This is a graph of Wagerr versus the Big Four Cryptocurrencies: Bitcoin, Ethereum, Ripple & Litecoin when measured for Return On Investment (ROI) during the lead up to the Mayweather McGregor fight held August 26th, 2017. The Wagerr team announced July 26th that Wagerr coin holders could bet on the fight, and posted an article on their news site explaining how to go about it.
We've talked about Wagerr's two engines... the engine of investment and the engine of industry. Coin prices go up when BUYS at higher prices outweigh SELLS at lower prices. Wagerr is a phenomenal investment opportunity so it has an unending supply of investors that are buying the coin. That lays a solid foundation for price increases. However, those buys become amplified when you add the engine of industry to the equation. For 30 days leading up to the fight, bettors began buying Wagerr to bet with on the fight. That expansion of buys (investing + betting) caused Wagerr's price to rocket upwards from a 15% ROI that it had from ICO completion to July 26th (the day of the announcement). As you can see, Wagerr dominated all four of the Big Four coins for ROI during this time. In fact the total ROI for Wagerr's existance as of August 27th was 104%. 89.368% of that came during lead up to the fight. So you can see how investment moved Wagerr up 15% in the first 30 days post ICO, but when buying for betting was added that jumped over 100%. This is the model for Wagerr and Bitcoin, who is also heavily entrenched in the existing offshore sportsbook industry. No surprise Bitcoin ran a close second... or is that a surprise given the fact Wagerr had not even launched it's Blockchain Sports Betting Application at the time? That's a lot of impact for just one event when compared to the daily menu of betting options 365 days a year.
Betting expands market cap. More people lose than win on each event in general. Losers reup and buy again to wager on the next event. Winners often times do not withdraw. Many want to wager again as they attempt to grow their balances and win more money. So there is more buying than selling from the betting "engine of industry". That expands market cap and also attracts investors as they witness rising prices for Wagerr, or Bitcoin for example. So the "engine of investment" benefits from the "engine of industry". They turbocharge each other. Betting will begin when Wagerr's Blockchain Sports Betting Application finally launches. Add to that, "value coupling" where Wagerr's blockchain application continually burns coins... removing them from circulation. This creates scarcity and increases coin price. Bitcoin and Wagerr share the property of price indifference. Normally consumers buy less or even stop consuming altogether when the price of something goes up. But with bettors, they continue to buy Wagerr and Bitcoin at any price because it is just the tool that allows them to bet with their fiat currency. Wagerr bettors wont care if the Wagerr Coin is priced as "One Million Dollars per coin" because they will still just be buying the fraction of the coin that equals the amount of money they want to bet with. So unlike other industries, as price goes up for the Wagerr coin, the bettors will just keep on buying. They may even buy more based on the fact the coin will be perceived as an investment as well.
This is why many investors are literally drooling to get their hands on Wagerr coins now for 5 cents a coin, because it's potential is unlimited in theory. It can literally go as high in price as there are a proportionate amount of investors and bettors. The more investors and bettors Wagerr has, the higher the coin price is headed. It's following the same exact path as Bitcoin, but in a new industry that does not exist... where bettors bet over the blockchain via smart applications thus eliminating Bookies and Sportsbooks + all the problems of those outdated models. We have covered all of the advantages already. This is why most investors feel Wagerr is poised for returns of hundreds if not thousands to one just as Bitcoin achieved.
So what's wrong with Wagerr? Nothing. We talked about the fact that coin price means nothing in terms of the value of the coin. It means nothing in terms of investor confidence. It means nothing in terms of potential success. Wagerr's drop to 5 cents a coin literally means that it has been SELL Dominant. More people are selling presently at lower prices than are buying at higher prices.
So why have people been selling Wagerr? There are so many reasons it is literally amazing to think about. First of all large investors that flip coins have been targeting ICO's with low first round prices that escalate & that are incentivized because they are structured with guaranteed profit. Wagerr ICO participants in round one bought for 5 cents. Wagerr round last participants bought for 10 cents per coin. So at the conclusion of the ICO round one flippers had already returned a 100% profit day one. Then they received 10% bonus Wagerr if they bought in round one, lowering their effective cost to 4.5 cents a coin. So they are actually over 120% profit at that point. On top of that there were drawings for "golden tickets" worth 15,000 free Wagerr. Many coin flippers with bankrolls of all sizes look for coins like Wagerr to buy and dump. $25,000 suddenly is worth $55,000 day one. And if the investor is larger then add a zero to get an idea. However these investors can't dump their coins all at once, so they create a sell pressure as they gradually sell their inventory of coins over time. They rely on "in demand - Hot" projects like Wagerr where investors are buying the coin non stop and raising the price, then they can sell repeatedly to earn their profit margins. The existance of these investor/flippers is one reason why Wagerr's price is presently suppressed and was cycling for a long time... unable to gain traction despite strong "hidden" demand. This is something to keep in mind with incentivized ICO's. Wagerr is not the only one being affected this way.
