Deflationary Cryptocurrencies - Community Matters. Or does it?

By jonlloydjones | jonlloydjones | 6 Aug 2019


In my last update I talked about the impact of supply and burn rate on the price of deflationary cryptocurrencies.

We learnt that, although low supply and high burn rate are generally linked to price, there were other factors contributing to the this. 

In this article, I am going to explore how social media, exchanges, and the age of currency, have a part to play in price. After all, deflationary cryptocurrencies are relatively new territory. 

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The table below shows a summary of followers on Twitter and Telegram (as these are all the key channels used by all tokens), when the currency was first introduced, and the exchanges they are currently listed on. 

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Social Media

Now, let's break this down and take a look at Twitter and Telegram. Other social media channels are available, of course, but these are by far the most widely used in the crypto world and all of the below tokens use them which makes it easier us to compare like for like. 

There's no doubt that community is important in deflationary cryptocurrency, especially as a large percentage is given away for free, but the aim of this analysis is to identify whether or not there is any link between the size of the community and the price. It' certainly worth exploring.

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                                                                                                                     Highest figures are in green, with the next highest in yellow.

From the above table, it is clear that a large community doesn't correspond to a higher valued token. In fact, Fuze Token has a relatively small number of followers yet it has the highest price. So we know that social media isn't the deciding factor here. 

Exchanges

Let's now take a look at which exchanges. Surely being listed on some of the bigger exchanges will help increase the price, right?

 

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Again, not necessarily. Fuze Token is listed on more of the bigger exchanges than some of its competitors but the results are not consistent and suggest that this is not the only reason for the higher value.

 

Age

That leaves us with age. There are more and more deflationary currencies coming on the scene at pace - but what about the ones that got in there early? How are they performing and is there room in the market for more?

Let's find out. 

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Now things get a bit more interesting - we can see that the earlier tokens have indeed had an impact on the price with Bomb and Nuclear Bomb setting the scene. June and July have certainly been busy months and that's not set to change in August with a number of new tokens being introduced on a regular basis.

 

Summary

What we can see from this analysis is that nobody can really predict what will happen. Next time we will pull all of the evidence together to see what makes a good, well-rounded deflationary cryptocurrency, taking into account everything we have looked at.

Perhaps there are even further factors to consider, such as trust. Given the recent CLM exit scam, this is undoubtedly important to any investor but its not always easy to understand who we can trust in this business. One crypto looking to put an end to this is Hydro Token (XHT), who has recently partnered with Dynamite Token and Volcanoes, verifying them as a trustworthy project, so make sure you check them out. 

 

Over to you!

Until next time, what do you think - are there other external factors to consider that you would like to see discussed here?

Which token is your favourite and why - and how do you see the future of deflationary cryptocurrenies?

 

 

Please note that the above information is subject to change at any time - if you notice any anomalies please let me know and I will review.

 

You can also follow my latest updates and get involved on Twitter.

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jonlloydjones
jonlloydjones

Geek. Enjoy technology, video games, golf and rugby. Crypto enthusiast.


jonlloydjones
jonlloydjones

I'm a crypto-enthusiast and right now my interest is in deflationary cryptocurrenices. Full disclosure: I am also part of Dynamite Token team.

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