That fleeting Altcoin frenzy probably isn't what you think it was. The next crypto rally won't be like the ones you remember, it's a whole new thing.
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For a fleeting moment, it looked like altcoin season was finally here. Google searches for “altcoins” skyrocketed to record highs, 𝕏 was buzzing, and retail excitement seemed to return in full force. But within a week, that hype fizzled out almost as quickly as it appeared, leaving traders wondering if the long-awaited alt season was just a mirage.
A Spike That Vanished Overnight
Search interest for “altcoin” on Google Trends hit its highest score ever in early August, only to fall back to baseline levels within days. Globally, the same pattern played out, with scores dropping from 100 to just 16 in a week, mimicking a “pump and dump” pattern that you would expect from a memecoin.
Market cap data told the same story. The total value of altcoins (excluding Bitcoin and Ethereum) briefly climbed by $100 billion before giving it all back, leaving investors wondering whether the hype had any real weight behind it.
Naturally, some saw the collapse as proof that the altcoin season had ended before it really began. Others, however, like analyst Cyclop, argue the spike shows something deeper: that “altcoin” has become the mainstream term retail uses today, replacing “crypto” in 2021. In his view, this isn’t the peak. Rather, it’s just the beginning of broader interest.
Why Google Trends Doesn’t Tell the Whole Story
Relying on Google searches to measure retail demand may no longer work the way it used to. With AI tools increasingly replacing traditional search, and with concepts like “altcoins” now part of everyday investor vocabulary, Trends data might not be capturing where and how money is really flowing.
Instead, analysts point to on-chain and trading activity as better indicators of where momentum is building. And in August, that momentum was fragmented.
A Season of Winners and Losers
Data from Artemis showed only a few categories outperforming last month: Ethereum, exchange tokens, and oracles.
Beyond these bright spots, however, most altcoins struggled. The result? A patchwork “mini season” rather than the explosive, across-the-board surge that retail and social media had been hoping for.
Polygon’s co-founder Sandeep put it bluntly: "Retail is searching, but institutions aren't buying the narratives yet. Old altcoin seasons were driven by speculation and promises and narratives and marketing. Institutional money is smarter money. It cares about real utility and cash flows. The next "alt season" won't look like 2017 or 2021. It’ll be fewer tokens with actual usage, not just tokens with better marketing." Sandeep said.
The Road Ahead
That doesn’t mean altcoin season is dead, it probably just means it’s evolving.Coinbase has suggested that the next true wave could arrive as early as September, but that it likely won’t be a full-scale altcoin season.
Bottom line? The altcoin season isn’t gone; it’s just different. It’s maturing. And the next leg up may not belong to every token in the market, but only to the select few proving they can deliver value beyond mere speculation.
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The global financial crash in 2007 was the catalyst for the creation of Bitcoin. Designed to provide a decentralized way in which people can manage their own money, digital currencies slowly infiltrated the greater financial markets.
Almost a decade later, crypto adoption is at its highest and for the first time challenging traditional financial institutions and their product range. So, which is better? Let's explore the pros and cons of each category.
Blockchain technology has seen an incredible increase in interest in the last few years. While it provides a universal backbone relevant to almost any industry, it has also brought the world cryptocurrencies, NFTs, decentralized finance (DeFi) and other digital assets.
Tackling existing centralized monetary challenges, blockchain technology and digital currencies are two of the greatest inventions of the 21st century.
Digital currency versus banking
Cryptocurrencies are decentralized digital currencies that can be used to exchange goods and services as well as a store of value. They're typically acquired through crypto exchanges and kept in secure crypto wallets. These virtual currencies are autonomous, operate in a secure manner with little human interaction, and are increasingly considered the future of finance.
The predominant financial systems in the world are currently banks. They provide financial services to those that meet their requirements, including loans, savings, and other financial services.
However, unlike cryptocurrencies, they have several problems core to them being centralized and susceptible to biases. They're also slower than cryptos, and some of them charge exorbitant interest rates on loans as well as routine purchases.
