What Is Lossless Crypto?
Recently, our AI picked up on a token that broke free from a 1.5 year long downtrend. Lossless (LSS) describes itself as a crypto protocol that ‘freezes fraudulent transactions based on a set of fraud identification parameters and returns stolen funds back to the owner’s account.’
Lossless is among the first protocols I’ve seen that aims to fight against hacking, which is currently a huge problem in decentralized finance. In fact, Rekt news (a publisher that exclusively covers cryptocurrency hacks) has covered 20 major hacks this year. The most notable of these being the recent Axie Infinity hack for $624 million.
For a detailed explanation of the Axie Infinity Ronin blockchain hack, Lossless wrote a piece about them on Medium here.
How Does Lossless Work?
Lossless is an open protocol that aims to hault counterfeit transactions through various methods, including hack detection bots and a DAO-based Decision-Making Body. You can watch their YouTube explainer video here. To benefit from hack mitigation, token creators simply need to implement the lossless protocol into their token contract.
Lossless enables anyone staking the LSS token to report potentially fraudulent transactions and get paid. This process thereby incentivizes the free market to create hack detection bots that ‘work’ for the Lossless DAO.
After the discovery and confirmation of a hack, the stolen funds are frozen and passed to a Decentralized Lossless Decision Making Body. This body consists of the Token Creator, the Lossless Company, and the Lossless Committee. Upon approval, the Decision Making Body can then revert the tokens back to wherever they belong.
LSS Token Price Prediction
LSS has been moving in a steep upward trend since the crypto market’s reflexive rally began mid-March. As a result, the token has scored a very high Daily Token Metrics Grade:
The LSS token’s 1.5 year consolidation base has lead the asset to explode 150% since bottoming at $0.28 on March 15th, 2022. LSS’s bullish trend was further confirmed when the Token Metrics Low-Frequency Trading Strategy flashed bullish on March 30th:
Resistance for LSS sits at $0.73 and $0.93, while support sits at $0.63. At the time of writing, Lossless still has a significantly low market cap (only $33 million at the time of writing). Therefore, expect 10% swings to be a daily occurance, and do not invest more than you are willing to lose. In the short-term, look for $0.73 to act as LSS token’s pivot point, where above $0.73 is bullish and below is bearish.
In terms of an LSS price prediction, $0.73 and $0.93 are the token’s two immediate barriers. However, if LSS breaks through this resistance, then this can confirm a much larger 2022 bull trend.
To predict the growth potential behind the Lossless Protocol, we can compare its valuation to Maple Finance (another low cap coin that has been performing well recently). By using the website Marketcapof, we can see that if Lossless were to reach Maple Finance’s current market cap, then this would increase the LSS token price to $5.61.
>>Read our Maple (MPL) Price Prediction and Analysis.