Reef price prediction: Are project delays stunting growth?

Reef has big ambitions, but mixed price forecasts reflect its failure to produce DeFi plans

Miniature people: Small businessman looking at watch for waiting on stack of coins, Money, Financial, Business Growth concept.                                 
How long will investors stay patient waiting for Reef to deliver? Photo: Shutterstock
                                

Contents

Reef (short for Reliable, Extensible, Efficient, Fast) bills itself as a blockchain solution for decentralised finance (DeFi), NFT trading and decentralised gaming. Founded by the Macedonian-born entrepreneur Denko Mancheski, Reef is built on the Polkadot blockchain,.

As a project in its development phase, what is Reef Finance planning to achieve? Reef’s ambitions include staking of the ERC20 native REEF token, a DApp store, a crypto debit card, onboarding of DeFi development teams, a nominated proof of stake (NPoS) validation ecosystem, a hardware wallet, and integration with the Polkadot parachain.

Unfortunately, these products have yet to materialise, leading to frustrations from early-stage investors. Delays are not the only issue to have bugged the Reef project.

After a fallout with strategic investor Alameda Research, owned by Sam Bankman-Fried, in which Reef pulled out of a $60m over-the-counter tranche deal with the venture capital firm, Bankman-Fried’s cryptocurrency derivatives exchange FTX threatened to delist Reef in a now-deleted Twitter post in which Reef was labelled a “rugpull”.

Despite the controversy, Reef continues to be listed on FTX, as well as other major exchanges including Binance, Kuobi and KuCoin. Liquidity ratings are passable, judging by Coin Market Cap’s statistics.

Reef’s smart contracts were audited by Halborn. Results are available here.

Reef tokenomics

Reed recently announced an overhaul of its tokenomics, an unusual development for a project in its roll-out stage. Additional details have not been issued, but the announcement comes after numerous concerns from investors surrounding token activity. Numerous pledges to perform token burns as a hedge against inflation have failed to materialise.

In fact, quite the opposite has occurred. In late 2020, concerned investors noticed a significant number of tokens being added to the circulating supply, leading to inflation. Mancheski responded to these concerns in a YouTube video, citing a liquidity deficit on the exchanges as the motivating factor. But circulation continues to grow, currently standing at 17.53 billion against the initial total supply of 16.11 billion. It should be noted that token inflation is not in itself a red flag, and Reef has stated that the coin will be capped at 20 billion.

Token allocation and vesting periods were issued to Binance prior to Reef’s listing, the specifics of which can be seen in the graphs below. But as noted above, it is unclear to what extent Reef intends to alter the allocation.

Pie chart and graph of REEF token distribution
Company supply accounts for 16% of total distribution – Photo: research.binance.com

A recent 24-hour trading volume high of $26.33m accounted for 11% of Reef’s $232.33m market capitalisation. A total of 26,237 wallets hold REEF token, with the top 10 addresses accruing just under two-thirds of supply (this includes Binance’s 29.15% liquidity pool).

Recent trading activity

Bitcoin continues to underperform in the first weeks of 2022, bringing the majority of altcoins down with it. REEF is no different, showing a consistent downward trend since 3 November, excluding a brief mid-December rally.

REEF continues to trade below the trendline since a bearish crossover of the 20-day moving average (MA) against the 50-day MA on 25 November.

REEF is trading just above a pivotal support line of $0.013, where buying pressure can be previously observed. A move below this price point could bring the price down to the next support line of $0.012, or further down to $0.010. The all-time low observed in January 2021 was $0.0065.

However, should we see a trend reversal, the resistance lines to take note of are $0.0150, $0.021 and the November high of $0.0386. An all-time high of $0.058 was observed in the March 2021 crypto bull run.

In some potentially bullish news, the relative strength index (RSI) suggests that REEF might be undervalued, while the moving average convergence divergence (MACD) line gives some hope of a trend reversal.

Do bear in mind that this article presents neutral information for you to make your own assessment of the REEF coin price prediction. The information presented should not be construed as investment advice.

Forecaster REEF price targets

We can see an overwhelmingly bearish Reef price prediction at Wallet Investor, suggesting it could decrease over the coming 12 months by more than half. Worse, the site's Reef price prediction for 2025 forecasts a 90% decline in value.

According to the Reef price prediction for 2022 at Trading Beasts, the token could hit $0.022 by December, a modest 70% return on the current trading value. The price target for 2023 caps out at $0.30, while the Reef price prediction for 2025 closes out at $0.37 for an approximate 180% return.

In the long term, digital forecaster PricePrediction has a REEF price prediction of $0.39. Achieving this target would result in a 29-times return for investors buying in today.

Price targets given at Digitalcoin’s REEF price prediction are $0.018 for 2022, $0.029 for 2025 and $0.056 by 2029.

Digital forecasters use algorithms to determine price targets. These are useful as a guide, but they do not constitute genuine financial advice. Always do your own research before coming to any investment decisions.

Where next for Reef?

The pragmatic action plan for Reef will likely be alleviating investors’ anxieties by providing proof of concept and utility of the various aspects of the Reef project, while also clearing up the tokenomics of the REEF token. 

FAQs

There are currently 17.53 billion REEF tokens in circulation, up from the initial supply of 16.11 billion. Reef has stated its intention to reduce this inflation through a token burn, but at time of writing, this has yet to occur.

There are some warning signs for potential investors, including a lack of realised utility on the platform, inflationary token practices and negative forecaster predictions. Always invest using common sense and caution.

Wallet Investor’s Reef price prediction suggests a decline in value, while other digital forecasters predict a moderate increase in value. Make sure to weigh up the risks against the benefits before placing an investment.

It is up to you whether you should invest or not. This article presents you with neutral information to assist with your decision, but it does not constitute financial advice. Always research the project, browse the social media channels and conduct other forms of due diligence.

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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