The pros and cons of the Banking system vs digital currencies
There has been little development in the banking sector in the last several decades, so while the products are useful there has been very little innovation in the space. Below we outline the current challenges that the traditional systems face when compared to the advantages of a digital currency.
Financial Inclusivity
Banks are notorious for requiring lengthy paperwork and in-depth background checks. They are also known to provide different products and limits to different groups of people, including payment durations, soft loans, limits, etc.
When creating the digital currency Bitcoin, Satoshi Nakamoto wanted to counteract this financial inclusivity pertaining to fiat currencies and the greater financial system and instead provide a financial product available to all. Cryptocurrencies, therefore, do not require any paperwork or identification to operate or open a digital wallet.
While buying digital assets on an exchange will require personal information, they do not require any background checks or credit scores. Unlike in the traditional financial system, engaging in crypto markets is also not exclusive to location, allowing anyone from any corner of the globe to immediately access the digital payment systems.
Accessibility
Banking institutions operate within certain hours and are closed on weekends, meaning that transactions can sometimes take days to clear. They will also typically require an in-person authentication for very large transactions, and affect the remittance markets in the global financial system.
Cryptocurrencies on the other hand operate 24/7 (even on public holidays) as they are maintained by members all around the world. Cryptocurrencies provide zero downtime with unlimited amounts and do not require third-party authentication before making transactions. One digital currency can send value to the other side of the world in minutes, requiring no in-person authentication.
Security
The banking industry, particularly online systems, are susceptible to being hacked, alongside fraudulent activities and money embezzlement. While this is not always the direct fault of the central bank or financial institutions, it has become a common problem as ill actors have learned how to navigate the security systems and trick the owners of these accounts.
Through the use of blockchain technology, transactions cannot be intercepted or reversed, and are handled in a peer-to-peer nature ensuring that they do not go through a third party for authentication and require minimal human interference.
Fees and Transaction Times
During transaction periods, banks often add on extra costs and taxes. When sending and receiving money, banks frequently charge very high transaction fees and taxes, especially when conducting international remittances. These transactions also take a long time to clear due to their sluggish procedures, especially for large amounts of cash.
Cryptocurrencies provide an excellent solution to the remittance markets as they provide fast and cheap transactions. Blockchain technology ensures that they clear in several minutes (depending on the cryptocurrency and the network’s congestion at the time) and that they are sent directly to the recipient’s wallet (as opposed to waiting for the receiving bank to clear the transaction).
Diversification
Traditional banking services generally lack significant diversification options due to their competitive pricing structures. However, cryptocurrencies enable users to engage with multiple products simultaneously, which can provide opportunities for leveraging various networks and creating portfolios with reduced risk concentration.
Smart Contracts
Another advantage that blockchain currently holds over traditional banking systems is the use of smart contracts. Smart contracts are digital agreements that automatically execute once predetermined criteria have been met. Leveraging smart contracts in the financial services industry offers a seamless and entirely decentralized approach to modern banking.
Which is Better: The central bank or digital assets?
Comparing central banks and digital assets reveals intriguing aspects of both systems. Banking systems have become an integral part of modern society, underpinning economies and facilitating everyday financial transactions. They offer stability, regulatory frameworks, and familiarity to the masses.
On the other hand, cryptocurrencies introduce a realm of innovation. Their decentralized nature challenges traditional financial paradigms, enabling secure and direct peer-to-peer transactions. Additionally, cryptocurrencies empower novel applications such as smart contracts, decentralized finance (DeFi), and tokenization of assets.
Selecting one over the other isn't straightforward due to their contrasting strengths. Central banks provide stability and a well-established foundation, while digital assets spark possibilities for disruption and financial inclusivity.
Presently, these financial systems coexist synergistically. The banking system maintains its role as a bedrock for economic operations, while digital assets complement by offering alternative avenues for value exchange and financial exploration. As both systems continue to evolve, it's likely that their interaction will shape the financial landscape in intricate and unexpected ways.
