The crypto exchange Bitfinex is to delist a couple of trading pairs for the digital advertising token BAT (basic attention token) at the end of January.
It says it is removing the BAT/ETH and BAT/BTC trading pairs to help “consolidate and improve liquidity on Bitfinex, leading to a more streamlined and optimised trading experience for our users.” The token itself has not been delisted.
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This is not exactly a vote of confidence for the coin, which like the rest of crypto world, has been feeling the effects of another round of crashing prices. At one point this week it had lost 34% of its value dropping as low as $0.66, its lowest point since October. Today (27 January) it has recovered slightly to $0.79 but solid upwards momentum has been elusive.
Although it is nearly 60% off its all time high last November, looking on the brightside it is still more than twice the price it was this time last year.
What is a basic attention token (BAT) and how does it work? Can the price rebound after the token has retreated from the highs?
In this article we take a look at the BAT token and the outlook for its price in the future.
BAT rewards Brave browser users
How does BAT token work? BAT is the token used by privacy-focused web browser Brave. Brave is an open-source platform that blocks third-party advertisers and trackers while rewarding users for viewing advertising from its approved publishers. BAT is awarded to advertisers in exchange for user attention. The system is designed to promote prolonged user interest by providing more efficient content.
The Brave browser contains a ledger system that measures user attention anonymously to reward publishers accurately. As of 27 January 2022, Brave had 50.2 million (up from 42 million in November) monthly active users, 15.5 million daily active users and 1.3 million verified creators. If it wants to be a Google Chrome killer it still has some way to go with Chrome having over 2.5 billion monthly users.
“User attention is valuable, but it hasn’t been properly priced with an efficient and transparent market system,” the project’s white paper states. “We see BAT and associated technologies as a future part of web standards, solving the important problem of monetising publisher content while protecting user privacy.”
The idea is for consumers to see fewer ads. The ads that they do see are more relevant to their interests, while protecting their rights to data privacy. Advertisers conduct BAT transactions to acquire advertising space and market their products to users. The money raised by these adverts is divided as follows:
70% for users
15% for content owners
15% for Brave
The BAT token is also designed to enable users to send and receive micropayments. Users of the Brave browser can tip publishers using BAT tokens as a reward for their content. Publishers need to sign up to be able to receive tips.
BAT price spikes on Solana partnership
The BAT price started at $0.1682 when the token launched in 2017 and spiked to $0.9807 in January 2018 when the cryptocurrency markets rallied. But the gains were short lived, and the BAT price quickly fell back to $0.1899 in March 2018.
The BAT price subsequently traded no higher than $0.523 until February this year, when the cryptocurrency markets staged a strong rally with many coins reaching fresh all-time highs above their 2018 levels. The rally was accelerated when digital asset investment firm Greyscale announced in March that it was launching an investment trust for BAT along with Chainlink, Decentraland, Filecoin and Livepeer.
BAT reached $1.60 on 15 April and again on 17 April, before dropping back in May as crypto prices collapsed. A rally over the summer pulled the price back up to the $1.00 level, and BAT then soared to a fresh all-time high of $1.92 on 28 November, following news that Brave will launch wallet features for the Solana blockchain in the Brave desktop and mobile browser apps in the first half of 2022.
On 16 November Brave launched a native crypto wallet which is built into the browser, enabling users to manage and store their cryptocurrencies from a single wallet. Unlike most other crypto wallets, the Brave Wallet does not require browser extensions, reducing security risks and the use of device memory.
Users can transact with almost any cryptocurrency asset, as well as connect with other wallets and decentralised apps. The wallet has initially launched on the desktop browser, with plans to add it to the mobile version.
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In August, Brave announced an update to its desktop browser that enables users who opt into Brave Rewards to use the new Gemini User Wallet to hold their BAT tokens, with support for the mobile app to come in a future release.
The BAT price has retreated from the late-November high, trading down to $0.8958 on 4 December in the aftermath of profit-taking before moving back above the $1 level on 11 January 2022.
What is the outlook for the coin heading into next year? What do the latest price forecasts suggest?
BAT coin price prediction: can it rebound to new highs?
Short term sentiment on BAT remained bearish, with the price at $0.79 at time of writing on 27 January, technical analysis from CoinCodex showed. There were 14 indicators giving bearish signals compared with 17 bullish signals.
The three-day out to 50-day simple and exponential moving averages were giving sell signals, while the 200-day, along with the weekly moving averages were bullish. The relative strength index (RSI) was bullish, as was the stochastic RSI but the volume-weighted moving average (VWMA) was bearish.
But CoinCodex predicted that the value of basic attention token will be $0.74 by 1 February.
As of 27 January, the BAT crypto price prediction from WalletInvestor was also bullish, projecting that the token could trade up to $1.28 by this time next year and rising to $3.5 in five years.
DigitalCoin had a similar BAT token price prediction, estimating that the price could average $1.07 in 2022 and $1.26 in 2023, continuing to trend higher to reach an average of $1.7 by 2025. For the longer term, the site predicts the BAT price to average $3.37 in 2029.
The basic attention token (BAT/USD) forecast from PricePrediction was also bullish for the long term, projecting that the price could average $3.7 in 2025, and reach an average of $24 by 2030.
When looking for BAT coin price predictions, bear in mind that analysts and algorithm-based forecasters can be wrong. Their BAT projections are based on making fundamental and technical studies of a cryptocurrency’s past performance – but past performance is no guarantee of future results.
It’s important to do your own research and always remember your decision to trade depends on your attitude to risk, your expertise in the market, the spread of your investment portfolio and how comfortable you feel about losing money. You should never invest money that you cannot afford to lose.