Binance USD is a stablecoin backed up by the US Dollar; it means that there is a US Dollar in reserve for every coin of BUSD. In simple terms, the amount of BUSD is directly proportional to the USD, and they’re pegged at a 1:1 proportion. It is issued by the partnership between Binance and Paxos. It is regulated and approved by the NYDFS (New York State Department of Financial Services). They have an audit report every month that can be checked on their official site. One of its main goals is to merge blockchain tech with the stability of the US dollar.
If you have ever acquired or exchanged crypto with Binance, it’s possible that you have come across or at least heard of BUSD. It is usually between the pairs most traded being offered on the Binance exchange. In short, it aims to represent the digital version of the US dollar, and it is linked to its value.
The state regulators of NY have implemented special measures on Binance, Paxos, and how stablecoins, in general operate. While ensuring that the coins are completely backed up, Paxos has to control the issuance and burning of Binance USD tokens. It also has the right, when considered necessary, to remove funds or freeze accounts due to illegal activity. These concepts all adhere to the banking laws of the Trust Charter and New York that apply to stablecoin.
It is possible to avoid fluctuations in price in the markets of crypto, with the potential to be very volatile. There exists a demand for stable assets also in crypto, mostly when the market turns too volatile. These periods can be easier for the investors when turning the assets into securities or fiat and BUSD offers that opportunity. BUSD has a lot of liquidity, so it is easy to secure profits when someone is looking to exit a position.
There are few significant reasons why BUSD is different from other stablecoins. It is part of a group of stablecoins that are backed directly by fiat. Another big difference is that Paxos releases an audit on a regular basis, once a month, to show that the reserves in USD match the supply of BUSD. Withum, an accounting company, completes those audits as part of the requirements as a regulated crypto. The last being something that not every project does, so there’s a risk of some stablecoins backed up by fiat not having all the reserves they say they have.
Regarding that, we can mention a case brought by the NYS Attorney General. The said case indicated that Tether did not have the reserves they claimed to have in contradiction to their previous statements.
Released in July 2015, Stellar Lumens (XLM), in simple terms, is an open network that enables money to be moved and stored. The protocol’s main goal was to boost financial inclusion. Although the priorities changed, the goal became to help financial institutions connect by utilizing blockchain tech.
The network has its token called Lumens, and it functions as a bridge to make trading assets less expensive across borders. The point of all this is to challenge the current payment providers, who usually charge high fees for a service alike.
Does any of this ring a bell? If yes then it’s worth mentioning that the Ripple Labs protocol has initially been the base for Stellar Lumens (XLM). A hard fork is what created the blockchain. Eventually, the team in charge rewrote the core code to be compliant with the new target.
In 2013 after leaving Ripple because of a disagreement about the company’s future direction, Jed McCaleb decided to found Stellar with Joyce Kim. In 2020 McCaleb explained the rationale behind Stellar. He stated that the complete original design has different forms of value where fiat currencies run parallel with each other and crypto-assets. That was the critical point to making this project mainstream.
McCaleb had made it clear that he wanted to ensure that Stellar Lumens (XLM) could provide people with a new way of moving their fiat into cryptocurrencies. The goal is to remove the friction users experience when they send money to other parts of the world.
The current CTO of Stellar Lumens (XLM) is McCaleb. He also serves as co-founder of the Stellar Development Foundation. The foundation aims to improve the world’s economic potential by making markets more accessible, money more fluid, and empowering people.
First, fees are a sticking point for many users around the world. Although, a high cost while making a payment cross-border isn’t just a problem with fiat-based payment systems. Usually, Fees for transactions tend to go sky-high on blockchains such as Ethereum and Bitcoin because of congestion.
Stellar Lumens (XLM) has a unique transaction cost of only 0.00001 XLM. Considering that one unit of the token costs only a few cents, users can keep more money. Some projects have secured partnerships with fintech firms and big tech companies.
A few days ago, IBM and Stellar partnered up and launched World Wire. The project enabled big financial institutions to request transactions to the Stellar network and utilize bridge goods like stablecoins. While other blockchains possess community funds, Stellar allows its users to vote on the support’s direction.
