IOSToken (IOST) only started trading about two months ago, and it has already managed to break into the top 100 (I’m talking about market value, of course). It’s not that surprising, really, considering how it was the most traded coin on Binance after just 9 days in existence.
This project has a lot to offer the blockchain industry, and what they’re working on has clearly caught some special investor attention. It’s definitely not a perfect venture, though. Let’s go over the pluses and minuses of this recently-launched digital coin.
What is IOSToken (IOST), anyway?
The IOST coin is all about the “Internet of Services” – as they call it. The whole point of this cryptocurrency is to create a marketplace ecosystem where online service providers can monetize the services they sell.
IOSToken is an ERC20 token, which means that it was launched on top of the Ethereum (ETH) network. Eventually, it will be its own native cryptocurrency and no longer an ERC20 token.
This project focuses on scalability and efficiency, two issues that have plagued some of the most successful crypto coins.
What are the pros of IOSToken?
Let’s start with the good stuff, shall we?
Technology: This project doesn’t work with Proof of Work (PoW) or Proof of Stake (PoS), like the majority of smart contract-enabling blockchain networks. IOSToken has created something new called “Proof of Believability” – which is much more energy efficient.
This is how they describe it:
“We designed the Proof-of-Believability mechanism to eliminate the need for an energy-hungry proof-of-work protocol, which stands as a barrier to blockchain scaling up for much wider use. Believability of a node is calculated based on contribution and behaviors; Meanwhile fairness is ensured with algorithmic randomness.”
Every node’s “believability” is related to things like their current IOS token balance, reviews from other users on the network, behavior on the platform, and other factors.
On top of that, the IOSToken ecosystem also has something called Hyper Universe Distributed System (HUDS), which just means that the network can host a wide variety of different types of service providers. It’s a hosting system that lets all users to keep data across several nodes in the network. Big-time enterprise services like Amazon, therefore, can be hosted on the network – along with small business owners that want to monetize and exchange their online services.
Investors love this coin: If you are currently wondering why you never heard of the token sale for the IOST coin, there’s a reason for that. There was no public pre-sale – actually, there was no public token sale at all. Can you guess the only group of people who were allowed to participate? Yes – only institutional investors could have bought in on the ground floor.
When cryptocurrency companies do this, it pisses me off. The whole point of crypto and blockchain technology is to take the power out of the hands of abusive financial institutions and put it back into the hands of the individual. Everyone should be able to participate in a public token sale – not just the super-rich elites. I guess that’s just the kind of people IOSToken wants as part of their ownership base, instead of Average Janes and Average Joes like you and me.
But I digress – this coin is obviously well-liked by rich people. That means there must be something to it, and its performance on the exchanges (compared to other coins on the market) certainly doesn’t hurt this coin’s case.
Oh, and this coin is just a couple pennies – it’s super accessible for anyone to snap up a few hundred.
And what about the cons?
Much like most coins on the market, there are drawbacks – but this currency’s downsides have more to do with timing than anything.
Roadmap: The main problem we have with this coin is the fact that its mainnet launch date is super far away. Previously, they had set the mainnet release date for Q32019 with decentralized applications (dApps) hitting the network in Q42019. The team must have realized that would be suicide, so they moved the mainnet launch date to Q42018.
If IOSToken can even hit that new date, it is still really late. We have a ton of cryptocurrency networks with their mainnets launching before that – too many to list. This platform might simply miss the boat in an already over-saturated market of dApp-supporting blockchain networks.
Ability to Compete: In the same vein as the roadmap issue, this cryptocurrency has one big thing going against it – its uniqueness. Sure, Proof of Believability is neat – but there are SO MANY other blockchains in development that say they will be able to handle millions of transactions per second without using as much energy as Bitcoin (BTC) and Ethereum (ETH). Seriously – almost every altcoin in the top 50 is trying to do the exact same thing, you guys.
Can IOSToken realistically compete with its rivals that have fully-functioning, dApp-enabling platforms launching several months beforehand?
I guess we will have to wait to see.
Sidenote: Over-hyped tweets like the one below are starting to annoy crypto investors. Companies really should stop doing misleading stuff like this – either you are going to collaborate with AirBnB or you aren’t. You guys agree, right?
Excellent to meet and get advice from Airbnb co-founder Nate Blecharczyk. We’re looking forward to introducing blockchain technologies to the sharing economy! @IOStoken #iostXairbnb pic.twitter.com/InAXcsxhqq
— Ray Xiao (@0xRayxiao) March 22, 2018
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.