Why not use both? Tap offers the perfect solution to merging the best of both worlds through an innovative alt-banking mobile app. Through the app, users can load both fiat and cryptocurrencies into their unique, secure digital wallets and use both interchangeably to pay bills, send money to friends, and even earn interest. Get the best of both worlds by enjoying the benefits of both the traditional banking systems and cryptocurrencies.
Why not harness the strengths of both paradigms? Embracing this dual approach, Tap presents a groundbreaking solution that seamlessly blends the attributes of both money accounts and digital assets within an innovative mobile application. Tap empowers users to effortlessly load fiat currencies alongside cryptocurrencies into their individualized, secure digital wallets.
This fusion enables users to fluidly alternate between these assets for various purposes, such as settling bills, conducting peer-to-peer transactions, and even capitalizing on interest-earning opportunities. By embracing this convergence, you can truly enjoy the advantages offered by both traditional finance and the dynamic potential of cryptocurrencies.
We are delighted to announce the listing and support of Lido (LDO) on Tap!
LDO is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold LDO for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.
We believe supporting LDO will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.
Lido's liquid staking service allows users to tap into the benefits of staking rewards without compromising their tokens' liquidity. Lido aims to empower users to put their staked assets to use, supporting a number of PoS cryptocurrencies. The platform offers a liquid staking solution that provides users with a system that allows them to earn rewards on staked coins while also receiving a tokenized version of the staked coins which can generate returns in other DeFi protocols.
The Lido DAO token (LDO) is an ERC-20 token, the native utility token to the Lido protocol used to reward users. The token has a total supply of 1 billion tokens and serves three primary functions.
The LDO token grants holders with governance rights in the operations of the Lido DAO, as well as the removal or addition of Lido node operators and helping with the management of fee parameters and distribution.
Get to know more about Lido (LDO) in our dedicated article here.
The Curve protocol and Curve DAO token form another innovative project to come from the DeFi movement and one that provides a particularly unique and well-designed concept. Improving on functionalities that DeFi platforms like Uniswap and Sushiswap have otherwise neglected, Curve focuses on providing a viable alternative solution to traditional financial platforms in the blockchain industry.
The Curve Finance platform, launched in January 2020, later released a decentralised autonomous organisation (DAO) alongside the Curve DAO token eight months later. CRV functions as the in-house token of the platform.
What Is Curve DAO (CRV)?
The Curve platform, formally known as Curve Finance, provides traders with a decentralised exchange on which to swap digital assets. Curve aims to provide minimum price slippage between two tradable crypto assets by focusing on stablecoins or assets of similar value. Through an automated market maker (AMM) and focused smart contracts, the decentralised exchange is able to manage liquidity.
While the platform can be compared to Uniswap, in reality, it has some key differences and a much higher amount of locked liquidity. The platform and its liquidity providers are more focused on stablecoins and other coins of that nature. CRV tokens fuel the network and are a tradable asset for crypto users.
The Curve DAO provides more decentralised governance to Curve's trading platform. The Curve protocol has grown into a well-respected financial asset within the DeFi ecosystem with its strong DeFi protocol.
Who created the Curve protocol?
The Curve platform was created by a Russian scientist with ample experience in the crypto industry. Michael Egorov both founded the platform and acts as its CEO. He previously co-founded a crypto business focused on building privacy-oriented protocols and infrastructure, NuCypher, in 2015, as well as LoanCoin, a decentralised bank and loans network.
As of August 2020, Egorov holds 71% of the governance tokens after locking up a large amount of CRV tokens in response to yearn.finance’s increasing voting power in the Curve network. In a statement made later, Egorov admitted to “overreacting”.
How does Curve work?
Launched prior to Uniswap V2, Curve Finance operates similarly to the DeFi platform but has implemented some key differences. The decentralised exchange differentiates itself from the original AMM platform by innovating the liquidity pool trading structure and relevant smart contracts.
The Curve DAO trading platform is managed by a mathematical function called a bonding curve, which is designed to let cryptocurrencies trade for the best possible price amongst each other. Bonding curves are also used by other DeFi trading platforms, like Uniswap.
Due to the Curve DAO platform being primarily focused on stablecoins, its bonding curve is specifically focused on these pegged digital currencies and is able to trade a larger amount of stablecoins with less change in their relative prices in a liquidity pool.
