NEW COINS ON THE BLOCK
Meet a few new entrants to the cryptocurrency market
The Covid-19 pandemic has incited change across many areas of culture, and cryptocurrency is no exception. Aimed at innovating the financial industry, blockchain-based digital currencies have suffered a rocky reputation for years, but are now gaining mainstream interest thanks to their success and sustainability in this new era of economic volatility. Millennials, known to be opportunists, are eagerly awaiting the “coming consumer crypto revolution” in hopes that crypto will ultimately become more mainstream. While most people have heard of Bitcoin, read on to learn about some of the smaller, lesser-known crypto coins proliferating in this current climate.
Compound has already earned the impressive status of being the 25th most valuable cryptocurrency by market cap. Only a few weeks ago back in June, major exchange platform Coinbase announced it was listing the Ethereum token. The Compound coin spiked to over $200, a gain of more than 250%, giving it a market cap of nearly $2 billion. What’s unique about the Compound coin is that it is a “governance token,” meaning it allows owners the chance to vote on proposals for the Compound protocol, influencing new crypto assets, interest rate models, or even technical upgrades. This means that Compound could become a decentralized autonomous organization down the road.
Facebook plans to make its first foray into financial innovation via Libra. Billed as an “inclusive and innovative financial system,” this digital currency aims to be easy enough for everyone to use. Libra, also a considered stablecoin that equates to roughly the US dollar, can be spent via smartphone while shopping online or paying for services and subscriptions like Spotify or Lyft. Libra also allows users to send and request money from friends, like Venmo or PayPal. The benefit for this payment system is low to no fees, and some stores will even offer discounts for paying with Libra. Facebook aims to launch this token and its accompanying platform, the Calibra digital wallet, in October 2020.
J.P. Morgan Chase is the first major American bank to create a cryptocurrency. Categorized as a stablecoin, the value of this digital coin shouldn’t fluctuate (it’s priced at $1.00 US). The JPM Coin allows for instant financial transactions, specifically for three main cases: international payments for large corporate clients, securities transactions, and treasury services for major corporations. In the future, the JPM Coin could potentially be used for payments on internet devices. While competitors may create their own coins, J.P. Morgan is optimistic that big businesses and banks will adopt its pioneering technology.