Analysis: Elastos (ELA) / Bitcoin (BTC)
The blockchain project Elastos has recently gained a lot of attention due to being supported by an impressive team of founders, employees and advisors. The project itself is often referred to as “the future of the internet”. However, it might be difficult for some to understand how exactly the team of Elastos is seeing the prospective online world.
The main goal of the Elastos blockchain is to provide a smart web, where real digital asset ownership is made possible. For example, if you write a book and distribute it over the Elastos blockchain, your book will become a digital asset (like a non-fungible token) and you will always be recognized as the true creator of it. On the other hand, people who buy your book will also be able to resell it to other users. This feature also comes with a possibility to monetize blockchain applications.
Furthermore, Elastos aims to provide a secure and scalable high throughput blockchain with an offline functionality for decentralized apps. According to the Elastos white paper, there are some issues with the use of the ethereum network regarding decentralized applications (Dapps). Especially as the Ethereum blockchain can only be used to transfer data and not to store it. Therefore, Elastos has proposed to apply a parallel blockchain system with the applications running on Elastos runtime rather than the ethereum blockchain. The applications can be movies, books, or any other data of value. The owner of the data will be able to see how many visits their link has received. Elastos is an open-source software with funding from giants like Tsinghua Science Park, the Foxconn Group, and the TD-SCDMA Industrial Alliance.
Elastos (ELA) has also introduced a subunit called Satoshi ELA (Sela) to be used by traders, investors and/or owners. The introduction of the sub unit speaks highly about the confidence of the developers. 1 ELA is equal to 108 Satoshi ELA.
Daily Chart: Elastos (ELA) / Bitcoin (BTC)
The whole crypto sector is in a bear-market and has just seen another brutal sell-off during the last couple of weeks. Of course, Elastos could not escape this profound weakness and is down heavily. Actually, Elastos’ native token ELA has already lost more than 85% of its value and is currently sitting at a market capitalization of less than $50M. Despite recent situations where the RSI indicator showed multiple bullish divergences, ELA failed to break back through the former support above 350.000 satoshi. In addition, the volume is continuously decreasing for about five months, which indicates a very bearish sentiment at the moment. An extreme drop like this is obviously caused by the very dominant crypto bear market, which is now lasting since more than seven months.
If you are thinking about investing in Elastos, the current beaten down levels might be good starting point. As all indicators are heavily oversold, a true contrarian will find a very good risk/reward-ratio here. However, as long es the overall downtrend continues, one should invest very carefully and only slowly scale in buy orders.
Elastos might have the potential to revolutionize our internet experience. Currently, content hosting websites charge the users some of their incomes. However, Elastos wants to get rid of the middle man in the internet and eliminate their commissions. Moreover, to really profit from the value of your own data, and getting paid for it in a secure manner is what every internet user dreams of and every human being should aspire for. Elastos wants to introduce a parallel World Wide Web, which is safer and smarter, and might be known as the Internet of Wealth one day.