Is Ethereum price cheap? Using statistical data available to me thanks to etherscan.io I have created two graphs which vividly illustrate the growth of Ethereum network and how Ethereum price was affected during this period. In the video “Bitcoin out of sync with fundamentals” I showed you how Bitcoin number of daily transactions grew during unstoppable price increase.
As you know, I conducted a poll in my telegram channel here where I asked what fundamental indicator is the most important one which stimulates price of cryptocurrency to grow. In this poll, the number of users was voted to be the most important one. Unfortunately, there is no 100% statistical data for Bitcoin on this matter, but Ethereum happens to have this information available to anyone. So, in this presentation I will show you how Ethereum network expanded both in number of daily transactions and in number of users in comparison to its price increase. I think that this information will be interesting for any cryptocurrency investor or trader.
Also, after the Ethereum price I will extensively cover one of the most high-quality initial coin offerings of December 2017. The United traders proprietary trading company has a lengthy history in Russia and is one of the most sought-after employers for young traders. I will tell you the history of this company, the main faces, the token economy, the platform, and the advantages and disadvantages.
This graph illustrates how number of daily transactions changed with the changes of Ether price. As we can see here, the price organically increases with the growth of daily transactions on Ethereum.
In comparison, Bitcoin’s recent rocket to the moon didn’t affect number of its daily transactions, which is partly due to the fact that Bitcoin cannot process more. Technical limitations of Bitcoin are solvable with the coming lightning network, but we need Bitcoin to work properly now, right? On the other hand, Ethereum, having its own technical difficulties, shows that it can adapt to ever-changing environment much faster. Also, in comparison to Bitcoin, Ethereum has multiple scalability solutions that will be soon used to expand the network even more.
Let’s now touch the numbers. ETH price grew 4 338%, while number of daily transactions increased 2 121%. In the Bitcoin video, I showed you that price of Bitcoin increased 2 044%, while number of daily transactions grew 182%. The only thing that can be said here is that ETH price shows better alignment with its main fundamental indicator.
Why is it main fundamental indicator for Ethereum? Ethereum was created to be used intensively by decentralized applications. If Ethereum daily transactions don’t grow, then there is a problem, because this blockchain is not used. This is why Ethereum foundation is so much concentrated on implementing scalability solutions ASAP. With all this enormous number of projects being built on Ethereum blockchain, we should expect a sharp increase of daily transactions in the nearest future. This growth will be closely associated with the DAPP activity on the public chain. The activity of DAPPs will make Ethereum more valuable.
How can we measure number of users who are using Ethereum blockchain? We can try to do this by looking at the cumulative address growth. It is not the most accurate representation of new users, but the best one available to us.
As with the number of daily transactions, cumulative address growth is closely correlated with Ether price. Also, here we could use the growing number of Metamask users, it will be even more representative of network growth, because usually Metamask is downloaded to use some kind of decentralized application like EtherDelta exchange.
Here are some numbers for you, guys. ETH price increased 4 338%, while cumulative address growth rose 2 409%. It is amazing how close percentage growth of number of users to number of daily transactions for the same period of time (2 409% vs 2 121%).
In my opinion, current Ether price is lower or equal to its fundamental value. It is especially obvious when you start comparing Bitcoin numbers with Ethereum.
Let’s start with the company and the team of this initial coin offering.
United traders company was founded in 2009 by traders who previously worked in Canadian Swift Trade and US Dimension trading. They concentrated on trading United States stocks and other securities. In 2012, they created multimarket platform called Aurora, which gives its users opportunity to trade on different markets from one place. Later they added more investment and trading services for their clients, who come from 47 different countries.
United Traders have four major business segments they cover
- Proprietary trading
- Software development (their software department includes 24 people)
- Investment marketplace
- Training platform (later I will show you the financial performance of United traders across their main business segments)
The main faces of United Traders:
• Roman Vishnevsky, managing partner
• Anatoly Radchenko, managing partner, famous Russian financial and cryptocurrency YouTuber and trader. (At the end of the video you can find my interview with him on the topic of his company’s ICO) Here is his YouTube channel link
• Roman Belousov, managing partner
• Alexander Kurdyukov, technical director and 60+ other employees of UT
What are the main ideas of United Traders initial coin offering?
• UT is developing new products and modernizing existing ones to accommodate usage of UTT tokens. I will expand on their platform on different slide
• What is really important is that project has a long history of being a prestigious platform for traders and investors. Also, for young talent. When I studied in Finance University in Moscow, a lot of the guys I knew wanted to work in United Traders. In my opinion, it says a lot about company. At least, about its marketing.
• UTT tokens will be the native currency of project’s ecosystem. Wait a little and you will see two slides about token economy of UT.
