Electroneum (ETN) topped out at highs of $0.22 apiece on January 6, but has since dipped to current levels in around $0.11 a token. this 50% decline comes in sharp contrast to the amount of attention this token has been getting in the media and from the cryptocurrency community over the last couple of weeks and, seemingly, represents a divergence between price and sentiment.
These are exactly the sort of opportunities we look for from a short-term trading perspective and it suggests that we could see a closing of this divergence and, by proxy, a turn to the upside for ETN near term.
ETN Daily ChartETN Daily Chart
Beyond that, however, we also think that there is some real long-term potential here and that there is a clear path to five dollars a token if the company behind ETN can execute on its growth strategy throughout 2018.
Here’s how ETN gets to $5.
For those new to Electroneum, this one is often billed as the first British cryptocurrency, and it was set up with a relatively simple mission statement – to remove the barriers to entry for those looking to acquire and utilize cryptographic tokens.
Right now, cryptocoins are tough to get a hold of. The barriers to entry for most people are too large, with complex software, GPU mining rigs, the necessity to send personal identification data and credit card information to young and questionably reputable websites, all making things complex for the new user.
Electroneum intends to overcome this with its ETN coin.
The company has created a mobile device application that allows users to manage online funds by sending and receiving payments with by way of QR code scanning but also goes a step further, offering the user a cryptocurrency mining experience; and crucially, one that doesn’t necessitate the technical knowledge or specialist hardware that is required for Bitcoin or Ethereum mining.
The company conducted an ICO back in September, raising $40 million in a few weeks from more than 400,000 participants – one of the most successful ICOs to that point – and has since gone on to attract a large amount of community and sector-specific attention.
And it’s in this attention that we root our long-term bullish thesis for Electroneum.
The adoption of a coin like this is based on mainstream utility. It’s simple to use, it’s mobile-based and it requires very little technical know-how or costly hardware to get up and running. Transactions are instant and essentially free and, at the same time, the company’s offline wallet is incredibly secure.
Each of these points answers a question that’s being asked of even the most well-established coins on the market right now – this really is cryptocurrency for the masses.
And the best thing about Electroneum? The company knows its positioning.
Electroneum has the target of becoming the biggest cryptocurrency by user count in the world during 2018 and while this may seem like a lofty challenge, it’s far from an unrealistic one. There are 2.2 billion mobile device users globally. All of these have instant and easy access to the Electroneum platform. The company has already signed agreements with major telecoms providers and expects to announce more such agreements this quarter.