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Pros and cons, types and future
What is an Altcoin?
Altcoins are generally defined as all cryptocurrencies other than Bitcoin (Bitcoin). However, some people consider altcoins to be all cryptocurrencies other than Bitcoin and Ethereum (ETH) because most cryptocurrencies are forked from one of the two. Some altcoins use different consensus mechanisms to validate transactions, open new blocks, or attempt to distinguish themselves from Bitcoin and Ethereum by providing new or additional features or purposes.
Most altcoins are designed and released by developers with different visions or uses for their tokens or cryptocurrencies. Learn more about altcoins and what makes them different from Bitcoin.
Key points
- The term altcoin refers to all cryptocurrencies other than Bitcoin (and, for some people, Ethereum).
- There are tens of thousands of altcoins on the market.
- Altcoins come in different types based on the purpose they were designed for.
- The future of altcoins is impossible to predict, but if the blockchain they were designed for continues to be used and developed, altcoins will continue to exist.
Investopedia / Michela Buttignol
Understanding Altcoins
“Altcoin” is a combination of the two words “alternative” and “coin”. The term generally includes all cryptocurrencies and tokens that are not Bitcoin. Altcoins belong to the blockchains for which they were explicitly designed. Many are forks, or the creation of a blockchain from another chain, from Bitcoin and Ethereum. These forks generally have more than one reason for occurring. Most of the time, one group of developers disagrees with others and goes off to create their own coin.
Many altcoins are used within their respective blockchains to make something, such as ether, which is used in Ethereum to pay transaction fees. Some developers have created forks of Bitcoin and resurfaced as an attempt to compete with it as a payment method, like the fork that created Bitcoin Cash.
Others fork or are developed from scratch, attempting to create a blockchain and token that appeals to a specific industry or group, such as Ripple’s attempt to use the XRP Ledger and XRP to appeal to the banking industry with a faster payment system.
Dogemonetathe popular memetic currency, was apparently created as some kind of joke. It was forked from Litecoinwhich in turn was forked from Bitcoin in 2011. Whatever the intent behind its creation, it was still designed to be a digital payment method.
Altcoins attempt to improve on the perceived limitations of whatever cryptocurrency and blockchain they derive from or compete with. The first altcoin was Litecoin, forked from the Bitcoin blockchain in 2011. Litecoin uses a different proof-of-work (PoW) consensus mechanism than Bitcoin, called Scrypt (pronounced ess-crypt), which requires less power and is faster than that of Bitcoin. SHA-256 PoW consensus mechanism.
Ether it is another altcoin. However, it has not separated from Bitcoin. It was designed by Vitalik Buterin, Dr. Gavin Wood and a few others to be used in Ethereum, the world’s largest blockchain-based virtual machine. Ether (ETH) is used to pay network participants for the transaction validation work performed by their machines. It is also used as collateral (called staking) for the privilege of becoming a block validator and proposer.
Types of Altcoins
Altcoins come in various flavors and categories. Here is a quick summary of some types of altcoins and what they are intended to be used for.
It is possible for an altcoin to fall into more than one category, such as TerraUSD, which was a stablecoin and a utility token.
Payment token
As the name suggests, payment tokens are designed to be used as currency, to exchange value between parties. Bitcoin is the first example of a payment token.
Stablecoins
The trading and use of cryptocurrencies have been marked by volatility since its launch. Stablecoins aim to reduce this overall volatility by pegging value to another asset. This is achieved by holding assets in reserve. Some of the assets held by stablecoin creators are fiat currencies, precious metals or investment goods. Price fluctuations for stablecoins are not expected to exceed a very narrow range.
Noteworthy stablecoins include Tether USDTMakerDAO’s DAI and the Currency in USD (USDC). In March 2021, payment processing giant Visa Inc. (V) announced that it will begin settling some transactions on its network in USDC on Ethereum blockchainwith the intention of introducing further settlement solutions.
