6/01 ANDY HOFFMAN (CryptoGoldCentral.com): BRhodium, And The Soon-To-Be-Crossed Coinmarketcap.com Hurdle
Since the altcoin explosion of mid-2017, led by ERC-20 tokens; followed by the even bigger explosion of late-2017, following the “successful” BCash fork; Coinmarketcap.com, or CMC, has been the dominant provider of altcoin trading and valuation data.
Today, 2,216 cryptocurrencies are listed, including more than 300 with no market cap ranking, because CMC has not updated the “circulating supply” utilized for this calculation. Among these 300, for now, are BRhodium – which I’ll discuss shortly.
Another 1,000 CMC-listed altcoins have market caps less than $1 million; 350, just $1-$5 million; and 150, at $5-$10 million. Thus, by simply being viable, with published “circulating supply,” you are already one of the 350 highest ranked altcoins, by merely having a market cap above $10 million.
As discussed in numerous articles, BRhodium was listed on CMC in early April, three days after releasing its public code. It’s “total supply” of 883,000 is published, but not its “circulating supply” – which given CMC’s rules, will likely be closer to 500,000-550,000, as it is unlikely to include the 250,000 XRC Strong Hands escrow account, and portion of the PR/Devs fund that has not yet been spent. Thus, if circulating supply were published today, it would likely have a market cap of $6-$7 million at today’s depressed price levels.
https://coinmarketcap.com/currencies/bitcoin-rhodium/
To that end, consider that since October’s MainNet launch – the first four months of which, coincided with the bottom of a brutal crypto bear market – XRC has briefly traded at prices equating to CMC market caps of roughly $29 million (December), $21 million (March), and $45 million (April).
Since then, dramatic improvements to its fundamental outlook have occurred – from public code release (March 31st); to Trezor code acceptance (April 1st, for inclusion in its next firmware update); CMC listing (April 3rd); listing on the well-respected Chinese exchange, FatBTC (April 23rd); and a steady increase in its hash rate, which now includes several independent mining pools and solo miners.
And oh yeah, the commencement of a new crypto bull market, that has taken Bitcoin from a low of $3,100 in February to $8,500 today. In other words, BRhodium is significantly more valuable, in terms of project advancement – and thus, SIGNIFICANTLY undervalued, relative to its $6-$7 million market cap.
When CMC came to prominence in 2017, it listed essentially anything submitted to it. In the race to publish everything, it was exploited by unscrupulous “developers” and exchanges – that purposely inflated supply data and trading volumes, to make useless altcoins appear “valuable”…including dozens of Bitcoin forks, and hundreds of pre-mined ERC tokens.
However, this is changing – as now that better information is available, and competition from other data providers heating up, CMC is diligently working toward a standardization of its data, and upgraded requirements regarding supply and trading data transparency. To that end, it just announced a brand new alliance called the Data Accountability & Transparency Alliance (DATA) - to provide “greater transparency, accountability, and disclosure from projects in the crypto space.” To wit…
“As part of its transparency initiative, CMC will also now require all the crypto exchanges to provide mandatory API data that includes their live trading data and live order book data. Stressing that the condition will be mandatory, CMC wrote that any exchange that does not provide this mandatory data will be not be included in the price and adjusted volume calculations on the site. The exchanges now have a 45-day grace period to send the required data, while changes will come into effect on June 14, 2019.”
In other words, it is very possible many altcoins will have their market cap rankings rescinded after June 14th – and possibly, much of their trading data.
Currently, 22 exchanges have joined the DATA alliance, many of which are household names. Thus, going forward, CMC will only publish market cap rankings on altcoins listed on these exchanges – though as noted above, it is uncertain if indeed, they will delete rankings of those that don’t meet the alliance’s criteria by the June 14th grace period.
Regarding BRhodium, none of the exchanges it trades on – p2pbp2, Trade Satoshi, FatBTC, Sistemkoin, or Bisq – provide such API data, though it is notable that the XRC devs ordered p2p to shut off the “bots” providing fake volume mere weeks into its listing.
Thus, despite the fact CMC doesn’t recognize these exchanges, I can tell you from watching each tick, that no fake volume occurs on any of them. Possibly some fake bids and offers on Trade Satoshi - of miniscule size, simply to promote interest; but essentially all trading volume is real.
That said, the fact that BRhodium isn’t yet ranked suggests that even if CMC makes draconian rule changes after June 14th – by, say, deleting data from exchanges not on its current 22-exchange “endorsed” list – its more than discounted in XRC’s price already; and market cap, which CMC lists as zero. By the way, the 22 exchange list current includes the following.
Binance, Bittrexx, Liquid, IDEX, OKEX, Huobi, HitBTC, Upbit, KuCoin, Bitfinex, OceanEX, Bithumb, Bancor, IDAX, Bibox, Kraken, EXMO, Coinfloor, Bitrue, SwitchedNetwork, MidasProtocol, and CryptoBriefing.
Since being listed on CMC April 3rd, the XRC community has been left in the dark about why its circulating supply was not updated – as its devs supplied, in painstaking detail, all necessary information. However, it was not until a week ago when CMC finally gave a definitive answer – by saying XRC needed to meet the requirements of the DATA alliance, by listing on one of the aforementioned 22 exchanges. Most likely, an answer wasn’t given until then because the alliance hadn’t been finalized, per the above article; but now it is, and FINALLY, the XRC community was informed of what it needs to do.
To that end, the day they learned this, on May 23rd, they immediately applied to all 22 exchanges, per the below comments from its two highest-ranked (but still anonymous) developers.
henry-BitcoinRhodium05/23/2019
@everyone I have answer from CMC We have to reach at least one exchange from these 22:
faraon05/24/2019
@everyone we are applying (or applied a few weeks ago) on each exchange from the list; it will take some time to know results.
A week later, “results” are highly likely to have been received – so unquestionably, the process of getting XRC listed on at least one of the 22 exchanges is in process. To that end, even I have until now underestimated the value of the CMC market cap ranking (though many others in the BRhodium community have not); which clearly, has been the SOLE reason many useless altcoins have been given material valuations. And clearly, demonstrates the power of the XRC story, given that it has risen to as high as a $45 million market cap (that today, would rank it #117 of 2,216), despite NOT being CMC market-cap ranked!
That said, not only do I recognize the value of CMC market cap ranking now – as does the XRC development team – but such rankings will likely become MORE valuable once the June 14th grace period ends, when CMC rankings are considered significantly more reflective of REAL supply and trading data.
So, given that XRC is one of the few altcoins with a REAL use case; REAL investor and mining communities; and thus, REAL potential to be extremely valuable in the coming years; I believe the soon-to-be-crossed CMC hurdle could prove THE valuation inflection point in its history…ESPECIALLY as any day, Trezor will release a firmware update incorporating XRC support.
So, if there EVER was a time when BRhodium’s reward/risk profile was worth considering, it’s NOW…PARTICULARLY, on a weekend, when prices tend to be the most “discounted.” Already, I see bids piling up below .001, by savvy investors hoping “panic” sellers will give them the deal of a lifetime. Only time will tell, if that opportunity will arise.
BRhodium currently trades on p2pbp2.io, Trade Satoshi, Fat BTC and Bisq. If you have questions about anything XRC-related, including OTC trading, please email me at [email protected], or DM/PM me on Twitter or Discord.