In 2015, when the network launched, Stellar issued a total of 100 billion XLM, but things have changed since then. Currently, the total supply of XLM stands for over 50 billion, and 20.7 billion are in circulation.
The Stellar network uses the Stellar Consensus Protocol to secure the project. The protocol claims to have four main properties: low latency, decentralized control, flexible trust, and asymptotic security.
Through this protocol, everybody can join the process of achieving consensus, and more than one entity can end up with most of the deciding power. Transactions are confirmed cheap and fast; all it takes is just a few seconds. Also, safeguards are set in place if attackers try to join the network.
Let’s start from the beginning; what is Polygon, and why is it so relevant for Ethereum? Polygon, known before as Matic Network, is a framework for scaling and interoperability designed to build blockchains compatible with Ethereum. The network has a token on its own, known as MATIC, which is utilized for staking, governance, and gas fees.
At the beginning of 2021, Ethereum made changes and rebranded the Matic Network, which was known as Polygon from that moment on. Now, the framework deals with some of the limitations that Ethereum has. Lack of high speed, delayed transactions, lack of community governance, and lousy throughput, to name a few. Unlike its predecessor, Polygon is designed to be a platform for launching interoperable blockchain technology.
With the new changes Ethereum is implementing, many experts are wondering about the future of Polygon after Ethereum 2.0. In this article, we’ll explain how Polygon is aiding Ethereum and what to expect after the launch of Ethereum 2.0.
Polygon works on a four-layer principle: Polygon’s layer, Ethereum layer, security layer, and execution layer. In fact, two of those layers are of mandatory nature – the Polygon layer and the execution layer. The first one is the layer of the network, the blockchain networks on Polygon. The second mandatory layer is the execution one, which executes smart contracts.
The Ethereum layer represents a group of smart contracts executed on Ethereum. Those contracts take care of tasks like staking, transaction finality, and the communication between Polygon chains and Ethereum.
The security layer works simultaneously as Ethereum, and it grants “validators as a service” status. That role enables chains to get benefits from an extra security layer. It’s important to mention that both Ethereum and the security layer are not mandatory.
Chains set on Polygon can communicate with the main chain of Ethereum thanks to Polygon’s capabilities. Therefore, this will open a variety of possibilities for decentralized apps and the exchange of value among different platforms.
As the Ethereum team announced, Ethereum 2.0 will fix the congestion problem that Ethereum currently faces. As the new launch will to deal with current issues Polygon was helping with, does it mean that Polygon will disappear? Not likely. Polygon has helped to ease the pressure of demand and lower fees. It is easy to conclude that Polygon still has big plans after Ethereum 2.0.
On December 9, 2021, at the ZK Day event, they announced the purchase of the Mir protocol. This platform utilizes “zero-knowledge proofs” for designing and building decentralized apps away from Ethereum’s network. Finally, they mentioned the transaction, according to Polygon, will be worth around $400 million in MATIC tokens.
The zero-knowledge proofs are based on the privacy principle. They are a way of verifying things without giving away any private information. It’s like having $100 in your wallet and having the ability to prove this without opening it. Mir uses that concept to run transactions so that developers can build privacy-compliant apps.
Polygon is planning to introduce a recursive proof system to be faster than anything else, and it’s practical to verify on Ethereum. What is most important about this is that it can translate to Ethereum 2.0. Vitalik Buterin, the creator of Ethereum, declared that the network would use it in conjunction with other solutions for scalability.
As the network stated before, there’s no apparent cause for concern. The future of Polygon after Ethereum 2.0 seems to be set as the platform plans to keep it close for much longer now. Although, crypto space keeps rapidly growing, evolving, innovating, the launch of Ethereum 2.0 is for sure one of the most anticipated events. Expectations are very high since experts believe it will set the bar to a new high while respecting users’ privacy. One thing is for sure. We can expect much more exciting news from crypto space in the future years. We’ll be eagerly waiting for the next new thing.
TRON (TRX) is an operating system based on blockchain technology and its primary goal is to ensure this tech is appropriate for daily use. The project claims to be able to handle 2,000 transactions per second, while with Ethereum it is only up to 25, and with Bitcoin only six.
