ZEPH Market Analysis

in #zeph3 years ago

$ZEPH, Bitspark's native utility token, has now been openly traded since November 2017 and the token has taken an interesting turn as of lately. Throughout this article we will look into some of the metrics associated with $ZEPH and how it has performed since the tokensale.

What is $ZEPH?

$ZEPH is issued on the Bitshares blockchain and is a reward token for the Bitspark bankless money transfer ecosystem. Bitspark is one of the oldest running cryptocurrency money transfer services having pioneered the first cash-in, cash out money transfer in 2014 from Hong Kong to the Philippines. Since then, the company built an entirely bankless ecosystem for businesses and individuals to send, exchange and manage their money via stablecoins to 6 countries globally across Asia and Africa.

The token is currently traded on the Bitshares decentralised exchange and is a reward for customers utilising Bitspark’s products and services. For sending a cash money transfer, users are issued a reward of$ ZEPH, this applies both to individuals and businesses providing a monetary incentive for continued use of Bitspark’s products and services. A percentage of fees generated by Bitspark for these transactions are used to buy $ZEPH from the market, 25% of all Bitspark commissions. It is therefore an effective mechanism for tokenholders to gain exposure to the success of the Bitspark ecosystem with more transactions generating more commissions which equates to continued buying of ZEPH from the market.

$ZEPH Performance

The Zephyr token debuted in November 2017 at the ICO price of $0.008-$0.01 USD and is trading solely on the Bitshares decentralised exchange, it has seen a market high of $0.13 USD and a low of $0.0052 over the past 12 months and a high of approximately $190 000 USD in daily volume.

(Snapshot of the ZEPH:BitUSD market on 22nd of November)

The token price saw a marked rise at one of the largest increases in cryptocurrencies ever seen in late 2017 which saw crypto assets like Bitcoin rise from $1000 in Jan 17 to $20 000 in January 18. Since then the price has been trending lower in accordance with the rest of the market however $ZEPH has maintained a price support somewhat better than other similarly placed ICOs at the time having not (until mid November 18) fallen below the ICO price.

The largest liquidity base for $ZEPH is the BTS:ZEPH market which has historically had larger buy side and sell side liquidity, this is often owing to the BTS being the default pairing for $ZEPH. The range for buy side liquidity ranges from 50000 BTS to 200 000 BTS over the 12 month period and sell side liquidity range stay fairly static on approximately 3 000 000 - 4 000 000 ZEPH. The sell side liquidity has dropped considerably from ~4 300 000 ZEPH on 31 October 2018 to ~2 300 000 ZEPH on 22 November 2018 owing to the beginning of ZEPH buybacks on 31 October 2018 by the company.

In the short term, ongoing purchases by Bitspark will continue to remove sell side liquidity from the market and drive the price higher as a result.

$ZEPH Anchor Market

The BTS:ZEPH market has traditionally been the major liquidity source and thus is the source of market pricing for $ZEPH. When considering the price of $ZEPH one must also consider the market that it is priced against, when priced against BTS the 12 month range is between 0.0945 and 0.24 $BTS with a ATL at 39% of the price of the ATH, very different to the pricing when considered in USD which has an ATL at 3.8% of the ATH peak to trough. We can see from this that the price of $ZEPH tracks very strongly with the price of $BTS and we can conclude that $BTS is the major determination of the $ZEPH price.

The next major milestone for $ZEPH should be a decoupling from the $BTS price of $ZEPH and instead become a free floating uncorrelated asset class. The recent start of buybacks on the market are quickly removing large amount of sell side liquidity from the orderbooks and pushing the $ZEPH price higher as a result, this should serve to decouple $ZEPH price movement from the $BTS market and instead enable $ZEPH to be priced independently from the $BTS market.

Market Depth

(Snapshot of the BTS:ZEPH market on the 22 of November)

Market depth in the BTS:ZEPH market has until the recent buybacks fluctuated in a ratio of 1:2 to 1:8 in terms of buyside vs sellside liquidity. At time of writing 22 November, buyside and sellside liquidity are roughly equal in magnitude. Spreads are generally tight at <1% with an approximate 12m buyside range of 50 000 BTS - 200 000 BTS and sellside range of 2 000 000 - 4 000 000 ZEPH.

Bitspark looks forward to providing more market analysis as the token begins to develop.

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Bitspark’s easy to use platform and app allows businesses and individuals to transfer money worldwide without banks. Having made the world's first cash-in cash-out Bitcoin transaction in 2014, Bitspark now services six markets across Asia and Africa utilising stablecoins across its product offerings.

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