Electroneum - Price Manipulation? Thoughts

That project clearly is some very passionate people. Hey, you all, welcome back to the channel. And today we want to talk about Electroneum, this recent, um, interview that was did with Block One where, uh, I'm sorry, not Block One, Block TV, uh, where the allegations of manipulation of the Electroneum price was talked about, um, and, uh, Richard Dale's got a chance to, to answer some of the questions in relation to that. So I just want to give my thoughts on that because I am kind of recently watching this, um, watching this video. Uh, I, I hadn't got a chance to look at it, uh, really up until now, uh, and I did hear some of the community kind of speaking on a little bit, but I didn't, uh, really get a chance to get deeper to it. But I did just finish watching it not long ago. And, you know, I think that some of the things that came up, like some of the, uh, the data that was, was used to determine if they believe the Electroneum price is being manipulated or something to that, to that effect, uh, based on the count on the number of users and the number of tweets coming off social media and kind of combine that together. I'm not even really sure how that data exactly correlates to the price of Electrum to the point to make an allegation like price manipulation, but in the beginning of that video you kind of see that's what's going on. Um, so the thing is First of all, Electroneum can't really be compared like other coins out there that have similar, you know, amounts of Twitter tweets and data of that sort and the amount of attention it gets, simply because Electroneum has this monthly airdrop system, right? It's giving away tokens every month. So automatically you're gonna attract a lot more people, uh, than normal, right? Maybe than the, uh, cryptocurrencies is being compared to it because, because they're giving away the free tokens right now. Well, what's happening with the free tokens, obviously, uh, it's gonna draw a lot of people who need money, probably a lot of people from developing nations. And they're going to probably come in and they're probably going to need to then spend that money. So effectively they're going to probably end up dumping the coin. So the amount of traffic that's coming through there and the numbers that they're getting in the Alexa rankings and a variety of things, I mean, I have no doubt that that can be true, right? I think the real problem is about Richard Dale's, as he talks about, under UK law, he doesn't want to interfere in that price. Now, of course, the 800-pound gorilla in the room is how many cryptocurrency projects do interfere in the price of their, you know, of their coins. Uh, like Richard Dale brought up, he could have just— they could have just taken their, uh, what was left of the war chest, right? And I'm assuming He says it's a lot of money, uh, let's just go with that. Could possibly be. But what he's saying is they could have easily just taken that money, you know, and basically propped up the price of Electroneum, which I believe that as well could have happened, uh, in comparison to other coins and projects. Are they doing that? Yeah, more likely, more likely. I mean, the, the data's out, uh, there's been several independent studies that have said that most of the cryptocurrency space, uh, uh, projects and the trade volume is manipulated to some degree, uh, and the numbers are staggering, you know, they're just staggering. So, uh, when you see projects doing well right now, and if you're paying close attention to price and the volume, well, don't rest so easy with that because that may not necessarily be an indication of that is what's going to continue on forever. Um, so Richard puts that out there. I thought that he answered those questions, um, in a good way, you know, just saying, hey, I, you know, I'm not going to interfere with the price. I'm going to let the market determine, uh, what that price is. Now with that said, we also have to factor though the idea that Investors get involved with projects, uh, to be able to gain value from these projects. And, uh, the reality is we need speculators, right? So if you have a business and you have a project to this degree and you're not interested in drawing speculators, uh, then, um, I think you're kind of misunderstanding the importance of needing speculators to bring liquidity to the market. Nobody says they don't need speculators or aren't interested in speculators. No business, uh, in the world that I know of does that. So I think, uh, you know, uh, Richard Ells might kind of be— have a myopic view of how the entirety project works. Another thing I kind of disagree with is he said that they can— they got this war chest of money. They can market, you know, whenever they want, but they're trying to figure out the best place to put the money. Now, I don't know what they're doing all day in the office, but it ought to be like a marketing department there that I think over the last— since that— since the ICO started, what was over— what, over a year now or something like that? I do kind of you know, believe that they could have by now— marketing team could have found out the best way to spend that money on marketing, right? As opposed to saying, uh, well, we don't want to waste money on marketing, so, uh, we choose to do nothing at this point. You know, I, I do find some problems with that. I find it a problem in that there has to be— whenever you're involved in a business, right? Um, okay, sorry, few distractions around me I had to get rid of. But, um, so what I was saying about when you're dealing with speculators and when you're dealing with the, uh, the, the overall encompassing parts of a business, um, you know, in a, in a business, it's 2 parties, usually at least 2, uh, and these parties have a mutual— they share a mutual benefit. That's why they go into business together. And for the Electroneum investor, it's going to be the value of the coin going up, right? That's all it could be, really. It can't— you cannot really benefit from it in any other way. Of course