Eric Eissler

Basic Attention Token Fails to Get Full Attention: Past-ICO Review

Basic Attention Token garners just that, basic attention as it fails to follow through on technological developments
Basic Attention Token Fails to Get Full Attention: Past-ICO Review
You may also like:

May I have your attention, please! That worked, didn’t it? Are you still reading? Good. Then you might want to hear a bit more about how Basic Attention Token (BAT) would like to disrupt the traditional advertising market.

However, has not nearly captured, forgive the pun, it’s just too easy, the attention of the market to do so. Before we get into the technical aspects, let’s have a look at the books. Now, this next section should have your full attention, because it is about money.

!Attention! Financials

BAT had its ICO on May 31, 2017 which lasted for one day brought in $36 mln in funding. The must have gotten some people’s attention to raise that kind of money.

The token debuted at $0.36 and one year later is at $0.28 a loss of 22 percent, ouch! It seems it lost almost a quarter of the initial attention it had received; the excitement dwindles away.

BAT has one bln tokens in circulation with a maximum of 1.5 bln, and there is 500 mln currently uncirculated. It is also an ERC20 token based on the Ethereum Blockchain. It is ranked 58 by Coinmarketcap.    

At this point, 25 percent of you stop reading

But I hope you will continue as I hope this next bit gets your attention, it sure did for the middlemen that are to be cut out of the advertising cycle of BAT gets its way.

It won’t, however, so don’t worry. What it would like to do is create an ecosystem on the Internet where users and publishers can reward each other for either looking at advertising or supporting quality content.

The system is essentially three parties: advertisers, publishers, and users who can directly affect each other based on advertising or content.

Users can block ads or they could get paid in BAT to view ads by publishers or advertisers. In turn, the users could reward the publishers with BAT for quality content.

According to the website: “Digital advertising is overrun by middlemen, trackers and frauds.” The site goes on to list why the publishing industry is dying with the following points.  

  • Google and Facebook take 73 percent of all ad dollars and 99 percent of all growth.

  • Revenue is recently down 66 percent.

  • Bots inflicted $7.2 bln in fraud last year.

  • Over 600 mln phones and desktops run ad-blocking.

  • Publishers cannot seamlessly monetize value-added services.

💼 Related Article
ICO Marketing Guide - How To Run A Successful ICO
🔥 Hot
9 months 4 weeks
256
ICO Marketing Guide - How To Run A Successful ICO

They have some points, but they have some flaws

Sure, publishers suffer a lot in the wake of the digitization and automation of their trade, but creating a limited ecosystem, where users have the option to block out all the ads is not going to help.

Even still rewarding them with tokens is not going to be the answer either. If getting likes on Facebook and Instagram is hard, imagine how much harder it is going to be if you want someone to pay for your content or in this case give a “tip” for great content.

In reality, it is just not going to be as good as it sounds on paper.

Then there are the technical problems, too. As part of the system, you need to use Brave Browser, a lot of people are not so easily swayed to switch browsers, especially if it is not one they heard of. Does anyone remember Opera? I used it for about a week before going back to Chrome. If they want to succeed, then they need to be able to operate plugins.

You had my attention at… but lost it quickly thereafter

It is a really well-meaning idea, but it only works on paper, sadly. I think we are going to see BAT fall into competition with other coins that do similar things and other advanced ad blockers out there that block ads, delete cookies and, and keep prying eyes out of your browser.

💼 Related Article
How to Make Your Native Advertising Most Effective with U.Today
🔥 Hot
11 months 2 weeks
256
How to Make Your Native Advertising Most Effective with U.Today

Subscribe to U.Today on Facebook, and get involved in all top daily cryptocurrency news, stories and price predictions!
542 views
👓 Recommended articles
something-wide
something-wide
Yuri Molchan

Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money
Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
You may also like:

Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.

You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

💼 Related Article
John McAfee Says Exactly When Bitcoin Will Hit $1 Mln, IBM’s Jesse Lund Goes for More Modest Forecast
🔥 Hot
3 weeks 2 days
256
John McAfee Says Exactly When Bitcoin Will Hit $1 Mln, IBM’s Jesse Lund Goes for More Modest Forecast

Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

Join our Telegram channel to get news even faster!
206 views
👓 Recommended articles
something-wide
something-wide