The best way to describe TRON (TRX) is as a decentralized platform with a goal to share content and provide entertainment. Its major acquisition in 2018 was by BitTorrent, the file-sharing service.
In general, the project divided its main objectives into six different phases. The range goes from file sharing to the creation of content through rewards. At the same time, it enables creators of content to launch new tokens and encourages them to decentralize the gaming industry. Moreover, TRON is one of the most sought-after blockchain projects for DApps building.
Justin Sun is the founder of TRON, who is currently also the CEO. He finished his education at Peking University and the University of Pennsylvania. Forbes Asia recognized him as one of the main features in its 30 Under 30 series for entrepreneurs.
Sun has been associated in the past with the Ripple project; he worked as a chief representative in the Greater China zone.
It has positioned itself as a space for content creators to connect more instantly with their audience. By removing centralized platforms, creators expected to lose as much commission as they usually would to intermediaries. It won’t matter if they are app stores, streaming services, or music sites.
This could also mean an improvement for consumers since the content would be less expensive than usual. Considering that the sector for entertainment keeps growing on digitized grounds, TRON could have a head start. TRON (TRX) is already ahead of its time while applying blockchain tech to the entertainment industry.
The project also claims to have an experienced and talented team in charge of new developments. TRON has members all over the globe, some coming from major firms such as Ripple Labs.
The project offers a different point by providing a roadmap that shows its plans for the following years. In contrast, some other projects are pretty shady about their development intentions.
The project has a supply of more than 100 billion coins, most of which are already in circulation since the beginning of December. In 2017, 15.75 billion TRX went to private investors at a token sale. Additionally, 34 billion went to the Tron Foundation, and ten more billion went to one of Justin Sun’s companies.
In the end, 45% of the supply allocated to the project itself and the founder, while 55% went to investors. Experts argue that this ratio is much higher than that seen before with other projects.
TRON utilizes a mechanism of consensus called delegated proof-of-stake. The owners can freeze their crypto to get Tron Power. They can vote for “super representatives” who work as producers of blocks by doing so.
Those producers acquire TRX as rewards for verifying the transactions, which are distributed between the voters. As TRON sees it, blockchain can achieve better throughput levels.
Helium is a network for IoT (Internet of Things) devices powered by decentralized blockchain technology. It was officially launched back in July 2019. The network enables devices with low-powered wireless to send and receive data across its nodes and network in general. The nodes, also known as hotspots, are a mix of a blockchain mining device and a wireless gateway. The network is also known for rewarding the users that operate the nodes with HNT, Helium’s token.
The three founders who started the company back in 2013 are Shawn Fanning, Amir Haleem, and Sean Carey. Haleem’s active background is in eSports as well as the development of games. On the other hand, Fanning, is famous for the story of Napster, a music sharing service Napster was one of the first peer-to-peer primary internet services at the end of the ’90s. Meanwhile, Sean Carey had a variety of roles before Helium. Carey worked in the firm “Where”, which specialized in advertising optimization, that Paypal later acquired.
Now, the team in charge of Helium, formed by what the company calls experienced members, is very optimistic. They have specialized people in hardware and radio, manufacturing, distribution systems, and blockchain tech.
The main goal of Helium is to increase the capabilities in the communication of wireless IoT devices exponentially. Back in 2013, the whole infrastructure related to the Internet of Things was still at a very early stage. Developers, determined to expand their offerings by adding decentralization. That is the main reason why official literature refers to it as “The People’s Network”.
The target audience is the users interested in the IoT as well as owners of devices. Considering that there are financial incentives, the expected outcome of this expansion is on a big scale.
What the users of the network are purchasing or building are Hotspots, a mix of a miner and a wireless gateway. Each of those hotspots supplies coverage within a specific range. At the same time, the same hotspot mines HNT, Helium’s token.
The whole network works on proof-of-coverage, which is a new algorithm of consensus. The algorithm is based on a protocol that enables nodes to reach consensus when the quality of the connection is highly variable.
