There Is Only One Way To Identify Potentially Valuable Cryptocurrencies

Home » Bitcoin » There Is Only One Way To Identify Potentially Valuable Cryptocurrencies
February 5, 2019 by
There Is Only One Way To Identify Potentially Valuable Cryptocurrencies

Project development after an ICO is usually a complicated process. It involves the setting up of an entire workforce, entering into various partnerships as well as engaging in economic processes that will sustain the value of already listed cryptocurrencies.

Blockchain is still in its early developmental stages, with various evolving aspects. This makes the process of building something new on top of the technology even more complicated. To achieve this requires uttermost commitment and genuine efforts in order to deliver on the job.

Consider the scenario where emerging projects are working hard to keep the pace with the rapidly changing elements of the technology. This is also happening at a time when there are no stable regulatory frameworks to guide the industry across governments and institutions.

Why ICOs Are Failing To Deliver On Promises

One wonders why majority of the projects that carried out various forms of fundraising exercises in the last few years are yet to roll out operations in different stages. It can be understood that project development takes time, effort and resources. It would also be quite appropriate to give the benefit of the doubt to many startups who are finding it difficult to fulfill their objectives so far due to the depreciating value of cryptocurrencies.

Majority of the crowdfunding exercises in the crypto industry occurred during the bull-run that saw most tokens achieve their highest prices ever. However, since the beginning of 2018, the huge fall in prices across board has seen most of these tokens shed as much as over 80 percent of their highest value in price.

The most prominent cryptocurrencies were not left out in this crash. Bitcoin fell from almost $20,000 USD to be trading below $3,500 USD as at the time of writing. Ether on the other hand fell from around $1,400 USD to less than $110 USD within the same period of time.

With Bitcoin and Ether serving as the major transaction vehicles for majority of the ICOs, their fall in price has had a direct impact on the funds at hand for product development. Original budgets have suffered, making it difficult for most projects to keep up with their initial promises.

Commitment Is Making The Difference

While the “easy road” advocates have found excuses based on these prevailing circumstances, some determined teams are taking the bull by the horn and continuing in the process of bringing to life their original ideas. Typical in this group is the UBEX project which has not relented in updating its community with continuing developments towards the final release of the product.

Since after concluding its ICO, Ubex has reported several verifiable partnerships and technical updates. One of the key updates by the project’s CEO, Artem Chestnov comes as a video session where some members of the development team were introduced to the public, giving updates on some of the progress made so far. Beyond the organic impact of such exercises, it brings along a reassuring effect to members of the community, and upholds one of the fundamental characteristics of the blockchain industry, which is transparency.

This is where so many other assumed projects who have raised money through ICOs have failed in their responsibilities towards their investors and members of their communities. Majority of them, after being listed on exchanges seem to either relent in their efforts to deliver on their original promises. Some of them get distracted by focusing on the immediate value of their tokens rather than concentrating on developing the original ideas.

What Determines The True Value Of Tokens?

As important as getting listed on an exchange appears to be, the fundamental value of any token or cryptocurrency lies in the liquidity that is powered by implementation. Mere speculation can only sustain sentimental trends in the market. True value of tokens is a subject of viability and use of such tokens for their original purposes of creation.

Therefore, it is only encouraging for communities and investors in a project when they observe progressive product development, like in the case of Ubex. Beyond this, project development and implementation remains the only organic way to achieve true liquidity and eventual value for any given cryptocurrency.

There is uneasy calm across the overall cryptocurrency ecosystem. This can be attributed to the high level of uncertainty among most participants who engaged the market without proper knowledge of the tokenization technicalities.

What Does The Future Hold For Cryptocurrencies?

As it stands, most of the existing investors know little or nothing about the technology itself and how it affects the value of tokens. Being mostly speculators and individuals who are profit motivated, the dwindling fortunes as a result of the protracted slump in crypto prices creates an uncomfortable impression for the markets.

However, considering the fact that most of the genuine ICOs are at extended stages of product development and are expected to launch into the mainstream in the near future, it is only proper to anticipate some favourable movement in the markets down the road.

Having filtered the noise and having a better informed understanding of the various aspects of the cryptocurrency ecosystem, participants are now being able to properly connect tokens with their underlying technologies. Both newcomers and existing adopters are beginning to exhibit proper risk management measures by attempting to understand their investment environment.

More attention is also being paid to the actual project and products being developed. This trend is not only beneficial for the affected individuals, but is also healthy for the blockchain industry as a whole. When participants and stakeholders understand that tokens and cryptocurrencies are not designed to exist upon nothing, more attention will be paid to these emerging technological developments.

In the end, the uncertainties and disappointments that currently plague the industry will be naturally eliminated, then blockchain and cryptocurrencies will take their proper place in the timeline of technological advancement of humankind.

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement
Newsletter
© Copyright 2018 Coinstituency. Risk Disclosure: Coinstituency will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Cryptocurrency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite. Coinstituency would like to remind you that the data contained in this website is not necessarily real-time nor accurate, meaning prices are indicative and not appropriate for trading purposes. Therefore Coinstituency doesn’t bear any responsibility for any trading losses you might incur as a result of using this data. Coinstituency may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.