Augur (REP) is going to be a cryptocurrency to watch over the next six months. Right now, REP trades for just shy of $50 apiece and, with a market capitalization of a little over $542 million, ranks as number 39 on the top coins by market cap list over at CoinMarketCap.
Between now and the end of 2018, however, there is a good chance we will see this change considerably based on a number of key planned and expected fundamental developments rooted in the company’s roadmap and based on recent comments put forward by the team that leading this one in industry media.
Here’s what we’re looking at.
For anybody that’s new to Augur, this company has been around for a pretty considerable amount of time and is one of what we might deem one of the ‘old guards’ of the cryptocurrency space and especially as regards to companies conducting an initial coin offering (ICO) to raise funds for development.
The company carried out an ICO (way before it was called an ICO) back in February 2015 and raised a little over $5.5 million through the issue of the REP tokens the now underpin its market capitalization.
The platform it wanted to create (and that it has spent the last three years building) is designed to serve as a sort of decentralized speculation platform through which individuals can bet against one another on the outcome of pretty much anything in the world – sports events, financial markets, weather, anything.
The idea is that the outcome of these events will be predefined within smart contracts removing the necessity for a third party to determine the outcome (which is what happens when people speculate on events in the current environment).
If there is anything that can’t be agreed on from an outcome perspective, the disagreement is escalated within the Augur ecosystem and voted upon by stakeholders to create a sort of crowdfunded outcome.
So why is this worth talking about now?
Well, as per this interview, Augur is about to launch the first iteration of its platform within the next few months. The first iteration will be set up with one speculative element, designed to allow people to bet on whether or not the technology will be vulnerable to hackers. In turn, this setup is designed to incentivize hackers to report any potential bugs to the company (in return for a bounty as dictated by the amount of capital on the opposite side of the wager) as opposed to seeking to exploit the platform’s weaknesses themselves.
So, we think that this coin is going to gain strength this year for two primary reasons.
First, because the platform is going live and this will finally serve to create a solid and steady demand for the REP tokens that are necessary for participation and interaction with other platform users (i.e., to fund speculative activity).
Second, because we think that the company’s approach to risk mitigation (it’s willingness to pay out bounties to any potential hackers for identifying and highlighting weaknesses as opposed to seeking to take advantage of them) is exactly the kind of thing that will draw a large amount of media coverage towards a company and its efforts.
Increased media coverage should translate to an increased speculative volume flowing towards the company and its tokens and, in turn, should push price up above and beyond not just current levels but also highs recorded early last month around the $100 apiece mark.
Let’s see what happens.
We will be updating our subscribers as soon as we know more. For the latest on REP, sign up below!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of Augur