This article dives into privacy coins briefly before focusing on a mid-cap we have been dollar-cost averaging.
Why Privacy is a big Deal, Enter Oasis
With the recent bank account freezes in Canada, and the Russian/Ukrainian turmoil out west, privacy networks are going to be a major trend going forward. Privacy has always been a good deal in crypto, but within reason. Most large crypto networks do not wish to be non-compliant or cause tax troubles for the IRS. Most off-ramps still involve centralized exchanges and the ever so centralized banking system. This is fine for the time being, privacy coins provide the next logical step. If you wish to send your friend 1,000$, do you wish to tell the government about it? The only way you can do that is with cash, and even then, the government likely knows you withdrew it from your bank account.
Privacy coins such as Z Cash and Monero have performed well the past few weeks. Investors are essentially sticking it to the man by investing in these tokens, they make it possible to have true privacy while holding an appreciating asset. These tokens were not created with malicious intent, but with the government steadily censoring more and more, and sanctioning things left and right someone has to stand up for the common man. This is where part of my thesis for Oasis Foundation comes from, but it adds a few other layers to the picture.
Oasis Foundation (ROSE)
For a quick recap about Oasis, check out the article MoC wrote [here]. Oasis works by splitting computing operations from consensus, this aides in speed and cost. Oasis, like many of our favorites, has an Ethereum compatible, Metamask friendly integration. Users can now participate in Defi with Yuzuswap and Fountain protocol to name a few. Oasis was built with privacy in mind from the ground up. It should benefit from the impending privacy coin bull run we are predicting.
Oasis has private forward smart contracts, extreme speeds, and the ability to tokenize data. A major use case for Oasis is that it allows users to “stake” their data for a return. The apps built for this purpose will aim to analyze and or use the data for a benefit. These concepts allow for private lending, private trading, and new defi loan categories. Since Oasis is proof of stake, it will likely start off complaint with green energy standards (99% less energy than Ethereum currently). Like many Ethereum competitors Oasis was built from the ground up to scale, we won’t make that same mistake twice!
Oasis boasts a 200-million-dollar ecosystem fund and provides grants to those who wish to build upon it. Oasis wishes to focus on key areas we have discussed at length including Defi, Metaverse, NFTs, and the new data tokenization is unique to Oasis [1]. Oasis already has 9 partners for Defi, I am keeping a keen eye on Fountain Protocol particularly. Oasis already has a simple to use web-wallet and has integrated to 9 other wallets.
Rose & Oasis Thesis
Let’s bring the privacy thesis together with the growing ecosystem of Rose and discuss why we chose it as an investment. To begin, Rose is one of the top 5 most held liquid crytpo assets for VC firms and hedge funds. Is there something the general investor doesn’t know? Rose is under a 1-billion-dollar market cap. Unlike other privacy centric tokens, it is a complete layer one and is starting to build an entire unique ecosystem. Rose is 60% from its all-time-high and staking rewards can push 20%. I have my rose staked long term in the encrypted web-wallet; I do not even check the tokens since I want to HODL this one. Holding a bag long term for me is rare these days, its one of the few tokens I did not touch when I liquidated to switch to farming about a month and a half ago.
From September 2021, if you pull up the yearly chart ROSE was one of the stronger tokens resisting Bitcoin weakness. Only during the Russian FUD crash did it finally give in to the mainstream sell off. Without drawing lines on the chart, you can easily see a very clear trend from about the 10-cent range past 32 cents. Realizing ROSE is only at 23 cents today puts it at a buy for me. I have been dollar-cost averaging Rose since a while before we covered it last year and man do those staking rewards add up. When you have thousands of a token before it begins its major uptrend, its amazing how much money you can make, and quickly. Each token you get for free reduces your cost basis, and on your first big profit take, your cost basis can reach zero, past that, any token sold can be viewed as free money since your initial investment is safe.
I believe ROSE will ride the privacy wave. This privacy wave will continue as more and more governments challenge their people. Freezing banks, blocking people from using certain apps and discrimination are all why privacy networks were created. The government and large companies have been way too powerful for way too long and the world is fed up with the abuse! Please remember this article is for educational purposes, we do not wish to get political, this is just simple market analysis and where I believe new trends will emerge. This is not financial advice, please stay safe in and outside of the world of crypto!
[1] https://oasisprotocol.org/ecosystem-fund
