Fundamental Analysis
Responsible investing is not only about choosing the company or token that will multiply your money but also make the earth greener and rid it of poisonous pollutants. While the equity markets boast of several such companies and exchange-traded funds, the crypto investors had very few options until Intelligent Fluids GmbH introduced SmartChem (SMAC) tokens.
SMAC token is an ERC-20 token that has also been integrated into the Binance Smart Chain Ecosystem as a native BSC BEP-20 token.
Intelligent Fluids is a deep tech company that is set to disrupt the rapidly growing industrial cleaning market whose value is projected to exceed $54 billion by 2025. The innovative technology of Intelligent Fluids has numerous advantages over the existing solvent-based chemicals. It is dermatologically approved, reducing the risk to human health. It reduces energy consumption by 65%, benefiting the climate. There is 70% less necessity of waste disposal as it is biodegradable. As it does not require high operating temperatures and has no hazards, it reduces process costs. It is no surprise that the company has won several awards for its technology such as the Green Product Award in 2021, Blockchain Starts winner in 2019, NOURYON Imagine Chemistry Award in 2019, and many more.
The company is backed by a strong management team that has a combined science know-how of more than 58 years. In terms of entrepreneurship, the company boasts a total experience of 35 years, increasing the possibility of success.
With many advantages over the conventional cleaning systems and a strong management, the company is on track to capture market share from the existing players. Intelligent Fluids expects its revenue to grow to more than $400 million by 2030, a huge increase from its 2020 revenue of about $1.5 million. By 2030, the company anticipates its market share to increase to more than 5%. All this will be achieved by keeping an eye on profits, which are expected to reach over 40% by 2026.
While the trajectory of the company looks impressive, how will the token holders benefit? The company plans to raise funds through an initial DEX offering in partnership with ATNIR Capital. The initial token supply will be 150 million with the price being fixed at $0.007, leaving sufficient gains for the hodlers in the long term.
The IDO starts on May 4 and will end on May 8, giving an opportunity to investors to be part of a disruptive technology at a very early stage.
Owners of the token will be able to avail a 30% discount on Intelligent fluids products until 2022. The discount will reduce to 20% in 2023 and to 15% by 2024. The attractive discount structure suggests that the demand for the tokens may go up sooner than later as companies buy more tokens to avail greater discounts on the purchases of Intelligent fluids products.
According to an estimate by the company, by 2031, it would have sold an estimated 255 million litres of fluids, which is well above the total tokens in circulation.
Along with the potential profits from the increase in token value, investors can also be part of a project which claims to reduce carbon emissions by more than 50%, save 60% energy costs in the projects they undertake. In addition, investors will also end up supporting OceanCare, a marine wildlife protection project, and several other environment-friendly organisations.
Technical Analysis
The SMAC token started the year on a strong note but then succumbed to selling pressure in line with the broader crypto markets. The bulls attempted to start a rally in early March and pushed the price to a new all-time high, but they could not sustain the higher levels.
When the broader market sentiment is bearish, traders tend to book profits quickly. That is what happened, and the gains quickly evaporated. However, a minor positive has been that the token has been finding strong support near $0.005 for the past several days.
The SMAC/USD pair soared from $0.005 on March 27 to $0.038 on April 7, providing investors with a gain of 660% within a few days. This shows that the pair has the potential to rally if the broader market sentiment improves.
However, the price has again entered a sharp decline due to profit-booking. A minor positive is that the bulls are attempting to form a higher low at $0.007. This suggests that the buyers are not waiting for a deeper correction to enter long positions.
The pair has rebounded off the support and the bulls are attempting to sustain the price above the psychological level at $0.010. If they succeed, the next stop could be $0.015.
This level could act as a stiff resistance but if bulls do not give up much ground, it will suggest that the sentiment has turned positive, and traders are buying on dips. That could increase the possibility of a break above $0.015. If that happens, the pair could pick up momentum and rise to the stiff resistance at $0.038.
The bears are expected to mount a strong defence at this level but if bulls overcome this barrier, the pair could surge to $0.051.
Contrary to this assumption, if the price turns down and plummets below $0.005, it will suggest that traders are rushing to the exit. That could dampen sentiment and resume the downtrend.
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