This is the second article in a trilogy that aims to provide an extensive fundamental analysis of Kardiachain, a criminally undervalued player in the cryptocurrency space.
If you already read part one and are back for more then thank you, I’m taking it as a compliment. If you have stumbled across this article by chance, then I would ask you to please take a look at part one in an effort to get brought up to speed.
So, lets get started.
In addressing the technology, market participants and target markets, I hope that up to now, my line of argument has been persuasive enough for you to engage serious thought on the value proposition at hand.
Kardiachain’s inception and technology has (in my humble opinion) laid the foundation for blockchain adoption en-masse by offering its end users an effortlessly functional product.
“..the key to driving widespread adoption is connectivity. There are so many potential use cases for blockchain technology, but businesses need to see clear ways of implementing the tech with their current systems.
No one wants to be caged with new technology. Instead, there need to be more ways for businesses to test out the new technology, see what it has to offer, and see how it can improve on their current systems.
Alternatively, not all businesses will benefit from a complete switch to blockchain technology but may instead find that only certain aspects of their operations would improve with the switch. Making blockchain flexible and easy to integrate is the fundamental aspect holding it back from wide scale adoption — but that’s changing.”
source- Finance Magnates Magazine
If we consider the assertation above and look to the approach taken by the Kardiachain leadership team, it is clear to see that they not only fully understand the barriers-to-entry for this embryonic technology but they also have a clear vision on how to break those barriers down with the least amount of disruption to current systems.
The 3 components (Gateway,Infrastructure,Services) that make up the Kardiachain solution aim to remove the current barriers to adoption.
“We specifically chose Vietnam as the 1st target market because it is ripe for adoption, the worlds leading economic markets have a bigger task at hand due to their legacy systems for digital services. Data migration and disruption to workflows means the hurdles to adoption are more difficult to scale.”
Huy Nguyen, Co-founder Kardiachain
If we take a moment to consider the idea that this market will grow exponentially over the next decade (see above), there is no greater incentive to get things right straight from the off because there will be no second chances. The Kardiachain team have impressed me hugely in various interviews and publications with their ability to see the bigger picture.
This clear direction,vision and execution (so far) is what attracts me most to the project. You can have the greatest ideas in the world but if you don’t have the ability to plan and execute your idea it will fall to the way side and another (possibly inferior) solution will replace it.
“I believe if you want your company to scale, your goal is not to beat the competition. Your goal is to break free of competition entirely.
In an ideal world, you do this by going where the competition isn’t. You invent your own game and master it. But to be clear, this is more of an aspiration than a feasible goal. At best, you’ll get a grace period — a fleeting moment when no one believes in your idea. And as soon as your idea takes off, watch your back. Before long, you’ll find yourself where most businesses start: Facing competition. Your goal: To break free.” Reid Hoffman, co-founder of LinkedIn
The Value of Partnering
Blockchain projects are renowned for leveraging their marketing through partnerships that will potentially grow their business. Due to hopeful enthusiasm by all market participants, there are many opportunities for partnerships. The key is choosing partners who add value.
I recently read a tweet that said:
“A Defi project has just announced a partnership with Coinbase. . because it listed $USDC.. LOL”
After I stopped LOL’ing myself, I considered the obvious takeaway from this meme worthy reality. . . “partnership” announcements will continue to have little impact on short term price action. This is not 2017, everyone is a little bit wiser (I hope). The narrative here has worn thin and without mutually beneficial partnerships yielding results then the impact they have will naturally gravitate towards zero.
Value can be gained when there is a need to accomplish goals outside of a single Projects capacity, there can be simple collaborations and sharing of ideas. In any market, partnerships allow businesses to leverage complementary strengths and customer bases.
“Strive not to be a success, but rather to be of value.” — Albert Einstein
When analysing the partnerships of a project I separate them into the most obvious categories, “crypto” and real life.
The most value derived from partnering with other well known projects in the blockchain world is the resulting network effects.
