What happened with Divi last night, and why it matters

Last night Nick Saponaro CEO of Divi Labs, primary developers of the Divi Project confirmed a detail that will have ripple effects on the price of Divi for months to come. While Bitcoin Price Predictions may rocket to $1 million, in cryptocurrency, Divi is the altcoin to watch.

To understand the significance of this revelation, we must first take you back to the initial description of this deal.

In this section of the video, Nick alludes to “Patent-pending IP for earning crypto in one tap from a smartphone AND $12,500,000 licensing deal.” If after watching this video you have more questions than answers, follow along.

The next bread crumb in this trail was laid in Nick’s Live@5, the monthly project update.

We learn here that a telecom wants to license Divi technology to subsidize the cost of data in developing nations. The cost of the 4G/LTE data is subsidized by the Divi node that is on the device. The company has “many many” customers. This “opens the doors to millions of customers for Divi.” Nick also says, “It was very difficult to close,” meaning that this is a done deal.

It is with this context last night Nick answered this question from the AMA, “Will the nodes on the cellphones for the telecom deal be simply using Divi licensed technology, or will they also be using the Divi coin. Answer: “They will be using the Divi coin.” I would love to have a recording of this for you, but it was a Twitter Spaces conversation, and no recording was made. Pop on over to the telegram community to chat with many people who heard this first hand.

What does this mean? Well, this morning we have been crunching the numbers. If the telecom only were to subsidize 2 million customers (the absolute minimum for what Nick calls millions) and they only subsidize the data at $1 per month, then at a current Divi price of $0.07 this would mean investing $120,000,000 into Divi, to buy 1.7 Billion Divi. With Divi’s current market cap at $205 million, this would be a significant influx, bringing Divi from a top 300 market cap coin to a top 200 market cap coin.

Currently, Divi has a circulating supply of 2.6 billion, with 1.3 billion of that allocated to master nodes, and approximately 72% of the remaining assigned to staking nodes. Even in this most conservative set of numbers, the telecom would need to purchase more than all available (non-master-node) coins. Historically, on 11/04/2021 we see Divi’s price double on just 6 million buying volume on KuCoin, their largest exchange by volume. The volume needed to meet demand is 283 times the previous doubling volume of Divi. Analysis suggests that this conservative influx of buying pressure could bring 20x price action to Divi in the near term.

More realistically, if the telecom only were to subsidize 2 million customers and they subsidize the data at $5 per month (roughly cutting the consumer price by 1/3), then at a current Divi price of $0.07 this would mean investing $600,000,000 into Divi, to buy 8.5 Billion Divi.

Given this more realistic set of numbers, the telecom would need to purchase six times more than all available (non-master-node) coins. Any historical analysis becomes meaningless with this type of demand. Analysis suggests that this realistic influx of buying pressure could bring 200x price action to Divi in the near term.

The price action that will follow this deal will be tremendous. And if this deal were the only deal Divi is working on, we could easily be talking about a $2-14 Divi in 2022, but it isn’t the only deal. Stay tuned as we dig into the details of the next big Divi deal.

8 responses to “What happened with Divi last night, and why it matters”

  1. Divi will no longer be under the radar after this. This is going to be insane! We are so early to be involved at this point!

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