Security token
Security token are tokens that represent fundraising efforts or ownership. They could also represent tokenized assets. Tokenization is the transfer of value from an asset to a token. Any asset can be tokenized, such as real estate or stocks. For this to work, the asset must be protected and held transparently. Otherwise the tokens would have no value because they would represent nothing. Security tokens are regulated by the Securities and Exchange Commission because they are designed to act as securities.
In 2021, Bitcoin wallet company Exodus successfully completed a Reg A+ token offering qualified by the Securities and Exchange Commission, enabling the conversion of $75 million of common stock into tokens on the Algorand blockchain. This landmark event was the first digital asset stock to offer equity in a US-based issuer.
Utility tokens
Utility tokens are used to provide services within a network. For example, they could be used to purchase services, pay network fees or redeem rewards. Filecoin, used to purchase storage space on a network and protect information, is an example of a utility token.
Ether (ETH) is also a utility token. It is designed to be used in Ethereum Blockchain and virtual machine to pay transactions. The former stablecoin USTerra used utility tokens to attempt to maintain its peg to the dollar, which it lost on May 11, 2022, by minting and burning two utility tokens to create downward or upward pressure on its price.
Utility tokens can be purchased on exchanges and held, but they are meant to be used in the blockchain network to keep it functioning.
Meme coins
As the name suggests, meme coins are inspired by a joke or silly interpretation of other well-known cryptocurrencies. They typically gain popularity quickly, often advertised online by major influencers or investors attempting to capitalize on short-term gains.
Many are referring to the sharp surge in these types of altcoins in April and May 2021 as “meme coin season,” with hundreds of these cryptocurrencies posting huge percentage gains based on sheer speculation.
An initial coin offering (ICO) is the equivalent of a cryptocurrency offering initial public offering (IPO). A company looking to raise money to create a new coin, app, or service launches an ICO to raise money.
Governance tokens
Governance tokens allow holders certain rights within a blockchain, such as voting for changes to protocols or having a say in the decisions of a decentralized autonomous organization (DAO). Since they are generally native to a private blockchain and used for blockchain purposes, they are utility tokens but have been accepted as a separate type due to their purpose.
Pros and cons of Altcoins
Against
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Lower popularity and lower market capitalization
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Less liquid than Bitcoin
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Difficult to determine use cases
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Many altcoins are scams or have lost the interest of developers and the community
The professionals explained
- Altcoins are “enhanced versions” of the cryptocurrency they are derived from because they aim to address perceived shortcomings.
- Altcoins with greater utility have a better chance of surviving because they have uses, like Ethereum’s ether.
- Investors can choose from a wide variety of altcoins that perform different functions in the cryptocurrency economy.
Cons explained
- Altcoins have a smaller investment market than Bitcoin. Since 2016, Bitcoin has generally remained above 40% of the global cryptocurrency market.
- The altcoin market is characterized by fewer investors and less activity, resulting in low liquidity.
- It is not always easy to distinguish between different altcoins and their use cases, making investment decisions even more complicated and confusing.
- Several “dead” altcoins have ended up sinking investor dollars.
The future of Altcoins
Discussions about the future of altcoins and cryptocurrencies have a precedent in the circumstances that led to the issuance of a federal dollar in the 19th century. Various forms of local currencies circulated in the United States. Each had unique features and was supported by a different tool.
Local banks also issued currency, sometimes backed by fictitious reserves. This diversity of currencies and financial instruments parallels the current situation in altcoin markets. There are thousands of altcoins available on the markets today, each claiming to serve a different purpose and market.
The current situation in the altcoin market indicates that it is unlikely to consolidate into a single cryptocurrency. However, it is likely that most of the thousands of altcoins listed in cryptocurrency markets will not survive. The altcoin market will likely coalesce around a few altcoins, those with strong utility, use cases, and a solid blockchain purpose, which will dominate the markets.
If you are looking to diversify into the cryptocurrency market, altcoins can be less expensive than Bitcoin. However, the cryptocurrency market, regardless of the type of coin, is young and volatile. Cryptocurrency is still finding its role in the global economy, so it is best to approach all cryptocurrencies with caution.
What is considered an Altcoin?
An altcoin is any cryptocurrency other than Bitcoin (and, for some people, Ethereum).
