Electroneum ICO: Evaluation and Analysis
Electroneum ICO ran from September 14 to October 31, 2017, during which it acquired the record as the biggest cryptocurrency ICO ever.
Evaluation Of Electroneum
The electroneum ICO performed well beyond expectations. In the cryptocurrency’s whitepaper, the team made a projection of about 10,000 contributors which was about half of the record number of about 22,000 held by by the cryptocurrency, Tezos. This figure was passed by 22 times as the ICO garnered about 220,000 contributors and also had up to 300,000 registered interests. Electroneum is now the record holder for the biggest cryptocurrency ICO ever.
Price Of Electroneum
Electroneum was sold at a price of $0.01 during the ICO. The two decimal places is as a result of the total coin supply of electroneum being capped at 21 billion in a bid to give the coin a real money feel. This is one of the major selling points of the coin. However, the idea is not as unique as it sounds as several other alt coins have tried it in the past all in a bid to get an edge over other coins with varying levels of success.
Total Coin Offering and Sales
A total of 6.3 billion coins was offered for sale during the ICO and about $40,000,000 worth of coins was purchased. The leftover coins will be added to the additional mining pool from which users will be able to mine electroneum coins using their mobile phones. Six possible roadmaps based on different levels of fundraising ($0-1 million, $1-5 million, $5-10 million, $10-20 million, $20-40 million, and $40+ million) were used during the ICO.
The number of Electroneum coins sold in exchange for $1 declined by 10 for each week of the token sale, starting with 150 coins issued per $1 in the first week.
Conclusion of Evaluation
All things considered, the electroneum ICO has been an immense success with the public response way beyond expectations. This is evident in the fact that it now holds the record for the biggest ICO ever and in the way people are urgently expecting the launch of the cryptocurrency so that people who have not bought in can do so and people who have already bought can buy more electroneum. All in all, electroneum had an ICO as successful as can ever be wished for.
Analysis Of Electroneum
Due to the immense success enjoyed by the ICO, a lot of people have declared the electroneum cryptocurrency as a slam-dunk success. However, this is not so as there are still a number of factors which can influence the cryptocurrency negatively and make its value unable to rise once the novelty of the ICO’s success wears off. In the whitepaper, the electroneum team highlighted a number of strong points which makes their cryptocurrency different from and better than others. However, a closer look at this points suggests otherwise. Here are some of the points.
The whitepaper states and constantly reiterates the total coin supply capped at 21 billion to give the coin a real money feel. This idea is not so novel as several other alt coins have tried it before with varying levels of success. Also, the supposed “real money” problem with with bitcoin and other altcoins is mostly due to price volatility, a problem to which electroneum offers no solution.
The whitepaper also constantly hammers on the most popular strong point of the coin: the designing of the coin specifically for smartphones. This move is not as smart as it looks. There are plenty wallets available for smartphones. The benefit of mining on a smartphone is also not quite clear. If its on the point of being able to gain easy access, there are plenty of apps available such as Bitmaker which already solve this problem for bitcoin, the most widely-used cryptocurrency, which means the designing of electroneum specifically for smartphones is a moot point. The stability and established value of bitcoin combined with these options will make it a better choice.
The electroneum whitepaper also makes the point of the fast microtransactions. However, there are plenty of other alt coins such as Litecoin that already focus on microtransactions. Also, due to difficulties in conducting on-chain microtransactions in a secure way, bitcoins development raodmap has turned to layer two options such as the Lightning Network for smaller payments which means electroneum does not really have any edge on bitcoin in this aspect.
Developing its own blockchain rather making use of the ethereum or bitcoin blockchain technology means the token base will be less secure in terms of preventing double spending.
Also, the whitepaper does not offer a compelling reason as to why an investor would want to invest in electroneum. One the the given example of the intended targets stated in the whitepaper is “those looking to acquire Electroneum coins and sell them to other investors and speculators to generate short-term gains”. This implies that the only reason why investors would want to buy the coin is to dump them not long after the initial purchase for profit. This means no reason is given for the price of the coin to increase.
Conclusion of Analysis
From the above stated facts, it is clear that electroneum does not offer such perfect solutions to the problems outlined as it has led us to believe. While the success of the ICO has indicated a widespread acceptance from the public, it is clear that once the novelty wears off, people will begin to ask these questions and the answers given by electroneum might not be sufficient.
The facts discussed in the previous sections does not indicate that electroneum is a scam or that it will fail. However, it does advise all investors out there to be careful and wait till people start asking questions and answers are provided before putting their money in it.