As you guessed from the article’s title, I bought The Graph coin for my long-term investment portfolio. Why? Because I believe that the coin’s price will be much more higher than now inevitably. Here I will tell you why I think so.
How did I identify that The Graph coin is promising?
Factor I. Investors.
There are many guys with huge money invested into The Graph project. Why they did this? Because they want to make more money from this.
There are two types of projects guys with huge pockets invest to:
I. Projects from which they want to make more money.
II. Projects they donate for to enhance own reputation and commitment to technology evangelism.
I think The Graph is the project from the Point I. Why? Look at the investment amounts and interested parties.
There are a lot of information at the figures above, so let’s make it more clear for insight.
The first. We definitely see that The Graph team is talent in investment attraction field. Simple calculation leads us to the amount of 79.7M$ according Cryptorank, and 279.7M$ according Dropstab. Which amount is more credible is not very interesting to me because the data obtained is enough for my research. If you need exact data, you can clarify this in detail and message me, any productive cooperation is appreciated. The main aspect I got from this numbers is that investment amount they was able to gather is huge. Let’s compare it with some other top blockchain projects like Polkadot, Solana and Aptos. Polkadot gathered 43.7M$ (Cryptorank) or 247.76M$ (Dropstab); Solana gathered 339.55M$ (Cryptorank) or 359.7M$ (Dropstab); Aptos gathered 350M$ (Cryptorank and Dropstab). So let’s a conclusion that such amounts of money are investment and not a donation. If this is the investment, so investors want to multiply these amounts and get back. To be straightforward, this is a key point of overall this research, and it will be clarified more below.
There is one minor point to clarify because it may mislead and scare newbies in the investment field. We see many different titles of investment attraction procedures: seed, strategic round, community sale, public sale etc. when observing stats at Dropstab and Cryptorank. What we need to understand that there are just two types of investment rounds. The first one if actors who invest are guys with huge pockets (venture capitalists, investment foundations and conglomerates etc). The second one if actors who invest are guys with small or medium-sized pockets (with average income say not more than $300k in a year). I will entitle the first type as “private sale” (just selected parties can buy an asset), and the second type as “public sale” (everyone can buy, but private sale participants are not already interested because they have much more attractive prices at private sale).
Now let’s see who are the investors.
We see many different names here. They don’t even fit in one section, and Dropstab stacked them into three ones. There is a proof of solid interest to The Graph project from different parties from over the globe. Not bad, I like it. Let’s explore who they are. I will highlight three private investors: Coinbase Ventures, Multicoin Capital and Digital Currency Group. We see the “coin” or “digital currency” words in the names of them. So they invest into blockchain-specific ventures. The first one is ventures departments of well-known Coinbase exchange, the first crypto company that conducted its own Initial Public Offering (IPO). They have 287 investments into projects from blockchain industry. The second one is Multicoin Capital, cryptofund from Dallas, having 103 investments into the blockchain industry. The third one is Digital Currency Group, investment firm from New York, having 197 investments into crypto projects (all data is from Cryptorank). As we see, these funds are one of the largest investment parties in the blockchain world, and they chose The Graph as one of their investment focus. Very good sign.
Factor II. Technology, Mass Adoption Vision and Field of Application
We can not live without the Internet now but there are many problems in this field. Why do such things as VPN and proxies exist? Why we observe digital migrations of the people form one services to another just because of the only solution of someone? The recent migration from Twitter to Parler, Telegram and Gab due to US President Trump ban is one of the global scale examples. My website hosted on third-party server was also suspended as a result of a hosting provider decision, that’s why I am motivated to research Web 3 technologies and found The Graph project. When people faced with an issue, they will try to resolve it. And The Graph is an ambitious effort to resolve one of the key problem in building decentralized web, which is to provide a reliable core to decentralized back-end infrastructure to Web 3. You can find more details of this issue in my Introduction to The Graph & Web 3 publication.
Summarizing, we see that The Graph offers the solution for one of the most promising mass adoption fields that blockchain industry offers solutions for. That’s why I’m glad to invest and be a participant of this global process of freeing the people from dependencies on third parties.
Factor III. Tokenomics
I see on tokenomics to identify who are the major coin holders, guys with huge pockets (whales) or with small ones (hamsters). I don’t very like the terminology in round brackets, but it is convenient because of its brevity and comprehensibility for everyone, so I may use it somewhere.
If the major coin holders are the guys with small pockets, they will not be able to pump it much in the future because of not enough money to push price up and lack of coordination capabilities. The guys with huge pockets, on the contrary, has it all.
I see here that at least 59% of the coins are holded by the guys with huge pockets. That is exactly what I’m searching for.
Factor IV. Passion and number of The Graph Developers
The Graph is 24th project in the blockchain world by a number of developers according to DeveloperReport portal.
336 developers have been improving The Graph and adding new features in December 2022. Among neighbours of The Graph in this rating are:
- Flow blockchain and platform for NFT,
- Osmosis decentralized exchange in Cosmos ecosystem offering many assets and closely integrated with EVM,
- Basic Attention Token that is a product of private Brave browser which actively developing in the field of decentralization,
- Gnosis decentralized prediction market.
