Utility: The Key To Cryptocurrency Sustainability

 Breaking News
  • No posts were found

Utility: The Key To Cryptocurrency Sustainability

July 14
04:12 2022

Kindly Note: The below is not financial advice. This is for educational and showcase perspective only. Please note that cryptocurrency can be highly volatile; only invest what you can afford to lose.

The Economic Times recently quoted statistics within the cryptosphere that show how Bitcoin, the largest cryptocurrency by market capitalization, plummeted from $68,000 in November last year, and dipped below $18,000 (over 70%). Ethereum has followed a similar pattern. Whilst Bitcoin rebounded somewhat, to $20,000, a slightly longer term view looks nothing short of a blood bath over the last few months. Time noted that the crypto market has increasingly tracked with the traditional stock market, which has meant that various economic factors such as rising fuel prices, food price increases, job insecurity, global pandemic, you name it, it has impacted the market.

A couple of years ago, crypto start-up projects only mentioned that they were looking to create a blockchain project and investors and venture capitalists were happy to commit funds to their projects. This is most certainly not the case any longer. For start-ups to be a success, they need to look at a singular focus of the project – their utilities. Simply put, the project’s utility is the foundation for a projects’ chances at success.

So here are 5 projects and their utilities that you should consider:

1) Ethereum ($ETH): Launched in 2015, $ETH, the token of the Ethereum blockchain, is the world’s second most popular cryptocurrency, second only to Bitcoin. It is widely considered to have the potential to become more successful than Bitcoin. The projects utility allows decentralized apps (dApps) to run on its Blockchain. With this DeFi approach, its smart contract functionality together with an increase of NFT popularity has seen ETH become more popular. There is a downside to Ethereum, their extremely high gas fees, and slow transition processing.

2) Monero ($XMR): If privacy and anonymity are key focus utilities for you, then Monero should be considered. Bitcoin and Ethereum have transparent blockchains, meaning transactions can be traced and linked to real-world identities. Monero, has a decentralised opaqueblockchain, meaning recipients won’t know who you are or how you received your money. Monero boasts that it offers fast electronic cash, as there is no multi-day holding period, check-clearing fees etc. However, there is a downside, projects like this can be delisted from exchanges. Bittrex recently did just that with Monero.

3) PolkaDot ($DOT): Looking at the PolkaDot project, it is clear that the team identified a challenge in the crypto-space and designed a solution for it. There are many cryptocurrencies that are solely linked to their blockchain ($ETH on the Ethereum blockchain, as noted above). PolkaDot’s utility is a concept called cross-platform interoperability (CPI), which brings these independent blockchains into a single network. so that they can be interoperable and work together. A simple example of this would be a smart-contract event on one blockchain, which triggers a payment on another. The downside of this project is that it is yet to materialise.

4) Solana ($SOL): Looking at the way in which blockchain’s work, the two most popular protocols are proof of work (POW) and proof of stake (POS). Solana uses neither, they make use of what they call proof of history (POH), which used cryptographic time stamps to “prove” that time has passed. Other blockchains, on the other hand, rely on a sequential production of blocks to prove a passage of time. Solana’s utility is that it plans to be more scalable and faster than Ethereum, which has not been delivered consistently as yet, making many question if POH can become a reality.

5) SquidGrow: As a meme utility coin, leveraging off the success of the Netflix series Squid Games (111 million accounts watching the series, in its first 6 weeks). The series is a fictional Korean series about a competition between 456 people competing in a series of children’s games to win 38.5 million USD, the catch being, losers are killed on the spot. SquidGrow has positioned themselves to become the biggest and safest utility meme coin on the Binance Smart Chain. Created by one of the biggest Shiba Inu whales, SquidGrow has the building blocks to get to the highest level, the initial utilities will see a staking and LP staking with APY’s averaging 200% and 400% in 30 days respectively. The third utility is the SquidGrow Lottery. Lottery tickets can be purchased directly through their website. A new draw is held every day. This utility introduces a deflationary mechanism into their token where 10% of each lottery pool is burned every draw!

Looking at the 5 projects above, one thing is clear – they all have a singular focus at the heart of the project – their utilities. By leveraging the project’s utilities, they have set the solid foundation for success. Utilities are the new go-to standard. A project that is able to continuously evolve and create additional utilities will stand the test of time, through the good and bad.

Media Contact
Company Name: SquidGrow
Contact Person: Shibtoshi
Email: Send Email
Country: United States
Website: SquidGrow.wtf

Related Articles