Based on a recent blog post by the developers of ANKR (CCC:ANKR-USD), their goal with the platform is to help provide multi-chain solutions. ANKR wants to assist numerous blockchains that have different apps, NFTs (non-fungible tokens), and DeFi (decentralized finance) to work together.
For example, according to the developers, ANKR can provide a way for Ethereum (CCC:ETH-USD) and Solana (CCC:SOL-USD) developers to work together. By using the ANKR blockchain, developers can find solutions to “multiply their capabilities.”
This coincides with what I wrote in my last article on the crypto. I wrote then that it wanted to be a new and different kind of blockchain. This is because ANKR offers a multi-chain blockchain platform to allow DeFi apps to flourish.
ANKR’s Standout Features
The developers make a bold and conspicuous statement on their website positioning ANKR as a: “Multi-chain foundation for the crypto economy.” It claims that their coin is the only blockchain platform that “combines node infrastructure, staking, and DeFi to make developing and earning easy.” It then offers a way for crypto investors to earn staking fees.
It also has a button for developers to learn more about the “anchor” aspect of the ANKR blockchain platform. Getting buy-in from developers is always an important goal for a new crypto. Particularly for a platform as “multi-chain” focused as this one.
According to Coinbase (NASDAQ:COIN), ANKR “aims to make it easy and affordable for anyone to participate in blockchain ecosystems by building dapps, hosting nodes or staking.”
Moreover, the token can be used to pay for services directly on the ANKR blockchain. Examples include node deployment and application programming interface (API) services. Owning this crypto token also allows the owner to participate in on-chain governance and it can also act as “insurance for network participants.”
Recently, however, there seems to be a slowdown in the number of partnerships and collaborations announced by ANKR. This could be concerning as the potential upside in ANKR is their “multi-chain foundation.” And this could especially become a problem if its value is no longer seen as increasing.
Where Things Stand for ANKR
However, that being said, in the last two months, ANKR has done quite well. It closed at 8.523 cents on Oct. 1 and as of Dec. 2, the crypto token was at 14.33 cents. That represents a gain of 68.1% in the last two months, a huge gain and enough to make investors happy with their returns. Moreover, this is after the crypto came down from recent highs.
So far this year, investors in ANKR are likely very satisfied. The crypto ended last year at just below 1 cent ($0.009). Now it is 14 times this level. However, in the last six months, investors have not made any money. On May 1 it was at 17.14 cents.
As a result, many investors who bought in early spring when ANKR was rising to its peak may now have losses. That could lead them to do tax-loss harvesting.
This often happens at the end of the year when investors reassess their priorities with investments and find ways to reduce their tax bills. They know that if they sell money-losing crypto positions now they can take the short-term losses. That is, as long, they wait 31 days before they buy the same crypto back, they will not run afoul of the wash sale rule. (Keep in mind this is not financial planning advice.)
As a result, ANKR could face further selling pressure between now and the end of the year. Patient investors will wait until the bulk of this selling trails off. This means that the worst of the selling could still happen between now and the end of the year for many cryptos like ANKR.
On the date of publication, Mark R. Hake did not hold any position (either directly or indirectly) 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.