A Second Look at BANCOR

In an older video, I covered the BANCOR ICO. The ICO raised funds of ($153 million), but for most of 2017 it performed poorly. Then in late 2017 into 2018, the tokens were priced as high as $10 USD.

Sometime in the last several months, they got their protocol more operational than previously. ERC20 tokens are now exchanging on the BANCOR protocol system including EOS. https://www.bancor.network/discover/tokens

On their website, you can buy and sell using a browser wallet like Metamask. This is good to be aware of because this makes the BANCOR system an alternative to using Changelly or Bitfinex for buying EOS and other ERC20 tokens.

While I am presently not impressed with the alternative coins that BANCOR stated that users could launch, that it can trade well-known ERC20 tokens is a decent advantage of their present setup. Be aware I have not tested their platform, so if you use it, let me know how it works.

Is it worth Investing in BANCOR?

As to whether the BANCOR token is a good investment, this depends upon how many projects and investors are using their system in the future. While DEX tokens tend to be good investments (Counterparty and Blocknet), I am unsure if they are amazing investments compared with other crypto projects. In a way, BANCOR's system seems easier to use than Counterparty or Blocknet, but does it matter?

2018 Competition

To me, the #1 competitor of BANCOR's system for everyday users will be Steem. BANCOR holds the advantage with traditional ERC20 tokens on the Ethereum platform. Steem will not be able to compete in that arena. However, for ease of use, and fast-setup, I believe Steem Smart Media Tokens will be superior to the BANCOR protocol. The BANCOR network took ages to get going after their ICO, which minimized the amount of free marketing they could have had. Now that it is running, it is not really that impressive in terms of what it offers.

Even if everyone could easily launch tokens on the BANCOR protocol... is it really preferable to Steemit's SMT's?

The advantage of Steem is a broader base of every day users, rather than just institutional investors. Steem will have institutional investors if there are decent projects, but it also has just normal investors. Steem will also be utilizing much lower transaction fees.

BANCOR gives us a little insight into what Steem will do after SMT's

What I find most interesting about the BANCOR system is that it gives us a little insight into what SMT's will enable Steemians to do. If someone builds out the website technology, we'll be able to do browser wallet trading directly without using any exchanges. This would apply to all tokens launched on the Steem blockchain.

Linking Chains

It is also my hope that someone attempts to build bridges from the Steem blockchain to the other major blockchains such as Bitcoin and Ethereum. The idea of a bridge is that Bitcoin, Ethereum, and Ethereum tokens would be readily exchangeable on the Steem blockchain, giving this chain more influence in the financial markets.

What do you think?

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