When Helium launched the token, the supply was zero. Back in October 2020, there were 48,712,218 Helium tokens in circulation. Helium explained that the owners of the nodes would receive tokens for helping build the network. Later on, data transfer will be more advantageous, although the token distribution will last for about 20 years.
Helium uses a mechanism of consensus called PoC (proof-of-coverage) for which users get rewards. Main goal of PoC is specifically node communication.
From October 2020, Helium token is available in big exchanges.
Crypto enthusiasts, get excited! Now it’s possible to start earning Helium token rewards if you plan on helping the expansion of Dish Network. The cryptocurrency startup, Helium, which provides wireless networks, is joining forces with the Dish company. Now, Dish customers have the option to deploy a 5G node to share a connection and earn token rewards.
The Helium startup made it official that a wireless network run by users is now linked to token rewards. Nowadays, their Internet of Things network possesses over a quarter of a million active nodes. Their next step is to try to do the same with a 5G connection, in collaboration with FreedomFi as the provider of infrastructure. All the focus is set on the TV and mobile service provider Dish Network, who just joined the project.
On October 26th, Dish Network announced the contract with Helium, making it official to the rest of the world. The deal enables Dish users to share 5G by managing a node of Helium in exchange for HNT tokens as a reward.
COO of Helium, Frank Mong, declared that Dish Network understands the vast possibilities that blockchain technology can have paired with the wireless industry. The partnership is definite proof that the Helium model of incentivization with tokens can be a potent tool.
By rewarding users with HNT tokens more people will be drawn to participate in the expansion. The goal of Helium 5G is to have a wider reach while the user also benefits from the tokens and the apps it offers.
The first LongFi network of Helium was planned only to power Internet of Things devices like trackers and sensors. Currently, it has over 250,000 nodes operated by users, as mentioned before. Helium stated that 500,000 more are ordered, which translates to a more relevant scale coming soon.
However, the network was not planned to handle other kinds of devices such as smartphones, laptops, and tablets. On the other hand, the 5G network built with FreedomFi will be able to do it. The tokens that users get as a reward can naturally be exchanged for any other crypto of choice.
Mong declared that the first batch of 5G wireless nodes for the network of Helium would soon be shipped by FreedomFi. The expansion plan establishes that by the end of 2022, around 40,000 of Helium’s network nodes will be already deployed. However, some experts think that that scenario is optimistic, others that it will be more. In the end, it all depends on the demand. This project is not the only one working on 5G nodes. Other producers of hardware are also working on it. It’s expected that more plans like this will be announced shortly.
Although in the crypto space, anything can happen, Helium’s token has shown great promise. Throughout 2021, it went from $1.36, and it’s currently at $43.41 a token. Back in August of the same year, the project announced funding of $111 million. The main goal of such financing is to scale the plans of the decentralized project. The following month, Helium made public knowledge of its partnership with the City of San Jose in California. The association is for a pilot program that will fund internet access for households with low-income. All of that will be raised by nodes of LongFi that volunteers will operate.
It is still unknown what the future holds, especially when we talk about crypto-related news. Although it can seem to be promising in theory, you should also keep in mind that anything can happen. In this fast-changing world, what might seem certain today might change tomorrow.
Be sure to consider all the factors involved in the crypto world, not only what the protocols make public. It’s always a good idea to make a decision when you’re well informed, and as mentioned before, invest only what you can afford to lose.
The ever-expanding world of crypto never ceases to amaze us, and it seems as though everyone wants to be a part of this new realm. Subsequently, blockchain technology piqued the interest of many major sectors, gaming included.
Yes, the gaming industry is one of the early birds that adopted this cutting-edge technology—an exciting clash of worlds, gaming, and blockchain. And believe it or not, people that have a genuine interest in blockchain are most likely game heads.
The rising demand for NFTs in the gaming industry only amplifies this riveting crossover. In this day and age, you can trade many rare and trending NFTs within games. So, we couldn’t help but wonder what this means for the crypto industry and what is the future of blockchain gaming? For more crypto news, read our Crypto Digest blog.
