DasCoin, a rising player in the digital asset market, launched a highly anticipated public exchange in London approximately a month ago. The critical question here is whether DasCoin is just another entrant in the thriving cryptocurrency climate or whether it’s a digital asset worthy of your time and investment.
As of May 30, 2018, there were 1,874 cryptocurrencies other than Bitcoin, boasting a total market cap exceeding $328 billion, as per a report from cryptocurrencies watch site. These stats represent an increase of 216 from the count of alternative coins registered on March 16, 2018, a mere 75 days earlier.
Interestingly, the count of cryptocurrencies on March 13,2018, was 30 less, at 1,638 altcoins, according to the investing website, Investing. Another resource site CoinMarketCap, lists over 1,040 digital coins. As stated by this site, more than 626 Bitcoin variants boast a market cap exceeding $100,000, and 39 of them have a market cap over $1 billion.
Essentially, the leading ten cryptocurrencies harbor over $100 billion in market capitalization. But why are these cryptocurrency statistics critical? The rapid proliferation of alternative coins is projected to accelerate, leading to more investment in both the creation of new coins and the infusion of capital into existing ones. However, potential problems lurk beneath these developments.
As expressed by Hunter Horsley, co-founder of BitWise Asset Management, certain folks are still testing the waters and figuring out what works best. Chloe Cornish from the Financial Times further emphasizes that this “trial and error” approach could lure investors into unsustainable “pump and dump schemes”.
This poses the question of whether investing in DasCoin, with its recently revealed public exchange, unique blockchain technology, and distribution model, is worthy at all. What makes DasCoin stand out?
The most striking aspect is the combination of centralized management and decentralized coin distribution that the company employs. The most effective cryptocurrency models have a central entity or board steering the direction. The company states that the intention behind this structure is to ensure transparency and accountability, thereby inspiring more trust among investors.
The management team which includes both current company founders and past professionals from the finance, digital technology, and marketing sectors, have “Trusted Roles,” which include leading and managing to ensure the Das Ecosystem is secure, its members are verified, and that users receive relevant updates regularly among other responsibilities.
Another enticing aspect is the use of a Permission Blockchain approach. Investors keen on putting their money in DasCoin will have to become authenticated, which is in line with international finance laws requiring user verification. The company uses a “Know Your Customer” verification process, ensuring all user details are kept confidential and shielded from third-party breach attempts.
Conversely, compared to Bitcoin, users aren’t anonymous which could potentially deter some potential investors. However, this might be a positive aspect for the industry moving forward.
When it comes to minting, DasCoin uses a NetLeaders license, through which investors acquire cycles that further convert into digital coins for various purposes, thereby ruling out the technicality of mining. The license can be purchased using Bitcoin or Euros. The company also runs an incentivising referral program for its potential mass adoption.
With governments worldwide making policy tweaks specifically targeted at the cryptocurrency industry, practices like permission blockchain and anti-money laundering might become the new norm for legitimate cryptocurrencies and exchanges.
DasCoin could be a valid consideration for a legitimate cryptocurrency because it eliminates the challenges of mining and the risks associated with anonymity.
However, potential investors should perform thorough research and diligence to comprehend what they are signing up for.