Lending pools
In order for the Curve DAO platform to operate, it requires a group of users who are willing to lock up their cryptocurrencies in order for them to be traded by others. The platform provides a return on their coins plus a portion of the fees from trades when incentivizing liquidity providers.
The platform manages the coins in the liquidity pools by making them more expensive or cheaper, based on their fluctuating amounts, thereby making them more attractive to buyers and sellers using the platform.
On Uniswap, liquidity pools are based strictly on predetermined trading pairs while on Curve DAO the liquidity pools comprise multiple assets. On Curve DAO, entire liquidity pools can also be used as an asset inside another liquidity pool.
How does a trader use the liquidity pools?
Once a trader adds liquidity to a specific pool, through stablecoins or other digital assets, the user will receive a token specific to that pool. 3pool is an example of one of the most popular liquidity pools on the Curve platform.
While the platform is known to provide trading for stablecoins, it also supports mirrored assets such as renBTC and wBTC. These assets are both built on the Ethereum blockchain and track the price of Bitcoin in a typical derivatives fashion. Since the prices are close in value they can function in the same pool and be traded using the Curve DEX.
What is the Curve DAO token (CRV)?
The CRV token is the utility token and governance token of the Curve DAO platform, providing users with governance rights, an incentive structure for fee payments, as well as providing long-term rewards to liquidity providers. CRV tokens are awarded to users based on their liquidity commitment and length of ownership.
The Curve DAO token was launched alongside the Curve DAO in August 2020. The maximum supply is 3.03 billion CRV tokens, with 62% of that being distributed to liquidity providers. The rest is allocated between employees (3%), and shareholders (30%), and a small percentage is kept for community reserves (5%). Employee and shareholder allocations work off of a two-year vesting schedule.
At the time of writing, over 531 million CRV tokens are in circulation, roughly 16% of the total supply. The market cap at the time was around $365 million, positioning the Curve DAO token network in the top 20 biggest platforms in the DeFi ecosystem.
How can I buy Curve DAO tokens?
If you’d like to buy Curve DAO tokens to include in your crypto portfolio, you can do so easily through the Tap mobile app. Providing a highly secure and equally simple crypto trading platform, users can buy CRV with British Pounds or Euros, or exchange tokens for other cryptocurrencies supported on the platform such as Bitcoin or Ethereum.
Simply download the app, create an account and follow the steps to get verified through the KYC process. You will then have access to several wallets, and a much simpler crypto trading experience.
Kryptobranschen kan ibland kännas som ett eget språk – men vi hjälper dig att reda ut vad tickers egentligen handlar om. Tickers introducerades redan på 1800-talet för att förenkla aktiehandel, genom att visa en förkortning av företagsnamnet istället för hela namnet. Samma princip används idag inom krypto. Här guidar vi dig genom hur du undviker förvirring kring kryptotickers.
Vad är en kryptoticker?
En kryptoticker är en förkortning som representerar en viss kryptovaluta på centraliserade och decentraliserade börser. Till exempel står BTC för Bitcoin och ETH för Ethereum.
Kan två kryptovalutor ha samma ticker?
Nej, eftersom flera kryptovalutor ofta listas och handlas på samma börs behöver varje enskild valuta en unik ticker. Ibland händer det dock att mindre projekt kopierar en känd ticker för att få uppmärksamhet – detta är ofta ett varningstecken på att något inte står rätt till.
För att förenkla det hela har vi delat upp tickers i olika kategorier: betalningsvalutor, stablecoins, meme-mynt, utvecklingsfokuserade plattformar och ett spelprojekt.
Betalningsfokuserade kryptovalutor
Sedan Bitcoin lanserades 2009 har många projekt försökt skapa förbättrade versioner av digitala pengar. Flera har till och med använt namnet "Bitcoin" i sina egna projekt – vilket lett till viss förvirring.
BTC – Bitcoin
Det första och största kryptovalutan. Bitcoin är fortfarande den mest spridda digitala valutan.
