This Filecoin rival is on the move

In the report, we described how this project started by providing RPC and staking services on Solana before expanding into decentralised storage solutions known as the SHDWDrive. 

We made the case for why the SHDW token was a great investment with an impressive upside potential ahead. 

And while the thesis was sound, the timing was off. It coincided with the descent into the bear market, and SHDW, like most other coins in the market, didn’t quite live up to the bullish expectations. 

However, the tide has turned; the crypto winter has ended, and we are beginning to see the first signs of a bullish resurgence. 

Now, it is time to revisit Shadow, provide an update on how the project has developed over the last two years, and reevaluate whether SHDW still deserves a spot in your portfolio. 

Let’s dive in.

Introduction

If you didn’t read the first report, you should take a moment to do so.

GenesysGo represents a significant stride in cloud storage and compute solutions; its flagship product, SHDWDrive, anchored by the innovative D.A.G.G.E.R. technology, is set to redefine the standards for data management. 

Of course, GenesysGo has evolved since we wrote about it in 2021. It has pivoted from its origins as a validator to a leader in decentralised cloud services. Yet, our conviction remains unchanged.

Here's the updated context; most people know Filecoin, but do you know its fiercest competitor?

And more importantly, are you plugged into the possibility that this competitor can deliver significant upside to investors in the next bull run?

Let's talk about GenesysGo and the Shadow (SHDW) token.

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

How does it work?

At the heart of GenesysGo's offerings lies the D.A.G.G.E.R. technology, a solution that redefines efficiency in cloud storage and computing. This leaderless, asynchronous consensus protocol marks a significant advancement in the field, offering unparalleled flexibility, bandwidth efficiency, and a dual focus on permissioned and permissionless deployments. 

In simpler terms, Genesys GO offers better performance and flexibility for cloud computing systems by allowing the systems to coordinate in a decentralised way. This removes bottlenecks and opens up new use cases.

If you want to dig more into the technicals, there is PoW, PoS, and then DAG; learn more about the distinction here. 

TLDR: DAG allows decentralised storage systems like SHDWDrive to handle lots of data, users and transactions efficiently. This allows developers to build fast, scalable decentralised apps.

What's the big deal about Shadow?

D.A.G.G.E.R. sounds cool – it gives SHDWDrive an edge in data availability and scalability over other decentralised storage solutions. Another component, SHDW Operators, breaks up the traditional cloud service model by facilitating the leasing of high-performance computing, storage, and bandwidth to developers and businesses. 

But how do all these translate into real-world solutions?

SHDWDrive combines the efficiency of open-source, software-defined object storage with the security and scalability of Solana's Proof of History to improve:

• Enterprise-level data management
• Content management 
• Archival and backup solutions 
• Scientific and historical research datasets
• Individual storage
• Social Media

It also offers decentralised compute Solutions across

• DePIN
• Web Hosting 
• dApp Development

And it is shaping up to be a versatile solution for mobile computing across:

• Gaming
• Social
• AI applications

Now, let’s talk about the SHDW token

The SHDW token plays a pivotal role in the sustainability and security of the ShdwDrive network. 

The tokenomics of SHDW are designed to incentivise long-term holding and active participation in the ecosystem, underlining its importance in the network's growth and stability.

It is also fully circulating, without VC holdings and a healthy 24-hour trade volume.

Coingecko incorrectly states Circ vs Total.

Here are the key aspects that make SHDW an attractive token for holders:

• Shared staking rewards (once live): Holders of SHDW tokens can earn rewards through staking, a process integral to securing and sustaining the network. This not only benefits the token holders but also bolsters the overall health of the network.
• Storage customer fees and revenue sharing: A portion of the fees paid by end-users of ShdwDrive is used to purchase SHDW tokens, which are then added to the emissions pool, increasing the token's demand and value.
• Slashing mechanism: A slashing system penalises Wield Node Operators who fail in their duties, ensuring network security and motivating optimal operation.
• Sustainable tokenomics: Instead of burning slashed tokens, they are recycled back into the ecosystem, extending the lifecycle of the emissions wallet and potentially increasing the token's value.
• Halving schedule: A halving schedule is proposed to control the token supply, potentially increasing SHDW's value over time by creating a scarcity mechanism​.
• Community involvement: SHDW holders can delegate their tokens to Wield Node Operators and share rewards. This shared success model strengthens community bonds and incentivises collective contributions to the network's growth.
• Auditor roles: SHDW holders can participate in the network by turning their mobile devices into Auditor Nodes, earning rewards for contributing to network security.

Can GenesysGo deliver on the Shadow protocol?

The mission centres around revolutionising cloud storage by making decentralised data management viable and superior to traditional methods. 

GenesysGo's development roadmap is a strategic blueprint that outlines its commitment to innovation. The roadmap, structured into various testnet phases, emphasises enhancing network stability, bandwidth management, and the integration of node operators. 

They are approaching the end of the first phase of testnet, with the 2nd and 3rd phases scheduled out until Q3 2024.

The team comprises seasoned professionals from diverse fields, including software sciences, distributed ledger technology, product development, and more. The founder, Frank, is steadfast in bringing the ShdwDrive to market. His strong opinions are not for the faint of heart, but when building a robust product, it’s precisely what you want.

P.S. The team is all about breadcrumbs, and if you take the time to dig into Discord, you will find many crumbs. One such crumb is that GensysGo could become a multichain compute/storage network; this would be very powerful. Also, future testnet phases could be incentivised.

Cryptonary’s take 

We have been bullish about the SHDW token for quite some time and are happy to see it on the rebound. Beyond a rebound, we see the potential for a significant uplift as it continues to gain traction.

Holding the SHDW token represents a fantastic opportunity to see outsized gains throughout this upcoming bull market. The fact that there are no VC-selling events also makes it easy to be confident about the general trajectory of this asset.

If you have not purchased SHDW, we recommend entering on pullbacks. The price is around $1.21, up 67% in the last 7 days.

As we transition from bear to bull, these types of highly volatile swings are to be expected so don’t be shaken out.

But how high can SHDW go?

In 2022, SHDW peaked at over $2, a 100% increase from the current position and far greater off of the lows.

The circulating supply was much smaller in those days, so the market cap was less than it is now.

For forecasting purposes, it's better to look at the competition, and Filecoin fits the bill.

Now, SHDW's market cap is barely $200M, while Filecoin has $2B MCAP ($9B FDV). Do you see where this is going?

We are currently working on a robust valuation exercise to provide a data-driven argument for where the token is headed.

Stay tuned for updates.