Sia, a decentralized storage provider with its own token called "Siacoin", has had a huge run up in value lately. Sia has gained over 200% in the last week and thus has decisively entered the top 20 cryptocurrencies, dethroning long time storage champion MadeSafe on its way.
With this huge jump, many new investors will want to jump in out of fear of missing out. Many will naively believe that the best way to invest in Sia is to buy its Siacoin token. These investors would be wrong, and heres a quick rundown why.
- Siacoin is the token that will be used by customers to buy storage.
- There is a secondary coin offered by Sia called Siafund.
- Siafund holders will earn a percentage of all Siacoin spent in the Sia ecosystem.
Further details regarding Siafund:
- There are a total of 10,000 Siafund shares in existence, a number that will not change.
- When a customer buys storage using Siacoin, 3.9% of that transaction will go to Siafund holders.
If a customer spends 100 Siacoin for a storage contract, 3.9 Siacoin will be divided amongst the 10,000 Siafund holders. This means that if you hold 1 Siafund, you would gain 0.00039 Siacoin from this transaction. A further reading of how Siafund and Siacoin interact can be found by reading the Sia Whitepaper
As you can see, Siafund is the asset that will reward holders the most should Sia explode into the mainstream.
Edit: I have put up a guide on how to buy Siafund.