Having referred to Handshake, (the resident blockchain that 9ja Cosmos builds off) a few times recently, we’ve had some novel DMs asking us why we are trying to pump this coin?
This perception couldn’t be further from reality and the truth, here’s why!
The initial post only came because some calm needed to be injected into the euphoria about Bitcoin in a five day stretch a few weeks back. Japan introduced new taxation measures hitting US bond ownership. Japan started dumping bonds, and being the worlds largest holder of US debt by some $300 billion over the next nearest (China), this meant the $USD would not be a rational benchmark on which to perceive Bitcoin value for the period.
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It seemed measuring Bitcoin against Handshake Coin (BTC v HNS) made far more sense, since the design of each blockchain is almost identical.
Yes, a horse race must have horses, not a mixture of horses, greyhounds, camels unicorns and assorted madness.
More recently, I did a ‘history lesson’ type post on Founders, just to show that these folk been in major development stuff (Like the Lightning Network) since the early 2010s.
However, as we have always said, we are here ultimately to provide value for youth of the ‘Global South’. Our vehicle is to create/assemble blockchain related products, not speculate.
HNS was released in 2020 and reached an all time high of 85 cents USD in early 2021. It hit its all time low a few months ago at 1.1 cents, and is now at 3 cents.
While in the last few months it outpaced Bitcoin, at the current price and typical trade levels, a speculator would find it really difficult to actually realize gains.
This is because for someone to sell a cryptocurrency, someone has to buy it. In thin trading, relatively small deals can abruptly alter the rates. In a big market cap like Bitcoin, a single trade of $50,000 wouldn’t even make a dent.
A speculator would probably not succeed in selling a $50k holding of HNS at a specific price. The exchange would have to match it with much smaller buy requests on the fly. With daily volume averaging $45-75k, the $50k sell request is going to constantly mark down the price. This same problem will happen in reverse if attempting to buy $50k worth of HNS affordably.
People who have traded equities before on AIM UK Market or Nigeria’s ASeM, may be familiar with this phenomenon.
Even though the value of HNS has almost tripled in about two months, it would have been almost impossible to buy and sell in the window, at sufficient scale to realize a worthwhile profit easily.
Handshake has a strong but diffuse Creator, Product Owner, and Dev. Community. We know a lot of the OG product owning ‘whales’ with huge holdings and can easily get an ‘atomic’ swap done at a fixed price. These people do not like speculators and only help those working towards making the product creation side of the ecosystem more dynamic.
We’d like to see the coin recover to around $0.20 to incentivize miners, but in actual fact a consistently low HNS value vs. $USD makes it much cheaper to get things done in the ecosystem.
If the Handshake coin price recovered to around 30 cents, that would be a rough inflection point at which speculative trades could be done more easily. This would add volatility to the cost of getting things done, and that’s not in 9ja Cosmos interest.
We have only bought HNS a few times, between May and October 2022, at an average price of 2.2 cents, and haven’t bought it since. We don’t need to.
We raise revenue from our activities in HNS and also pay for things in HNS, so it is a closed trading system for us. Up to all the drama about BTC on the rise, we weren’t regularly looking at what HNS is worth in other instruments.
It’s a little bit like someone that japa from Nigeria to US. When they land first, they are mentally converting prices from $ to Naira to gauge spending. But after a while, they ditch the Naira comparisons and get a sense for dollars, because that’s what they earn in, and what they spend in.
They will only ever think of Naira again, if they want to travel, or need to send funds to get something done back in Nigeria.
The Handshake Blockchain is a very secure blockchain, being almost identical in design to Bitcoin. It is a PoW blockchain owned by nobody. Security is a big selling point, and mentioning it is useful as part of promoting 9ja Cosmos, because it distinguishes what we do from products minted to EVM Compatibles which keep suffering exploits and hacks at alarming rates.
But we do not advocate buying HNS unless intending to purchase assets or services from providers on the network, or develop on it.
It’s actually counterproductive for us to promote investment in the HNS coin, in of itself! As always, DYOR!
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Great article!