I am sure you have heard, with quite the jealous streak, of people who invested in a particular stock or coin when it was not even heard of and how it made them a millionaire when it became the talk of the town. Earlier, we reviewed why the Zignaly platform is a great product for someone starting out in Crypto. Today, we dig into why you should hold $ZIG, the coin powering the Zignaly ecosystem, in your portfolio with 3 reasons.
The problem with most coins is that they lack any serious utility. In simple economic terms, any asset with no utility has no intrinsic value except what markets ascribe to it. Not with $ZIG. The people over at Zignaly, quite smartly, have developed the entire ecosystem around $ZIG which is the native currency of the ecosystem.
By holding your $ZIG coins on the Zig Vault, You can automatically earn passive income through staking (more $ZIG!) and receive rewards (Zig Vault Projects — tokens from other projects for free!). What is more is that you can pay fees for using the platform (at a discount!) and under a fresh utility, bid for vetted projects that intend to raise capital to launch their own ecosystems (that’s super early!). This is just the start with the team advocating the launch of multiple other utilities in the not so distant future.
- Revenue Growth
- Projects that have little to no revenue ultimately fail or become memes. No matter how much utility you create, there has to be an underlying revenue generation strategy which sustains constant development & helps create intrinsic value for the coin driving the ecosystem. This is the reason why exchange coins have had a spectacular run in the the present bull market (or whatever remains of it).
- In the case of Zignaly, between the May 21 crash and the November 21 peak, Zignaly registered a user base growth from 60,000 to 350,000 active users. As per some estimates, the registered user base, as at the time of writing, stands at 400,000!
- With new retail entering into the space & the majority of them expected to see value in copy trading, you can expect this trend in growth of the user base to continue. Zignaly’s revenue model centers around taking a cut of the success fee paid to traders & earn rebates under broker programs they are a part of as a result of directed trades. More users means more revenue for the platform as they profit from higher volumes copy traded — all ultimately reflecting in the price of $ZIG as the whole ecosystem revolves around it.
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- Community Building
- Social investment platforms are great community builders not just for the underlying platform but all those associated with them. This process is mutually beneficial as the platform and those associated with it all gain off each other.
- In the case of Zignaly, you have the:
- What does all of this do? Well its simple demand and supply. $ZIG is the at the core of all of this community building and interaction and with supply limited and subject to a slow release schedule, the more utility the platform offers for $ZIG, the higher the demand from users and the higher the propensity to hold their coins thus further taking off supply available to trade actively. This is acutely reflected in terms of the wide bid ask spread on centralized exchanges on which $ZIG trades. What is more is that the project is undertaking a mandatory monthly buyback and burn thus further cutting supply. End result? A supply shock is coming!
- Conclusion
- While valuation metrics are tricky, ever so more in the high volatility world of Crypto, there is no reason to believe that all of the above factors will not have a positive impact on the price of $ZIG. Not financial advice and always do your own research but the current valuation offers significant upside for long term holders which is why $ZIG is my largest portfolio investment due to the fundamental aspects discussed above.
- At the time of this article “going to press”, Zignaly has announced a new funding influx of USD 50 Million by Luxembourg based GEM to add to its growing list of partners, investors and backers. These funds, as per the Team, are primarily to be utilized for further project development activities including tech development, research, advertising, team building and strengthening the legal aspect around the ecosystem. The target?
- “Making Zignaly the best social investment platform for anyone anywhere on the planet”
- Disclaimer: The views presented in the article are the personal opinion of the author & do not represent that of his employer nor are financial advice. Please do your own research before investing in or using any product mentioned in the article. The author may or may not be invested in any particular product.
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