• Cryptocurrency exchange, Investment marketplace, and Mega Dictionary will be the main products of UT. Platform slide will cover everything.
• Also, UT wants to cover assets tokenization, ICO launches, and create expert community on its platform. During the interview with Anatoly Radchenko, we touched the topic of asset tokenization and ICO launches. Wait until the end of the video for this interview.
Let’s now take a look at the platform that will create the economy for UTT tokens.
Investment marketplace
What is it?
¥ Online shop offering investment ideas
¥ Voting mechanism to choose the best investment ideas
¥ ICO platform for projects
¥ It will offer tokenized real-world assets
What are the target for UT here?
¥ Engage from 30k-100k active users by the end of 2018
¥ On average, user deposit will be $20 000
¥ Average user’s lifetime will be 5 years
¥ Profit derived from platform’s operation will be 2-3% of annual user’s deposit
Cryptocurrency exchange
What is it?
¥ Project called UTEX (United Traders exchange)
¥ Cryptocurrencies and cryptoassets will be traded on this platform
¥ Any trader using Aurora multimarket trading platform will be able to trader on this exchange
What are the targets of UT?
¥ Currently, UT processes $1.5bln of trading volume of different securities on its platform a month
¥ Considerable number of traders on UT platform will start cryptotrading, making it easier for the project to expand
¥ By the end of 2018, UT plans to be in top 3 biggest cryptoexchanges
Mega Dictionary
What is it?
¥ Multilanguage information portal
¥ Mega dictionary will be another source for new users of UT infrastructure
What are the targets of UT?
¥ UT plans to enable users to create more than 100 000 entries in 2018
¥ Moderators and authors will be paid in tokens
¥ It is expected that this project will generate 15mln visits per month
¥ Average visit time to be equal at least 3 minutes
Let’s now take a look at some important United Traders numbers.
Here they made an interesting graph which compares monthly turnover on their Aurora platform with big cryptocurrency exchanges. Currently, there is about $1.5bln of different securities being exchanged each month on their multimarket platform. It places them between Bitstamp and Okcoin monthly trade volume.
This graph shows the number of traders, who use services of UT. Currently, there are about 3 000. Since the beginning of 2016, they tripled number of traders in UT.
Also, United Traders offers different investment products. Since the beginning of 2015, United Traders experienced 800% growth in number of investment products’ users.
News and dictionary for traders and investors. The internet resource currently gets about 400k unique hits per month.
We move to the most important slide of all. How and where UTT tokens will be used. As we all know, profit-sharing tokens are not permitted and can be harshly punished by regulators of different countries. This is why UTTs are pure utility tokens. Currently, there are 3 main segments on UT business where tokens will be intensively used.
Investment marketplace
• Investors pay fees in UTT and later can swap UTT for ICO projects’ tokens
• Managers pay UTT for offering investment ideas, get UTT for getting investment ideas implemented
• Startups pay in UTTs for different ICO services
• Experts pay in tokens for doing research
Cryptocurrency exchange
• Traders pay trade execution fees in UTT tokens
• Market makers get UTT tokens for maintaining liquidity requirements
• Projects pay in UTT tokens for commencing of their tokens public trading
• Experts get UTT tokens for assessment of tokens admission for public trading
Mega Dictionary
• Advertisers pay in UTT tokens for ads
• Editors get paid in UTT tokens for editing articles, search engine optimization
• Authors get UTT tokens for ad clicks on their articles
• Translator get UTT tokens from Authors for translating their articles
What about the growth of token value? How will it be achieved?
• UT is creating infrastructure that will completely depend on UTT tokens. There will be no way you can avoid paying in UTTs
• Project will create more services where UTT tokens are intensively used. So, there will be more possible reasons for token to grow
• United Traders will do buy-backs of UTT tokens
• There are a lot of long-term institutional holders of UTT tokens, who will support the price for a very long time
Crowdsale details
• ICO started 30th of November – 24th of December 2017. During presale minimum contribution was 70 ETH
• 65% of tokens sold go to investors; 30% retained for company, 5% will be used for bounties
• ICO accepts VISA, Mastercard, ETH, BTC, USD, EUR. About 3rd of ICO is sold out
• 100mln tokens will be in existence, 1 ETH – 800 UTT tokens
Advantages
• Established proprietary trading business with a history
• Experienced and young team with 60+ employees
• UTT tokens will be the backbone of UT business
• Vast user base where UTT tokens will be popular
Disadvantages
• Russia-based business
• UTT’s lack of profit-creating features
Guys, if you got interested in United Traders ICO, please, use my referral link. This way you can support my work and I’d really appreciate it. Thank you
About how valuable ETH is.