Whilst the top-100 cryptocurrency list does change now and then, generally the same cryptos remain within this top chunk of the markets. The top-10 hardly move, the top-20 see some changes. The lower down we move, the closer the market capitalisations are and therefore, the more movements we see, generally speaking though, the top-100 cryptocurrencies remain just that, as top-100 cryptocurrencies.
According to new research, only 36 of the top-100 are actually built upon a working product. If this is true, then let’s forget the top-100, this could mean there are as many as 1,829 redundant cryptocurrencies.
Before I continue I must highlight that this is not investment advice. Just because this research has found that only 36 of the top-100 are built upon solid foundations, it doesn’t mean they are good investment opportunities all of the time, nor does it mean that the rest of the cryptocurrencies aren’t good investment opportunities. Cryptos are volatile and time sensitive, the only way you can ever determine if something is a good investment is by doing your own research yourself.
The research into the top-100 cryptocurrencies as carried out by John Bardinelli and Daniel Frumkin determines the 36 working cryptocurrency projects as follows:
Bitcoin, Ethereum, XRP, Bitcoin Cash, Stellar, Litecoin, Tether, Monero, NEO, Binance Coin, Zcash, Qtum, 0x Protocol, Bytecoin, Decred, BitShares, Steem, Siacoin, Augur, Basic Attention Token, Nano, Golem, Pundi X, Waves, KuCoin Shares, Wanchain, Komodo, Ardor, Huobi Token, ZenCash, PIVX, Kyber Network, Bancor, Loom Network, Polymath, Bibox Token.
What exactly is a working product? Well, Bardinelli and Frumkin define working products as:
“A working product is active and available to the public. Its mainnet has likely been released for some time, bumping the version numbers well above 1.0. Businesses and individuals use it on a daily basis for dapps, smart contracts, or digital currency transactions. In other words, the mere existence of a product does not necessarily mean that the product is working. After all, is a foundation really doing any work when there is no weight on top of it?”
“Likewise, a dapp platform that has a mainnet but that doesn’t have any noteworthy dapps on top of it isn’t considered working by this criteria.”
You might look at this and wonder why TRON and EOS (among others) are left out of this, this is because they have recently launched their own mainnets, so don’t yet meet the criteria defined by the study.
Let’s explore some of Bardinelli and Frumkin’s justifications
It’s no surprise Bitcoin tops this list as Bitcoin has demonstrated on a number of occasions that is is a working product, according to the study:
“Today, Bitcoin is being used for peer-to-peer payments across the globe. More than that, though, it is leading the way towards a future in which financial technology is trustless, secure, resilient, and censorship resistant. Without Bitcoin, this list would not exist.”
A surprise comes in the form of Monero, a crypto project that has, until recently been riddled with news of fraud and hacks, either way, privacy is an important part of the final working product:
“Most cryptocurrencies offer little in the form of anonymity. Monero was built for privacy from the ground-up, featuring stealth addresses, ring signatures, and complete coin fungibility. All of this adds up to a near-perfect cloak of anonymity, allowing Monero users to conduct transactions without exposing their identity. Monero has had steady growth over the years thanks to a dedicated team of developers and an active community. The project continues to evolve with new privacy features and improved transaction security.”
Finally, Basic Attention Token. According to the research, this was very easy to include in the list as it is a function product, complimented by a working application too, Brave:
“Not only is Brave Browser functional, it’s the only browser on the market that has built-in ad-blocking and tracker blocking, making the browsing experience both cleaner and faster than what you get with other popular browsers like Chrome and Firefox. The future remains uncertain for the BAT token itself, as its adoption depends heavily on whether or not advertisers buy-in to the Brave model, as well as how willing Brave users are to be shown relevant ads and to pass along the BAT they earn to content publishers.”
Take a look at the full report, it reveals some interesting justifications and moreover, highlights important considerations that can be made when trawling through the top-100 to locate your next investment opportunity. As stated, this isn’t investment advice, but it does exist as a benchmark for some aspects of cryptocurrency investment.
Next time you want to buy into a project, ask yourself, what is its use value? How will it grow? Is it or does it have a working product?