Thank you everyone in the SocialGood community for your continued use of the SocialGood App. Just by shopping at major eCommerce sites with the SocialGood App, you can receive SocialGood (SG) for free.
As we, the SocialGood Team, are often asked about the prospects for SG’s price we’d like to let you know what we think.
First, did you know that, in general, the price of a cryptocurrency token is proportional to the number of holders? We'll begin by showing proof of this. Let's define the number of holders by their address numbers.
Please look at figure 1. Among the coins which have an issuance limit, we have selected some coins that have a large market cap. This includes Brave which has a very similar business model to SG. In conclusion, the correlation between issuance limit-based market caps and addresses is 0.999. In short, we can say that as the number of addresses rises the market capitalization also grows. The correlation in the numbers themselves does not indicate which is the cause and the effect, but if thought about logically, wouldn't you think that the increase in the number of holders is the cause, and the effect is the market cap?
So, why are the number of holders of a cryptocurrency proportional to its market cap? This is because for cryptocurrencies with an issuance limit the increase in holders tightens the supply and demand. When supply and demand are tightened, the marketplace will cause the price to rise.
Next, if we use regression analysis on the major cryptocurrencies (selecting ones with an issuance limit) we get the results shown in figure 2 below. The scatterplot for this is shown in figure 3. From figure 2 we can see that when the number of addresses is in the 38 million people phase, each address has a value of US$19,000.
Let’s apply this cryptocurrency market trend to SG. The majority of SG holders hold SG long-term in the app. Because of this, the number shown as the number of addresses is small. Therefore, let’s define the number of registered SocialGood App users (the combination of number of times downloaded and registered on the web) as the number of SG holders. At the end of July 2021, the number of registered SG users was 270,000 people.
If we apply overall market trends to the cryptocurrencies, SG's issuance limited-based market cap equals 270,000 people x (the value per address for this phase: $38,178) = US$ 10.3 billion. As the issuance limit would be 210 million, the theoretical price is then 1 SG = US$ 49.08.
Since at the end of July the price of 1 SG was US$1.61, the gap from SG's theoretical price was -96.7% = ((1.61/49.08)-1). We can determine that this is the current low price.
Like this, if we analyze the number of holders which are “the fundamentals of the cryptocurrency market,” we can determine SG’s low and high prices.
As more SG is held, the more the return rate for shopping in the SocialGood App will rise and we plan, depending on the amount held, to be able to grant a bonus of about 15% APY (staking). The staking is scheduled to begin sometime during September at the earliest (depending on circumstances it may be later than this). Since we plan on granting up to 15% of the SG which has not been withdrawn from the SocialGood App, we recommend not withdrawing your SG yet. In other words, SG is “the crypto with preferential rights” and one of its major features is that it has actual use cases. While numerous unusable cryptos are listed on the market, SG stands out by having high hopes of increasing the number of holders through its use cases and by having reasons to hold it.
We plan to disclose the number of SG holders every three months. Please use it as reference and try trading it.
The SocialGood Team's number one priority has always been to increase the number of users of the SocialGood App and SG. At this point, we still have a long way to go and the majority of people are still unfamiliar with SG. We hope to be able to count on everyone’s continued support and cooperation.
For more about buying SG on crypto exchanges: 3 Methods for Purchasing SG on Crypto Exchanges