Here’s Why Matchpool (GUP) Just Gained Close to 100% In A Day

Anybody that has spent some time in the initial coin offering (ICO) space will likely already be familiar with Matchpool. The company conducted what was – at the time – deemed a highly successful ICO backing April 2013, raising just shy of $6 million with the goal of using the capital to develop a networking type platform (more on what the platform does in a moment).

Almost immediately subsequent to the ICO closing, however, problems started to arise. The company announced that Matchpool co-founder Philip Saunders had resigned his position and that a portion of the capital raised through the ICO, what amounted to around $1.75 million at the time, had been withdrawn from Matchpool’s ether wallet.

People started to panic and the token that was used as the basis for the ICO, what’s called GUP, started to fall. During the subsequent few weeks, however, the concerns were explained away. The $1.5 million withdrawal was purely an exercise in risk mitigation (the funds were converted to bitcoin, which was – back then – far less volatile than ether) and the cofounder resignation was revealed to have been amicable and, perhaps more importantly, was resolved with the company bringing on a renowned Israeli military software developer as CTO.

Anyway, fast-forward to the end of the year and things are really starting to move at Matchpool. The company has launched an alpha release platform that looks strong and its market capitalization (or, more accurately, the market capitalization of the GUP token base) is rising fast. Over the last 24 hours alone, GUP has gained close to 100% and currently trades for $0.46 a piece, up from the $0.09 at which the token traded on ICO day.

Outside of the overarching operational developments, however, there is another input here that is driving the recent spike in both volume and price and we suspect that said input could control price for at least the rest of this week, meaning that even on the back of the recent gains, there could still be some opportunity for a short-term profitable exposure to GUP.

Before getting to that, let’s quickly touch on the platform itself.

The best way to think of it is as a sort of community type platform that requires users to be introduced to one another, with the person who does the so-called matchmaking (the person making the introduction) receiving payment in GUP for doing so.

It’s like an incentive-based LinkedIn sort of system.

So that’s the concept and it’s a relatively simple one but – we think – neat at the same time.

Where’s the opportunity here?

Well, towards the end of this week, Matchpool is going to issue a secondary token called QGUP on top of the Qtum blockchain. Current holders of GUP on the Ethereum network will have an option to claim the second token on a 1:1 basis, within a limited timeframe. The assumption is that QGUP will rise in value in line with the GUP token that’s currently primarily representative of the platform’s valuation and, in turn, this assumption is driving an increased demand among GUP traders and investors who wish to pick up an exposure in an attempt to capitalize on the 1:1 issue of QGUP.

We saw pretty much exactly the same type of action in bitcoin ahead of the bitcoin cash hard fork earlier this year. This isn’t a hard fork, of course, but the concept is the same as far as picking up freely distributed secondary tokens is concerned.

Keep in mind that we may see a correction immediately subsequent to the secondary issue as the shorter-term operators pull profits off the table but, longer term, we expect the correction to reverse pretty quickly.

We will be updating our subscribers as soon as we know more. For the latest updates on GUP and QGUP, sign up below!

Image courtesy of Matchpool.