What are the 5 best Altcoins?
By market capitalization, the top five altcoins are ETH, USDT, BNB, SOL, and USDC.
Which Altcoin Will Explode in 2024?
No one knows which altcoin will take off in 2024. There may be no change in the market, or a new one could be introduced that would attract a flurry of investors.
The bottom line
Altcoins are any cryptocurrency that is not Bitcoin (or Ethereum). There are thousands of altcoins on the market, so it’s hard to say which ones might be legitimate and which ones aren’t. It’s best to read all the documentation behind whatever cryptocurrency piques your interest.
If there is a purpose for the blockchain and token, it might be worth keeping an eye on, otherwise consider other coins or investments. If you’re unsure, talk to a financial advisor who is familiar with cryptocurrencies to help you decide if they’re right for your portfolio.
The comments, opinions and analyzes expressed on Investopedia are for informational purposes only. Read ours warranty and exclusion of liability for more information.
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Top 5 Crypto Pre-Sales for August 2024
Have you heard about cryptocurrencies in 2011? Was Bitcoin so popular back then? Well, yes, some forward-thinking people saw its potential early and invested in BTC back then. Investors were skeptical about this new financial element; however, many took the risk and invested what they could risk in the cryptocurrency market.
Going through the list of top presales, we have identified and studied five of the main candidates that can change the game on the trading charts. These new opportunities promise the best returns and a great chance to buy tokens at affordable prices. While 5thScape is at the top of our recommendation, projects like DarkLume and Artemis Coin are pioneers in their respective categories.
Top 5 Crypto Pre-Sales to Add to Your Watchlist in 2024
Below we present the top five cryptocurrency pre-sales that you should consider adding to your investment watchlist.
- 5th Landscape (5SCAPE) – King of digital VR gaming with AR/VR elements
- Dark light (DLUME) – Virtual Metaverse for Social Exploration
- SpacePay (SPY) – Versatile Financial Payment Gateway for Seamless Transactions
- EarthMeta (EMT) – Replicating our planet on a virtual platform
- Artemis Coin (ARTMS) – NFT Marketplace for Digital Real Estate Investment
In-Depth Review: The Best Crypto Pre-Sales of 2024
Now, let’s take a closer look at these pre-sale events and how they can help investors make significant profits this year.
5th Landscape (5SCAPE)
The 5thScape project combines emerging technology using the fundamentals of virtual and augmented reality on the Ethereum platform using its native currency as 5SCAPE. Users of the token experience increased security and interactive gameplay in the digital space.
Here are the potential reasons why investors are admiring the 5thScape ecosystem:
Immersive Gameplay: With over five game titles, the platform is ready to amaze the audience with games ranging from archery, sports, battle and high-speed racing.
Innovative VR Content: 5thScape’s progress in the crypto-gaming space will contribute to the development of educational resources and other VR content on the website.
Motion Control Gadgets: This project is working hard to introduce VR devices such as headsets and gaming chairs with precise controls and high-resolution soundscapes to achieve the best immersive feeling while exploring the ecosystem.
Practical utility: 5SCAPE tokens stimulate participation in various activities and convert the ecosystem into economic value for investors.
Staking Opportunities: Acquiring 5SCAPE tokens after listing on exchanges can generate higher earnings
Free Giveaways and Prizes: The distribution of free coins and VR subscriptions attract investors.
Visit 5thScape for more details>>
Dark Light (DLUME)
We just saw how 5thScape captures investors with its AR/VR digital landscape. DarkLume works on similar VR principles but has a completely new VR metaverse. Its presale is about to hit the $1 million mark and simultaneously increase fund inflows.
What are the specifics that allow DarkLume to lead the metaverse industry?
Native currency: The project has DLUME as a digital currency that can be used for in-game purchases or upgrades. These utility tokens also give their holders the right to vote on the development and expansion of the project.
Benefits of staking: Investors who want to hold and earn from this currency expect to multiply their funds after the stock market listing.
