Dogecoin, DOGE, and Aptos, APT, have lost significant value in the recent few months leaving the holders of the cryptos mentioned above at cross roads. Is this indicative of a crypto market in turmoil? To start us off, Collateral Network(COLT), a blockchain-based crowd-funding platform recently announced its entry into presale even as analysts predicted a 35 times price surge for the COLT token in this time.
One of the top trends in the blockchain community in the year 2020 was the re-invention of traditional financial products using cryptocurrency. One of this products was collateralized lending and borrowing where banks required deeds to physical assets like car logbooks and title deeds to real estate buildings and land in order to lend their customers funds for undertaking investments. With the re-invention of this sector, customers can now get the same loans while using their digital assets as collateral. This digital assets come in the form of NFTs. Though the risk is high and many have gone bankrupt or failed to acquire adoption from the crypto market, the idea is promising for the well connected and established companies in the crypto market to adopt the technology as quickly as possible so as to gain an edge in the market by capturing a significant market share.
One of such companies is Collateral Network(COLT) which is re-inventing the traditional crowdlending industry by introducing blockchain technology to the tradition lending systems. Under this scheme, COLT allows users to borrow money against their digital assets in the form of NFTs. Under this scheme, users can borrow money without queueing at banks and receive the money in under 24 hours. The scheme has also eliminated long waiting times, credit checks and enforced low interest rates on the loans. With this system, a musician can use their exclusive albums in the form of NFTs to borrow money with low interest rates. COLT has also eliminated middlemen, commonly referred to as brokers since everything is done automatically by the use of smart contracts and since all transactions are stored in a distributed ledge, the data is immutable and secure.
COLT has a native token used to access their services and it comes with a number of privileges eg reduced fees, rewards for staking and governance rights. With this tokens, COLT has just entered its presale phase with tokens retailing at just 0.01 dollars and people are already adopting them. With the tokens in high demand market experts have predicted that prices will surge to a whooping 3500%. This is the last stage before COLT enters the exchanges and begins officially offering its services.
At this point, only one question remains, Why then do Dogecoin and Aptos holders have great resentment even as COLT has made significant steps? Dogecoin(DOGE) was created in the year 2013 by Billy Markus and Jackson Palmer and was based on the internet meme Doge. it gained a loyal fanbase quickly because it was faster than any digital currency and had low transaction fees as well as could be used for a variety of purposes. The down side however is the policy under which DOGE operates, one DOGE is worth one DOGE, which essentially means the DOGE currency should not be compared with other coins. This type of cryptocurrency only thrives on the hype generated in the initial bull runs. The current bear market has caused DOGE to drop 90% of its value since hitting an all time high in May 2021. This basically makes it worthless in the COLT network.
Aptos(APT) on the other hand is a layer-1 blockchain that claims to be faster, efficient and more secure than other coins like Etherium and Solana. Its team claims it can process 150, 000 transactions per second. The Aptos team met while building decentralized solutions for Meta which was abandoned in 2021 and they pulled resources to build Aptos which received backing from coinbase Ventures and Andreessen Horowitz by impressing the big investment firms with their technology. The downfall for Aptos came in the recent exchange listings that saw Aptos drop 64% of its value within 2 months. Its not clear whether early investors are dumping the market but one thing is for certain, Aptos needs to build more investor confidence and gain more adoption before it can recover. This is why Aptos is losing out of the COLT Network.
Author’s sentiments
With the flooding of the crypto market with very many cryptocurrencies, investors need to do their due diligence before investing in the cryptocurrencies or opening wallets with the crypto blockchains associated to the coins. Coins with low investor confidence are prone to evaporate quickly when they fail to get enough adoption. Lack of due diligence in vetting the coins could lock investors of those coins out of great opportunities in addition to losing their hard earned money. As pertains to COLT Network, it is a matter of time before it enters the exchange and cypto users start to experience the potential of blockchain technology in borrowing and lending as well as crowd-funding.