Blockchain is considered one of the key players of the financial technologies of the future, and it sees great potential as a trustworthy ledger concept.
Before we begin, we have to address the blockchain gaming concept. It is a system based on cryptography that links blocks of data together in sequential order. Because every change can set a “chain” reaction and affect the entire chain, the data units on the blockchain are immutable and unique.
The main distinction between regular games and blockchain games is the fact that each digital asset inside the game is unique. This is where non-fungible tokens, or NFTs for short, come into play. They are unique data units kept on the blockchain for these digital assets. This industry is called blockchain gaming.
Play to earn is one of the central aspects of these games because the gamer earns unique NFTs or any other kind of cryptocurrency by playing the game. Merit-based advancements give you digital tokens that the player can convert into actual money. Or you can keep playing. It’s up to you.
And now for the exciting part. Since every NFT is one-of-a-kind, blockchain has made the concept of digital asset ownership possible. If an asset is stored on the blockchain in the form of an NFT, the owner can claim his rights to sell or keep the asset. Let’s say artwork, even though this system works much better for the gaming industry.
Blockchain gives its users full control over the digital asset they earn by playing these games. For example, if the players spend real money on digital assets in traditional games, they might lose access to them if the server crashes. The developer has the rights.
In the case of blockchain games, both the assets and the money remain in your total ownership, whatever happens. These assets can be traded with other fellow players, sold for real money, and possibly used across different game universes. The possibilities are endless, really.
We’ve come to the part where we list the most important terms of these games. Each player needs to know this, so pay attention.
According to sources, the global market capitalization of NFTs revolves around $2.5 billion as of the beginning of 2021. This is quite a number when we compare it to the previous year and a market cap of $13.5 million. More and more gaming companies are taking part in the blockchain gaming trend now that NFTs are going strong. This only underlines future potential.
Finally, we can conclude that blockchain gaming might disrupt the traditional gaming industry after observing the ongoing trends. Generally, blockchain gaming sees a lot of future potential, as all numbers suggest. A current prediction states that there are around 1 billion online gamers out there, and still rising. This can only increase the significance of this trend if more new players opt for blockchain.
Suppose we know all of this information and that blockchain keeps track of in-game items like experience points, weapons, and skins, making them unhackable. In that case, we can deduct that the gaming industry, in collaboration with crypto, might be a fertile ground for future growth. Heck, it might even be the dynamic duo of the inevitable crypto future!
In the world of crypto, sudden shifts are the only thing you can count on. The mass popularization of crypto technology leads to entire countries changing their financial course and leaning towards crypto. The newest addition to the crypto team is Singapore.
The latest news gave us a clear insight into Singapore’s determination to become one of the leading crypto forces out there. Crypto-related businesses around the world keep wrestling with one of the fastest-growing fields in finance.
Compared to countries like China that are clamping down on crypto to sustain fraudulent activity, some countries embrace crypto, making way for new solutions that might give better long-term results. Crypto Digest covers the story of Singapore and its newly found crypto plan.
Mr. Ravi Menon, the Monetary Authority of Singapore (MAS) managing director, explains that the “clamp-down” approach isn’t the correct way to handle things. Instead of banning crypto, MAS is planning to enforce solid regulations. Subsequently, businesses, companies, and firms that comply with these requirements and face multiple risks regarding crypto can operate freely.
The broader liberalization in the financial sector brings Singapore’s plans of building a digital infrastructure based on crypto technology. The country sees significant economic possibilities in crypto’s tokenized economy. Eventually, cross-border payments will come at a lower price, and hard physical assets will be traded differently.
Not everyone had the same ideas regarding crypto. As we briefly mentioned, some countries had different, more restricting approaches. We have China cracking down on almost all crypto activities in the past couple of months, while Japan only allowed crypto investment funds recently.
On the other hand, El Salvador legalized Bitcoin as legal tender and embraced crypto in a completely opposite way. The United States has a variety of digital investment options with the ever-expanding asset class. However, regulators are worried about everything related to crypto, from yield-generating products to stablecoins.
Singapore is taking a somewhat optimistic yet cautious approach. MAS believes that all crypto activity is a profitable future investment, a future that’s not clear at the moment.
