Einsteinium (EMC2) is a real runner in the cryptocoin space at the end of this week. The coin is up 42% against the USD over the last 24 hours and currently trades for around $0.57 a piece – a huge premium to the $0.06 per coin that Einsteinium went for at the start of this month.
So what’s behind the run and – perhaps more importantly – is it likely to continue?
Let’s take a look.
For those unfamiliar with this one, it’s one of the old-guard type coins having been around since early 2015. What we mean by that is it’s not one of the huge wave of tokens that has hit markets over the last six months in an attempt to capitalize on the increased attention that the space has gotten from wider markets on the back of the dramatic rise in price we’ve seen in bitcoin throughout 2017.
In order to get some insight into why it’s running right now, it’s worth touching on exactly what the coin is all about and where it fits into the cryptocurrency and blockchain ecosystem.
The coin, referred to as EMC2, is designed to underpin a scientific research funding platform. Basically, people mine the coins and a certain percentage of the mined coins are allocated to various scientific research projects across the globe. The decision as to which projects get funding is reached by consensus, with holders of the EMC2 coins voting on a shortlist. Once the recipients are agreed upon, they receive their funding in the form of EMC2, which they can then exchange for fiat or whatever’s necessary to pay the bills.
It’s a neat idea and it’s one that – over the past couple of years – has gained some considerable traction within the scientific community.
So what’s moving the coin of late?
Well, as mentioned, this one is up over the last day or so but this is far from an isolated run – this coin has been in take-off mode since the start of the month. The real reason behind this run is rooted in three things.
First, the company has been in overdrive when it comes to social media posting and communications. Take a look at the Twitter feed, here. People buying into these coins want to know what’s going on behind the tape and – with Einsteinium – you get exactly that.
Second, the company has been teasing a very big announcement for the last couple of weeks. The announcement (which we don’t know anything about as yet) will hit press on December 19. We think (well, we pretty much know) that there’s a lot of loading up going on ahead of this announcement and this has contributed to the rise outlined above.
Third, and probably most important, is an upcoming hard fork. This is slated for December 7 (or thereabouts, it’s planned to occur on block 1699157 and the date put forward by the company is calculated based on current block and block time equivalent) and it’s a major event for the coin because, subsequent to the fork, approximately 55 million coins will be burned from the future supply. Further, there will be half a million coins less per month added to the circulating supply.
This is the equivalent of a supply contraction and it’s going to push up the price of the coins that remain freely traded.
As such, markets are buying up these coins in anticipation of a price push and this – in and of itself – is causing EMC2 to run.
So what’s next?
We’re going to keep a close eye on action surrounding the fork as indicative of near-term sentiment. We expect price to continue to appreciate right up until fork-day as speculators continue to load positions.
We will be updating our subscribers as soon as we know more. For the latest updates on EMC2, sign up below!
Image courtesy of Einsteinium
Chart courtesy of CoinMarketCap
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.