We’ve now officially entered the longest bear market in crypto history. Yes, the last year has been painful for crypto supporters and the truth is that many have packed up their bags and left the market a long time ago. However, even in these testing conditions, many crypto projects have continued to build and strengthen their underlying fundamentals. In contrast, others have certainly been struggling, with some announcing massive layoffs of their workforces and meager runways due to treasury mismanagement.
Right now, identifying the most promising crypto projects has never been so important. After all, it seems likely that strong projects that have worked hard and built during this Crypto Winter will be the ones to benefit the most if the market turns around. Back in late 2017, at the height of the crypto bubble, everyone was looking at small-cap coins to make a quick buck and were frankly throwing their money at anything crypto influencers tipped as ‘the next hot altcoin’. Flash forward to early 2019 and barely anyone is talking about promising small-cap coins with the potential to do well in the next market cycle.
So, what small-cap cryptocurrencies have we got on our watchlist in 2019? Total Crypto reveals their top three picks and explains why these under the radar coins could be worth monitoring.
The cryptocurrency markets are full of projects creating payment systems and whose tokens are intend to be used as currencies. Despite Bitcoin existing for 10 years the most well-known crypto payment system is still be refined and requires yet more adoption to be considered a store of value or a medium of exchange. That’s opened up the doors for numerous cryptocurrencies to provide an alternative payment system to Bitcoin.
Nimiq is one of these alternative payment systems and their native NIM token is transacted within the ecosystem. What sets Nimiq apart from other payment systems is the team’s focus on ease of use and simplicity.
The other interesting thing about Nimiq is that it’s the first browser-based blockchain. That means that any user can connect to the blockchain without downloading any software whatsoever. That means that the Nimiq ecosystem has that no-installation, ‘it just works’ quality to it and users can enjoy this convenience without compromising on censorship resistance.
#2 Own (CHX)
Did you know that the cost of maintaining a stock market listing on the UK’s Alternative Investment Market is over $290k per year? Now that’s a lot of money to get listed on the UK’s smallest stock market and is the core reason why medium-sized businesses and startups remain privately owned companies. It turns out that raising money via traditional means involves paying an extortionate amount of money for a stock market listing or founders accepting whatever deal they can get from venture capitalists (often unfavorable).
Security token issuance platforms like Own offer companies an alternative to the traditional IPO and enable their equity to be traded publicly for a fraction of the cost of a traditional stock market listing. The benefit for STO backers is that they could get access to some exceptionally promising and early-stage companies.
The use case of Own’s CHX token is slightly different to other STO platforms. Yes, it is still used by businesses on the platform to raise funding. However, businesses who want to launch their STO on the Own platform must go out into the market and buy CHX tokens worth 1% of the funding they are looking to raise, which are then locked up. This mechanism has been devised to increase the quality of business listing on the Own platform.
Supply chain management and tracking are perhaps one of the most practical real-world applications of blockchain technology. In this area, there is little doubt that VeChain is leading the way in terms of a number of partnerships and popularity. However, the only problem is that Vechain is already well known and can already be classified as a large to medium cap crypto. Those looking for a more punchy supply chain play will need to look elsewhere. That’s where a crypto like Modum comes in.
In a nutshell, Modum is a supply chain play that integrates sensory devices and smart contracts into a single unified system. The purpose of the system is to provide a real-time data tracking service that is also tamper-proof and which cannot be compromised. Part of this system is a feature called MODSense, which is a temperature logger and gives the user the ability to monitor the temperature of a shipment or to be alerted if a predefined temperature threshold is exceeded.
So, what is the Modum system geared towards? Well, the Switzerland based company is targeting the pharmaceutical industry and ensuring that the transportation of pharmaceutical products complies with EU regulation. Now, big pharma is a massive industry and Modum’s supply chain solution is tailored to solve the unique problems of the niche. However, the scope does exist to branch out into other markets. For example, the perishable food supply chain could also benefit from solutions like MODSense.
Modum is perhaps one of the more interesting small cap, blockchain supply chain plays. It is certainly targeting a focussed market and is well situated to execute. Indeed, the big pharma industry represents 30% of Switzerland’s yearly exports and is home to big industry players like Roche and Novartis. This small-cap cryptocurrency is certainly one we have on our watchlist for 2019 and beyond.
The cryptocurrency markets are full of innovation and teams attempting to disrupt whole sectors. Of course, there are many other worthy projects that have not been mentioned in this article. The open and honest truth is that no one really knows what the future has in store for the cryptocurrency market. Possibly we are all wasting our time or we will turn out to be early pioneers in the next disruptive tech movement.
The thing that you should be aware of is that crypto watch lists should be simply used as a tool to cut through the 2000+ cryptos out there and help you to identify projects that are worth doing further research on.
Disclosure: The author holds some NIM & Modum in their portfolio and is compensated in a long-term independent consulting capacity by Nimiq. This article must not be construed as investment advice. Always do your own research.