges, because it offers a decentralized solution.
  • Competition – all centralized exchanges. All the decentralized ones that keep popping up too. 0x’s derivatives

Exchanges and trading

  • Which exchanges (and how reputable they are) is the coin traded on – nothing interesting other than bittrex. Tidex seems to be somehow related to Waves.

  • Daily trading volume – $3.9 million
  • Market cap – 356 million.
  • Are there buy (support) or sell (resistance) walls –nothing interesting to see here, move on
  • How does the price chart look – its been relatively stable until May when a rollercoaster started, it is now consolidating again

Social

  • Is there a Bitcointalk forum Announcement thread – yes – https://bitcointalk.org/index.php?topic=1387944.0
  • How many pages is it – 2152 – this behemoth of a thread shows that those people who said that Waves’ community is very strong, were right.
  • History of the coin according to the forum and general public impression of the coin throughoutread the first 10, last 5 and several random pages – I can’t read the whole thing, I read about 10 of the most recent pages, didn’t find anything worrying or overly optimistic, other than unfounded hopes for the price going to $50-100
  • Do they have a blog, anything interesting on it? – yes – https://blog.wavesplatform.com/ – here’s a very respectable post by Sasha Ivanov himself: https://blog.wavesplatform.com/time-to-step-it-up-4774bd884b87 There are all in all 5 articles there, they’ve started blogging fairly recently – August 2017
  • Is there a slack channel – http://wavesplatform.herokuapp.com/invite
  • How many members on slack – 9000+
  • Impressions from the conversations on slack – constructive conversations about the project and the price. I noticed a rumor about YoBit going to close (which would be great, they are famous scammers) Some people mention that DEX’s biggest problem is lack of volume/liquidity, as most users are on centralized exchanges. It was said that the bitcointalk forum is not temporarily, but permanently closed. One of the users complaining about suboptimal communication from the Waves team.
  • Is there a Twitter profile for the cryptocurrency and does it post regular updates, how many followers https://twitter.com/wavesplatform 25k followers, frequent tweets. I see from their tweets that the website I’ve been reviewing is a new one, they just launched it a few days ago.
  • Is there a Facebook page for the cryptocurrency and does it post regular updates, how many likes https://www.facebook.com/wavesplatform – 30k likes – never seen so many likes for a crypto project on facebook. Well done

Popularity and perception

  • What does a quick google search tell us about the project – listings, articles, regular stuff. Nothing that we haven’t come across at this point.
  • Are there youtube videos about the coin – many videos on it, all of the ones I watched are positive about Waves
  • What is the general sentiment in the comment section below the videos (constructive, fud/hype, calling out scam etc) – mostly positive, here and there you have the occasional negative comment.
  • Is the coin associated with illegal/criminal activity or the dark web – no

 

I am sure I might’ve made some mistakes in this post or in my research. Please, forgive me, if I have, and contact me to tell me where I went wrong. It takes about 4-5 hours of my time to do a full research on a cryptocurrency, and I try to do at least 4 per week.

 


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