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The right way to perceive Crypto tokens

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The paper Initial Coin Offerings and the Value of crypto tokens

Trying to clear the misunderstandings that the people have regarding the crypto tokens and realizing it’s actual usage


Crypto tokens are the tokens which are generally used in the design and growth of the open networks.

One of the biggest gainers from the Crypto tokens might be the consumers provided that the crypto tokens and designed in a proper way.

A new paper has been put forward by Christian Catalini of MIT along with Joshua Gans of the University of Toronto. The paper contains an explanation about the valuable price Discovery role of the utility tokens along with the tokens which operate as true commodities based on the spirit of Bitcoin and Ether,  which they might enable. The concept has been seamlessly illustrated by using a very simplified model.

 

Initial Coin Offering (ICO)

The paperInitial Coin Offerings and the Value of crypto tokens” go far beyond that and explain how in the future the consumers will effectively use tokens in order to pay the optimal price for a particular service.

 

The paper starts by saying, “This paper provides the first economic analysis of the ICO funding mechanism and how it relates to traditional equity financing.”

This is somewhat mocking to the financial regulators as it goes on to explain how the society can benefit a lot from them by the distribution and active usage of the utility tokens. This is one of the most controversial topics of discussion in this complicated Crypto world. The discussion suggests that the entrepreneurs might try the tokens, the risk would be balanced by the returns and this should be done so that the users gain an exposure to the tokens.

It is definitely No Surprise that the securities and exchange commission of the US has raised and I with regards to the initial coin offering industry. The industry or the mechanism is capable of raising millions of dollars within just a few days. Sometimes it, even so, happens that the company or project raises more amount of fund in excess so that they have to close the offering prior to the stipulated date. According to a statistics from CoinDesk ICO tracker the ICOs have managed to raise about $8.84 billion as of February.

The root cause of all the confusion is that the regulators themselves don’t know or doesn’t seem to understand the problem in an effective way and hence are not able to define proper goals.

 

What do tokens do?

The paper effectively explains the functions and capabilities of the tokens so that the regulators can gain and effective insights into the usage and implementation of tokens.

Gans is of the opinion that a proper economic theory is necessary in order to understand the ongoings and also to categorize the regulations.

The paper explains that the ICO tokens mechanism allows the entrepreneurs to create a competition among the buyers for the tokens which can, in turn, be used as a standard to judge the consumer value of the product without actually estimating the consumer’s willingness to pay.

The writers of the paper said that the sole intention if their paper is to clarify all the doubts and to realize why the tokens are being used or how are they of any value.

The paper explains a simple scenario about a company issuing a token. The token is bought by the customers for some technical platform. The issuer knows some base price for the tokens that is the cost of setting up the technology but he doesn’t have any idea of how much price will the consumers be willing to buy the tokens, or how the tokens will be valued by the customers.

The bottleneck around the technical projects is that they have a higher upfront cost required for the sake of building the software, testing as well as debugging it to make it ready to use. On the other side, once the project is completed the new customers don’t add up to company’s expenditure.

Gans is of the opinion that the entrepreneurs are mostly oriented towards the cost but not on the strong reason why they run the tokens.

However, Gans and Catalini Inder paper have described the potential problems and the misunderstandings that the people have regarding the Crypto tokens but don’t seem to propose any solution for any of them. It can be considered as a base for further research and development in the field.

Altcoins

Best Tools to track Cryptocurrency Markets: CryptoCompare, CoinMarketApp, CoinGecko

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There are different websites and mobile applications designed to keep the track of cryptocurrency market, we cover the Top 3 of these.

The cryptocurrency market includes the prices and market capitalizations of different Cryptocurrencies like Bitcoin, Ethereum, Stellar and many others. Currently, there are thousands of cryptocurrencies, markets are 16084 and market capitalization is about $124,123,711,224.

 

There are different websites and mobile applications designed to keep the track of cryptocurrency market, we cover the Top 3 of these:

 

CryptoCompare.com

Known for its high-end API and real-time tick data, CryptoCompare has been serving the cryptocurrency space from 2014.

Founders: Charles Hayter & Vlad Cealicu

CryptoCompare shows real-time data for more than 5300 Coins and 240k trading pairs, enough for an entire overview of the market. Users can see live Order books, historical data, reports, social data and reviews on all cryptocurrencies. The website is very easy to use and is free for everyone.

 

CoinGecko.com

We love CoinGecko because it focuses on tracking community growth, events hosted by teams and open-source code development apart from the usual price tracking, market capitalization and volume traded. It was also founded in 2014.