LTC – Litecoin
En lyckad "fork" av Bitcoin med snabbare och billigare transaktioner.
XRP – Ripple
En valuta som fokuserar på snabba och billiga gränsöverskridande transaktioner.
Stablecoins
Stablecoins är kopplade till traditionella fiatvalutor för att undvika den prisvolatilitet som krypto är känt för. Dessa används ofta inom DeFi-projekt.
USDC – USD Coin
Kopplad till amerikanska dollarn. Lanserades av Circle och Coinbase 2018.
USDT – Tether
Världens första stablecoin, lanserad 2014. Även denna är kopplad till USD.
Meme Coins
Sedan Dogecoin blev en snackis har många försökt rida på vågen – oftast med låg marknadsvärdering. Här fokuserar vi på de två största:
DOGE – Dogecoin
Det första meme-myntet, lanserat 2013 som en "fork" av Litecoin.
SHIB – Shiba Inu
Lanserad 2020 som ett bredare ekosystem jämfört med Dogecoin, med fler funktioner.
Utvecklingsfokuserade kryptovalutor
Flera projekt har följt i Ethereums fotspår genom att erbjuda plattformar för utveckling av dApps och smarta kontrakt. Här är några av de mest populära:
ETH – Ethereum
Den mest använda utvecklingsplattformen, lanserad 2015. Känd för sina smarta kontrakt och breda användningsområden.
ADA – Cardano
Grundad av en av Ethereums medskapare. Fokuserar på akademisk forskning och hållbar utveckling.
DOT – Polkadot
Möjliggör kommunikation mellan olika blockkedjor – s.k. interoperabilitet.
LINK – Chainlink
En orakellösning som kopplar smarta kontrakt till externa datakällor.
SOL – Solana
En snabb och billig plattform för dApps och smarta kontrakt. Ett alternativ till Ethereum.
Spelplattform
MANA – Decentraland
Decentralands inhemska valuta. Används i det virtuella speluniversumet och kan även handlas på externa börser.
Sammanfattning: Så undviker du tickerförvirring
Vi hoppas att den här guiden hjälper dig att känna dig mer hemma bland kryptotickers – särskilt om du är i startgroparna för din resa inom digitala tillgångar.
För dig som vill köpa, sälja eller lagra kryptovalutor på ett enkelt och säkert sätt erbjuder Tap en användarvänlig lösning. Alla valutor i appen visas med aktuell kurs, så att du kan ta kontroll över din kryptoupplevelse direkt från mobilen.
I en rad nya kryptotillgångar som nu stöds i Tap-appen är Chainlink en av de senaste att listas. Plattformen har gjort sig känd som en av de största inom oracles – en teknik som möjliggör kommunikation mellan verklig data och blockchain-applikationer.
Men vad är Chainlink egentligen – och varför ska du bry dig i en värld där det redan finns många andra decentraliserade lösningar? Det handlar om att Chainlink löser ett avgörande problem som länge begränsat användningen av smarta kontrakt i verkliga affärssituationer.
Vad är Chainlink (LIN)?
Chainlink är ett decentraliserat oracle-nätverk som fungerar som en bro mellan verklig data och blockkedjeteknik. Målet? Att smarta kontrakt ska kunna använda verkliga data – som väder, valutakurser eller sportresultat – för att fungera automatiskt.
Smarta kontrakt är digitala avtal som automatiskt genomförs när vissa villkor är uppfyllda. Problemet? De kan inte "se" vad som händer utanför blockkedjan. Chainlink löser detta genom sitt nätverk av oracles – dataleverantörer som hämtar in information från verkliga källor och matar in den i blockkedjebaserade applikationer.
Dessa oracles belönas med Chainlinks egna token, LINK, och rankas utifrån pålitlighet och korrekt data, vilket gör systemet både smart och säkert.
Vem grundade Chainlink?
Chainlink har sitt ursprung i ett projekt från 2014 kallat SmartContract, grundat av Sergey Nazarov och Steve Ellis. De utvecklade en lösning för att koppla smarta kontrakt till verkliga datakällor och bankbetalningar.
