The ICON (ICX) coin first came onto the open market in October 2017, a month or so after it had raised $42.75m in an initial coin offering. It has a current market cap of over $2 billion and is traded on dozens of exchanges around the world. ICX, the native token of the ICON Network. ICX is used to connect different blockchains in a decentralized network that allows people and institutions to set up their own blockchains and coins.
The ICON Network and its associated ICX coin are making waves, especially in their native South Korea. The project is a blockchain network that allows independent blockchains in separate industries to connect, share data, and transact with one another.
ICON is a promising cryptocurrency that has been in the spotlight for a few months now. In this article, we will try to explain what is going to happen with its price in the near future and why it remains so undervalued on the market at its current price.
As one of several cryptocurrencies that aims to solve the problem of interoperability — allowing blockchains to communicate with one another — ICON (ICX) is a cryptocurrency that seeks to address this issue. Here, we will examine the importance of interoperability, what ICON does, and what challenges it may encounter.
ICON (ICX) Coin Basics
The ICON blockchain network builds a kind of interconnected community by facilitating decentralized applications. Although it’s been around for a few years, it remains relatively unnoticed. However, last year’s transition to ICON 2.0 might make it worth watching.
- The ICON network uses ICX as its utility and governance token.
- The ICON foundation was founded the organization in 2017.
- Approximately $555 million (CoinMarketCap, March 15).
- Binance.US and Kraken are two of the major U.S. cryptocurrency exchanges that offer digital assets.
Why Cryptocurrency interoperability matters
The cryptocurrency industry has evolved dramatically since Bitcoin (BTC) was born in 2009. While Bitcoin provided a decentralized form of digital currency, Ethereum (ETH) and other smart contract cryptocurrencies could revolutionize many aspects of the financial world. The crypto industry has several big hurdles to overcome, as it is still in the very early stages.
The Ethereum network, for example, suffers from heavy congestion and high gas fees. The blockchain also operates in a solitary manner, not interacting well with other blockchains. All the platforms would be built on Ethereum, so this wouldn’t be a problem. It is becoming increasingly important to communicate interchain as Ethereum alternatives become more popular due to high fees.
There are also Cosmos (ATOM) and Polkadot (DOT) in the interoperability space. ICON and Polkadot gained about 165% and 185%, respectively, while Cosmos grew around 400%. Different approaches have been taken by each in order to solve the interoperability problem. In Polkadot, for instance, networks can connect to one another using parachains. The ICON platform is not dependent on parachains and can work with any blockchain that supports smart contracts. A partnership between ICON and Polkadot to facilitate cross-chain development was announced last December.
Bridging ICON (ICX) to the real world
Cryptocurrency networks aren’t the only thing ICON aims to connect; it also wants to connect cryptos to the real world. The whitepaper states that the platform is already connecting banks, securities firms, insurance companies, hospitals, and universities. Since many blockchain projects are only focused on solving problems within the blockchain realm, it is always worth exploring cryptocurrencies with real-world applications.
In South Korea, more than 80 organizations use ICON’s digital ID platform, MyID, to manage their IDs. There are probably many different login credentials you use when you shop online, bank, and open cryptocurrency accounts, for example. The information is saved on the system of that organization. Using an app like MyID, you could connect to multiple accounts using one login.
ICON (ICX): Is it worth buying?
Any coin or token you intend to purchase should always be researched before you purchase it. There is no one else who knows your financial situation, investment strategy, and risk tolerance better than you. There is still a lot of uncertainty surrounding cryptocurrency prices in recent months, due to wider economic and geopolitical factors.
Taking into account the high levels of risk and unpredictable nature of these assets, we may see prices stagnating or even dropping for quite some time to come. The reason for this is that you should never invest more money than you can afford to lose. Long-term investors should look for investments with solid fundamentals.
ICON is an interesting project that solves a key problem in the blockchain industry. South Korea has already embraced it and has several real-world partnerships. Furthermore, its technical development is expected to make some major strides in the near future.
The crypto boom last year, however, did not allow ICON to regain its 2018 high, and it performed poorly in comparison with its competitors. Other people are concerned that it has not grown fast enough, while some see it as an opportunity. In terms of market cap, ICON is much further down the list in comparison to Cosmos and Polkadot.
A blockchain’s success will depend on its ability to deliver and whether it has any vulnerabilities when it starts to grow rapidly, as it often does with many developing blockchains.
It is important to pay attention to interoperability when it comes to crypto. There are some key partnerships with ICON, and it certainly has the potential to compete. Nevertheless, it’s hard to determine whether it can gain ground and become a leading interoperability solution.
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