Is Jupiter Coin (JUP) a Good Investment?

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TL;DR- JUP is a micro-cap project with a cap of less than a few million. The platform has a possible use case via competing with secure cloud computing. Still, poor tokenomics and little momentum means I won’t be investing in this project anytime soon.


What is Jupiter Coin?


Jupiter Coin (JUP) is the native token of the Jupiter.io project. The coin exists on the ever-popular Ethereum network and is a platform that aims to make blockchain open, safe, and accessible for all. Jupiter’s ‘military grade’ security technology can be used to help power secure Dapps on public and private networks.
Jupiter is all about storing data securely on the blockchain. The current ‘Web 2.0’ solution for data storage is cloud computing. Thing about platforms like AWS, Microsoft Azure, and the Google Cloud Platform. If a company is looking to store its data using a Web 3.0 approach (decentralized), Jupiter would help that company do so securely.


Nodes on the Jupiter platform are able to pull data securely when needed. One of the Dapps currently offered on the Jupiter network is Metis Messenger. This is a decentralized chat application that is ad-free, anonymous, encrypted, and private.



Where can I buy Jupiter Coin?


Jupiter is currently available on KuCoin, PancakeSwap, UniSwap, and STEX. Using PancakeSwap and UniSwap probably aren’t a good idea right now, since gas fees on the Ethereum network and Binance Smartchain are so high. My recommendation to purchase this coin would be to fund your KuCoin account and buy through KuCoin.


Is Jupiter coin a good investment?


There are many reasons investments can be ‘good’ for different people. For some, this can mean investing in an asset that merely stays neutral with inflation. For others, we’re younger and we want big returns for the huge risks we’re taking with some of the small microcap projects. Warren Buffett, the king of investing, once referred to cryptocurrency as ‘rat poison.’ Ouch.


Jupiter coin could be a great investment if it ends up finding a real-world business (B2B) use case. The global cloud computing market is worth billions, and even if the Jupiter platform could capture minute amounts of that, its price could drastically increase. Not financial advice, but I always look to invest in cryptocurrencies for their real-world use cases. There are thousands of cryptos out there- the ones that will survive are those who can actually contribute value to the world.


Tokenomics


Only 13% of Jupiter’s total supply has been released. This makes me weary. How much of it is held by early investors and will get liquidated once there’s a price spike? The total supply of the coin is 1 billion, with around 127 million coins in circulation today. If the value of the project stays the same, and more coins are released, the value of each individual coin will decrease. Tokenomics are important for this. I’d say Jupiter’s tokenomics look a little gloomy- just like Coti Coin and Algorand.

Jupiter coin price prediction


First off, Jupiter Coin (JUP) is a micro cap crypto. This means this project is an infant in the cradle. It could die for any number of reasons. The project could run out of funding. Investors could give up. So there’s definitely a chance in the next crypto winter that JUP loses 90%+ of its value. That’s the risk you’re taking with micro cap coins.
The project’s market capitalization is around $1.7M, or the median price of a home in San Fransisco. Compared to other crypto projects, this is extremely small. The good news is that any influx of investor money could move the price up dramatically.



The project has been around since 2016 and has set previous all time highs of up to $0.70. The coin is easily 95% off this previous all time high. Some investors take this as a signal that the coin could once again retrace and go this high again. This would make the project a 50x if it occurred.
Given that we’re nearing the bull market cycle in 2022, I’d say Jupiter will have trouble making it past the $0.05 mark unless it can gain business use case or an investing narrative on social media.


Conclusion


80%+ of my crypto portfolio consists of large cap projects like Bitcoin, Ethereum, and Cardano. Cryptocurrency as an asset class is already 12-15x more volatile than stocks, so the upside and volatility of large caps is quite enough for me. Jupiter looks a bit too risky to add to my portfolio right now, but I do like to watch out for interesting small projects that have huge growth potential.

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