In the last few hours, the value of ReddCoin (RDD) has shot up significantly. There is a lot of excitement around it right now. But what exactly is driving this excitement? Can it sustain?
Well, the excitement around ReddCoin right now looks pretty speculative. There is no major news coming up, but the price is pumping. This only points to one thing, ReddCoin is being pushed up by big players (whales). Everyone else is buying and holding, in the hope of sell at a higher price. Some are even predicting a high of $0.1 in coming days. Can such a high be achieved?
In crypto markets, anything is possible. We have seen concepts that have no working products hit astronomical valuations in the past. As such, for a platform that is already functional such as ReddCoin (RDD), such valuations are really not unexpected.
However, from a purely fundamental perspective, there are some weak points to ReddCoin. For instance, the whole idea behind ReddCoin is for social media users to offer tips. Essentially, the more people tip, the more its value grows. But there is one problem with this, and that’s human nature. When people make an investment, in most cases they do so with a profit motive. ReddCoin investors are no exception. An investor putting money into ReddCoin does it because they expect some return on their investment. They are not just going to tip away their investment just to get ReddCoin circulating. As such, we are likely to continue with the current scenario where everyone is HODLing, hoping to sell to someone else at a higher price.
This then leads to the second problem, and that’s the value of the coin itself. The fact that not many people are tipping means that its value remains relatively low. As such, even when people are given tips in Redd coin, they don’t seem to take much interest in it. That’s because the dollar equivalent of the tips received are not worth most people’s time.
So what’s the future of ReddCoin (RDD)? As currently structured, ReddCoin could implode in the long-run. Speculation alone cannot drive up its value sustainably. The team behind it needs to transform it from a tipping coin, to a currency for micropayments. In other words, ReddCoin needs to become a coin that can be used for the purchase of goods and services. There is a strong potential in that direction given it can be used for the sale and purchase of digital content through social media. It can also be used in the advertising industry as a means for purchasing ad space. These are potential use cases that would see its intrinsic value increase in cypto space.
But let these issues not discourage you from making some money with ReddCoin. If you understand technical analysis and other techniques for market analysis, ReddCoin (RDD) is one of the coins that can make you lots of money in 2018. Who knows, it could even hit $1 sometime in the future, based purely on the forces of demand and supply.