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Although I’ve written previously about Encrypgen (DNA), the recent crypto crash has made this one of the best investments since the California Gold Rush of the 1800s.  A lot of my time is spent scouring the crypto landscape looking for projects that have both a real-world use and a significant undervaluation.  Encrypgen checks both boxes!

Background

Encrypgen is a genomic blockchain network that provides customers and partners with best-in-class, next generation, blockchain security for protecting, sharing and re-marketing genomic data. This creates a fair marketplace for a person’s DNA that can be stored privately and sold (if a person wishes to do that). A person’s DNA can also be shared privately and securely with their physician for their personalized care.

Typically, people can send their DNA off to a lab to find out who they are and where they come from. As fun as that might sound, there is a significant security problem that the public needs to be made aware of. The problem is that most genetic testing companies retain results for their own use so that the data can be resold to research and development companies. It would be better for people to retain control over their own DNA results and that’s where Encrypgen steps up to the plate.

The World’s First Blockchain Genomic Data Marketplace

While most tokens have failed to live up to expectations, Encrypgen is one of the very few that have delivered every step of the way.  Earlier this month, Encrypgen launched the world’s first blockchain genomic data marketplaces called the Gene-Chain.

The company is now actively marketing the platform to both data sellers and data buyers.  While it will take a bit of time to bring both of those groups together, investors should remember a couple famous marketplaces that were started in the mid to late 90s.  Those marketplaces are Amazon and eBay.  Neither of them had overnight success.  It took a while to get things rolling but once they did, it was smooth sailing.  eBay is now worth over $25 billion while Amazon is worth a ridiculous $770 billion.

Now that the marketplace has been launched, the company can continue to use its resources to enhance the platform based upon the needs of the users.  Executives from Encrypgen are constantly engaging with genomics professionals at various conferences around the world.  By doing this, the company can stay on top of the recent developments within the industry.

Current Token Price Is Significantly Undervalued

As of this writing, the DNA token is trading at approximately 570 sats giving Encrypgen a token capitalization of roughly $1.4 million.  The valuation makes absolutely no sense based on what the company has achieved and on the projected industry growth.

It has already been mentioned but Encrypgen has already launched the world’s first blockchain genomic data marketplace.  Yes, the world’s first.  The company spent a year and a great deal of resources hiring some of the best developers and programmers in the world.  The technology alone is easily worth $20 million+.  Once the company begins onboarding both the data sellers and buyers, the DNA token price should come in to line.

Another important consideration when discussing the token price is to look at the projected growth of the genomics industry.  According to Research and Markets, the global Genomics market is expected to grow to approximately $24 billion by 2022. The reasons for this growth include the following:

  • Growth in genomic research activities
  • Continued rise in start-up companies
  • Increased importance of focus personalized medicine
  • Venture Capital Investments
  • Amount of government grants

Comparable Company Analysis

In addition to industry growth, another way to get a handle on a proper valuation is to do a comparable company analysis. One company that comes immediately to mind is 23andMe. 23andMe is a genetic testing company that received FDA approval for the application of 10 different tests in April 2017. The company collects DNA samples from customers, analyzes the genetic makeup, and synthesizes these findings into personalized reports with analysis on ancestry and genetic predisposition to health risks based on each customer’s unique genetic variants. The really encouraging part is that 23andMe confirmed a $250 million financing round led by Sequoia Capital. Fidelity Management also took part in the funding round. The funding brings the valuation to a whopping $1.75 billion.

23andMe has been around for a while now so it’s certainly not a surprise for them to be valued significantly higher than Encrypgen but the important takeaway is the potential. Encrypgen is the leader in its niche space and has the added benefit (in my opinion) of blockchain technology. Although cryptocurrencies have been in a bear market for almost all of 2018, that isn’t going to continue forever.  The adoption of blockchain technology is coming.

Near-Term Trade

Per Encrypgen’s Discord, the token has been sliding over the past few weeks because of a large token holder who needs to sell some tokens for a down payment on their house.  Because of the lack of liquidity, the seller has been driving down the price.  Once that seller’s inventory has dried up, I expect an almost immediate rebound to the 800+ sat level.  So, for those who looking for a quick trade, DNA is a great idea.  And for those looking for a long-term HODL, DNA fits the bill as well.

Conclusion:  Is a 30x Return Possible?

While a 30x return might seem like a stretch in this environment, traders need to remember that DNA is a utility token.  The value will be determined based on the amount of data volume exchanged in the Gene-Chain.  Back in January, the DNA token was valued at approximately $90 million and that was without utility.

In order to do a 30x return based on the current price, the token cap would need to reach approximately $45 million, just half of what it was in January.  With utility coming in the next few months, 2019 sets up to be an outstanding year.

Disclosure:  I am long DNA

Featured image courtesy of Shutterstock. 

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