5 Cryptocurrencies You Should Know About Besides Bitcoin: ETH OMG QTUM XRL PBC Wait!....XRL??? PBC????

I stumbled upon a recent Motley Fool article titled "5 Cryptocurrencies You Should Know About Besides Bitcoin."

Immediately I thought I was going to see obvious choices and the author didn't disappoint me by listing Ether (ETH), OmiseGO (OMG) and Quantum (QTUM).

Then I get to #4 and things get interesting.

#4 Rialto.ai (XRL) (as written in the article):

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The incredible attention garnered by cryptocurrencies in 2017, and the resulting spike in their usage, has led to frequent delays in transactions. Cryptocurrency exchanges are much less efficient and liquid than, say, stock market exchanges, where trades can be executed in milliseconds.

Rialto.ai is looking to solve that problem by providing algorithms that exploit these deficiencies. Think of it as a cryptocurrency arbitrage network. When exchanges are having problems meeting trade demands or converting between various currencies, Rialto.ai will step in to provide liquidity from its trading portfolio. That will reduce transaction times, ensure open orders are fulfilled instantly, and improve the overall efficiency of any cryptocurrency exchange approved by the creators.

In addition to providing market liquidity, Rialto.ai will conduct trades to profit from market inefficiencies, behaving in a way similar to the robo-traders of Wall Street. The network will collect tiny transaction fees each time and distribute them to token holders twice per year (see a trend here among reputable tokens?), which could really add up if Rialto.ai takes off. Additionally, the algorithms will have knowledge of major transactions in real time. It would be the same as knowing Warren Buffett's every move the second he makes it, rather than waiting for a quarterly filing with the SEC.

However, Rialto.ai tokens may not be legal to own for asset accounts in the United States (yet), as they may run afoul of SEC regulations at the moment. If that changes, then these tokens could be an intriguing way to diversify your crypto holdings.

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My take:

The average joe/jane is probably not aware of a delay when they trade on crypto exchanges. However, every microsecond advantage for high frequency trading (HTF) can mean millions in extra profit.

If you think you are on equal footing when you trade traditional stocks in the stock market - think again!!

Unfamiliar with HFT? Read this interview from Zerohedge.com

If XRL exploits the exchange deficiencies and pass the profits from their algorithms to token holders then XRL is probably worth putting on your radar. However, I wonder if these exchange deficiencies will last forever.

#5 PembiCoin (PBC) (as written in the article):

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Not every cryptoasset doubles as a software tool. Some just serve as more traditional assets. That's the idea behind PembiCoin from the venture-backed start-up Pembient, although the asset is anything but traditional.

It may sound wild (and it is), but Pembient is developing a technology platform that it hopes will manufacture rhino horn products in the lab through a combination of genetic engineering and 3-D printing. The idea is that this biofabrication tech will more than meet market demand for rhino horn products, making it unnecessary to poach wild rhinos and drive them to extinction. If the company can meet its goal of producing genetically and chemically identical rhino horn products and mass-produce them, then it could drop the price of rhino horn globally -- and drive poachers out of the market. (Of course, it's more complicated and controversial than that.)

Pembient needs a few more years to optimize its technology platform, so it created PembiCoin to gauge interest in its future rhino horn product. Think of it as a commodity futures contract: For every PembiCoin token purchased today, you'll receive 1 gram of its fabricated rhino horn in November 2022. You can also sell PembiCoin between now and then.

This cryptoasset is risky, because Pembient may not meet its technology goals. It's also controversial, given that each token is being offered for one-tenth the current price of rhino horn, which has led some to argue that if the technology works, the tokens will become futures contracts on the extinction of black rhinos. However, it highlights one often overlooked potential application of cryptocurrencies and cryptoassets -- low-cost futures contracts -- and reinforces the idea that we're only scratching the surface of blockchain technology's potential.

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My take:

I'm not familiar with rhino horn demand, but I thought much of the allure is because it's considered lucky and illegal to obtain (rare). If rhino horn can be manufactured I bet it won't be as valuable.

I point to the diamond industry where lab grown or synthetic diamonds have invaded the diamond market. However, the diamond industry is legit (although blood diamonds are not) and the diamond industry has powerful lobbies that protect the industries interest to keep diamonds "rare" and sought after for the choice of stone for marriage proposals.

Synthetic diamonds and rhino horn may not be exactly the same, but I still can't see how PBC will be a huge market.

My takeaway is blockchain is being applied in surprising ways. From the rate that ICOs are coming out everyone is experimenting with blockchain. This experimentation is healthy but not always profitable for investors/traders.

What do you think of any of the cryptocurrencies listed above?

Please share your thoughts with the community below.

Traversing the cryptosphere,
Kryptonaut