The birth of many Ethereum based tokens is the result of the open-source technology. Here are 7 noteworthy coins that run on the Ethereum blockchain.
The name Ethereum is just as powerful as Bitcoin itself. This coin was created in 2013 by Vitalik Buterin. The crowdfunding of this coin started in 2014, and finally, on 30 July 2015, the network went live. Ethereum is considered more versatile than Bitcoin. The main reason is that Ethereum is an open-source technology, which means anyone can create new applications with endless possibilities. Because of that, a lot of tokens run on the Ethereum blockchain.
Here is the most popular Ethereum token you need to know:
- Basic Attention Token (BAT)
- Bancor (BNT)
- OmiseGO (OMG)
- Status (SNT)
- Augur (REP)
- Ox (ZRX)
How did those Ethereum tokens become so popular? Let's look at each of the mentioned tokens to answer that question.
1. Basic Attention Token (BAT)
BAT, or Basic Attention Token, is an Ethereum-based token created for the digital advertising industry. The main idea of BAT is to pay publishers for their content and users for their attention. Because of this, BAT users can use the platform to buy various advertising services. BAT is considered one of the most recognizable tokens in the modern economy.
BAT decentralized web has several utilities such as a search engine, e-commerce, content pinning and file sharing with IPFS. Its wallet, Brave Wallet, uses mass adoption of crypto and DeFi as its foundations. Users can buy crypto using credit, debit cards, and other crypto-assets. The Brave wallet can manage desktop and mobile fiat and crypto payment options. This Ethereum-based token market cap has reached $892.03 million.
2. Bancor (BNT)
Another Ethereum-based token that is worth mentioning is Bancor (BNT). Bancor is the first decentralized trading protocol to empower traders, liquidity providers, and developers to pen a financial marketplace that everyone can enter. Bancor also allows users to create new cryptocurrencies. Interestingly, these 'smart tokens' can hold or trade against reserve tokens.
Each new liquid smart token can establish a price on its own, which means the tokens are their market makers. They can provide liquidity to holders of other currencies, solving the liquidity problem for smaller tokens and reducing dependency by eliminating the need for crypto middlemen in everyday trading. For this reason, some might argue that Bancor is one of the most exciting Ethereum-based tokens. BNT's market cap is now $783.06 million.
3. OmiseGO (OMG)
OmiseGo or OMG is an Ethereum-based token with a Proof-of-Stake consensus protocol. This token was created by a company called Omise, founded by Jun Hasegawa and Donnie Harinsut. When it first launched in Juli 2017, OMG was valued at $0.5. The market cap continued rising; in September 2017, it reached $12 per token. Some even predict that OMG will reach $150-$200 per token. The market cap now is $1.30 billion.
OMG claims to provide fast and affordable transaction services. It allows transactions without using a platform exchange by allowing users to transfer money within the blockchain. Furthermore, OMG enables users to invest from fiat to crypto or crypto to crypto.
4. Status (SNT)
Status is an Ethereum-based token entirely open-source and made by contributors worldwide. It is a decentralized messaging app modeled after China's most popular chatting platform WeChat. They aim to be a secure communication tool that upholds human rights on beliefs in protecting the right to private, secure conversations.
SNT is an ERC-20 token that can be used to access and power decentralized services in the status network and application. They choose Ethereum because they believe that this blockchain can push the token to maximize its utility. SNT owns a community that provides borderless, peer-to-peer, and fiat-to-crypto teller networks. This allows stakeholders to find nearby users to exchange cash for digital assets and currency. SNT's market cap today has reached $269 million.
MIMO is a decentralized stablecoin that runs on Ethereum Blockchain. To use Mimo, traders will need an ERC-20 wallet and some wETH, wBTC, or USDC. Mimo strives to bridge the world of DeFi and regulated financial institutions by offering a stablecoin platform with loans and savings currently under development. The lending platform allows traders to mint PAR, a stablecoin pegged to the Euro.
Mimo DeFi allows users to mint without spending any of their digital assets. Mimo has evolved to a community governance model where MIMO token holders can participate through on-chain voting. This ensures proper distribution of governance among holders.
6. Augur (REP)
Augur is a decentralized prediction market platform created by Forecast Foundation in 2014. The crowdfunding of this project started in August 2015, and the project finally launched in July 2018. It is a peer-to-peer decentralized exchange that allows any user to create a prediction on any topic, such as elections, markets, and many more.
REP and REPv2 are Ethereum-based tokens that are native to Augur. To receive a portion of the market fees, the holders must perform works by staking their coins on a correct outcome. Augur's market cap today is $128 million.
7. Ox (ZRX)
Ox is an open protocol that runs on Ethereum blockchain. This protocol allows investors to use decentralized exchange through smart contracts. It aims to solve the issue of slow liquidity in exchange platforms. As a self-sustaining dApp, there is no central body extracting fees from Ox's users, which makes it less likely to be hacked. Today, the market cap of this Ethereum-based token has reached $707 million.
The popularity of cryptocurrency has led to the creation of many coins and tokens, of which plenty of them run on the Ethereum blockchain. There's no doubt that more and more Ethereum-based tokens will emerge in the future. But it only means you must be more careful in selecting which token has a good prospect so you don't invest in bad ICOs. For learning purposes, you probably need to take some ideas from 7 successful ICOs that aren't scams.