Researching Technicals & Analysis: SUMO
This is not a recommendation to buy or sell. This is for entertainment purposes only
Charts & data have been provided by www.coinmarketcap.com
Privacy coin with a small market cap. Only available on:
From the White Paper
Problems outlined with Bitcoin:
(1) “Bitcoins distributed nature is inflexible, preventing the implementation of new features until almost all of the network users update their clients”
(2) “Privacy and anonymity are the most important aspects of electronic cash.
(3) “Bitcoin violates the ‘one-CPU-one-vote’ principle since GPU and ASIC owners posses a much larger voting power when compared to CPU owners.”
Lays out scenario where someone invents the best miner, and instead of selling it they start their own mining farm in order to attempt 51% attack. Then could theoretically fork Bitcoin and double spend. Seems like a sound proposition.
(4) “Bitcoin has many hard-coded limits...It’s not so much the limits, as the inability of quickly changing them if necessary that causes the main drawbacks.”
I believe the inability to quickly change the hard-coded limits in Bitcoin is a key value proposition, not a problem that needs to be addressed.
What they are proposing is a slippery slope and sounds like it would need a centralized figurehead or group, to determine when the hard-coded limits need to be quickly adjusted.
For example: someone decides that it would be better to have 2X as many coins, so they change the hard-coded limits quickly and easily.
Anonymous Transactions
Keep transactions anonymous by grouping them. An auditor could see that transaction was sent from X group, but could not identify Y person within that group.
Known as ‘Traceable Ring Signatures’
"Users possess unique private and public keys
A sender generates a one-time public key based on the recipient’s address
The recipient can spend the funds using a ring signature, keeping his ownership and actual spending anonymous."
1st Value Prop: “The main advantage against Bitcoin is that every destination key is unique by default.”
“We propose a new memory-bound algorithm for the proof-of-work pricing function”
2nd Value Prop: “Our primary goal is to close the gap between CPU (majority) and GPU/FPGA/ASIC (minority) miners.”
Overall it appears to me like SUMO is having an identity crisis. The primary goal is to make mining more equitable and widely available yet the main advantage is the privacy function.
I absolutely see both of those problems with Bitcoin, I am just not sure if SUMO will be the solution. When looking to make a long term investment in a small cap coin I want to see more unique innovation that I can sink my teeth into.
Technical Analysis
SUMO still doesn’t have a Trading View chart so we will have to refer to coinmarketcap.com
Despite the fundamentals being underwhelming the technicals look great. It has retraced in the normal bubble formation and seems to have found a bottom. It is supporting above the previous resistance which is another great sign. It broke out of the downtrend about a month ago and has been consolidating ever since. From here it looks like a breakout is imminent.
As usual I put most of my emphasis (85%+) on the technicals and try not to focus too much on the fundamentals. Just because I don’t see the value doesn’t mean we won’t see a big pump and this is the type of chart posture that I really like to trade.
I have to be in love with the fundamentals in order to hodl long term, but I will trade anything with the proper risk:reward ratio.
Comment if you like and definitely finger that follow
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