See @bohemian's comment below for an important update that he provided. Keep it in mind heavily.
I've recently come across a new token issued on top of the Ethereum blockchain that touts itself as a tokenized version of bitcoin. The creators argue that faster transaction times (24 seconds, they measure) and the same functionality as bitcoin make it a better alternative or, at least, an alternative that has its place. That said, it's no surprise that something like this has been created. Constantly, new 'versions' of bitcoin are created in an attempt to dethrone the most valuable cryptocurrency, although there are pros and cons to this approach. Some think that bitcoin's dominance is one of the main things that is making this whole market not collapse. Weakness in the value of bitcoin will drag the entire market down, showing that the value of these coins are heavily subjective and that there isn't a consensus among us about the currency that we choose to support. This happens due to many motives, opportunism being the most powerful driving force of them all in this space (imho).
That said, a faster version of bitcoin could at least have it's place, imo. It's compatibility with the Ethereum blockchain and the growing list of associated apps give it certain advantages, technically, that Bitcoin doesn't have. That, coupled with the functionality that comes with the ERC20 standard, makes some enthusiastic about the project. Bitcoin, though, is working on implementing smart contracts as a enhancement for the near term though, working on increasing transaction speed in an ongoing way, and it is THE most trusted coin among beginners all the way to the many who have been in the space since the beginning.
I think that if they have a solid roadmap and can make a case as to why this is truly better than bitcoin, they may gain a place as a decent coin. Keep in mind though, they are trading right now, at least on Ether Delta, for a very low price, a price that has dropped by about 99% since the triple/quadruple that occurred soon after it's launch. Some may see this as a buying opportunity, others see it as a sign of weakness, and some will want to watch to see how the price movement looks over the next month or so. I think I may take a small position, because if it is considered the bitcoin of the ethereum blockchain, there could be strong potential for a price increase, especially if it is listed on a popular exchange like bittrex or poloniex.
Some possible red flags include:
- deleted content ranking high in Google (ex. https://medium.com/ebtc/introducing-ebtc-the-new-erc20-bitcoin-2fcce9e57d50 - maybe they recommended buying and then it dropped 95%, so they took back their article )
- A lack of content surrounding it (although it is growing) - I had some trouble finding articles and I initially stumbled upon it in a promoted FB post