Discover more from MadCapX’s Investor Research
Presearch - Issue #38
In this newsletter, we are profiling Presearch [PRE]. In previous newsletters, we have profiled Bitcoin, Cardano, Stablecoins, Uniswap and many others. Access all our newsletters in our archives at madcapx.substack.com.
The Short of It
A search engine that is on its way to becoming fully decentralized and way out of the spotlight of the investment community but in the top 1000 of crypto assets. This could be an interesting cheap asset to test (risk) for your investment portfolio.
Presearch was started in 2017 and launched their PRE token in 2018. It is founded by Colin Pape, Thomas LeClair, and Trey Grainger. This project's goal is to provide Internet web search results that are of quality, decentralized, and private while allowing user control over data and search parameters. It will also allow advertisers to stake PRE tokens in exchange for getting their ads to show up for keywords or phrases at the top of the results. You can try out a search right now by visiting presearch.org.
PRE was initially launched with a maximum supply of one billion tokens but had half burned in 2020. The current max supply is 500 million. It lives on the Ethereum blockchain and is a standard ERC20 token. The whitepaper and roadmap can be viewed at https://www.presearch.io/vision.pdf.
As a user of the Presearch search engine, you get rewarded PRE just by entering queries. You can currently get up to 4 PRE per day just by performing searches. It may seem that a system like this can easily be gamed by cheaters with bots, but the company claims to have anti-fraud detection in place and is always working on improving it. Note that you do need to build up a bank of at least 1000 PRE rewards before you can withdraw.
Presearch uses a big list of existing search engines to obtain query results, acting as a proxy for them. Users have full control over what search engines are used. Whenever a query is performed, the request is sent to a gateway server (currently centralized), which in turn anonymizes the query and sends it to a number of worker nodes (decentralized) that fetch the results and relay them back to the gateway. To run a node, you need to stake at least 1000 PRE on it. The public will eventually be able to run gateway nodes as well once they are decentralized. Nodes are currently running on the testnet and will hopefully move to the mainnet later this year.
Advertisers can stake against any keyword or phrase they like. Whenever somebody searches for that keyword, whoever has the most staked for it gets their ad shown at the top of the results. This will naturally cause the more popular keywords to have competition in staking amounts and may require a substantial investment to grab the top spot. Staking for keywords is currently free until at least January of 2022.
When it comes to competition, like any other search engine project, the big one is Google. All other search engines are minuscule in comparison, so hoping to take away even a little of the search market share from Google is a commendable goal. As far as other decentralized and rewards-based search engines go, Brave (BAT) has announced their search engine, which is currently in beta at https://search.brave.com/.
This is a project which is not anywhere near the top 100 of coinmarketcap.com and has not had any major price pump action. If you believe in the importance of decentralizing searches, this may be an opportune time to invest while the price is still very low.
This first chart is on the weekly with PRE/BTC pairing. The highest volume is on the KuCoin exchange, and the total volume of all exchanges for the last 24 hours at the time of writing is only $88,000 USD, which makes PRE a terrible token to trade if you are using any larger trade amounts. PRE is #842 on CoinMarketCap. Currently sitting at about 76 Satoshis. The all-time lows of 38 Satoshis was in January 2021. Is there a chance that PRE is breaking out of the downward trend?
On this daily chart for PRE/BTC, one solid candle broke out with a potential second one closing above that in a few hours. Could this be a potentially good entry point?
In the PRE/USDT pairing, we see how the token followed the bull crypto market that started in January and started collapsing in April/May and has brought PRE almost back to the range it was in late 2020 of $0.01 to $0.02. Currently priced at $0.023. We should be seeing the bottom here soon or already have. The all-time high was $0.13 in January 2021.
Check out the video for more about Presearch.
The Other Trend Lines
Here are a couple of Trading View users’ opinions on BTC.
Depending on your bias and your personal views & beliefs, analyzing bitcoin you may get absolutely opposite conclusions. Being bearish biased and not believing in the recovery of a crypto market, analyzing a price action on a daily chart, you may notice a falling parallel channel. With a sequence of lower highs and lower lows, the price keeps trading in a bearish trend and we may expect a continuation to new structure lows. Being a bullish biased trader and actively purchasing the coins after the fall, you may perceive the current price action as a consolidation & bullish accumulation. The price is trading within a horizontal trading range and we are waiting for its resistance breakout as a trigger that the market returns back to a global bullish trend. Who is right? We don't know. Both parties have nice arguments. Subjectivity is a huge part of this game. I will be a middle man guy and would treat a current price action as a consolidation and indecision. But I do admit that bullish / bearish breakouts & continuation are equally possible.
Considering the Fibonacci Technical Indicators, we are close for a bottom, also, we can find the price right in a falling wedge, which can be easily broken, then we become bullish. There are also Bullish Divergences on MACD & RSI Indicators, small, but there can be a good start for a new cycle. Fibb zones can take up to a perfect price of $81,000. Thank you for your time, HODL Strong. This is not a trading advice, St. Gex
This portfolio section gives you an idea of what sort of return you can get when investing in crypto assets.
BTC/USD FUND is up 184% since October 1st, 2020. Since this is a long-term holding, it is best kept in cold wallet storage or a safe custody solution. We continue to see a long-term hold position as our best stable alternative. This past week bitcoin has been ranging between $30,400 and $34,340 USD in value.
FUND 3 started on November 16, 2020, with $1000 USD in value and was invested into BTC, LTC, ETH, and ADA. The total amount of BTC value from the four coins has had a gain of 102% since the start. The USD fund value is up 271% since the start. We will hold these positions to see how well it does against our BTC-only portfolio. LTC is down -13% against BTC. ETH is up 115% against BTC since the start. ADA has a gain of 490% against BTC and 972% to USD.
BLWX Fund started on February 22, 2021. They all are assets we have profiled in the last few months, and we are interested in how they will perform in 2021 against BTC. BAT has a gain of 59% against BTC since the start; LINK is down -16%, WAVES is up 106%, XMR is up 44%. Overall, against BTC, the fund is up 48% and down -17% against USD.
Overall, Bitcoin should be your first choice as an investment in crypto, though many digital assets can give you amazing gains if you manage your risk. As a long-term investor, we see it as our largest portfolio investment. If you are a day trader, there are many great assets to put on your watch list. Look through our previous newsletters to find some.
MadCapX research newsletter is written by the Madbyte Team. You can learn more about Madbyte and MadCapX on our websites. This weekly newsletter is a paid subscription and supports the team and the Madbyte projects. The regular cost is $5/month or $50/year. Cancel anytime.
As a paid subscriber, you can request to get access to our Madbyte Discord investor channel. In the channel, we post updates and charts related to the profiled crypto-asset. If you are already a member of our Madbyte Discord server, the investor channel is private for Madcap Tier 12 and above members and this newsletter readers. Discord invite: https://discord.gg/Pfmks83
Madbyte does have its own token called MADX on the Ethereum network and Madbyte on the Waves network. The two tokens are interchangeable on Madcapx.com.
Disclaimer: Nothing in this newsletter is intended to serve as financial advice. Therefore, do your own research and due diligence before applying any of the techniques highlighted in this post. Any risks or trades based on this newsletter are committed at your own risk.