As Ravi Menon explains, not getting into the game early on means instant disqualification. He believes that the country would be left behind if it had taken another route. Having a strong head start is the way to go. Therefore, if the new crypto technology is faced right at the beginning, it will be easier to spot the benefits, along with risks.
Singapores’ stakes are high, as it has already established itself as one of the leading global wealth hubs. Raising safeguard is the primary action step. Counter risk measures will surely battle illicit flows that are highly possible in the crypto space.
Singapore and its plans to develop crypto technology, understand blockchain and smart contracts are only a preparation for a 3.0 Web version of the world, as Mr. Menon said. It is important to note that Singapore is not alone in its crypto plans. Various locations include Miami, El Salvador, Dubai, Malta, and Switzerland.
Ultimately, Singapore’s plans give us a rather interesting picture regarding the third generation of online services. With multiple countries having various approaches to this new technology, we have yet to see how the crypto future will unfold. One thing is certain, though; we will have a solid case study. If we know that crypto is here to stay, the only thing left to do is watch, learn and implement.
CoinList has a goal, and it involves the acceleration of cryptocurrency adoption. With this mission in mind, the platform has created a holistic offering for users, including everything from lending to trading tools. This multi-service platform allows users to trade, buy, lend and stake the most widely spread crypto assets.
CoinList is a crypto platform that provides easy access to crypto assets prior to their listing on other popular exchanges. CointList is a global leader in new cryptocurrency issuance. They helped such projects as Solana, Filecoin, Celo, Mina, and others to connect with thousands of new token holders. CointList participates in the complete crypto lifecycle that begins with token sales and ends with staking.
CoinList implements vetting, so the collection of crypto assets on this platform is thoroughly curated. At the moment, there are 40 cryptocurrencies one can buy or trade, including several emerging assets that haven’t yet appeared on the wider market.
It is very easy and fast to sign up for CoinList. All you have to do is go to the page and register. CoinList will email you a verification link, and after you click it, you are in! However, in order to use their services, you will need to go through a verification process. They require your name, physical address, a picture of you, and your ID. After this stage, you are good to go!
Prior to purchasing, trading, and selling crypto, you will need to fund your wallet. The moment you are logged in, click on “Wallet” and then click “deposit.” You will be required to connect your bank account or send a wire transfer using the details you have been provided. When you have funded your account, you can start purchasing crypto. It is quite simple, as you can navigate to the “Buy and Sell” page through the left sidebar; all you need to do is select the cryptocurrency from the drop-down menu. Choose how much you want to buy and select “Preview Order.” If the transaction looks good to you, select “Confirm Order” so that the crypto can arrive in your wallet.
It is also an option to deposit to your wallet from another platform. In addition to purchasing and holding crypto, you can trade it within the platform. In order to do that, you need to visit the “Buy and Sell” page, select assets you want to trade, and enter the amount.
Some cryptocurrencies like Bitcoin and Dogecoin are secured by Proof of Work, namely mining, and newer cryptocurrencies use a different consensus mechanism known as Proof of Stake. In PoS, the mining process is replaced with staked funds, another economic resource. Staking can be a complicated process that requires solid financing. CoinList simplifies the process, making staking more accessible for users.
It’s been over two years since Facebook’s crypto was announced; this was made public back in 2019. Usually, the goal of new cryptocurrencies is to get into the stablecoin market, so why is Libra not here yet?
Two years ago, Nassim Eddequiouaq and Riyaz Faizullabhoy left the company Anchorage to start working on Facebook’s crypto wallet. Facebook’s crypto, also known as Libra, was announced for the first time back in June 2019. In the crypto space, that counts as ages. First, it was pitched as a global currency without borders. The plan for the token was to be backed by the Libra Reserve, which is a compilation of assets with low volatility. Such assets were supposed to be Government securities and bank deposits, to name a couple.
