We Think Mysterium Is About To Stage A Long Term Upside Reversal

In this piece, we are going to take a look at decentralized VPN company Mysterium and, specifically, we are going to put forward an argument as to why we think this one could be a nice turnaround play in the cryptocurrency sector.

So, here goes.

Before getting into detail, take a quick look at the two charts below. The first is a zoomed out view of price action in the company’s representative token – MYST – since its initial offering and the second is a much shorter time frame chart looking at somewhere in the region of the last seven days’ worth of action in the same.

Chart one:

Chart two:

As the first chart illustrates, action since the initial offering hasn’t been particularly inspiring as far as the open market price of MYST is concerned. MYST debuted back in May this year in and around $0.92 a token. Right now, the same tokens go for around $0.76 – a decline of circa 18% in a little over six months.

One of the primary drivers behind this decline is a serious lack of communication between the guys behind the company and its investors (i.e., those token holders who took part in the ICO). Aside from a few updates released once or twice every couple of months, progress towards pre-stated goals is very tough to quantify and this, in this space, isn’t a smart move from the Mysterium team.

The more successful tokens all have one thing in common – holders pretty much know exactly what’s going on at the company that underpins them based on constant communication from founders and those involved through Twitter, Medium, Reddit, that sort of thing.

With that said, however, every company works differently and, for us, while the lack of communication is a negative aspect of the way Mysterium is being managed, there are enough positive elements of this company to make it a pretty attractive play. When combined with the fact that price seems artificially subdued because of a lack of communication, this attraction compounds.

For those unfamiliar with Mysterium, the company is trying to apply the concept of decentralization to VPN networks. Basically, nodes (which are just individual computers with network space that they wish to rent out) are rewarded for allowing others to utilize their unused network traffic. This is pretty much exactly how the current VPN space works but instead of utilizing the unused network traffic of an individual the user purchases access to a centralized server.

The reason we think this one is so exciting is because the VPN market is huge and growing fast. Moreover, alongside this growth, centralization issues and concerns are rising, with many of these issues rooted in data control and privacy. With the FCC net neutrality topic very much in the media right now and the potential applications of VPNs to this issue (which, it’s worth pointing out, remains an uncertain and variable topic depending on how ISPs decide to deal with VPNs), potential solutions (like that which Mysterium offers) have the potential to really take advantage of what analysts expect will be a conservative doubling of the current $50 billion global VPN market over the next five years.

Going forward, then, we’d like to see some confirmation that Mysterium is progressing towards a point from which it will be able to take advantage of this industry growth. This is going to require some increased level of communication between the company and its token holders, almost certainly.

Jumping back to the second chart outlined above, price over the last seven days looks to have bottomed out and is slowly starting to stage a recovery. If we are right, this current action could be the start of a longer-term turnaround and – in turn – might be a nice point at which to load up on MYST in line with a bullish long-term thesis.

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Image courtesy of Mysterium