There are more than 1000 cryptocurrencies out there, some of them being nicknamed Altcoins. Today’s blog post we will make a tour on the latest developments of the cryptocurrency market and give you the tools to find out if a currency is legit or not.
The first thing you need to look for when watching a cryptocurrency is for the community. Every coin belongs to a community of users and miners, and without this community there is no much room for it to be used nor implemented anywhere.
The website www.coinmarketcap.com became quite famous for publishing online the total value perceived by the market on each cryptocurrency. Coinmarketcap.com checks that data from the exchanges, you can check the list of exchanges also on their website.
Always remember that these exchanges are not regulated and present a counterparty risk. In one of my previous articles I mentioned about cold storage and why you should consider having it.
Today Bitcoin market cap presents at 165 billion USD. Some figures in finance have pointed it as small compared to what is traded in the world in terms of US Dollars and Euros. However, I do believe it’s quite high. First, it’s not a derivative and therefore there is no leverage in that number, secondly because there are 93 billion USD worth of British pound banknotes and coins in circulation (last update 31 December 2016). I don’t want to scare you reader, but think about it for a second, there are more bitcoins in circulation than Sterling, in fact, more Ethereum than Sterling. Ok, I am talking about paper money versus electronic coin. Fair enough, it’s still a very big amount.
Given that, let me go through the coins recently added to the exchanges. Just last week 7 coins were added.
Copytrack is a blockchain technology for copywriting, protecting intellectual property. They search the web for customer’s images across the web and then pursuit enforcement and licensing. The idea is to facilitate proof of authorship and create a blockchain certificate that maintains copyright control and tracks artists/creators content over the world wide web. Thumbs up too, excellent way of using blockchain technology.
Tidex Token: Tidex is a cryptocurrency trading platform and exchange. And this is their token. Tidex allows margin trading with leverage, which can foster growth, especially now under MIFID2 and yet to come ESMA resolutions which will probably crush Forex brokers.
Hard fork of Litecoin, for those who wanted SHA-256 cryptography instead. Doesn’t offer much novelty in comparison to Bitcoin Cash for instance.
Equivalent to a dark-pool, but in the crypto exchange. A dark pool is a financial vehicle where a group of investors trade as a single entity when in reality they are several. The trades that come in the same asset/direction go as one order or block order, generating economies of scale, as well as crossing buyers and sellers inside the dark pool before it goes out. If you ever traded in a dark pool, this might be your coin. Otherwise, don’t bother reading about it.
Neuromation is a platform where users can buy and sell datasets for AI data manipulation, studies or applications. To pay for the datasets, users and miners can use the neurotoken. I am not particularly excited about this one, is a small community and despite the charming artificial intelligence appeal, it’s just a small community medium of exchange, not expandable beyond it.
DADI: 27 million USD market cap. DADI is a global, decentralized cloud platform, focused on the provision of web services to help you build, scale and grow your digital products. With DADI there is no single authority that regulates computing resource distribution. The platform uses cost-efficient fog computing rather than a centralized cloud structure, removing the need to pay in advance for private and monopolized cloud computing platforms such as Amazon Web Services (AWS), Microsoft Azure and Google Cloud. Consumers can access a platform that has a far greater geographical coverage and that is significantly cheaper than existing cloud services can offer. Miners can monetize their spare computational power and bandwidth through putting it to work at various levels within the DADI platform. DADI: Decentralized Architecture for a Democratic Internet. I particularly like this one, as Web Services and Cloud computing generates billions of dollars in revenues for such provides. A small fraction of this market would be still massive. So thumbs up for DADI.
What cryptocurrency is missing out and which currency would you like to see created? Post your comment and join the discussion!
Alex is a derivatives trader/fintech author based in London. He posts every Monday. Follow his Twitter:@alchaia