The focus is on low market cap coins (dealt with yesterday); specifically ARCT. Most of today's post will focus on ARCT itself.
From https://arbitragect.com/en/index.html# ; modified by Bit Brain
Ultra-low market cap coins such as ARCT present unparalleled ROI opportunities - with the associated risk - a risk which may be worth it for those who can't afford high market cap coins, or who can afford to hold enough low market cap coins to mitigate the risk. ARCT is an ultra-low market cap coin.
Yesterday I told you that I bought more ARCT because it was simply too cheap to pass up. If that was true yesterday, then it's doubly true today! Murphy's Law is without a doubt the most powerful force in crypto, at least that's what I always find. I blogged about ARCT yesterday. I have 67 coins on my CMC Watchlist, all of which I hold. Take a look at my Watchlist right now, arranged in reverse order of 24 hour price change:
From https://coinmarketcap.com/watchlist/ - a link which will be useless to you if you are not using my PC
But that's good because it makes ARCT even better value for money for new buyers and increases the already ridiculously high potential ROI even more! But is ARCT worth buying at all, or is it a waste of money on yet another coin that will turn to dust? Let's take a look:
Remember: we are not looking for a market beating coin here, this is not a search for an EOS or VEN or BNB. We're looking for a relatively high risk coin with very high potential ROI.
As I mentioned yesterday, because this coin was not very important to me when I bought it, I did very little research into it. With my second ARCT buy and the writing of this post, I have remedied that somewhat, but I am far from an ARCT expert. My knowledge of the coin is still not at the same level as my knowledge of my proper holds. That's enough small talk, on to the good stuff.
Look at (the tail end of) my CMC watchlist again, but this time arranged in reverse order of market cap:
From From https://coinmarketcap.com/watchlist/ - just as useless to you as the last link
You can clearly see that ARCT is by far the lowest market cap coin in my stable. The major question that you should now be asking yourself is: "Does that extremely low market cap come with enormous risk, or is it a dark horse in waiting?". We'll try to answer that now.
ARCT is the token of an arbitrage trading platform (or "terminal" if you prefer the correct terminology). You tell the platform which pairs to trade and which of the supported exchanges to trade on. You can then either trade automatically (it trades for you) or manually (it suggests trades to you). It also supports simultaneous trading of multiple pairs.
One of the most important questions with any coin is "how does it derive its value?". Utility coins usually do something valuable - worth paying for. Dividend coins generate some form of profit and pay you for holding them. From what I can tell, ARCT is both!
The ARCT platform offers premium subscription services. The basic platform can be used for free, but added functionality is something that you have to pay for. I'll give you one guess what currency you use to pay for that functionality... This is where ARCT derives its utility token value from - or at least it will when investors wake up, because this coin is the dictionary definition of "undervalued!"
Premium features include such things as one-click trading, stop losses, taking profits and the auto trading feature. There are also different levels of premium subscription, the pricier ones offering more perks. Silver packages cost 4500 ARCT, Gold cost 9000 ARCT and Platinum cost 18000 ARCT. These prices are adjusted when required based on the current token value. Here is a screenshot of the platform (not a final version yet):
ARCT is a Russian project, a fact which leads to a bit of a problem. While their website has greatly improved since I first saw it several months ago, the English on the site is... ... not always that great - to put it nicely. This is especially true for some of the older documentation, like their whitepaper. Fortunately the whitepaper is short, sweet and to the point (not a bad paper at all), but the language barrier means that I don't always understand what they mean.
Take the dividend role of the ARCT token for instance. In addition to selling contracts, ARCT makes profits by charging a trading profit commission of approximately 2-5%. According to the whitepaper, when talking about the division of profits from the platform: "30% of the profit generated by the Arbitrage Crypto Trader platform will be lost". Clearly this is nonsensical. From what I can tell on forums, this 30% is either put towards token burns, or is paid directly back to ARCT holders. I can't clearly discern which it is. If it helps at all, here is an equally ambiguous and confusing diagram of profit distribution:
From the ARCT whitepaper
Please don't ask me what the 20% reserve fund is for either - I can't tell you. I think that the 30% is a token burn (carried out monthly) and the remaining 50% is sold on exchanges to re-enter the market as investors buy it to purchase new ARCT platform contracts.
The ARCT platform has versions for IOS, Windows, Android and macOS. Piecing snippets of information together, I have found that it appears to support the following exchanges: HitBTC, YoBit, ForkDelta, Okex and KuCoin. I can't tell you how complete this list is or which future exchanges are planned. I've seen Binance in a screenshot, but suspect that that might only have been for simulation purposes.
ARCT can be bought on Mercatox (for BTC), HitBTC (for BTC and USD) and YoBit (for BTC). I warn you: trading volume is extremely low, so shop around and watch out for large spreads! Mercatox usually has the highest trading volume, but that's really not saying much!
The planned maximum token supply of ARCT was 1 000 000 000 tokens. But the ICO took place during the bear market and did not sell out. The majority of planned tokens were burnt immediately, leaving a Total Supply of 151 562 181 ARCT tokens (according to CMC and verified on forums). I assume that future monthly token burns will further reduce this figure. Circulating Supply is 90 488 181 ARCT.
The best part about ARCT is that it is already operating in beta i.e. they are doing the final testing of a working product. The final version release date for the ARCT terminal is Q4 of 2018. I would expect that to cause quite a price surge, though crypto is notoriously unpredictable.
More good news is that the beta testers (and there look to be quite a lot of people participating in the open beta) generally write very positive things about ARCT. The platform appears to be making them money and they look happy with it. Obviously there are the usual bunch of people who are not happy; par for the course in crypto. I do not know if it is still possible to sign up as a beta tester or not.
Mercatox held an ARCT trading competition in June where the prize was a 500 000 ARCT airdrop, split between the 20 top ARCT traders. It failed to make a large difference in this difficult market. In retrospect I should have participated because the volume stayed so low!
For such a low market cap coin, I find ARCT to be surprisingly good! It has a product, a timeline, a large social media presence (which it updates regularly), several users and it appears to work well. The token economics look very promising, even if the Russian - English challenge makes for difficult communication of exactly how that works! If you speak Russian then you're probably better off, the website can also be viewed in Russian.
For the surprisingly low risk that it seems to offer, the dual approach to generating token value, the huge potential ROI and above all, that $0.002 token price (as of today); I consider ARCT to be a great buy for a bit of riskier crypto speculation. Which is why I did buy it; again. Will you buy ARCT? What have you got to lose? What have you got to gain?
Some of my other low market cap coins are not performing too badly during this horrible market. Take a look at the screenshot above where I arranged coins in reverse order of market cap. LOCI did exceptionally well today and is also incredibly undervalued (and also has a working product). MyWish has been holding its value despite the recent drops. Covesting (market cap around $20 Mil) has been performing very well for the last several days (another automatic trading platform). Use that information as you see fit.
Yours in undervalued ultra-low market cap crypto,
Bit Brain
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by Bit Brain
