99% of Token Price Is Pure Speculation, Says This Blockchain CEO

99% of Token Price Is Pure Speculation, Says This Blockchain CEO

The blockchain industry generally lacks best practices, and people are increasingly skeptical of purported value

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Speaking at a panel today at BlockShow Asia 2019, VeChain founder Sunny Lu suggested that token value is mostly arbitrary.

The panel was titled „Creating Token Value — Are Monetary Gains Hindering Blockchain Innovation?“ and it also included Eddy Travia, co-founder and CEO of Coinsilium; Matthew Roszak, chairman & co-founder at Bloq; Greg Wasserman, co-head of principal investing at Galaxy Digital; and Dr. Pavel Kravchenko, CEO & co-founder of Distributed Lab. But Lu’s commentary broke through:

“99% of a [token’s value] is linked to speculation, and not to the value that solution can bring to society. This causes many startups to waste a lot of time producing and ’selling‘ the token, failing to develop solutions for where they were initially focused.”

Discussing how to determine value for blockchain projects in this new innovation industry, other speakers highlighted the difficulty in determining value for blockchain-based projects.

“There is no way forward, no good practice that you can look at and mirror,” said Roszak. “It’s in the early years and everything is still very new, so it’s very difficult to determine the value of blockchain-based projects. Here we are learning and developing in a totally disruptive market, and I believe we will continue to develop this market.”

More skeptical of the value of the token industry, Kravchenko stressed that users need to be involved in the ecosystem and create a form of “currency” that is stable enough to allow use among features mentioned in the project.

“What is a stable currency? I don’t consider traditional currencies stable,” Travia countered, turning the debate over how to separate the value of the token from the value of the project itself.

Wasserman stressed that the question of the value of various projects are still very much connected to the value of that project’s token, and that this can undermine innovation in certain cases.

As Cointelegraph reported a little earlier, Elixxir President Jim Dolbear announced the launch of xx coin, a digital currency that will support decentralized messaging, payments, and dApps on the associated xx network.


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The blockchain industry generally lacks best practices, and people are increasingly skeptical of purported value

Tether USDT is Launching on a ‘Pure PoS’ Blockchain, Algorand

Tether USDT is Launching on a ‘Pure PoS’ Blockchain, Algorand

Stablecoin operator Tether announced that its USDT token will be released on its fifth blockchain, Algorand

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The Tether (USDT) stablecoin is about to be released on its fifth blockchain, Algorand, the company announced in a tweet published on July 17.

Tether on a ‘Pure’ Proof-of-Stake Blockchain

In a press release concerning the upcoming release of the stablecoin on the Algorand blockchain published by Tether, the company explains some characteristics of the chain. 

According to Tether, Algorand is trying to develop a “public, permissionless proof-of-stake (PoS) blockchain with an open-source approach.” Tether’s chief technology officer, Paolo Ardoino, commented on the development, saying: 

“Extending Tether into the Algorand ecosystem is a fantastic opportunity for us to further contribute to blockchain interoperability and collaboration. […] We are very excited about the potential this enables for other projects in the decentralised ecosystem and we eagerly await working closely with many of them in the future.”

According to a Medium post published in April by stacking-as-a-service company POS Bakerz, Algorand aims to solve the so-called blockchain trilemma, which refers to the difficulty of developing a system that is scalable, decentralized, and secure all at the same time. In Algorand’s consensus protocol, Pure PoS, “the network ties its security to the honesty of the majority.”

5 Blockchains Now Support Tether

As Cointelegraph reported in June, at the time Algorand has raised over $60 million in a token sale on financial services platform CoinList.

Previously, in May, USDT has been deployed also on the EOS blockchain, which now makes Tether running on five blockchains with Tron, Ethereum and Omni being the others. 

Earlier this month Cointelegraph reported that Tether accidentally minted and subsequently burned 5 billion USDT tokens on the Tron (TRX) blockchain.


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Stablecoin operator Tether announced that its USDT token will be released on its fifth blockchain, Algorand