HedgeTrade (HEDG)

Crypto Anonymous 224

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Crypto Anonymous posted on August 20, 2019 21:48:59

Hedgetrade token has recently entered the coinmarketcap in high rankings (#35 at time of writing) due to explosive price growth of this relatively simple ERC20 token. Reason for this seems to be the launch of their social trading platform. Basic concept is experienced traders can post "Blueprints" on the blockchain with their trade predictions. Platform users that want to copy trade can unlock Click here to see more... the Blueprint by sending tokens to the Blueprint smart contract. If the prediction expires profitable the funds from its smart contracts go to the trader and when it is unprofitable the users get refunded. Oracles are supposed to conclude if a trade was profitable or not based on price data feeds. Traders that post their prediction Blueprints will also build a reputation that is secured by blockchain data.

Overall the idea itself is definitely interesting (because evaluating the actual results of a trader is often challenging and being able to track their score via blockchain registry could be helpful to assess reputation) and they seem to have at least launched a working product. If anyone should copy traders at all, is entirely a different story and not an issue at stake here.

I do have a few different issues about this project:
- at this moment the token's use does not seem to be in any relation to the value of the token (measured by marketcap); this is probably due to speculators' irrational expectations by which they put a much too high premium on future valuation prospects. The marketcap is more than $237 million, while the token's use is worth about less than $3000 worth of transactions in 1 day (assuming ALL these transactions are used to use the Blueprints). This extreme overvaluation could result in a correction to more realistic values sooner or later, token speculators should be very cautious at these price levels.
- I was unable to find a whitepaper or information about the ICO to tell me more about the project
- the hedgetrade.com website seems to be unfinished business, with many linke "coming soon"
- no team is featured on the website; though the Rublix project (RBLX token) seems to be the mother token, which seems to be a broad purpose ERC20 token project that is releasing Dapps such as Hedgetrade. The team description on Rublix is then the same as HEDG team I assume; their profiles exist of names + bio, no pictures, no social media links (thus harder to verify).
- the project's social media is actively posting and writing blogs (Medium), though many blog articles (and youtube videos) are mostly of informational content around cryptocurrency in general (especially articles on the website).
- HEDG activity on Github is on the Rublix Github, which features the HEDG ERC20 token minting (10 months ago, with a latest update 5 months ago). The Blueprint smart contract last commit was Aug 2018. Github/development activity seems quite low therefore.

I did not find enough evidence to classify this project as an outright scam, although some potentially red flags seem to be present; nevertheless I will give it some benefit of the doubt assuming they indeed have a properly functioning working product. But its sudden overhyped status vs actual technical/fundamental status should definitely have crypto speculators very cautious if they are considering to FOMO in. It is going to be very hard for such a project to become so successful and attract so many successful traders that are incentivized to use the platform to make an extra revenue, that it becomes such a valuable business to justify anything near its current token valuation. This is however personal opinion and does not have to be in any form related to the question if the project itself is a trustworthy enterprise; also too much information (like whitepaper) is missing to make an accurate judgment, though lack of whitepaper is accounted for in my confidence vote.