If you’re unfamiliar with JasmyCoin (), you’re not alone. The ERC-20 token has largely remained out of the headlines since its launch in October 2021.
The Japanese-based token, however, punches far above its weight. JasmyCoin ranks consistently in the top-25 cryptocurrencies by value traded and is one of the top-mentioned tokens on social media platforms. It’s a surprisingly popular asset among swing traders for its high volatility and positive messaging.
Squint hard enough, and some promising concepts emerge. JasmyCoin was established to help users monetize their personal data, a fast-growing and increasingly lucrative field. Tech firms already sell user information to advertisers; Jasmy’s goal is to help users earn back some of these profits. As its whitepaper says:
“By using an effective reward system, we aim to create an environment that individuals feel they want to participate into data use voluntarily, and companies will be able to provide better products and services by making full use of the data.”
Nevertheless, JasmyCoin comes with a significant amount of risk. The cryptocurrency only offers vague ideas of implementation. And its development — if it exists — is far behind schedule.
As JasmyCoin continues to capture the imagination of crypto speculators, here’s what investors should know when considering Jasmy as a potential investment.
What Is JasmyCoin?
In theory, Jasmy promises to help end-users monetize their personal data eventually. Users would upload their personal information to the Jasmy personal data locker (PDL) in exchange for JASMY tokens, while enterprises pay service fees in those same tokens to access this data.
Similar data licensing deals are already available to users on a far smaller scale. Jasmy aims to enlarge this pipeline by allowing users to add more data by connecting internet of things devices, making the data more valuable to buyers. Having a centralized location for cleaned data will also increase its value.
Meanwhile, investors can buy JasmyCoin directly to profit from this potential economy. The ERC-20 token runs on the Ethereum blockchain, making it straightforward for any investor with an Ethereum-compatible wallet or application to buy.
Is JasmyCoin a Good Investment?
Skeptical investors will immediately notice several issues.
- Lack of Real-World Progress. Despite its outsized dreams, the Jasmy team has been unable to launch its Personal Data Locker (PDL), the cornerstone of its monetization efforts. Instead, its 2022 schedule focused on gaining exchange listings and chasing fan tokens — typical signs of a firm better at marketing than technological development.
- A Reliance on Buzzwords. Jasmy’s marketing materials include terms that make little sense for a data-licensing company. Its 2023 milestones include “develop AI engine,” “conduct data marketing verification,” and “develop carbon credit consortium.”
- Plagiarism. JasmyCoin’s code shows signs of lazy development. Its contract, for instance, is a carbon copy of an older token, FiscoCoin (FSCC-USD). It also includes functions that are not part of the Jasmy Whitepaper.
- Concentrated Holdings. The cryptocurrency is held by a handful of relatively large wallets, according to blockchain analysis websites. This puts JasmyCoin at a greater risk of a rug pull if these accounts sell all at once.
- Demotion by Binance. In May 2023, Binance moved JasmyCoin onto its “no-progress projects” list. Without further improvement, the exchange could delist the token entirely.
- Business Strategy. Finally, the value of an individual’s data is not exceptionally high. By some estimates, a person’s bank and credit card information is worth less than $10 combined, putting an upper limit to the value Jasmy can pass to customers.
That makes JasmyCoin a token with too many risks to ignore.
What Is JasmyCoin Worth?
JasmyCoin has lost most of its value since opening at the $1.30 level in early 2021. Today, the cryptocurrency trades for only $0.005 per coin, a 99.6% loss. The token saw a 96.8% decline in 2022 alone.
Still, speculators have some reasons for cheer. According to academic studies, smaller tokens tend to have significant reversal effects beyond 1-month periods. According to one paper:
Taking a long position in the ‘past losers’ generates very high returns in the long run (i.e. holding the portfolios for 2-3 months) and can be considered as an attractive, long-only strategy.
(Note, however, that survivorship bias may skew results upwards).
Secondly, JasmyCoin also remains unusually popular on social media. Its official Twitter account has almost 100,000 subscribers, and chatter on Stocktwits consistently ranks it among the most talked-about cryptocurrencies. Short sellers ignore these signs at their own risk. And finally, JasmyCoin remains highly liquid — a product of its $200 million market capitalization. The cryptocurrency is available on approximately 70 exchanges, maximizing the opportunity to invest.
That means JasmyCoin has a significant chance of rising on little news. In March 2022, the token tripled in price after announcing its 2022 roadmap on Twitter. A similarly steep rise happened at the start of 2023 when investors began pouring money back into cryptocurrencies.
Still, investors should tread carefully. JasmyCoin has no fundamental value beyond its popularity among speculators. And until its parent company shows more tangible business progress, it’s best to assume the project could become a massive dud.
How Many JasmyCoin Tokens Are in Circulation
The supply of JasmyCoin tokens is fixed at 50 billion tokens. And although the coin does have a burn function in its contract, that mechanism is not explicitly called in regular use. That means the supply of Jasmy will remain near its original 50 billion figure unless users actively decide to burn their tokens.
That gives some level of price stability to this volatile asset. “Forced-burn” coins often rise uncontrollably by burning every stakeholder’s tokens. Meanwhile, this capped 50-billion limit prevents Jasmy from turning into cryptos like Dogecoin (DOGE-USD) that continuously dilutes all holders.
How to Buy JasmyCoin?
Most cryptocurrency exchanges support ERC-20 tokens, making buying Jasmy relatively straightforward. Some of these exchanges include:
- Coinbase Pro
Investors can also use Uniswap and other Ethereum-based decentralized exchanges to trade Jasmy tokens.
For most investors, Coinbase Pro is the logical choice. The exchange is available in the U.S., and the platform has the second-highest liquidity among its peers. 24-hour values traded can exceed $20 million.
On the other hand, those residing outside the U.S. should favor Binance, an exchange that can see over $100 million per day in Jasmy transactions. Binance also allows staking, which can help investors boost their returns by up to 6% annually.
Opening an account with Binance or Coinbase involves visiting their respective sites, showing identification, and following their website-specific instructions. Meanwhile, investors using Uniswap or other DeFi exchange can use MetaMask or another reputable wallet to connect.
Does JasmyCoin Have a Future?
Investors should broadly remain skeptical of any crypto project that overpromises and under-delivers. Consider Internet Computer (ICP-USD), an a16z-backed cryptocurrency that once boasted of ambitious projects. The coin would fall into obscurity after failing to meet expectations. Others like Defi100 turned out to be outright scams once enough money had been raised.
JasmyCoin currently sits between these two extremes. Its dreams are not as wild as Internet Computer’s, and its official online promoters are more engaged than Defi100’s.
But Jasmy Inc. has yet to launch its Personal Data Locker, a working IOT platform, or a marketplace for personal data. Its token is a lazily copied version of existing peers.
In a parallel universe, Jasmy could have a future. Individual medical records are worth up to $250 per person; those willing to share that information should receive significant compensation. And plenty of hedge funds would love to know spending habits to front-run earnings reports. The $10 value of banking and credit card transactions could be far more valuable in these hands.
JasmyCoin’s stated goals are also undoubtedly noble. And its founding team (if accurate) offers a pedigree that few crypto tokens can match.
Still, investors should treat JasmyCoin for what it is — a speculative cryptocurrency powered by social media. Through that lens, swing traders are the ones that have it right. Jasmy is a speculative bet at best.
As of this writing, Tom Yeung did not hold (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.