Exploratory Metaverse: Once you enter this world, there is no turning back. There are so many opportunities to find recreational activities and relieve stress. Walking through lush landscapes and stargazing at night can be a memorable experience. If you are a party animal, DarkLume’s virtual discos and clubs will win you over.
Visit DarkLume for more details>>
Payment for space (SPY)
Traditional financial setups face many challenges in daily transactions and are also expensive. To solve these concerns, Maxwell Bunting founded SpacePay by combining cryptocurrency payments and blockchain technology. The London-based startup makes online shopping and payments more seamless by integrating its network with existing card terminals, allowing users to make payments in any digital currency. Merchants can choose to receive payments in conventional currency without having to pay exorbitantly.
SpacePay has designed a user-friendly and convenient interface that supports over 325 crypto wallets. SPY, the native token of this platform, serves to enable all transactions within its ecosystem. Tokens can also be used to generate passive income through staking and additional community rewards.
EarthMeta (EMT)
EarthMeta is a virtual metaverse created to replicate our planet, Earth. It is listed as one of the best crypto pre-sales of 2024, with a focus on creating new NFT platforms and virtual assets in premium cities. The startup encourages users to own and govern virtual landscapes.
Cities are then further broken down into smaller assets such as landmarks, buildings, monuments, parks, schools, and more. NFTs can now be bought and sold in the project’s marketplace. Governors are eligible to earn 1% fees per transaction within their city. EMT token holders can also generate more at once with custom API integrations and participation in DAO activities.
Artemis (ARTMS)
Today we have covered a number of financial projects that you can consider along with 5thScape, the most promising VR coins of the decade. Artemis (ARTMS) is a financial platform that allows investors to transact and trade using its digital asset, ARTMS. Users can also lend, borrow, stake, save, and generate rewards from yield farming.
The project is about to enter Phase 4 of development which will see the launch of the Artemis Crypto System. This system is customized to facilitate a large number of secure and transparent crypto transactions. Cryptocurrency enthusiasts and professional entities can buy and sell products such as smartphones, bicycles and internet services using crypto payments. Early investors have great advantages until the project is available at a discounted price in the pre-sale.
Read this before investing in the next cryptocurrency market
Experienced investors know the factors to consider before investing in this dynamic market. Here are some points that beginners should remember before securing a position in the cryptocurrency universe.
- It is essential to verify the project details and the founders.
- Read and understand the whitepaper for all the technical information about the ICO, the roadmap and the mission of the project.
- The project roadmap will provide greater clarity on milestones and results achieved.
- Review the fundamentals of the new technologies involved in the development of the platform.
- Before investing in any cryptocurrency, carefully evaluate the benefits and risks to avoid losses and build a profitable portfolio.
Conclusion
5thScape ICO Offers Tokens at Deeply Discounted Prices. Once the presale is over, the token price will skyrocket 434% from the first round and promise 600x returns to early investors. Who wouldn’t want to be part of an innovative and growing VR ecosystem? Check your details, review all the documents and start investing in 5thScape now.
Time flies, and so does the $100,000 prize.
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Best Upcoming Cryptocurrencies for Long-Term Profits: Turn $100 Into $1000 With These Picks
Have you ever wondered how much return Bitcoin has given to investors who bought this gold cryptocurrency a decade ago? In 2014, Bitcoin reached its significant milestone of $1,000 in the first month. Currently, it is trading at around $64k, which is an astonishing 6300% increase in the span of 10 years. No stock, no ETF could ever give you such monumental returns. This simply proves that the cryptocurrency market turns your dreams of investment returns into reality.
While the established giants are not giving so much returns now, the ball is in the court of upcoming cryptocurrencies that are based on the development of projects to provide up to 1000x returns in the near future. In this article, we will explore 5 upcoming cryptocurrencies for long-term earnings that can turn your $100 into $1000 – the only key is strategic investing with a lot of patience!
Best Upcoming Cryptocurrencies For Long Term Profits
Below we list the top 5 cryptocurrencies for long-term gains, which are set to give you returns of up to 1000 times in the coming times.
