A new alternative coin or altcoin that has dubbed itself “the new ERC20 Bitcoin,” has shot up in value by a staggering 335% since its launch in the second week of September.
Developers of the coin stated that “there is currently no widely accepted tokenized version of Bitcoin on Ethereum, which is pretty surprising. As eBTC grows, it will display Ethereum’s capibilities and strengthen it’s (sic) stance among crypto-currencies.”
The shoot up in the coin’s price is similar to that of other altcoins in recent times as they have been driven mostly by speculation. This has occurred recently without an ICO event even occurring to officially launch the coin. This could be reminiscent of something illegitimate occurring, or it could simply be signaling a new era where simplicity of announcement is key.
The volatility of the coin and its relative size has brought along shock and awe and has served to provide a sort of delegitimization for the coin. eBTC, the name for the new coin, has yet to produce a whitepaper, and the applications for the coin are not clear either.
The developers described the coin by starting that they “believe that eBTC, with adoption, could be a real asset for Ethereum. It will not only boost Ethereum’s recognition in the cryptocurrency community but also in the eyes of the public, while also providing a way to utilize Ethereum’s vast capabilities with a token which is representative of Bitcoin.”
Investors have been wary to invest in the new token, but the returns it has shown have been quite promising. The market on initial coin offerings or ICOs has been topsy turvy in the past few months as the crackdown by China and South Korea, have respectively affected the market as a whole. Time will tell what occurs with the future of ICOs and cryptocurrency as a whole.