In this blog post I wanted to explore events where the mana token may see a sudden increase in value.
First of all it’s important to understand that pretty much every coin on coin market cap is connected to the value of Bitcoin. Reason being is that most of the trading pairs available are from BTC to altcoin, so every time Bitcoin sees a significant drop or increase, altcoins also see drops and increases often of much more higher percentage value.
There are three events that come to my mind when thinking about MANA increasing.
This does not incorporate Technical Analysis, (although it really should), it’s more exploring the fundamentals and events that in my mind, should see MANA increase in value.
I’d also like to mention that this is definitely not trading advice, it’s more shower thoughts that I have spent hours thinking of.
The Release of Estate Buying and Selling.
The ability to join adjacent land parcels and trade them on the decentraland marketplace has just been released!
Over the last couple of months it’s become very evident that lands connected to each other to make these estates are much more valuable than buying individual parcels.
we have seen connected lands sell for two to three times the value of their individual counterparts.
It’s probable that most of the estates available for sale are going to be priced quite high. Even smaller states of 4 or more parcels are probably going to be priced 100,000 MANA and above, not to mention the much bigger estates of say 20 parcels and above which will probably be priced at over 500,000 Mana.
Now this requires investors to purchase the required amount of MANA on exchanges in order to buy the estate of their choice. I think estates are going to become much more popular than individual parcels as they’re much more appealing and it makes sense to think if someone has $1,000’s to invest in a dApp they believe in, they might as well spend it on multiple parcel than one measly parcel.
This means people need to stack up quite a lot of MANA to buy the estates effectively fulfilling the sell orders on exchanges which should see the rise of the token price over time.
When these estates are sold the money goes into the pockets of other decentraland investors who are more likely to hold the coin than to sell.
The Release of the news of the Second Genesis City Auction.
During the first auction event where people could stake MANA and bid against each other to win land parcels there was an insane amount of activity.
The auction saw over 160,000,000 MANA spent which was eventually burnt as promised by the Decentraland team.
This was a lot of money to take out of circulation and is exactly what will happen again if there is another land auction which we have been told there will be.
There are still approximately 10,000 lands that are unowned and will be available to buy in the second Genesis City auction.
If we estimate that each land will sell for at least 10,000 MANA then this should see a coin burn over 100 million Mana tokens.
This is 10% of current supply so you can see how big of a deal this will be once it happens. It’s almost a no brainer that this will Spike the value of money both when people need to stack up to participate in the auction and when the auction is over and all that committed MANA is burnt.
This is one of the reasons why I invest more heavily in the token than land.
A Bitcoin Bull Run
I first invested in the crypto market back in mid last year just before NEO’s Bull Run.
That was my first foray into cryptocurrencies and needless to say it was a hell of a positive and profitable experience.
I then spent the next 12 to 16 months investing and learning in different coins and strategies eventually understanding the market much better.
There used to be a time when fundamentals mattered and my investment strategy was based on coins that will great ideas. this was back when there wasn’t that many coins available and ICO’s weren’t as rampant so if there was a coin that had great fundamentals then surely in time you would see a bull run you could profit off.
Now, especially over the last 8 months since January we have seen how heavily altcoins, regardless of how fundamentally sound and promising their tech may be, depend on the performance of Bitcoin.
Bitcoin has seen a drop in over three times it’s value since it’s all time high of around $20,000 but most altcoins have seen drops of 10 to 20 x value. An astronomical difference. Whether it’s Ethereum, Ripple, Neo, Nano, iota or any other coin with strong fundamentals, they’ve all experienced a huge drop due to Bitcoin.
The opposite was also true as alts sky rocketed in November onwards following Bitcoins lead.
If this happens again, we should see a strong recovery with especially MANA as it has somewhat retained its satoshi value over the last 8 months as Bitcoin has dropped considerably.
What’s My Investment Strategy?
I have diversified my holdings to primarily favor the MANA token as it’s more liquid and any of these above events can trigger it.
For as long as Bitcoin makes small movements, LAND is definitely a safe place to have your money as the platform increases popularity.
But if MANA booms, this might get people selling their LAND for a lot cheaper than current values as they’d want to cash out their crypto into fiat.