A token analysis of Bitcoin Air XAP token
Posted November 11,2018 in Science and Technology.
The cryptocurrency market has seen a downturn- a phase experts popularly call 'Bear Market' in 2018. It is what has characterised the crypto market all year long. Prices of crypto tokens sliding downward like an avalanche from the top of Everest. The market has seen big tokens like Bitcoin and Ethereum crash down in prices- Bitcoin dropped from its peep price of around $20K to less than a thousand dollars. A price change many investors rue so much. Ethereum on the other hand tasted the dip as far below $200. But clearly, the market only indicates the fragility of the structure of most crypto tokens in circulation.
Cryptocurrency is a huge space and many projects are picking different use cases and certain industries to adopt blockchain technology. The problem is usually the token system of these projects. Most crypto tokens are utility tokens that are structured to thrive and increase in value only as the user base increases. This will only hurt the long term plans of such token if the expected utility rate isn't met.
Analysis of the market has shown that token value reduces drastically once they are listed on exchanges. A lot of token holders scare easily and head directly to exchanges to dump upon listing. The brutal devaluation of tokens is because no one want to keep a worthless asset in their portfolios. The market is only an aggregate of the transactions of various tokens in the crypto space and the value change of these tokens is to a great extend dependent on the utility structure of each token. Tokens designed to increase in value only by market dictations will surely face the cruel slide of the dip. It is important that projects design multiple utilities for their tokens and different means to ensure good token value.
There is a new blockchain project called Bitcoin Air which aims to create more than one utility for its token.
Bitcoin Air is built to solve many of the challages that are hindering mainstream adoption of cryptocurrency as a daily means of exchange. The existing tokens do not provide a parallel transactional value and are also volatile in relation to the dollar. The Bitcoin Air is designed to scale the market easily and provide a better usability for crytptocurrencies so that they can be adopted more easily for daily transactions.
The current cryptocurrency market has shown that for a token to be successful and increase in value for a long term, it must have its own token economy. It's not enough to sit back and wait for users to hold the token and hope that the value increases over time. It is important to create a good token economy and support in order for tokens to have a long term value. Bitcoin Air has created a token with unique economy and support mechanism. As a multi-utility token, the XAP token is created for enterprise use and not only for users to hold in other to increase its value.
One of the many utilities of the XAP token is for small businesses. XAP tokens will be used by start-ups and small businesses across the world. Many enterprises are looking to support good projects and expand their enterprises through good means of financial payment.Therefore a good token structured with multiple utilities will thrive well in this market. XAP token model will see it scale the market very easily since its price support is based on transactional circulation of the tokens.
As a project that is focused on more adoption of the crytptocurrency for daily utility and correcting the many complications in Bitcoin's structure and design as a payment tool, Bitcoin Air XAP token system will hold value for all forms of utilities.Not only is the XAP token created for enterprise use, it will also be stable and solve the issue of token volatility against the dollar.
Bitcoin Air project is coming in as a real disruptive force. The team is cored on utilising the decentralised and trustless benefit of the blockchain technology and off-chain token protocols to create a flexible yet strong token that will scale on many levels. The modelled XAP token is a multi-utility token designed to effectively serve both individual user utilities and enterprise utilities.
The Bitcoin Air project is demonstrating a clear example of how fork anchored on the blockchain can effectively create a strong token economy that will maintain an impressive long term value. The bear market is a proof of the vulnerability of most utility tokens. And an indication that a multi-utility token system is the new way to go.