LD Capital: BLZ short-term funding analysis*Premium

Original author: Jill, LD Capital

1. Project Introduction

Bluzelle (BLZ) is a decentralized data management system whose main goal is to provide tools, resources and technical capabilities to store and manage data, powered by BFT and Cosmos technologies, bringing scalability and censorship-free data storage to dApps .

Essentially, Bluzelle is a peer-to-peer database hosting marketplace that connects users who want to rent storage space with those who need more storage space, with maximum security and scalability. Memory sharers are compensated in the form of BLZ, the network’s native token, for access to additional storage space, and users can pay a reasonable fee to use it.

2. Project progress

Founded in 2014, Bluzelle initially provided payment systems to financial institutions such as AIA, Maybank and Temenos.

In August 2017, it received US$1.5 million in financing and established its vision of building a decentralized database.

In 2019, the project team released a new version of the white paper, adding a new product (Bluzelle DDN) of "Edge Intelligent Cloud Cache", which is a decentralized edge cache that benchmarks centralized CDN. This product was launched in May 2019 release.

In November 2019, the team announced the roadmap for the new product Curie. The focus of product development changed from decentralized databases to decentralized cache databases. The test network was launched in March 2020.

In August 2020, the team announced that the mainnet will be launched in two phases. The soft mainnet will be launched first, allowing users to purchase Bluzelle (BLZ) tokens and receive rewards by participating in the network’s verification process.

In February 2021, the Bluzelle production mainnet will be launched and a new roadmap will be released, with plans to launch the latest version of Cosmos Stargate and enter the Cosmos ecosystem.

On May 20, 2021, Bluzelle officially issued a message stating that due to the current market conditions, it was decided to postpone the launch of the new phase until the market stabilizes.

When the Stargate upgrade is completed in February 2023, Bluzelle will be connected to the Cosmos ecosystem, and BLZ token holders can move their tokens in and out of Cosmos and Osmosis .

3. Data on the chain

The total number of BLZ tokens is 500 million, and the current circulation volume reaches 410 million, accounting for 82% of the total. The uncirculated portion is in the Bluzelle company wallet.

Judging from the activity of addresses on the chain, the activity on the chain has increased significantly in the past month, and a relatively obvious large-amount transfer occurred on August 16. When an abnormal large-amount transfer occurs on the chain, attention may need to be paid. Whether this abnormal behavior indicates that a large user has opened a position may need to be comprehensively judged based on various factors such as token price trends and changes in holding addresses.

Judging from the changes in holding addresses in the past month, two addresses have undergone large transfers:

• On August 16, the 0xbf2b1 address withdrew a total of 56.96 million tokens from Binance

• From August 15 to August 18, the 0x8ef12 address withdrew a total of approximately 38.9 million tokens from Binance

The current total holdings of these two addresses has reached 110 million, accounting for 21.96% of the total supply.

At the same time, looking back at the price trend of BLZ in the past half year, we can find that starting from August 12, the price of BLZ suddenly rose. Prior to this, BLZ was in a relatively bottom price range, which basically coincided with the timeline of large investors withdrawing coins from the exchange. And so far, BLZ has been on a slow rise.

If you check the holdings of BLZ token addresses, you can find:

1) The current holdings of the top 30 token addresses account for 87.77%, with the first place being the BLZ official address

2) Exchange address holdings accounted for 39.42%. Binance Exchange is the most liquid trading place for BLZ, and its holdings accounted for 32.55%.

3) The holdings of large addresses have reached 31.97%, and the holdings of the above two whale addresses have reached 21.96%.

Summary: Bluzelle is an older project with relatively slow development progress and no major fundamental changes in the near future. It is currently in a relatively bottom price range, and there are whale addresses building positions.

The above analysis is only the author's personal opinion and does not constitute any investment advice. Please invest with caution.