As the bear market hints at potential signs of recovery, cryptocurrency investors are looking for coins to purchase at a discount due to the irrationally negative sentiment in some cases.

As the famous wall street saying goes: buy when there is blood on the streets. Although new blockchain projects are popping up on a daily basis, they are often riskier than existing ones. In established projects, you can easily see the development progress (if any) and how the team has been communicating with the community since the project launch, this is something you can’t do with many of the new ICOs.

We have pulled together 5 coins under a $5 million market cap that already have a working product. As always, this is not investment advice and please do your own research before making any investments.

Bounty0x (BNTY)

Bounty0x is a cryptocurrency bounty hunting network. The platform already has over 45,000 users according to a recent blog update by the company and there are hundreds of bounties live on the platform.

The platform is powered by the BNTY token. According to the Bounty0x BNTY page, the token is currently being used by Bounty Sheriffs who have to stake it to review work made by Bounty Hunters, and it will soon also allow Bounty Hunters to use it to reduce platform fees and enable Bounty Hosts (companies that post bounties) to stake the token to obtain featured listings.

Valuation approach

The BNTY token is mainly used in staking functionalities: Bounty Sheriff staking (already functional), Bounty Hunter staking (Coming soon) and Bounty Host staking (Coming soon).

The staking functionality is crucial for a valuable token since, if successful, it will lock up a large portion of the token supply, thus reducing available tokens on the open market.

Over time, as the user base of the platform continues to grow, we may see a scenario where most tokens are staked and there will be a constant buy pressure on the open market of users willing to join the platform.

At the time of writing, the coin only has a $1.6 million market capitalization.

LAToken (LA)

LAToken is a multi-asset tokenization protocol. It aims to allow users to create and trade cryptocurrencies and also tokens that are tied to real-world assets like shares, real estate, and metals. On the contrary to other digital asset exchanges, LAToken is known for listing assets very quickly. Often as fast as 48 hours after an agreement has been reached.

Valuation approach

Trading fees for all LA pairs are only 0.05%, this makes the token an interesting consideration for large volume traders. Therefore, if the LAToken exchange is widely adopted, traders may gravitate towards using LA pairs which could create buy pressure if traders don’t immediately sell the LA again for a different coin.

Furthermore, users can buy Liquid Asset Backed Tokens (LABT), which are then converted into LA in order to purchase other assets like Ethereum, Real Estate or even artwork.

However, how this second token functionality will add value to LA can be questionable. Cryptocurrency traders don’t actually have to hold the token, but rather just own it for seconds and then sell it again for a different asset. This issue is widely referred to as the token velocity problem.

LA currently has a # market capitalization.

Numerai (NMR)

Numerai is a crowdsourced hedge fund for machine learning and AI experts. The project holds weekly tournaments where data scientists compete with each other to produce the best prediction models. Numerai never had an ICO, instead, it initially distributed NMR tokens for free to machine learning experts that were actively using the platform and adding value to it.

Valuation approach

Numerai users stake NMR tokens on their predictions in order to show that they are confident in their model. If their predictions are good, the data scientists earn money and their NMR is returned. However, if their predictions are incorrect then their staked NMR is burned.

Over time, as Numerai grows and returns increase, payouts for the weekly tournaments will also inevitably increase in order to maintain the quality of prediction models high. When payouts increase, participants will want to stake more to increase their returns, which creates a constant buy pressure for NMR.

Furthermore, as more participants join the platform, some will inevitably make incorrect predictions, which makes the token even scarcer by burning a large part of its supply.

NMR currently has a $4.3 million market capitalization.

ClearPoll (POLL)

ClearPoll is an opinion poll network using the Ethereum blockchain to secure poll results. The project aims to end manipulation and censorship in public opinion data. ClearPoll has a working web-app, iOS app, and Android app.

Valuation approach

ClearPoll users earn POLL for creating great polls or for completing sponsored polls. Furthermore, all the revenue that ClearPoll generates is used to purchase POLL tokens at market price. Half of the tokens that ClearPoll purchases are then distributed to ClearPoll users. Users that already own POLL tokens can use it as a “multiplier” to earn more rewards in every reward period.

As ClearPoll grows, the firm will generate more revenue and therefore buy back more POLL, which will create buy pressure for the token. Additionally, as the revenue grows so will the rewards paid out in the reward period, this would incentivize investors to purchase POLL in order to benefit from the “multiplier” and get even more dividends in every reward period.

POLL currently has a $1.4 million market capitalization.

Etheroll (DICE)

Etheroll is a provably fair dice game on Ethereum with a 1% house edge and no registration or KYC requirements. The project estimates that about 50% of all transactions on Bitcoin are gambling related, and mentions that Ethereum might follow this figure. Etheroll is entirely smart contract based, which makes it fully transparent and auditable.

Valuation approach

All the profit generated by the Etheroll is distributed to DICE token holders. Every 12 weeks, all house profits which are stored in the “Rewards” smart contract are sent to DICE holders. Therefore, the value of DICE is directly related to the usage of Etheroll. If more users play on Etheroll, more dividends will be paid out to DICE holders which as a consequence would increase buy pressure as more investors want to purchase the asset.

DICE currently has a $3.5 million market capitalization.