Det första officiella Chainlink-nätverket lanserades 2017, efter en framgångsrik ICO som drog in 32 miljoner USD. Whitepapret – som lade grunden för tekniken – kom samma år, och projektet har sedan dess växt till en nyckelspelare inom blockchain.
Hur fungerar Chainlink?
Chainlink gör det möjligt för smarta kontrakt att använda extern data. Det fungerar ungefär så här:
- Oracle Selection
Användaren skapar ett Service Level Agreement (SLA) som beskriver vilken typ av data som behövs. Plattformen parar ihop detta med oracles som kan leverera den efterfrågade informationen. LINK-tokens sätts in som säkerhet. - Data Reporting
Valda oracles hämtar in datan från externa källor, bearbetar den och skickar den tillbaka till det smarta kontraktet. - Result Aggregation
Chainlink-nätverket analyserar svaren och utvärderar datans noggrannhet. Resultatet matas sedan in i kontraktet, samtidigt som varje oracle får ett pålitlighetsbetyg.
Chainlink använder en Proof-of-Stake-modell för säkerhet, där oracles som stakar mer LINK prioriteras.
Vad är det som gör Chainlink unikt?
Chainlink låter blockchain-appar interagera med verkliga händelser – säkert och pålitligt. Det kan handla om att hämta in valutakurser, API-data, väderinformation eller banktransaktioner – i realtid.
Istället för att varje utvecklare behöver skapa egna datakällor för sina smarta kontrakt, erbjuder Chainlink en decentraliserad, flexibel lösning som kan användas direkt – utan extra integrationer eller avgifter.
Vad är LINK-tokenen?
LINK är den inbyggda kryptovalutan i Chainlink-nätverket och används för att:
- Betala noder (oracles) för att hämta, verifiera och leverera data.
- Staka i nätverket som säkerhet – högre stakade mängder ger prioritet.
- Belöna pålitliga oracles och stimulera nätverkets tillväxt.
LINK är en ERC-20 token som fungerar på Ethereum-nätverket och är en av de mest använda utility-tokens i DeFi-sektorn.
Hur kan jag köpa Chainlink?
Vill du lägga till LINK i din portfölj? Det är enkelt i Tap-appen.
- Handla LINK direkt med andra kryptovalutor eller fiat-valutor.
- Använd debetkort eller kreditkort (Visa eller Mastercard) för att köpa LINK direkt i appen.
- Lagra och hantera dina LINK-tokens säkert i den integrerade plånboken.
Redo att ta steget? Utforska Chainlink via Tap och få direkt tillgång till ett av kryptovärldens mest spännande projekt.
Cryptocurrency whitepapers are detailed documents that outline the project's intentions, products, and infrastructure. While there isn't a rule on what needs to be included, most projects aim to share as much information about how the project aims to succeed in the hopes of building investors' trust, and interest.
Some of the topics typically covered include a summary of the project's team, goals, products, features, and tokenomics. When researching a blockchain or cryptocurrency project, whitepapers are a very good place to start.
What is a whitepaper?
A typical cryptocurrency whitepaper is usually a report or guide that teaches its readers about a certain topic or problem. As an example, developers might make a whitepaper covering their software to inform users about what they are constructing and why.
In the crypto space, a whitepaper is released by a project and assists in outlining the technical guidelines and core features of the project. While many whitepapers focus on specific coins or tokens, they can also be concentrated around various types of projects, like decentralized finance (DeFi) platforms, for example.
Cryptocurrency whitepapers will typically consist of statistics and diagrams outlining the project's core date, as well as the governing structure of the project, the team involved in creating and leading it, and their roadmap (current and future development plans).
What value do crypto project whitepapers serve?
Despite not being worth a monetary value, whitepapers play an important role in the crypto space. While there are no official criteria for creating them, whitepapers are integral to investors, researchers, developers, and industry insiders.
A great place to start for anyone interested in a project is to read through the whitepaper. If you're considering investing, it's best to meticulously read through it again. Whitepapers often provide insights into the project's potential red flags and a means to monitor whether they are sticking to their forecasted timeline.