- 5th Landscape (5LANDSCAPE)
- Dark light (DISGUST)
- BlockDAG (BDAG)
- eTukTuk (TUK)
- WienerAI (WAI)
Take a deeper look at the background of these 5 upcoming cryptocurrencies for long-term gains and see why they could be viable options for your cryptocurrency portfolio.
1. 5° Landscape (5SCAPE)
5thScape is changing the face of entertainment by merging augmented and virtual reality with blockchain technology, offering a VR content ecosystem unlike any other destination on the internet. Its native token, 5SCAPE, is the cornerstone of this innovative ecosystem. With a limited supply of 5.21 billion tokens, 5SCAPE offers early investors a unique opportunity to participate in the growth of a potentially transformative platform.
Combining the immersive experiences of VR technology with a cryptocurrency that has a real-world use case, 5thScape presents a compelling investment proposition. The project’s focus on providing unparalleled user experiences, coupled with its potential to generate substantial returns, makes 5SCAPE an ideal new cryptocurrency to have in your portfolio for long-term gains.
Click here to invest in 5thScape today >>
2. DarkLume (DLUME)
DarkLume is a meticulously crafted metaverse where users can experience a lavish digital lifestyle. At its core is the DLUME token, the currency that powers this virtual economy. By owning DLUME, users gain access to exclusive experiences, from owning virtual properties to attending high-society events and hosting virtual celebrations with their friends.
The metaverse is divided into virtual countries, each with its own citizenship requirements. To become a citizen, users must possess a specific amount of DLUME. Maintaining citizenship involves paying taxes in DLUME and creating a sense of community and responsibility among users.
Unlike other metaverse platforms that are limited to digital interactions only, DarkLume offers a wide range of activities, from leisure and entertainment to social interactions and exciting experiences. The platform’s focus on luxury ensures that every aspect of the metaverse is designed to exceed expectations. As DarkLume continues to grow, its DLUME token is expected to be in high demand. The metaverse concept is supported by renowned names such as Mark Zuckerberg and Satya Nadella. As it is the future of immersive socialization, the DLUME token is expected to appreciate in value over time.
Explore DarkLume’s website to learn more
3. BlockDAG (BDAG)
BlockDAG is an innovative blockchain platform that uses a Directed Acyclic Graph (DAG) structure together with blockchain technology to offer fast transaction speeds, lower fees, and better scalability.
Unlike traditional blockchains that process transactions sequentially, BlockDAG processes them in parallel, which allows it to handle a much higher transaction volume. This approach makes BlockDAG an ideal platform for applications that require high throughput and low latency, such as DeFi, gaming, and IoT. Its presale has been a great success so far, and BlockDAG’s adaptability may be an optimistic sign for early investors in the BDAG token.
4. eTukTuk (TUK)
eTukTuk is a new leading crypto project that combines sustainable transportation with blockchain technology. Its main goal is to electrify the famous “tuk-tuk” industry, reducing carbon emissions that cause environmental damage while creating a thriving ecosystem. Its TUK token powers the entire platform.
One of the most notable features of eTukTuk is its Play-to-Earn (P2E) gameplay. Players can earn TUK tokens by completing challenges and missions in the game. This gamified approach not only makes the platform engaging but also incentivizes user participation in building the eTukTuk ecosystem. The primary utility of the TUK token is as a mode of payment for tuk-tuk drivers who use EV charging stations for their vehicles installed across Sri Lanka. The project will soon expand to other countries.
Overall, the value proposition of the TUK crypto token is strengthened by its utility within the platform. It can be used to purchase electric tuk-tuks, charge them at the network’s charging stations, and access various platform services. As eTukTuk adoption grows, demand for TUK tokens is expected to increase, potentially resulting in significant appreciation in the token’s value.
5. WienerAI (WAI)
WienerAI is a new blockchain-based platform that uses next-generation artificial intelligence (AI) technology to transform the cryptocurrency trading space. Its flagship product is an AI trading bot (with a sausage-themed mascot) designed to analyze market trends, identify potential opportunities, and execute trades with zero errors. With the power of AI, WienerAI provides users with a market edge in the complex and dynamic world of investing.
