When a cryptocurrency token gains momentum and value, newcomers may want to invest in those options. For example, BitTorrent Token, or BTT, recently had a massive price surge, even though the ecosystem leaves something to be desired. That may change once the mainnet goes live, although there will also be a redenomination.
The Purpose of BitTorrent Token (BTT)
If one were to speculate on the future value of cryptocurrencies, BitTorrent Token might prove to be a risky buy. It has already gained over 60% in value, and that momentum will eventually halt. However, there is an even bigger issue to figure out: finding what people would even use BTT for. The BitTorrent protocol is free to use and provides the experience most people are looking for without the involvement of that token.
The recent BTT price surge has little to do with the current utility. Users can achieve a higher download speed through BTT by using BitTorrent Speed. However, users can earn BTT if they seed files after downloading them. Even though it doesn’t necessarily warrant users to hold BitTorrent Token, a simple system. Instead, there’s a more significant incentive to sell one’s earnings as quickly as possible.
Is It Worth Speculating?
That is the big question for a lot of people right now. Those who invested in BTT months ago may still struggle to break even. The token is nearly 72% removed from its all-time high recorded in early April 2021. The market can overcome such a gap over time, but only if there is enough demand for the token and how they can use it. Unlocking extra download speed might not necessarily be that great of an incentive for users.
Additionally, the recent price surge will bring a lot more eyeballs to BTT, which can prove beneficial. However, there will also be many people trying to chase this pump, even though it seems more plausible to assume the uptrend will come to an end soon. Even with the mainnet launch around the corner, there are very few reasons to hold BTT beyond speculative purposes, and that hasn’t gone too well for many people.
BTT Mainnet Launch is Imminent
There is finally a launch date of the mainnet launch for BitTorrent Token. The network will go live on December 12, 2021, which is why the BTT value went up over the past few days. Such news often triggers more price speculation, even though that momentum is likely to be short-lived first and foremost.
Known as BitTorrent Chain (BTTC), the network will be a heterogeneous cross-chain interoperability protocol. It is compatible with Ethereum, TRON, and Binance Smart Chain, with other chains to be supported later on. Additionally, BTTC makes use of sidechains to scale its native smart contracts. That will be interesting to behold, as it may lead to some new use cases for the BTT token.
But There Is A Redenomination
Holders of BTT will look forward to the BTTC mainnet launch in a few days. Unfortunately, they will also have to deal with a redenomination to increase the current token supply by a factor of 1,000. More specifically, the supply of BTT tokens will be increased to 990,000,000,000,000. As a result, all users will see their holdings increase at a ratio of 1:1000, and exchanges and wallets will need to perform or facilitate token swaps within 30 days of the mainnet launch. Manual swapping will remain available permanently.
With the new tokens, users can apply for a validator position, staking BTT to gain rewards, participating in governance, and paying gas fees. Interestingly, unswapped tokens retain their use cases, including paying fees from storing files in BTFS, BFTS mining, and increasing download speeds. In addition, the new token will embrace the TRC20 token standard, instead of TRC10.
Existing tokens will see their value decrease through the redenomination, while the project’s overall market cap should remain the same. Although some users will undoubtedly oppose the idea, it is not a terrible idea.
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