Only in the first few months, the Libra Association lost many of its founding members. During that first wave, important companies such as MasterCard, Stripe, Paypal, and eBay were among the deserters. Then, in an attempt to get a new fresh start, Facebook’s crypto changed its name to Diem, and the wallet app created to hold it was renamed Novi. However, the name wasn’t the only thing that changed; its goals and ambitions were also downgraded. The new concept set the coin as a simple stablecoin pegged to the US dollar. That is far from being the borderless currency promised at the beginning. The market is full of stablecoins accessible at more serious companies such as Paxos, Binance, and Circle.
Now, two years after it was first announced, it’s worth asking: is there anyone who wants to acquire crypto from Facebook? Facebook’s principal founder, Mark Zuckerberg has been involved in legal issues regarding users’ privacy and data protection on his social network in the past couple of years.
Zuckerberg has been called to court several times to lend testimony about the allegations against him and the platform for which he’s responsible. The irony here is that Facebook’s crypto is not only his thing; it’s a whole project backed up by a group of companies based in Switzerland. Part of the plan is to decentralize the coin progressively. The biggest problem they’re trying to solve right now is that the project was first made public by Facebook. Also, Zuckerberg, who is an executive of Facebook, has become the face of it. Therefore fortunately or unfortunately, if the project will succeed, it will be determined by Facebook’s future reputation status. .
Although it seems like Zuckerberg has already moved onto his next project, Metaverse, there’s hope for Facebook’s crypto. The most significant advantage that the project owns is the 2.9 billion users the network has. Whatever stablecoin the company decides to embrace, a substantial number of users will give it a try. There’s still hope for the cryptocurrency, but if it’ll be a long-term sustainable project, it remains to be seen.
In cryptocurrency culture, influencers have always been prominent, and they are more so these days. The first time Elon Musk mentioned the original meme cryptocurrency Dogecoin, it triggered a number of immediate reactions by influencers across all social media platforms. There is an opinion that investing in meme coins is imprudent, an alternative opinion is that it is a cheap bet with massive potential. Both opinions are valid, although interest in meme coins and tokens skyrocketed in recent months.
As a rule, a meme coin doesn’t have inherent value and utility. It is obvious from the name that these cryptocurrencies revolve around Internet memes. The first meme coin, Dogecoin, is themed around a popular Doge meme, an image of a Shibu Inu dog. This coin runs on its own blockchain, which sets it apart from other meme tokens that run on an existing blockchain. The most widespread meme tokens are Shibu Inu that is built on Ethereum, and SafeMoon, built atop Binance Smart Chain. However, there are many more.
It has been eight years since the launch of Dogecoin; it has become much more accessible to create a cryptocurrency. Meme coins and tokens can be launched easily and become popular due to their connection with influencers. For instance, in May this year, Mark Zuckerberg published an image of his pet goats with the comment “My goats: Max and Bitcoin.” After a short period of time, a meme token named Aqua Goat grew in value by 300%; it happened within a couple of hours since the post was published.
Three of the most widely spread and used meme coins and tokes are Dogecoin, Shibu Inu, and Safemoon. Here is a quick overview of each of them.
The inventors of Dogecoin are Jackson Palmer and Billy Markus. It started as a joke, but it has become a weighty proposition since Elon Musk began promulgating it in 2019. The coin saw its peak in January 2021, with a market cap of $9 billion. At the moment, Musk is working with the coin’s developers to enhance the platform; he facilitates it as a means of paying for services and goods and works to decrease its carbon footprint.
This coin made its appearance in April 2021. It started off as an experiment but soon increased in value. The total supply of Shibu Inu Coin is one quadrillion, and it yields its investors a possibility to hold billions of tokens. However, it needs to climb around 12 million percent to hit the target of $1.
The creators of this token sook to enhance Dogecoin’s tokenomic model. Unlike Bitcoin, with a limited supply of coins, there is a limitless supply of Dogecoin, making it an inflationary tokenomic model. To improve this, SAfeMoon uses a deflationary tokenomic model. It implies that 5% is burned for every transaction, and another 5% is allocated to the existing token holders. From that follows that the total supply of coins is meant to decrease constantly, which ensures safe gains. Its market cap is currently $2 billion.
The bottom line is that the final success of meme coins and tokens depends on the weight of their communities.