Do ICOs have a new platform for coin offerings? The cryptocurrency markets certainly think so. The last few days have seen frantic trading in Cardano’s ADA token as investors scramble to get a piece of the next big thing in crypto.
At time of writing Cardano is the sixth largest cryptocurrency by market cap, ahead of more established names like Dash and IOTA and just behind Litecoin. Prices have doubled in the last forty-eight hours to around $0.50, yielding a total market capitalisation of $12 billion.
Cardano was created by Input Output Hong Kong (IOHK), whose co-founder Charles Hoskinson was deeply involved in the development of Ethereum. It plans to extend Ethereum’s functionality while solving its scalability issues. George Tung in the International Business Times said:
To put it plainly, if Bitcoin was a bike, and Ethereum was a Camry, Cardano would be a BMW.
The aim is to combine the speed and cheap transactions of Litecoin with the smart contract capabilities of Ethereum. The vast majority of its ICO take-up was from Japanese investors, leading to its being widely known as, “The Ethereum of Japan.”
Though the project has enormous potential, most analysts think its rapid rise can largely be attributed to wild speculation.
The cryptocurrency markets have recently gained thousands of enthusiastic traders, some of whom have expectations of perpetual wild (upwards) price movements.
While Bitcoin has gone relatively quiet, a new wave of crypto-enthusiasts has now gone on the hunt for the next big ‘moon‘, with a host of alt coins now benefiting from the increase in general interest.