Internet Computer (ICP): the 3.0 scam?
In the midst of a world of hype, the “Internet Computer” project developed by the start-up Dfinity exploded on the cryptographic scene this year after 5 years of particularly secret development. The promise of a decentralized Internet 3.0 offering a globalized service for Dapps (decentralized applications). In other words, revolutionize the existing internet by allowing developers to install their code directly on a “public internet” without having to resort to third-party hosting companies. One storytelling well established. On the other hand, many suspicions were brought to light during its ICO (the public sale of tokens associated with the project) because in two months the price fell by 95% of its value. Crypto community accuses executives of mass-selling their tokens (“tokens” in the Anglo-Saxon version) to make profits (we are talking about several billion dollars). The management never responded …
Speculators, chasing the next big thing in cryptocurrency, flocked to ICP tokens when they were listed on major platforms in mid-May, sending prices skyrocketing to as high as an all-time high of $ 700 on May 10. ICP price has since collapsed completely, falling to an all-time low of $ 24.29 on Dec. 4, a painful 96% drop from its peak seven months earlier.
Rank by market capitalization
Initial position during 2020: 8
Final position in 2021: 40
ICP price in 2021
Source: CoinMarketCap
EOS (EOS): the flop par excellence?
The old cryptocurrency darling, which many said was going to kill Ethereum, has actually changed very little in terms of price this year, as those around it have exploded. The network was launched in 2018 by Daim Larimer, the creator of the smart contracts wants to make it the global benchmark for decentralized applications (Dapps). EOS promises to easily build Dapps on its blockchain. For the record, its creator also launched Steem and Bitshares, two other cryptocurrencies that have had mixed success. The highly centralized system imposed by the consensus algorithm put in place is getting bad press in the cryptosphere. Little communication, excessive centralization of validator nodes on the network creating an extreme security risk, a technology far from revolutionary, among others, have made EOS dark day after day. At the beginning of November, members of the EOS ecosystem expressed their dissatisfaction with the direction taken by the network.
EOS was already out of the top 10 by market cap on January 1, 2021, and continued to fall deep into the rankings throughout the year. The price of EOS has gained only a meager 30% over the year, while its counterparts have reached three or four digits. We can therefore consider that it is a loser in the blockchain ecosystem, but above all a project with which we must take the tweezers before investing even one euro.
The once popular EOS token is trading at $ 3.26 at the time of writing, and has fallen to 50th place in terms of market cap. It is currently down 86% from its all-time high in April 2018 of $ 22.71.
Rank by market capitalization
Initial position in December 2020: 15
Final position in 2021: 50
EOS price in 2021
Source: CoinMarketCap
Monero (XMR): the digital currency of the dark web?
The privacy-focused cryptocurrency Monero has also fallen sharply in the market capitalization rankings this year as a number of major platforms have removed digital assets that offer full anonymity from the list such as of Monero. Cryptocurrency is opposed to Bitcoin whose transactions are public and therefore can be traced. For Monero, the blockchain is opaque, so we cannot identify the individuals carrying out transactions and the amounts exchanged. Despite a technically well-built blockchain, privacy by default gets bad press. Regulators might be inclined to ban it because the asset in question is seen as the digital currency of the dark web. Some platforms have already taken the lead regarding its ban for fear that it will damage their image.
XMR price has advanced 47% this year and is still far from the all-time high of $ 524 in January 2018. Currently trading at around $ 230, XMR has fallen 66% from the all-time high, positioning it at 49th place in the market capitalization ranking.
Rank by market capitalization
Initial position in December 2020: 16
Final position in 2021: 49
XMR price in 2021
Source: CoinMarketCap
Between slayers and fanatics, the cryptocurrency universe divides. For some, it is a new decentralized and disintermediated world, and for others, a giant scam forming an unprecedented speculative bubble. As you can see, the objective here was not to reconcile the two camps. Although many crypto projects are built for obscure ends inevitably leading to the ruin of investors, some have the merit of providing an alternative to the existing system. Like the Internet in the 2000s, many unconvincing companies quickly disappeared, giving way to ambitious and well-built projects that we all know today: Google, Facebook, Amazon… Any technological disruption starts with its share of doubts and criticisms. The period of mass adoption comes later. Far be it from me to say that digital assets are going to disrupt our daily lives. On the other hand, being warned for informational purposes of the technological cataclysm that is brewing behind the scenes will only be a force if it were to become democratized. It is clear that we can already set aside certain projects.
I concoct for you a recap of the shattering entries in the Top 20 of this year. Promised, this time around we will pass on the safe side of the strength of the cryptosphere.