Ontology (ONT) is a very young coin – it only just started trading last week. Confused as to why you never heard about their initial coin offering (ICO)? Actually, this cryptocurrency didn’t hold a token sale – it is one of the many new coins that were introduced into the market via airdrop.
What’s an airdrop, you ask?
No, we aren’t talking about sending photos wirelessly between Apple devices – but, yes, that’s also called AirDrop. A lower-case airdrop, on the other hand, just refers to a popular way of distributing new crypto coins: by simply sending them to the wallets of current coin holders.
The Ontology coin, for example, was airdropped to all NEO (NEO) coin owners – who got their free new currency just a week ago. For each NEO in a person’s wallet, they were given 0.1 ONT coins.
Well, now those free, airdropped coins are worth $1.43 apiece – not a bad deal, right? Sure, its price has declined by about 50% since it peaked on March 8, but that’s not too big of a shake up in the crypto world.
Now that that’s cleared up to any of our readers who haven’t heard of, or participated in, an airdrop, we can start talking about this free coin that so many NEO holders gained last week.
What kind of cryptocurrency is the Ontology coin?
Unlike pretty niche cryptocurrency options that serve a specific function, like Nucleus Vision (NCASH), the Ontology coin is part of a project that is extremely broad: building a platform where businesses can easily use distributed network technology without any blockchain knowledge.
— Ontology (@OntologyNetwork) March 13, 2018
Right now, businesses who want to implement blockchain technology must have a lot of know-how in order to deploy any sort of decentralized application (dApp). The barriers to entry are still quite high, and that’s what this company is trying to help mitigate.
To be honest, there are already a number of other blockchain-based projects that are trying to achieve pretty much the same thing – think about Dragonchain (DRGN) and its incubator program. There are countless cryptocurrency ventures driving in the same lane. How many of them can really succeed?
Here’s how Ontology (ONT) is different
Ontology (ONT) is part of the NEO network, but it’s not just your average NEP-5 token (which are coins that launch on the NEO platform). In fact, the ONT system enables businesses to create their own NEP-5 tokens.
This particular blockchain communicates with the NEO blockchain, and will help other disjointed blockchains interact with each other – another big problem facing the cryptocurrency space.
This coin is probably doing well on the exchange because it just got added to OKEx – a very popular cryptocurrency exchange.
I guess we’ll see how new NEO tokens get launched on this network, but we will have to wait to judge how successful it is.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.