The word “volatile” is almost synonymous with crypto currency. It is one of the major factors that scare people away and the short fall that attracts the search light of the regulating authorities to it. Although this same factor has been responsible for the many unexpected financial boom recorded by early birds in this space. However, a solution needs to be proffered as soon as possible for stability sake.
Again, stopping the many pump and dump activity in crypto may not be in sight because of the diverse vested interest in the crypto world. More so where some whales under the disguise of corporation who has a majority of the fiat/crypto trading pairs in most of the crypto exchanges has been part of some malpractices within the industry. It is evident that these big wigs and market makers have been making unrestricted wanton movement of BTC from their various cold wallets, selling it in the market; transferring back funds to treasury in order to pay debts and also storing USDT to buy back BTC at lower price. Hence, they manipulate the market at will and BTC may only appreciate temporarily because of their manipulation or even slumps lower. The traditional bullish trend experienced by the end of the year may be nowhere in sight in 2018.
“CRYPTO VOLATILITY CHECK” is a terminology for the technique designed and developed by the expertise of Nugton Communications (the owners of https://cryptoairdropbounty.com) which is used to check crypto volatility using the basic marketing principle of price, demand and supply. It is good to note that these factors can only do well with influence of good information and timing. Also the crypto volatility problem may not be completely solved for now but will be reduced to its barest minimum applying this technique properly:
* PRICE: This technique is price factored with respect to any one of the dual trend (bearish or bullish) that may be in vogue at any time. Hence the assumed marketing price presented to the market has to be higher than the in-house bench mark used for business analysis together with the choice of fiat/crypto price which the token is tied to. This is to be able to caution the effect of volatility especially in the bearish period. So two prices are involved; one known to the general public and the working price worst case scenario for the crypto project. Sometimes, these may be up to 50-100% price disparity.
* SUPPLY: Unfortunately this indicator deviates from the ideal economic trend and application. Almost all crypto have a limited amount of coins or tokens and so does not increase in supply after the initial creation irrespective of the demand in place. This factor is a major contributor to the volatility tendencies of crypto. The Bitcoin is a perfect example of this. With a limited supply of 21 million coins, irrespective of its demand, the supply remains the same. On the other hand, ETH seems to deviate from this trend a bit owning to the fact that almost all smart contract based crypto and coin emanated from ETH and still over 95 percent retain the same platform while only a meager percentage is upgraded further to their native platforms. So ETH general gives room for increase in supply of different crypto in their native tokens and these increments in supply of various different native tokens of projects can be checked by the burning of unsold token, reducing and control of tokens in circulation, and locking of tokens for some time, etc.
* DEMAND: The constant supply of tokens has disrupted the traditional inverse relationship between supply and demand. Hence, when a demand is shot up based on the criteria of the buyer associated to a particular coin or token, the price of such token is bound to increase because of the limited supply of the coin or token. The major criterion that play an effective role here are the properties of a unique product and use cases of the crypto projects and vice versa.