I’ll just go ahead and admit it: my recent bullish calls on Holo (CCC:HOT-USD) weren’t well-timed.

The underlying concept of HOT makes sense, but the price action is too off-putting for me to recommend a long position.

In all likelihood, many cryptocurrency traders like this particular coin because it’s so cheap. This means that it has the potential to produce 2x, 5x or even 10x gains very quickly.

However, as with all investments, we must weigh the possible rewards against the risks involved. Sure, Holo can go up fast, but it can also go down just as rapidly.

I’d hate to see people over-leverage themselves and end up losing too much capital. That’s why today I’m recommending a hopeful but realistic stance, with a healthy dose of caution.

Analyzing the Holo Crypto Price

Is Holo up, or is it down? The answer largely depends on the time frame you’re using.

Believe it or not, the HOT token started 2021 at the ultra-low price of 0.08 cents. A powerful rally started in February and picked up steam in March and early April.

The peak was reached on April 4, with Holo briefly hitting 2.8 cents. That might not sound like much, but it represents gains of hundreds of percentage points in just a few months.

Unfortunately, those gains weren’t sustainable. A sharp decline started in April, with the HOT token tumbling to 0.6 cents in May.

Holo was trading at 0.88 cents this morning and appears to be stabilizing.

Thus, on a short-term basis, it’s far below the peak price. On a longer time frame, however, the investors are still in the green – for the time being, at least.

Warding Off the Patent Trolls

To begin, I’ll sum up the basic principles behind Holo.

First and foremost, the cryptocurrency runs on Holochain. This is an open-source framework on which the users can design fully distributed, peer-to-peer applications.

And here’s where it gets really interesting: Holochain works differently than a traditional blockchain. On Holochain, transactions are logged on individual user nodes, not on a public ledger.

Another distinguishing feature of Holochain is that the developers actually encourage regular folks to build their own innovative distributed apps on the platform.

So, I suppose you could say that Holo is egalitarian, but let’s get one thing clear: it’s not for the trolls.

And by that, I mean patent trolls. According to the official Holochain blog, patent trolls are organizations “that sit on large collections of patents simply so they can collect licensing fees from people who actually build things — and sue the ones who don’t buy a license.”

Fortunately, it’s possible to ward off these nefarious patent trolls. While the Holochain project is open-source, the Holo owner known as the Holochain Foundation made a savvy move in securing a U.S. patent on Holochain’s peer-to-peer networking design.

No-Hype Adoption Strategy

I appreciate the Holochain Foundation’s prudence. Securing a patent is an essential step in protecting the intellectual property behind the Holochain project.

Another smart idea, I believe, is Holo’s no-hype global adoption strategy.

A recent blog posting makes it crystal clear that Holochain team couldn’t care less about getting “hot” (pun fully intended) on Reddit or elsewhere on social media.

Rather, the developers apparently want to build out the network’s foundations, quietly but securely.

With that, the stated priorities include providing quality tech support, contracting one of the world’s best security review teams and making developer resources and programs available 24 hours a day, seven days a week.

The Bottom Line on Holo

Personally, I see a lot of value in Holo’s patent-protected technology and hype-free build-out.

On the other hand, I would want to see more stability in the token’s price action.

Until a greater degree of price discovery is achieved, it will be difficult to recommend a long position in the HOT token.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.