The second sell pressure is related to the fight. Wagerr's price went +100% ROI after the Mayweather fight. With no other events to bet on, winning bettors were forced to sell to withdraw their winnings. Additionally flippers and even traditional investors that realized the coin was "peaking" during development looked to sell immediately after the fight. The price dropped for that reason. Wagerr ran 15% ROI prior to the fight, 104% immediately after the fight then stabilized at 25-35% after the steep sell off.
Then add the development delays. Long term Wagerr investors expected delays. This is a new technology "Blockhain Sports Betting Applications," and Wagerr's ICO specifically stated that the ICO was funding the development. It's not like they had the application already in existance. They were funding it's development through the ICO. So long term investors knew of Wagerr's potential and jumped on board knowing it was going to take time. The application needs to securely process an unending amount of betting/money transactions securely. That is not something you rush into. Plus they added on a lot of custom features during the ICO for added value (like live betting), and all of those things need development too. Where that created sells was in the short term investor segment. The coin flippers in particular were counting on the development milestones to be reached so they could "get out of the coin" , and move onto other projects. Without the development being reached, the prospects of continual price increases diminishes. There is just only so much investment that will take place until the application is revealed. That led some of those investors to dump after Wagerr had the development update 9/30 that stated some milestones would occur on time and others would delay 3-6 months. Having them dump their coins is a plus for Wagerr investors. First because their presence underminds price appreciation. Secondly, because many did it abruptly with emotion, it was a heavy enough volume to press the Wagerr price down -25%, into the 5 cent range where it had never been since ICO. So now Wagerr long term investors are getting the price of their lives, and quite frankly nothing has really changed. Also, Wagerr long term investors are getting an opportunity now to expand their positions while the price is affordable, because the 3-6 month delay in some milestones means added time. So the outlook to buy in many ways is even stronger.
The risk though is the development. Anyone that owns or buys Wagerr as an investment does so by basically betting the Wagerr team will succeed. I am confident they will, but it's a bet each Wagerr investor makes with themselves. That's where the risk is.
So when the development process was delayed and time was expanded, risk goes up. When risk goes up, other alternatives become more attractive... especially during a lull in the price caused by the development delay. It becomes increasingly tempting for coin holders to sell coins with the intent of coming back later. They look to make money elsewhere in other coins and bring it back to buy larger amounts of Wagerr. Because after all, if they do sell... it's only going to lower the price further.
On top of that many of the Wagerr investors are open to the sports betting industry because they participate in it. So as the risk of holding their Wagerr increased with the development delays... many saw the lowering price and thought to bet on sporting events. They simply sold Wagerr in their Wagerr Branded Wallet Exchange for Bitcoin and then withdrew the Bitcoin directly to the sportsbook of their choice to bet with. Knowing this is taking place provides 2 new insights. First, Wagerr price is likely to stay affordable for a good amount of time, as there are so many sell pressures including those who are looking to bet and then return flush with cash to buy larger Wagerr positions. Second, there is a potential that when the sellers return flush with cash, it will lead to a frenzy of re-buying too - so waves of price increases are possible. Whether that impacts price or not will be determined by the number of flippers still looking to sell off coins, as they "eat up" price increases as soon as they happen.
The bottom line and reason why Wagerr investors should be so excited despite the lower "dirt cheap" prices is that Wagerr is affordable. The coins will likely remain affordable. But most importantly very little of this price dip has anything to do with the project itself. There's nothing wrong with Wagerr beyond the development delays. Once you wrap your head around that and determine it is a risk you are willing to take, then all the surrounding sell pressures are actually leading towards an incredible opportunity to expand your position in one of the most explosive investments possible. Wagerr's potential right now is just being multiplied by how affordable it is. And the buy orders are telling the story. Large investors are soaking up these cheap prices like candy. They know that once Wagerr's development hits, this coin will absolutely launch. Until then though Wagerr is a speculative investment. But the potential is thrilling. If you are out there "earning" at a traditional sportsbook or risking on other coins I wish you the best. The price should hold for you hopefully until the development milestones are reached. If betting events are made possible with Wagerr again, that could raise prices so there are still some unknowns. Coin flippers could neutralize prices for you until you bring your value back. With mainnet and testnet going live in January without betting, it seems you have time. Just don't take too long.
Hopefully you have enjoyed this analysis and it has shed some light on the current status of the Wagerr Coin.
Stay tuned for more opinion and updates!