There are definitely good neighbours.
Let’s see at the top-5 of the rating.
Multiply the number of The Graph developers by 3 and we will receive the number of Bitcoin developers.
When I researched activity of Developers and all interested parties in The Graph communities on different Platforms (Telegram, Discord, Twitter), I was nicely surprised. There is an impressive activity. Which is confirmed looking at The Graph Github page activity. There are every day updates and many repositories there. Exactly what I’m searching for.
Developers are really passionate of this project, and there is no doubts for me that the most skilled developers in blockchain industry work for The Graph.
Factor V. Technology Evangelists and Community Boosters
The Graph has a strong team of technology evangelists and educational experts which boost the Project’s community and make The Graph technology mass adoption closer.
Paolo Diomede, a Harvard Business School certified Co-Founder and Chief Operations Officer of Graphtronauts community, a person with a broad several decades expertise in a variety of fields such as telecommunications, learning services, cloud operations, relationship management and blockchain.
Colson, an expert in promotion of the knowledge about Web 3 and trustless infrastructure technologies, with a strong teaching background and experience.
Estie Woo, The Graph communities booster, organising interconnection and facilitation for all interested parties in Web decentralization.
I’m making a conclusion that The Graph is able to attract skilled people which do a valuable work of introducing people to the opportunities and benefits of decentralized infrastructure, the growth of The Graph community. That’s a big advantage featuring The Graph in the blockchain world.
Factor VI. Expansion into Networks and On-Chain Activity
The Graph is an ecosystem aiming to cover the needs in trust minimization regardless of which blockchain is used. Such well-developed infrastructure is attractive for investors with the ability to purchase tokens in any convenient network without using centralized exchange third-party. I combined a table below showing networks The Graph token live in, token contracts, links to token overview in corresponding block explorers, number of holders and total transfers, and a swap fee in the networks.
The Graph token is present on the following networks (for January 24, 2023):
- Ethereum — token contract 0xc944E90C64B2c07662A292be6244BDf05Cda44a7 — etherscan link — 137,221 holders — 1,342,437 transfers — ~$4 swap fee (uniswap)
- Polygon — token contract 0x5fe2B58c013d7601147DcdD68C143A77499f5531 — polygonscan link — 6,883 holders — 484,319 transfers — ~$0.01 swap fee (matcha, uniswap)
- Arbitrum — token contract 0x9623063377AD1B27544C965cCd7342f7EA7e88C7 — arbiscan link — 29 holders — 274 transfers — ~$0.2 swap fee (uniswap)
- Avalanche C-Chain— token contract 0x8a0cAc13c7da965a312f08ea4229c37869e85cB9 — snowtrace link — 238 holders — 2,232 transfers — ~$0.2 swap fee (kyberswap)
- Gnosis — token contract 0xFAdc59D012Ba3c110B08A15B7755A5cb7Cbe77D7 — gnosisscan link — 1,132 holders — 67,918 transfers — less than $0.01 swap fee (honeyswap)
My Entry Point into GRT Investment Position and Price Expectations
I bought GRT tokens on Jan 20, 2023 at $0.08 per token. And my price expectations are the following:
All the price dynamics that I expect is on the charts, but I will add few comments. The upper chart is for GRT price change I expect in Feb-May 2023, the lower chart is for my long-term price expectations for 2024–2025. Why are exactly such values there? Cryptocurrency market is a bubble like any another market including stocks, bonds, property, cars etc. The only difference is that cryptobubble is inflated and deflated much more than any another one. I have bought The Graph token when the cryptobubble is deflated almost to the probably minimum values, and all I have to do is to wait for the cryptobubble to inflate. I expect two inflation phases of the bubble, short-term and long-term. Short-term inflation phase (minor pump and unexpected immediate dump) is necessary to trigger an emotion of irritation and offense to the market among cryptoholders so they start to sell crypto assets at a loss. After it a major player will be able to finish coins accumulation and will be ready for pump as I expect in 2024–2025.
I have no doubts that such advanced project like The Graph will show a price up at least to $1.5 for 2025. The Graph is interesting to a large capital, it proposes advanced revolutionary technology that can change our insights about the Internet, it already has well-developed infrastructure and attracts highly qualified people to boost a much-needed thing for people, which is the infrastructure for a free, user-owned Internet.
Disclaimer: This is just the story of one of my investments, and not an investment recommendation or advertisement in any way. All decisions are your own, and you’re fully responsible for them and noone else.
***
Subscribe CryptoRocky on Telegram | Twitter
For consultations, message me in Telegram
***
Useful links
New to trading? Try crypto trading bots or copy trading on best crypto exchanges
Join Coinmonks Telegram Channel and Youtube Channel get daily Crypto News
Also, Read
- Copy Trading | Crypto Tax Software
- Grid Trading | Crypto Hardware Wallet
- Crypto Telegram Signals | Crypto Trading Bot
- 28 Best Electric Bikes Review
- Top 3 Binance Futures Trading Bots
Why I bought The Graph for my investment portfolio: a story from CryptoRocky was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.