you can benefit from the social, uh, aspects of it, like, right, what, how it, what it does to the world. It makes, uh, bring some economic freedom to the world. They can use this electronic currency in their local economies to maybe do things they couldn't do before. Um, so in that way, yes, we get that benefit. But from the economic portion of it, which is part of, you know, why a lot of investors went into this, uh, you know, without speculators providing liquidity, without, uh, this— the value of the, the coin going up beyond the price that you bought it at, then in this business it's starting to feel like a one-sided business, right? Um, also when you think about just traditional business, like your CEO and your shareholders, the stock values falling, right? CEO's concerned about that, right? He's so concerned about that, he's going to go have a, uh, shareholders meeting about that, uh, and he's going to talk about the, the price of the, of the company and the stock. And, uh, and hopefully, uh, what he says and, and the moves they make, uh, that's going to, uh reflect positive in that price and get shareholders who are invested in the business, uh, back, you know, uh, you know, in, um, at ease, right? So not— so although the project shares many of the aspects of what you'll get in a traditional business, it doesn't share that mutual benefit part at this point in time for many of the investors. Because when you go back to the ICO price, which was at a penny, the host was quoting, you know, a much higher value, saying that it's lost about 96%. Richard L says really lost about 50% because he's from the initial ICO price is where we bought into Electroneum, right? That price has has dropped, right? It's continually dropped. Uh, but I, I guess the other thing I would be concerned about is I would say something to the effect of, uh, whereas many of these other cryptocurrency projects, well, we're pretty certain they're probably propping up the price to some degree. If they're not directly physically propping up the price, sure, they're marketing in a way to kind of boost that price, which under UK law, as Richard Dale seems to be suggesting, you know, they— it would be illegal, right, to some degree, or put them in trouble. Uh, and I'm not a— I'm not a, uh, a United Kingdom attorney, right? Um, you know, I, I— so maybe some of you all can help me that are, or understand UK law, and understand maybe securities laws a little bit. I understand in the United States, I was a licensed broker for years, But, you know, maybe it's something a little bit different going on over there. But, you know, the way things work over here is that really, I mean, once you take ICO money, right, at that point in time, it's kind of up to the SEC to determine if you've taken those funds under the proper legal requirements, right? A lot of these ICO projects that took money, large sums of money, $30, $40 million, $100 million, a billion dollars, many of them would be classified as security how many of them are run. Now you're dealing with something like Bitcoin, Ethereum, they might be declared not a security as they weren't declared securities. Something like Ripple, XRP, kind of still up in the You know, up in the clouds with that, but I would imagine that if the SEC came after Ripple XRP, they could simply just pay whatever fines and get regulated. It's not like Ripple XRP is cash-strapped. Uh, Electroneum. Uh, so my concern with a lot of the wording that Richard Ells is giving and his concern about UK law in that way is, uh, I mean, if really it's a question of, uh, you know, the legal requirements, you know, being followed to the T, uh, I would think that that might be somewhat of a concern, um, taking the ICO money. Now it would seemingly be simple to— we're forming all these— this corporation of electronic forming all these, a variety of partnerships and things like that. You know, it almost just seemed like, uh, it would be a lot easier just to get regulated, right? Fully regulated, um, you know, as a security, right? And, and, and in that way, uh, you know, I would think that things will be a lot easier, they work a lot easier. And I had even proposed ideas like just, uh, and other projects are doing this as well. There's several cryptocurrency projects that, uh, have become regulated and they're allowing an option for you to be able to move your cryptocurrency into, into shares in the, in the business itself. And I don't think that would be a bad move for Electroneum, uh, just seeing how they're structured, because Electroneum is not structured like a lot of other cryptocurrencies. They're They're all— they're actually going into the business world, signing contracts on the dotted line with, you know, big telecommunications companies and mobile operators and charitable organizations and a variety of things like that. So they're certainly operating on a totally different level. Um, but it just would seem to me a little easier to do that. But as far as the conversation about manipulation and is Electroneum doing that, I don't think so. I don't think they're doing that. And like Richard Ellis was saying, if they were doing that, you know, it looks like they would, you know, that price would move in a direction other than just down, right? They would probably, uh, you know, if they were really manipulating it from the inside, manipulating it, uh, you know, it would probably work a lot different, right? Uh, so I don't, I don't believe that at all. But now, are they Uh, I, I think they might misunderstand though the, uh, how business— the, the— had to be careful with this because, uh, this type of setup, hybrid structure, what Electroneum is, is a little bit different from a lot of things we've seen before, businesses we've seen before. But I, I would say that, uh, it could come off to investors with the prices going down, down, down, and, and no matter how much good news comes out, how many partnerships comes out, just going down, down, down, down. It could come off to them as some type of neglect to the investor, right? And I'm not