A number of blockchain projects that have crashed displayed subtle warning signs in their whitepaper, like promising a deliverable without providing any evidence on how it will be executed.
How does one make a cryptocurrency whitepaper?
There are no official rules or outlines that projects need to follow when creating a crypto whitepaper, each blockchain project may determine what is best for that individual situation. As mentioned earlier, these are often the first official documents outlining the project to potential investors, so thorough and informative content depicting the project's structure, goals, and roadmap is best included.
Whitepapers should always be neutral, and avoid persuasive language or making too many promises. This is essentially a "business plan" in the crypto sense released to investors or the public prior to launching.
What info is included whitepaper?
Objectives
Whitepapers are created by founders to provide a comprehensive overview of both the project and the goal. For instance, Bitcoin's whitepaper describes the project's core objective as "A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution."
While Ethereum's whitepaper describes its intention as "The intent of Ethereum is to create an alternative protocol for building decentralized applications."
In a good cryptocurrency whitepaper, the project will outline what specific problem it aims to solve, and how it will improve various aspects of people's lives. Be cautious of projects that promise the world but have little in the way of evidence to back these claims. In the ICO boom of 2017, thousands of projects overpromised and underdelivered (if they delivered at all).
Blockchain specifications
Whitepapers will typically include how the cryptocurrency will work and function in the greater crypto ecosystem. This might outline technical aspects like the consensus mechanism the blockchain will utilize and how the decentralized aspect of the network will function.
Tokenomics
Another core piece of information that should be included in a project's whitepaper is the tokenomics. This will include information on the token, how it will be allocated, whether will it participate in token burns, or any incentive mechanisms.
Roadmaps
Roadmaps (a project timeline)are not just useful to see how a project aims to deliver on its objectives, but also provide insights into whether the project can keep up with its promises. While missing a deadline isn't a deal breaker in the crypto space, being open and communicating why is important.
Readability
A well-articulated whitepaper will typically be written in a manner that anyone can understand them. However, its important for the new blockchain project to also include certain technical specifications to provide evidence of the project's competence. Anyone can write a whitepaper, it takes technical know-how to create a blockchain platform.
Tips for reading a cryptocurrency whitepaper
- first and foremost, ALWAYS read a project's whitepaper before investing
- read whitepapers with a pinch of salt, they must be neutral and not over-promise
- Look into the team members and their experience in the crypto and blockchain realm
- a great idea doesn't necessarily mean it will be used or adopted
- look for technical explanations that showcase the project's understanding
Examples of crypto projects’ whitepapers
The Bitcoin whitepaper (2008)
The instigator of the entire cryptocurrency industry, Satoshi Nakamoto, an anonymous individual or group, published the Bitcoin whitepaper in 2008. The paper is called "Bitcoin: A Peer-to-Peer Electronic Cash System."
The whitepaper explains how Bitcoin can be used as a more efficient and decentralized form of money, outside the traditional banking model. It gives technical explanations of how the peer-to-peer Bitcoin network allows users to send digital currency without intermediaries. The whitepaper also outlines how the Bitcoin network is resistant to censorship and double-spending attacks.
The project launched two months later in January 2009.
The Ethereum whitepaper (2014)
While Bitcoin launched the crypto industry, Ethereum played a pivotal role in the development of the blockchain space. The Ethereum whitepaper was published in 2014 by a young developer named Vitalik Buterin and titled "Ethereum whitepaper: A Next Generation Smart Contract & Decentralized Application Platform."
In the Ethereum whitepaper, Vitalik outlines how the platform's intentions differ from Bitcoin's. The whitepaper outlined how the platform would allow developers to create and launch decentralized applications (now commonly known as dapps) and included technological solutions that backed these goals, such as the Ethereum Virtual Machine and smart contracts.
In conclusion
Crypto whitepapers are not legally regulated, meaning that anyone can write one. Although a cryptocurrency whitepaper should provide readers with an understanding of what the project plans to do and how, it's crucial, if you're interested in a particular project, to consider red flags and risks when reading through the document.