Flipside Daily Mover: SNM
A coin per day, making big moves
SONM Fundamentals Down in Challenging Environment
May 15, 2019
SNM FCAS has declined -6.8% over the last 30 days. Developer Behavior dropped 105-points (-14.13%) along with a 41-point (-7.98%) retreat in Market Maturity. User Activity has increased 53-points (18.15%). Price is down -9.2% over the same time period.
Through the Fog
There is significant movement across decentralized cloud computing platforms this week, as developer ratings for a major player in the sector, SONM (Supercomputer Organized by Network Mining), continue to follow downward trends. Despite the decline, their project utilization has seen a steady increase since mid-March.
SONM considers itself a “fog computing” platform that is “a decentralized network formed from disparate individual computing devices, as opposed to a single data center structure.” The scalability offered by this computing model has the potential to displace centralized data centers which are cumbersome and expensive.
Their technology runs on Linux, or can be leveraged as an operating system on dedicated hardware, so they ultimately target a more commercial user-base than projects such as Golem (GNT) which can run on Windows for the average consumer.
🌶️ Hot Take
SONM is an interesting case study for crypto projects looking to evolve into thriving businesses. The technology the team has created rivals competitors in the space, but their business model puts them at an inherent disadvantage.
While GNT benefits from first-mover advantage, their main leg-up is the project’s focus on creating a product that appeals to and is accessible to a wider audience. Within the crypto industry, a project strengthening its supporting community in the early days of its evolution is a bootstrap for progress as the technology evolves. Consistent outreach on social media platforms, blog updates, and overall community engagement at meet-ups and conferences goes a long way in helping projects grow, as visibility directly correlates with adoption. Golem’s product aligns with this truth.
SONM’s target user-base of small and large businesses will be less active and poses additional risks as their product needs are greater, thus putting additional strain on the quality of product that needs to be developed. SNM use cases are well defined (site hosting, gamer servers, web apps, and more), but as a nascent project in a nascent industry with a demanding target consumer, the road will be challenging.
FCAS Tracker is free and available now for investors.
Want to receive the Daily Mover? Sign up here:
*The material contained in this e-mail is not to be construed as an offer or a recommendation to buy or sell a security nor is it to be construed as investment advice.
