Samsung’s Galaxy S10 ships worldwide in March and crypto enthusiasts reacted with excitement over the new feature of a cold wallet for storing Bitcoin (BTC) and Ethereum (ETH). So, why are the Korean tech giants looking to Cosmee (COSM) and Enjin (ENJ)?
The new S10 range will actually come with the Enjin crypto wallet preinstalled, designed for mobile and specifically with gaming micro-transactions in mind. Mobile gaming is projected to be worth over $6 billion by 2020 inside Asia’s fourth-largest economy and much of this comes from in-game purchases. This seems a logical next step for Korea’s largest business conglomerate.
Reasons for choosing Cosmee as the first dApp partner are slightly less self-evident, although it may indicate a trend among South Korean users; the blockchain-based beauty app reportedly has more than 30,000 daily active users already.
Appearing as a normal smartphone app, Cosmee ditches the standard centralized server and instead runs on Cosmochain, an implementation of blockchain which incentivizes users to create beautiful content for rewards of the platform’s native cryptocurrency, COSM coin.
Rumors abounded when Samsung quietly revealed on February 20 that the S10 would include “secure storage backed by hardware” for “blockchain-enabled mobile services”. Leaks suggested that Cosmee would be involved, which saw the price of COSM spike to $0.02 before quickly correcting to $0.01. Five days later, Samsung went public at the 2019 Mobile World Congress in Barcelona with the fact it would be working with Cosmee and Enjin.
Resistance Level (R3): 0.141
Resistance Level (R2): 0.123
Resistance Level (R1): 0.113
Pivot Point: 0.0955
Support Level (S1): 0.0852
Support Level (S2): 0.0675
Support Level (S3): 0.0573
Traders reacted immediately on ENJ and the coin skyrocketed to $0.10, which is an increase of 138% within just one day of the announcement. While prices subsequently leveled out around $0.08, daily trading volumes shot up to an average of $40,000,000. Before the announcement, it seldom broke $2 million. At the time, it seemed further increases could see bulls test resistance levels of $0.113, $0.123 and $0.141 in an attempt at another breakout. Support was found at $0.0852, $0.0675 and $0.0573.
A similar pattern followed for COSM. (it may have pumped prematurely due to the leak) The token still enjoyed a 56% boost following the official announcement and reached $0.023, making further gains over the next few days to hit highs of $0.025. Daily trading volumes previously hovered around $200,000, but posted $700,000 over the last 24 hours. Currently, stable between $0.023 and $0.024, support levels are found at $0.0226 and $0.0218 with another bullish run expected should it manage to breach $0.0252.
ENJ has maintained the higher levels it achieved in the wake of the announcement. Downward pressure in the past week has continued into today, with the price of ENJ sitting at $0.0146 as of writing.
What does this mean for future price movements?
For Samsung’s part, they’ve announced plans for an Ethereum-based token.
In October last year HTC brought its blockchain-powered smartphone to market to much fanfare but without obvious benefit to anyone but crypto enthusiasts. Samsung, meanwhile, have stepped into the crypto-sphere by supporting the Enjin wallet, and directly partnering with beauty dApp Cosmee.
These appear to be rational moves, too: using domestic blockchain companies to help the electronics giant win the market in its native South Korea is sound business logic. It already performs extraordinarily well here and has chosen two platforms with a great deal of potential.
Enjin and Cosmee have received a big vote of confidence from Samsung in their ability to serve a high number of users and if all goes to plan, the price ceiling of these two digital currencies could rise to unprecedented levels over the coming year.