The platform’s native WAI token is a digital asset that underpins the entire ecosystem. Token holders can enjoy various benefits, including discounted trading fees, priority access to new features, and even a share of the platform’s profits. As WienerAI gains traction and its AI trading bot proves successful, the continued flow of demand for the WAI token will fuel its price.
Final Thoughts: Best Cryptocurrencies for Long-Term Profits
Each cryptocurrency project explored in this article brings a unique and innovative perspective to the blockchain industry. From the immersive worlds of 5thScape and DarkLume to the efficiency gains of BlockDAG and the sustainability focus of eTukTuk, not to mention WienerAI’s AI-powered trading bot with a new approach to investing, these projects are pushing the boundaries of what’s possible with blockchain technology.
While all of these projects are promising, 5thScape and DarkLume stand out as particularly interesting investment opportunities. The combination of 5thScape’s robust VR ecosystem tokenomics and unique AR/VR offeringstogether with the fantasy world of the DarkLume metaversehas the potential to appeal to a wide range of investors who may be entertainment lovers, not just cryptocurrency enthusiasts. Given their current presale stages, acquiring 5SCAPE and DLUME tokens at these early-bird prices could prove to be a strategic move for those seeking substantial returns.
This is a sponsored article. The opinions expressed are solely those of the sponsor and readers should conduct their own due diligence before taking any action based on the information presented in this article.
News
Avalanche Predicts ‘Most Bullish Unlock’ in Broader Market $1 Billion in Token Release
Token Unlocks data shows that several crypto projects:AvalancheWormhole, Aptos, SandboxArbitrum, Optimism and others are set to unlock around $1 billion worth of tokens in August.
Approximately $260 million will be allocated in the first three days of the month.
Crypto projects often schedule token unlocks to control the asset supply and prevent market oversaturation. This gradual release helps avoid significant sell-offs by early investors or team members who hold large amounts of crypto assets.
Wormhole and Avalanche to Release Over $400 Million in Tokens
The biggest news this month will be Wormhole and Avalanche.
On August 3rd, Hole in the walla cross-chain messaging protocol, will release 600 million tokens worth $151.67 million, or 33.33% of its circulating supply.
Avalanche will follow on August 20, unlocking 9.54 million AVAX tokens worth approximately $251 million, or 2.42% of its circulating supply.
The Token Unlocks dashboard shows that 4.5 million AVAX, worth $118.53 million, will go to the Avalanche team, 2.25 million AVAX, worth $59.27 million, will go to strategic partners, and the remainder will go to the Foundation and as an airdrop.
Farid Rached, former head of ecosystem growth at Avalanche, underlined that this planned unlock would be the most bullish in its history because “it is the last big step for the team and public/private investors.”
Other important unlocks
Sui, a layer 1 network, will unlock 64 million tokens worth $50 million, or 2.56% of its circulating supply, on August 1.
Similarly, decentralized exchange dYdX will issue 8.33 million tokens worth nearly $11 million, or 3.65% of its circulating supply. These tokens will be distributed to investors, founders, staff, and future employees.
Aptos will unlock 11.31 million APT tokens worth $74.64 million on August 12. These will be allocated to the Aptos community, top contributors, the foundation, and investors, with top contributors receiving the largest share: 3.96 million APT worth $26 million.
On August 14, Sandbox will release 205.6 million SAND tokens worth $66.75 million. This issuance will be split between the team, advisors, and a corporate reserve.
Finally, Ethereum’s layer 2 networks Referee AND Optimism will collectively unlock over $110 million worth of tokens by August 16 and 31, respectively.
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Big Tech Beats Bitcoin (BTC) as Trump’s Trade Cancellation Weakens Token
Bitcoin has failed to join the cross-asset rally fueled by dovish comments from the Federal Reserve, as the tight US election race casts doubt on Donald Trump’s ability to implement his pro-cryptocurrency agenda.
The digital asset slipped 2.4% on Wednesday, tracking a Fed-fueled surge in an index of the Magnificent Seven large-cap tech stocks by one of the widest margins in 2024. The token fell further on Thursday, changing hands at $63,750 by 6:10 a.m. in London.
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