What is Simple Token (OST) and Should you invest?
Before going into my review of what Simple Token (OST) is i would like to discuss with you a few key things that I look for when considering an investment. When searching for an investment that could potentially bring you 10-100x returns you need to do you due diligence and have a strategy in place. With that being said, I will only invest in blockchains or infrastructure projects for the most part because i have noticed through my analysis that they bring the highest returns on average. Not only do they give you the highest average returns, but they get dumped the least as opposed to Dapps. Sure, there are some great Dapps (decentralized apps) out there that have given investors some seriously impressive returns, but I tend to stay away from them unless it really catches my eye.
Some other key things to look for are:
- Does the project already have a working product?
- Does the project have a great team?
- How big is the community surrounding the project? (Twitter, Telegram, Reddit, etc)
- How much has the project's price increased since its ICO and since it was listed on exchanges?
- And finally, always BTFD! (that's "Buy the F***ing Dips" for those of you who don't know)
Now that we have our strategy in place let's take a closer look at what Simple Token actually is. Below are some key metrics about OST at the time of writing:
market cap: 370,925,300
circulating supply: 35,500,000
total supply: 100,000,000
Simple Token is an infrastructure project for developers that is built on the Ethereum blockchain. Their mission is to easily enable any company or application to utilize blockchain technology without the need for expertise in blockchain. The target market is mainstream consumer applications. This is a huge idea that aims at solving a MAJOR problem with blockchains today.
Current blockchains such as Ethereum suffer from many challenges that include but are not limited to: latency, high transaction fees, scalability, and privacy. These blockchains are cumbersome which is one of the reasons that blockchain has not yet gone mainstream. We all know the story of how a simple app like CryptoKitties was able to slow down the Ethereum Network in a dramatic way. Simple Token seeks to solve this problem by allowing for the use of sidechains to help bridge the gap between blockchain and mainstream consumer application. But what are sidechains? Put simply, sidechains are used to fix the current scalability issue that blockchains are having. For example, having all applications built on the Ethereum Mainchain is and will continue to slow down the blockchain, thus making it less desirable for mainstream adoption. With the use of a sidechain, Dapps can instead be built on the sidechain without slowing down the mainchain.
Furthermore, the Simple Token protocol was designed to be extremely user friendly. This means that any mainstream consumer application can easily create their own token and benefit from deploying their own crypto-backed economies without having to actually build or maintain the blockchain. In fact, it requires no real blockchain expertise at all. Instead they can focus on the core of their business and stick to what they know while still reaping the rewards that blockchain technology has to offer.
How is this project unique?
Well, Simple Token claims to be the only platform that targets mainstream consumer applications with user friendly software that will allow them to utilize the blockchain. This means that any company can utilize blockchain technology and issue tokens without complex programming knowledge, without having to launch an ICO, and without having to deal with all of the regulation hassles. But what about Bancor, isn’t their mission similar? Yes and no. The main difference between Simple Token and Bancor is that Bancor was designed to be used by developers who already have extensive knowledge of blockchain protocols and languages.
Now that we know what Simple Token is and what they hope to achieve let's talk a little bit about the infrastructure itself.
OST tokens:
OST tokens enable holders to apply to become members of the platform to stake against launching their own branded tokens. This means the utility tokens or “Branded tokens” will retain their value because they will be backed by the OST tokens.
Branded Tokens:
Branded tokens are created by member companies for use within their individual communities. Unlike OST tokens, these tokens are not tradeable outside of the Simple Token ecosystem. These branded tokens offer many advantages to the member companies and the end user that are simply not present in most other blockchain ecosystems at the moment. Some of these advantages include: enabling microtransactions, increasing transaction rates, and allowing mainstream apps to tokenize the end-user consumer experience.
Member Companies:
Member companies are simply companies or applications looking to create Branded Tokens.
Should you invest?
I am not a financial advisor. Invest in OST at your own risk and not without DYOR. With that being said, I think OST may prove to be a solid long term investment. The idea behind the project is big and I can see a wide variety of use cases in the future. If you believe that blockchain technology is the future like i do, then you should be able to foresee a time when non-blockchain companies are scrambling to keep up with their competitors who have already made the transition into the blockchain. With their assumed lack of knowledge, Simple Token could provide a seamless transition into a technology that would otherwise be too technical for them to figure out in a timely manner. At $.67 OST is up 7x since its ICO and is down from it's all time high at $1.43. This thing still has some more room to grow. Currently OST has a market cap of around $175MM. If OST could just reach the top 30 by market cap that would bring its market cap to right around $1.3BB. (1.3BB/175MM=7x) That’s 7x your money, not bad! Furthermore, the Simple Token team is HUGE, consisting of members from all kinds of different backgrounds with years of knowledge and expertise. Jason Goldberg, CEO, has over 18 years experience in bringing products to scale and has previously founded the Pepo app. The last thing I want to address is that Simple Token has just launched ostKYC, The Complete KYC & Whitelisting Solution for ICOs. This is very exciting because it proves that Simple Token will never stop innovating and finding solutions for problems that keep popping up in our new crypto world!
Thank you for reading on of my first articles on Steemit. I hope I did a good job informing and educating those of you not yet familiar with OST. I am eager to hear your feedback and network with all of you. Again, I am not a financial advisor, just a crypto enthusiast who has made a bunch of money sitting in front of his computer! If you liked my article please give me a follow. Thanks for the read, until next time.
Cryptorayrv