really even clear how to say they deal with that or what approach would be best to that. Uh, you know, because even conversations, uh, as Richard Ayers has spoke about of the price, uh, you know, he's concerned about the UK law in that regard. So it's almost like the— there's two projects going on here, you know. It's like the electronic businesses, then it's this cryptocurrency that's kind of just this money that we're trying to treat like an asset because we're trying to treat it like an asset because we want the value to go up, but it's, it's acting, it's more just this transactional currency, uh, that doesn't move in an appreciating way and it moves in a downward means and seems to only move down at this point. And so for the, the nature of treating it like an asset, it doesn't, it won't work, right? But then it's this company that is Electroneum that we have to assume at this point has tremendous value because, uh, you know, they're creating these partnerships. They do have this product, uh, and we know it has to be worth something. And, um, you know, it just doesn't seem to be keeping up with the value of the partnerships that are being formed. Um, so I guess we have to take with that what we can, you know. Uh, as Richard said in conclusion, he doesn't talk about price. He doesn't— certainly doesn't tell anybody to go out and purchase Electroneum, right? We certainly try to do this— try not to do it on this channel. We don't— I've never told a person to go out and purchase Electroneum. I've talked about if I was going to go purchase some Electroneum, it'll be a decision that I would make solely, and that you all should do your research, and if that's what you want to do I've always liked the project, and I like the, um, you know, the use case of it and the planning of it and the structure of it. But, you know, we also have to consider, uh, that there are no perfect plans, just perfect intentions. And not everything works in cryptocurrency. The way that we think it should. And, uh, and I think my last video, you can watch it, is talking about the— this $1.7 billion project on the Steem blockchain that I'm involved with. I believe that can bring $1.7 billion into the Steem blockchain. I talk about why that's possible because of figures like $7.7 trillion in gold, but there's only $700 billion in the world's biggest payment processors, which means that store, store of value and assets dwarf payment and money systems, right? But Electroneum is acting more like a transactional money and not an asset. So, uh, in that way, uh, as far as treating it as an asset, some of us may find it to leave something to be desired. Right, uh, so it doesn't mean that the price won't go up. I, I, my personal opinion is actually I think it will go up. I don't know by how much, but I think it will be going up. Um, do I think they're gonna have some hurdles? Yes, I think they're gonna have some hurdles because I honestly am starting to feel like the cryptocurrency space doesn't translate well into this, into traditional businesses. And this is nothing bad about Electroneum, you know, um, I would have always liked this project and always thought it was going to perform quite well. But I think what's happened in cryptocurrency is just having a good product is not enough anymore. There, there are certain, uh, tokenomics, right, that go into what makes an asset in cryptocurrency, what makes valuable the value of your cryptocurrency go up. And, um, you know, if you don't understand that, then I think you, you are going to have problems with buying into, uh, certain cryptocurrencies and products. Uh, Electroneum is a good business, and according to Richard Ells, they still got a lot of money, so they're going to be all right as a business, right? They don't need necessarily any more money. Uh, but you as the investor and myself as the investor, we're going to have a problem at this point as far as can we recoup our investment out of this. Um, I'm optimistic about it still. I'm not blaming the Electroneum team, but what I am saying is a good business doesn't translate necessarily well into a good value of a cryptocurrency, right? There may not be the type correlation between the two that we like to think, right? In a perfect world, a company will perform good, it would create use and value to people, and the price would go up. But there are more complicated things at play in cryptocurrency, and all these things working together don't always equal a clear, clean formula to achieving that. So, uh, that's where we're at with it, guys, right? And it's just a matter of what you do next with that information. You know, do you, you know, do you stick with Electroneum, the project itself, and just find joy in the project succeeding? Or do you hope the price goes up? Maybe it does, maybe it doesn't, and you cut your losses, or you hold off until it explodes. I don't know, that's a decision, guys, you're gonna have to make for yourself. But if you're the type of person who likes to make money in cryptocurrency, which I am, uh, just gonna tell you real quick about the Uptrends project. It's probably one of the only other projects besides my own, uh, that I really like and think that there's a tremendous amount of opportunity left in the cryptocurrency space. So I'm gonna leave a link in the description. You get like 100 tokens just for using my link. Sign up, I get 100 too, and And, uh, uh, they pretty much process the money right away. There's really no holding periods, uh, with it. Uh, that's about $2, uh, each every time you sign up. So I would invite you all to give that a shot, give it a try if you're the kind of people who like to make money. And if you're the kind of people who, uh, like me— I'm one of these people too who feel that the fundamentals of a good project is still the best way to go and still best ways to put your money, um, you know, then, uh, Electroneum is where you should be sticking at, right? Um, but that's all I got to say in this video. If you all like content like this, don't forget like, subscribe, and until next time, take care.