What is Reddcoin (RDD)? | Price prediction?

Today, in the second episode of HAR, I'm going to talk about Reddcoin (RDD), and why I'm not going to invest in this crypto anymore.

This is a cool project in my opinion. I've actually been invested in it for a long time, but after the explosion in price in December, I sold 100% of my possession and I'm not looking to add back to it.

Why?

This is part of my "Honest Altcoin Reviews"-series. For more, check out my Steemit/YouTube

I'm not a financial advisor of any sort, this is just my own opinion that I strongly believe in.

What is Reddcoin?

Basically, it's an "upgraded" version of Dogecoin.

Its main use is as a social media tipping system. Using the Reddcoin Tipping platform, you can tip your favorite content creators on Twitter, Reddit, and Twitch. Their goal is to be used on Facebook, Instagram, and all the other leading social media platforms.

Just like Doge, Reddcoin has a huge supply of coins. This is done on purpose because the creators wanted to have a huge amount of coins in circulation, so the price of the crypto would be really low.

One of the biggest differences in these coins is that Reddcoin uses Proof of Stake instead of Proof of Work

The question is; Is this really a big deal for a small crypto focusing on social media tipping?
Probably not, but in my opinion, it's nice to see cryptos using PoS instead of PoW.

Positives and Negatives of Reddcoin

Negatives:

When I research a crypto, the first questions I ask myself are; "What is the problem they're solving?" and "Is the problem they're trying to solve relevant and how big is it?"

Reddcoin isn't really solving a problem, they're just trying to add something to already working platforms.

Some cryptocurrencies are solving worldwide problems, and you're telling me that I should invest in a crypto trying to build a platform where I can tip someone on Twitter?
-A friend of mine

How many people would actually like to tip someone on Twitter?

I like what Reddcoin is trying to do but I really don't find a lot of use for it. Also, the idea isn't even original, Dogecoin is doing pretty much the same thing. If Reddcoin wanted to succeed, it would need mainstream adoption, which is something I don't see happening.

Positives:

Reddcoin has a decent team, not filled with big names, but it's decent sized. Reddcoin also has a pretty big and active community.

The best part of Reddcoin is the ease of use.
Using Reddcoin is easy. Just buy some Reddcoin, transfer them to your wallet and add the Reddcoin Tipping Platform-application to your browser. Now you're ready to start tipping people.

Why am I not investing in RDD anymore?

As I already said, I've invested in Reddcoin before. Why wouldn't I invest in it anymore?

The price of Reddcoin rocketed after December. The price reached 0,030$ and the market cap reached over $900 million. This was mostly caused by many people (like John McAfee) hyping it and the overall markets of cryptocurrencies exploding.

This wasn't healthy for Reddcoin, the price went up over 300% without a valid reason. It made Reddcoin really overvalued.

Just think about this:

A cryptocurrency that is focusing on creating a social media tipping platform (which currently is not even properly working) was worth almost a BILLION dollars.

I would've understood it if they got a big partnership with Facebook, Twitter or Instagram, but without that, they shouldn't be worth even close to a billion dollars. Especially when it's currently only working partially.

Now at the time of this writing, Reddcoin is trading at 0,0057$. It has a market cap of $165 million. This is a lot closer to what their actual value should be in my opinion.

The problem with Reddcoin is that it doesn't have a lot of long-term potential anymore. Realistically, the market cap of Reddcoin shouldn't rise above the all-time high at $920 million. The only thing that could put Reddcoin over that all-time high is a big partnership with a major social media company. And I don't see that happening.

Therefore, I'm not going to invest in Reddcoin anymore. I just don't see them getting mainstream adoption and big partnerships that they'd need for growth long-term.

Price prediction?

I've heard too many people say that Reddcoin will go to 1-2$ in 2018.

I'm sorry that I must be the guy to drop you back to reality: It won't
There's absolutely no chance it could go to 1 or 2 dollars.

If Reddcoin reached 2$ it would have a market cap of $5,7 billion. I can guarantee you that it won't reach a market cap like that anytime soon, if even ever. Reddcoin would have to get partnered with every big social media company if they wanted to even dream about being worth over $5 billion.

Well, what's my price prediction then?

As I've said, I'm not a big fan of giving long-term price predictions for cryptos. It's just really hard to be correct because, as we know, crypto markets are crazy. Bitcoin went from 1k to 20k in a year. Nobody could’ve predicted that.

I am still going to try to give you my best, and most realistic, price prediction for 2018.
(At the time of this writing Reddcoin is at 0,0057$)

Reddcoin will reach 0,020-0,025$ in 2018 (market cap of $600-700 million).

This is a long-shot. The only reason I'm giving such a high price prediction is the fact that there's a lot of money coming into cryptocurrencies. So, that will pump the price of almost every coin. Also, if Reddcoin can finally get their platform working on other social media platforms, that will affect the price positively.

Conclusion | Would I recommend investing in Reddcoin?

I'm not a financial advisor of any sort, this is just my own opinion that I strongly believe in.

Remember, you shouldn't invest in a certain cryptocurrency just because I or anyone else on the internet says so. Do your own research, read through their whitepaper and look at their team. After you've done your own research, you can check other people's opinions on YouTube or Steemit.

Long-term:

It depends. If you believe that they can get some major partnerships going, then sure. My recommendation is that you stay away from Reddcoin. There are so many better, and more reliable investments out there.

Short-term:

Sure, go for it. There's a lot of money coming into cryptos and as I've said before, most likely almost every coin in the top 100, 200 and 300 will rise in value. Also, if they get Reddcoin working on other platforms (like Instagram and Facebook), it will affect the price positively.

All and all, Reddcoin is an interesting project. It will be interesting to see where it will be in the next few years. It might be working with all the major social media platforms, and I'd have to eat my words, or it could just be completely forgotten.

I'm a believer of the last opinion.

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That's it!

I really hope that this article helped you understand more about Reddcoin!
If you enjoyed, it would mean a lot to me if you could give feedback, or maybe even upvote this post! :)

Also, if you have an opinion on Reddcoin, or suggestions for what crypto should I cover next, I'd love to hear them!
Comment them down below!

The images and videos used in this article are from CoinMarketCap

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Peace!