Founders: TM Lee, Bobby Ong & others

CoinGecko’s team is very dynamic and is very active on social media like Twitter, Telegram & Facebook. They cover more than 260 exchanges with live data and have more than 3300 cryptocurrencies. They are free for everyone to use.

 

CoinMarketApp (Mobile Application)

When it comes to easily track the live prices and your portfolio on your mobile, CoinMarketApp is the preferred choice for most. With live alerts on more than 1400 Cryptocurrencies, the app saves your time and alerts you on every move.

Download on Android

Download on iOS

Apart from cryptocurrency prices, the app lets you manage your portfolio, mining pools, new contracts and the latest news from the crypto industry.

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Cryptocurrency Market Updates: Bitcoin May fall further

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The cryptocurrency market is still facing the same bullish trend today, yet again. Bitcoin price recovered a little with trading around $4300 to $4400.

The cryptocurrency market is still facing the same bullish trend today, yet again. Bitcoin price recovered a little with trading around $4300 to $4400. Yesterday the price of bitcoin fell up to $4190. Ethereum is still trading at a year and a half low of $125. Apart from ethereum, most altcoins are showing small corrections. Bitcoin Cash moved 3% upwards while Monero has moved 4% upwards in the last 24 hours. Bitcoin Gold and Bitcoin Diamond have had good gains for the day with 8% and 16% rise. IOTA is trading at around $0.32 which shows a 6% improvement from yesterday’s price. NEO is up by 5%. However, the small gains are nothing in front of the massive downtrend these altcoins went through in the past couple of days.

 

Cryptocurrency Market Capitalization Improved

The total cryptocurrency market cap yesterday came down up to $136 billion which was the lowest of 2018. In the last 24 hours, cryptocurrency market has managed to add $4 billion in the market capitalization adding to $140 billion. Over the last week, the cryptocurrency market had lost over $40 billion and over the last month, around $70 billion have been erased from the cryptocurrency market capitalization which is yet to be recovered.

 

Bearish predictions for bitcoin

While the market cap is trying to recover the price predictions for bitcoin still remain bearish as many cryptocurrency analysts have predicted that the only support after the current significant support of $4000 is at $3000. So if the price drops below $4000, it will definitely reach down to $3000 after which the price is expected to recover.

 

The overall situation of the market is still harsh as there is no major recovery from the massive losses that occurred in the past few days. What do you think about the bitcoin predictions being made by crypto analysts? Tell us in the comments section below.

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Bitcoin Cash Hard fork screwed the whole cryptocurrency market

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Whole cryptocurrency market is suffering because of the continues wars going on between ABC and SV which has created a bad reputation of the crypto space.

The original Bitcoin Cash split into Bitcoin ABC and Bitcoin SV during the hard fork but no one is sure to weather BCHSV or BCHABC will survive in the market as the hash wars still continue. The hard fork has lead to an uncertain future of Bitcoin Cash and also screwed the whole cryptocurrency market. The Price of both the new coins is on a continues decrease where Bitcoin Cash ABC values at around $226 and Bitcoin Cash SV values at around $76.

 

Cryptocurrency Market Crash

The whole cryptocurrency market is suffering because of the continues wars going on between the two teams which have created a bad reputation of the crypto space to the newbies. At this time when more and more institutional investors were entering into the cryptocurrency space, the hard fork has created a feeling of Fear, Uncertainty and Doubt amongst them.

 

BTCUSD yearly chart

BTCUSD yearly chart

 

As the hard fork started, the entire cryptocurrency market faced a downfall where all major cryptos are on a 6 month low with bitcoin trading around $5200 that is a yearly low for the most dominant cryptocurrency. The decline is the price has created fear in the minds of investors who are now talking about capitulation.

 

Should Craig Wright be blamed?

Craig Wright who claims to be the real Satoshi Nakamoto and the founder of the original bitcoin has been funding his side of the war using BTC. Cryptocurrency enthusiasts around the world are criticizing Craig Wright and also calling him a lier.

 

 

The local media’s role

The real reason behind the rise of cryptocurrency and blockchain was the mass adoption by people who heard about it through local media. At that time, the local media described bitcoin and other cryptocurrencies as the future of money explaining the decentralized nature of such currencies, but now due to the wars within the cryptocurrency ecosystem, the local media has started to criticize cryptos and people have started to lose faith in the crypto market.

If the amount of money being used in such hash wars would have instead been used for the development of the crypto ecosystem with advancements such as lightning network, the market could still be flourishing rather than being on the verge of getting sunk.

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