Today there is so much noise in the crypto space that we tend not to pay too much attention to it. As expected we have conducted our own research about investing in Elrond. We want to share the 10 most important reasons that drove us to take this long term position.
Disclaimer: This is not investment advice , every investor must do their own research and if needed ask for professional advice. We’re not part of the Elrond company and don’t sell eGLD tokens on our platform.
REASON 1 – BIG INVESTORS
Whenever we look into a project to invest in, we research whether there are any bigger players than us, with their own skin in the game. Elrond is well backed by large investors like Binance Labs, Electric Capital, NGC Partners, Maven 11, and Woodstock.
With respect to partnership there are some big names as well, entities that are hedging their bets for Elrond Blockchain technology. Some names are Samsung, Dubai Smart City, Industrial Internet Consortium, IoT Alliance and many others
REASON 2 – TEAM & CULTURE
Elrond has a well qualified team of entrepreneurs, engineers and researchers that have been working since 2017 on its product. The team has a clear go-to-market strategy to achieve mass-adoption by shipping the infrastructure for fast, intuitive and engaging dApps. Now there are around 30 people working in the project.
The culture inside Elrond is what you would expect of a big successful startup. With tireless commitment achieving goals and hardworking mentality. They always communicate news when it is ready, not making announcements of the announcements.
REASON 3 – MARKET OPPORTUNITY
The main problem that needs solving since 2017 in blockchain industry is scalability. The current bottlenecks of networks like Ethereum makes it impossible for businesses wanting to expand in the blockchain space.
There are a lot of new startups around the globe from different areas: DeFi, Healthcare, IoT, ecommerce… that are waiting just to have the proper technology to launch to market.
Blockchain is the biggest technological revolution since the internet was born, it’s expected to have thousands of new business and final user applications in the near future
REASON 4 – ELROND UNIQUE TECH
The team has had a lot of expertise in other blockchain projects in the past. They started from scratch to solve the main problem. How to parallelize transactions to make the blockchain infinitely scalable, making it absolutely secure and at the same time well decentralized with thousands of nodes.
No other project has technology similar, that allows cross-sharding smart contract executions, auto sharding and reshuffling of the nodes by the code itself. Similar to Tesla, the tech of Elrond is 2 years ahead of any other known projects.
For example we have well known projects like Ethereum running at less than 15 transactions per second. Elrond will run at more than 11.000 transactions per second capacity from day one.
REASON 5 – COMMUNITY
One of the best things with respect to the culture in the elrond team is that they really believe in true blockchain values like decentralization and fair systems. So they are very open and work with the community together to preserve this ethos
The validators community alone has nearly one thousand members, that test the new code versions and accelerate the production cycles from 3 weeks to 3 days.
Investors community is also very large, with more than 11 thousand people in telegram and 20 thousand in twitter.
There are also core community members, that take care of more than 40 local language platforms worldwide.
REASON 6 – DEVELOPERS GIFT
Elrond has a characteristic that is very different from all other blockchains, they have introduced a reward mechanism that aid the developers themselves.
When a developer uploads a new smart contract on the network, they introduce their own wallet and the system pays them 30% of the fees that the smart contract generate, in perpetuity.
This kind of royalty allows developers to have a passive income when they create a smart contract for clients.
REASON 7 – TOKEN ECONOMICS
The token eGLD and all its incentivized rules has been studied intensively , not only by the team themselves, but also by external auditors ensuring that social and economic rules and guidelines have been met meaning that Elrond’s future is sustainable.
There are a lot of incentives to lockdown supply, as every node needs to have a stake on it, the circulating supply will reduce and less will be available on the open market Add into the fact that a % of transaction fees will be burnt, meaning that with future high use the supply will become deflationary.
A key differentiation between Elrond and other projects is that the total staking number is capped from one node auction to the next. This means that with a real inflation of the total supply of only 5% yearly a massive 29% APR can be offered to delegating investors without drastically affecting the supply.
So a near fixed supply and high passive income rates,increases demand , which in turn will drive prices higher year after year.
REASON 8 – ECOSYSTEM
The team works day and night to expand the already extensive list of companies and partners that will benefit from Elrond’s technology, which in turn adds more use cases and generates more fees ,lowering circulating supply, again creating more demand for the Token.
REASON 9 – LONG TERM STRATEGY
Elrond’s team plans to build a network as decentralized as possible, so the network can last far beyond the Elrond company. Soon after mainnet Elrond will introduce mechanism which ensures that the community of Elrond (validators and investors) can decide it’s own future with proposals and governance.
If you invest for amid term period for example 3 years, you’ll be receiving passive income in your wallet daily thanks to the great staking rewards from the network. These rewards can then either be sold on the market or reinvested , thus generating even more.
The process to delegate your stake will be really easy, from the wallet itself you can choose one staking provider or various, and delegate the tokens. In an non-custodial way, it means that your tokens are always in your wallet (with status delegated), and not in the provider’s wallet.
If you are looking for a pump and dump token, then Elrond is not for you. However if you are looking for a serious investment in a company which is going to shake the fundamental core of the blockchain space, then you have found what you are looking for .
REASON 10 – CURRENT LOW VALUATION
As we said at the beginning the market shows a lot of inefficiency in prices, because there’re so many projects out there sometimes people don’t look around enough.
At the moment we see some competitors of Elrond, with inferior technology, community and partner map having a market valuation 6 times, 10 times or even 50 times higher than Elrond.
ERD current marketcap, at the time of writing is around 130 million usd. For an investor this makes it very feasible to reach a x10 multiplier of their investment, allowing reasonable time to let the project mature and gain traction.
Elrond is close to the launch of its mainnet, closer than ever ! It’s current and last Battle of Nodes event offers a massive 60.000 usd prize pool to incentivize people to try and hack the network during a 15 day period . More than 1700 nodes have subscribed at the they time of writing with a massive 264,000tps. I am sure many more developments will come from this final battle , Stay tuned