Niloofar S.
Niloofar S.
Oct 27, 2021

Is Gnosis (GNO) A Good Investment?

  • The Gnosis cryptocurrency, GNO, is an Ethereum-based token sold during the Gnosis ICO. The primary use case of GNO is for generating OWL tokens via staking. Users can lock GNO for a certain amount of time (up to one year) to earn rewards. Gnosis aims to provide an open-source infrastructure for prediction markets built on Ethereum. If you’re unfamiliar, a prediction market is a type of marketplace, not unlike an exchange, except instead of trading assets, users trade the outcome of events. Often restricted by regulators, it is believed cryptocurrencies hold the potential to decentralize the operation of prediction markets, opening their access across the globe. Gnosis's price today is $401.27 with a 24-hour trading volume of $7,062,766. GNO price is up 3.8% in the last 24 hours. It has a circulating supply of 1.5 Million GNO coins and a total supply of 10 Million. At the time of writing this post (Oct 27, 2021), GNO's Return On Investment (ROI) over the past year was 669%, exceeded in 'MEV Protection, xDAI Ecosystem, Prediction Markets, Protocol, Decentralized Exchange Token (DEX), Decentralized Finance (DeFi)' categories which had 393% growth over the past year. It underperformed in the crypto market which had 24310% growth over the past year.
  • About GNO Network's, our data shows that the Twitter account saw a growth of 15% over the last months in the number of followers, which is considerable. Also, the number of GNO Reddit subscribers increased by 4%.
Is Gnosis (GNO) A Good Investment?
Is Gnosis (GNO) A Good Investment?
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Introduction

The Gnosis cryptocurrency, GNO, is an Ethereum-based token sold during the Gnosis ICO. The primary use case of GNO is for generating OWL tokens via staking. Users can lock GNO for a certain amount of time (up to one year) to earn rewards.

Gnosis aims to provide an open-source infrastructure for prediction markets built on Ethereum. If you’re unfamiliar, a prediction market is a type of marketplace, not unlike an exchange, except instead of trading assets, users trade the outcome of events. Often restricted by regulators, it is believed cryptocurrencies hold the potential to decentralize the operation of prediction markets, opening their access across the globe.

This is the idea behind the Gnosis prediction market platform, a blockchain enabling users to trade cryptocurrencies that are representative of event outcomes on an open market. As the events unfold and outcomes become clear, Gnosis tokens gain or lose value depending on what was predicted by the user. 

Gnosis’ goal is to build an infrastructure for many decentralized applications that can act as forecasting tools, sources of information, and standards for predictive assets in this market. By allowing access from any party to its platform and aggregating public opinion in an uncensored source, Gnosis believes it can build a reliable forecasting tool that could have applications for decision-makers in finance, government, and insurance, among other sectors.

The Gnosis software uses two cryptocurrencies, GNO and OWL, both of which help ensure its transactions are reliable and distributed. Today, Gnosis continues to make progress toward its ambitious goals, but it is by no means alone, facing market competitors like Augur (REP). Gnosis keeps users updated on the status of its roadmap through its official website and blog.

How does Gnosis work?

Gnosis uses three separate platforms to achieve its vision. 

  • Apollo – A prediction market platform where users can create their own tokens (tokens that represent information, incentives, or ideas)
  • DutchX – A decentralized exchange where users can trade and auction off their tokens
  • Gnosis Safe – A cryptocurrency wallet and a browser that interacts with Ethereum apps. 

Additionally, there are three layers to Gnosis’ architecture that unites these platforms together.

  • Core Layer – The foundation of the platform, it contains the smart contracts powering the events, the outcome tokens, the settlements, and the market mechanisms
  • Service Layer – Offers additional services such as chatbots, payment processor integration, and stablecoins. This later also controls its trading fee model. Gnosis anticipates most consumer applications will interact with features on this layer. 
  • Applications Layer – Contains the prediction market dapps built on Gnosis. While Gnosis builds some applications for prediction markets, the majority of applications accessible in this layer are built by third parties who can charge users for their services. 

Gnosis is tailored to help users explore and profit when they participate in prediction markets. A prediction market utilizes user-predictions to aggregate all information about future events. In this market, users trade tokens that represent the outcome of a certain future event. Naturally, some outcomes are more likely to occur than others, the different tokens end up attracting different prices in an open market.

Over time, the related events start unfolding. Some token outcomes may have a higher likelihood of becoming true and hence their value will increase. Once an event occurs, the tokens representing the final outcome will receive full value while the other tokens’ value is zero.

Financial Analysis

Gnosis's price today is $401.27 with a 24-hour trading volume of $7,062,766. GNO price is up 3.8% in the last 24 hours. It has a circulating supply of 1.5 Million GNO coins and a total supply of 10 Million.  At the time of writing this post (Oct 27, 2021), GNO's Return On Investment (ROI) over the past year was 669%, exceeded in 'MEV Protection, xDAI Ecosystem, Prediction Markets, Protocol, Decentralized Exchange Token (DEX), Decentralized Finance (DeFi)' categories which had 393% growth over the past year. It underperformed in the crypto market which had 24310% growth over the past year.

Projects with public Github account have more transparency and reliability. Regularly, investing in projects with multiple contributors and commits is considered a safer and better investment (this means they are busy working and building the project). According to its Github account, there are 9 Contributors to the development of GNO.

Another critical factor in the success of any project is gaining public attention. Our data shows that GNO's Twitter account saw a growth of 15% over the last months in the number of followers, which is considerable. Also, the number of GNO Reddit subscribers increased by 4%.

Over the last five months, GNO's Market Capitalization rank followed an overall declining trend, starting at the rank of 157-154 on July-Aug 2021, reaching 169 in Oct 2021. However, by the time of writing this post, GNO's market cap rank is about 150, and its value is $6,920,824 Million. Moreover, its liquidity score is 32% under the market's average score, making it relatively more difficult to sell in bear markets.

You are saying that Gnosis (GNO) is the best cryptocurrency to invest in?

We are here to help you make smarter financial decisions by freeing up your intelligence through making it easy to compare thousands of coins. We do all the hard work for you and help you remove emotions from your decisions. However, making an investment decision requires considering your own financial situation and comparing your investment options.

To see our reports and easily compare the available investment options, check out our website.

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