Your resource for web content, online publishing
and the distribution of digital products.
S M T W T F S
 
 
 
 
 
1
 
2
 
3
 
4
 
5
 
6
 
7
 
8
 
9
 
 
 
 
 
 
 
 
 
 
 
 
 
22
 
23
 
24
 
25
 
26
 
27
 
28
 
29
 
30
 

AdEX Enables Staking Rewards, Price Impact Analysis

DATE POSTED:February 25, 2020

AdEX is set to incentivize investors who lock their ADX tokens for an extended period of time. The new feature could have serious implication on the price of this cryptocurrency.

Staking ADX Rewards

The AdEX team announced the official introduction of its staking portal. This platform allows ADX holders to earn rewards while contributing to the network. Starting today, users will be able to see, earn, and withdraw their rewards from the staking portal.

Unlike other staking systems, the AdEx Registry—an application that allows publishers and advertisers to appoint publicly available validators for their campaigns—distributes rewards without inflation of the ADX token. The reason behind it is that validators’ fees are in DAI, which originate from organic ad campaigns payments, according to CEO Ivo Georgiev.

“Choosing ADX as the staking token for the Registry is critical for its security: since this is ADX’s primary purpose, the implication is that most of the tokens will be staked; this makes Sybil attacks much more expensive. Furthermore, it aligns incentives: the healthier the ecosystem is, the more demand there will be to be listed on the Registry,” said Georgiev.

The staking rewards will be calculated with a backdate on a day-per-day basis. As a result, the rewards distribution takes place at the beginning of every month considering the amount of ADX that were held throughout the previous month.

The AdEX staking portal would likely encourage investors to hold their ADX tokens for a longer period of time. However, a particular technical pattern is currently estimating that this cryptocurrency could experience a significant sell-off.

Standing on Shaky Ground

The price action that ADX saw since the beginning of the month appears to have formed a head-and-shoulders pattern on its 4-hour chart. This technical formation is considered to be one of the most reliable trend reversal patterns by some of the most prominent analysts in the space.

The neckline of this reversal pattern seems to be holding AdEX from a steeper decline. Nonetheless, a spike in the selling pressure behind this crypto around the current price levels could push it down approximately 23%. ADX could plummet to reach a target of $0.07.

ADX/USD price chart by TradingViewADX/USD by TradingView

This target is determined by measuring the distance between the head and the neckline and adding that distance down from the breakout point.

It is worth noting that the full enablement of staking rewards on the AdEX Registry is positive news for investors. Considering that it usually takes market participants a few days to digest news, the bullish outlook cannot be voided.

An increase in demand for ADX that sends its price above the height of the right shoulder at $0.10 could jeopardize the pessimistic scenario presented by the head-and-shoulders pattern. This cryptocurrency could then try to retest the recent high of $0.12 or climb up to new yearly highs.

Now, it remains to be seen how investors will react to the introduction of the AdEX staking portal to determine where ADX is heading next.

The post AdEX Enables Staking Rewards, Price Impact Analysis appeared first on Crypto Briefing.