In my last blog post, I introduced one of my favorite projects I've been following for close to a year now, Endor Protocol. In that post, I alluded to a very intriguing function of Endor that I use personally- price predictions for Ethereum tokens. In this post, I'll give an overview of the utility I'm using and how it works. If you haven't seen the first post, check it out here!
At the end of 2018, after the conclusion of a successful closed beta, Endor began to open its protocol up to small and medium businesses (SMBs). Endor operates under a pay-as-you-go framework. These businesses attach the corresponding amount of EDR to the question they'd like to answer. The number of EDR is a function of the cost of the resources plus a small % fee.
While individuals cannot access the platform directly, they can perform functions available through service providers with access to the platform. The provider that we are looking at today (and the one I use personally) is Algowave. Algowave is a mobile application available on iOS and Android devices that provides one week price predictions on ERC20 tokens for an EDR fee. With each prediction purchased, Algowave returns the user a page that lists 10 tokens most likely to increase 5-25% in BTC value over the course of one week. The predictions work phenomenally- current estimates suggest an 80% accuracy.
How it Works
Endor Protocol, as it is built on Ethereum, it is very well equipped to analyze the network and gain insights. Endor analyzes changes in volume, price, activity of wallets, movement of tokens across exchanges, and several other factors. Then, after taking into account habits of traders and other parties that influence the coin (as is part of the Social Physics approach), price predictions are generated.
Algowave accesses Endor to learn insight into future token prices, and compiles it into an easily digestible infographic. Typically, half or more of these coins will be available on Binance, and at least 8-9 out of 10 will be available on one of the largest exchanges. These one week predictions cost 1,000 EDR each. At time of writing, that is the equivalent of about US$27. Below is an example of what Algowave returns. The expiration date is always one week out from when the predictions were generated. For this example, the prediction would have been generated on January 4th at 7:00am GMT.
So far, every coin I've purchased based on Algowave recommendations have been made on Binance, and each net me a positive ROI in BTC. In one instance Below is an unedited list of the purchases I made:
If you compare my time of purchase with the charts of each coin in the days following, you will see gains of at least 5% on all but one. The outlier from this sample size was QKC. As you can see from the first image, its one week prediction expired on January 11. from the start to finish, QKC went from roughly 1k to 970 sats (-3%). However, the prediction eventually did work out. On January 14, three days after expiration, QKC saw a sizable pump to 1455 sats- a gain of 45% from prediction start.
Every other coin worked out, and in my limited analysis, I've noticed that most of the coins that fail to gain in value do within the next week of prediction expiration. Most notably, NPXS grew 33% by prediction expiration (12 sats to 16). It continued to show up on further predictions, despite already netting large gains, and continued to grow. It is currently trading at 19 sats, but exceeded 21 to momentarily touch 22 sats.
Of course, DYOR and verify the graphs for yourself. Another interesting point I've noticed is that potential BTC dumps can be observed if stable coins (typically DAI) arrive on the predictions page. For more proof off success, plus side-by-side comparisons of predictions and trades, check out the Algowave Instagram.