Lets first of all take a look at Kardiachain’s list of known partners. I say known because there are multiple partnerships currently under non-disclosure agreements. I wont have time to go through them all so will focus on the significant blockchain opportunities first.
It is an impressive list of big names for a project that is pre-mainnet. Chainlink and NEO are two of the industries biggest players. To understand the value that can be derived from such partnerships we should aim to understand the resulting network effects.
When leading a “network effect” dependent venture we must know what it means to aim for the tipping point or “critical mass” . Often if poor strategy is exercised it involves lots of cash in investments until reaching it or painfully giving up. Therefore understanding what it is and what is involved can be of use.
Critical Mass is often described as the number of participants or size of the network needed to allow the platform itself to auto-generate its own growth — essentially by having a value perception that grows faster than the growth of the network — . Critical Mass can be understood as a tipping point or threshold where a notorious change in the trajectory of a growth curve occurs and a significant increment in the value of the network happens
To verify this theory please compare the visual above with those below. They show the early stage cycle for both Chainlink and NEO, the correlation to a platforms network effects and value is easy to see;
Before considering any potential judgement of valuation at this present moment it is vital to consider the life cycle of the project. With Kardiachain all of the major catalysts to network effects lie in the road ahead. There are many fantastic platforms in the space already, there is no argument about that fact coming from this side of the table, NEO,ICON,ETHEREUM the list goes on and on.
Investors in this market often become much more than just someone who seeks cash rewards, they become community members, they help projects grow by engaging and taking visible, vetted interest in the investments they have made. This has fantastic results, social network effects for the projects and the most efficient and effective form of marketing available,word of mouth.
The one issue with this for investors is a tendency to get overly attached and becoming blind to the larger forces at play. Network effects reach a saturation point. Many investors unwittingly continue to “hold bags” as their favourite platform begins to plateau. These emotionally vested market participants often fall foul to naivety, they fail to see that the major value driving forces of the network effect (catalysts) are already in the past.
For the reasons detailed above, I personally, always attempt to find value in the space by really choosing to dig deep and seek out those projects with exponential growth potential. What are the big catalysts in the pipeline that will offer my investment maximum network effects?
“You are either early or wrong.”
Unknown smart guy
I realise too many,it will seem like I am pointing out the bleeding obvious but the earlier in the platforms life cycle I invest, the higher the potential ROI%.
It must be made clear that these observations are not assuming ALL platforms will journey towards critical mass and an explosive growth rate.
The key ingredients for success include those that are not under the control of any fundamentally sound project. You can tick all the right boxes but fail due to negative macro outlooks. A bear market can hold back the very best projects, catalysts have no impact and trying to gain momentum is like attempting to sprint in quicksand.
The Perfect Storm
I firmly believe that sentiment has had a huge bullish uptick in recent months, this has been visible with many micro/small cap projects achieving 10x+ gains. Large caps are beginning to wake up and I feel for the first time in three years we have the potential to once again see vast amounts of wealth generation.
With external factors looking so encouraging, I feel Kardiachain has all the ingredients to become one of the talking points of 2020. As it inches closer towards the release of its eagerly awaited mainnet, fresh news and development will continue to push for higher-highs.
Many short sighted investors will think they can get more immediate gains via other projects and attempt to come back to Kardiachain as mainnet gets closer. This is a risky tactic. I prefer to learn, be early and be patient.
Having discussed the main advantages of partnerships within the blockchain space, part 3 will take a closer look at multiple agreements with large conglomerates in the real world.
If you haven't looked into these by now, I would certainly recommend you take a look. In the next instalment I will assess the different agreements in detail and attempt to lay out just how these partners can facilitate Kardiachains goal of mass adoption in Vietnam and eventually, beyond.
Here is the huge partnership with electronics giant LG to wet the taste buds-
KardiaChain forms a strategic business partnership with LG CNS
KardiaChain and LG CNS form a strategic partnership to drive innovation by combining each other’s blockchain…
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Tips can be made with USDT
Thank you for your time,