Iost Coin: Smart Investment Or Risky Gamble?

IOST is a low-ranked cryptocurrency with a market capitalization of $184,779,743, placing it 111th in global cryptocurrency rankings. In 2021, the IOST price rose by 650%, fuelled by DeFi integrations, NFT functionality, and staking support from major exchanges. IOST's price has fluctuated since then, and it is currently valued at $0.00573 USD. While some investors view cryptocurrencies like IOST as an efficient hedge against inflation and global economic turmoil, others consider it a risky investment due to its volatile nature and the challenges of regulatory scrutiny and cybercrime.

IOST's price rose 650% in 2021

Firstly, IOST's partnership with the new DeFi platform Donnie Finance enabled holders to stake their tokens and participate in platform governance, as well as earn native DON tokens. The announcement of an airdrop of 10% of the total supply of DON tokens to IOST token holders also boosted the price.

Secondly, the addition of NFT functionality and the creation of the TokenLink NFT marketplace allowed IOST gamers to trade NFTs and game items securely. The release of the IRC-721 standard further enabled the smooth launching of NFTs.

Lastly, the addition of staking support on major exchanges like Binance and Huobi, with annual percentage yields as high as 54.49% on some Binance contracts, significantly increased the token's trading volume.

These factors, combined with rising fundamentals and market sentiment, contributed to IOST's impressive price performance in 2021.

IOST's DeFi integration

IOST's DeFi ecosystem includes a range of features and partnerships that have contributed to its growth. One notable example is the cross-chain stablecoin iUSD, which was released in April 2019. The stablecoin helped blockchain applications based on the IOST ecosystem utilise stablecoins for transaction transfers with low exchange rate fluctuations.

IOST has also established a decentralised exchange, IOST DEX, which provides a secure and user-friendly trading platform for the IOST DeFi ecosystem. Additionally, IOST has partnered with otbTrade, a decentralised exchange focusing on user needs, further enhancing the decentralised exchange of assets within the IOST ecosystem.

Another key integration is the IOST cross-chain transfer bridge, developed in conjunction with partner node Liebi. This bridge facilitates the interconnection of assets and data between the IOST network and other blockchain networks, enabling cross-chain asset transactions and enhancing security for users.

IOST has also been chosen by Japanese regulators to demonstrate how NFT technology can be applied to peer-to-peer electricity trading and medical data sharing, showcasing the versatility of its DeFi capabilities.

The integration of the HUSD stablecoin, issued by Stable Universal, is another significant milestone for IOST's DeFi portfolio. HUSD is pegged 1:1 to the US dollar, offering users a safe and secure asset for remittance, commerce, payments, trading, and more. This integration provides users with convenient access to stable currencies and enhances the liquidity of the IOST blockchain.

IOST's DeFi ecosystem also includes financial derivatives, lending, and oracle DeFi projects. With its holistic approach, IOST aims to lead the new wave of DeFi and create a sustainable and profitable decentralised finance network.

IOST's NFT functionality

IOST is an innovative decentralized network that offers a set of wallets, nodes, and functionality that contribute to higher scalability. In 2021, the IOST price rose by 650%, propelled by DeFi integrations, NFT functionality, and staking support from major exchanges.

IOST has also been chosen by Japanese regulators to demonstrate how NFT technology can be applied to peer-to-peer electricity trading and medical data sharing. By utilizing NFTs as liquid intellectual property in secondary markets, IOST showcases its potential in various sectors.

In addition to its NFT functionality, IOST also offers other benefits such as fast transaction throughput speeds, stability, and an open-source network with enhanced resilience. With its innovations and growing community, IOST presents itself as a promising investment opportunity, attracting those seeking a stable and secure cryptocurrency.

IOST's staking support

The IOST Blockchain's staking system has outperformed other networks, contributing to its growing adoption. Since its mainnet launch in February 2019, the IOST Producer node has increased to 297 nodes, with 123 nodes eligible for rewards. The staking rewards are funded by two sources: locked-up tokens from the Ecosystem Fund and minted tokens. The former are paid quarterly to nodes and delegators, while the latter are minted daily, with half paid to nodes and delegators and the other half to Servi Nodes (block producers).

IOST offers two options for staking: becoming a Node or delegating funds to a Node. The annual return rate for delegators can be as high as 18.0%real yield would be lower when adjusted for inflation. The decision on which Node to delegate to can impact the profitability of staking, with higher-tiered Nodes with less voting power being more advantageous.

The addition of staking support on major cryptocurrency exchanges, including Binance and Huobi, has further boosted IOST's staking attractiveness. These exchanges offer annual percentage yields ranging from 20% to 54.49% on some contracts, providing investors with higher-yielding investment opportunities.

With its staking support, IOST has positioned itself well within the growing decentralized finance (DeFi) arena, attracting investors seeking alternatives to the high fees and congestion of the Ethereum network.

IOST's low rank and market cap

IOST is a low-ranked cryptocurrency, currently occupying the 111th place in global cryptocurrency rankings. Its market capitalization is $184,779,743, which is considered small-cap. Small-cap cryptocurrencies have a market capitalization of less than $1 billion and are considered the riskiest type of investment, with the potential for mind-blowing profits but also the weakest when prices are falling.

The low rank and market cap of IOST are important factors to consider when evaluating the potential risks and rewards of investing in this cryptocurrency. While small-cap cryptocurrencies like IOST offer the possibility of significant returns, they also carry a higher level of risk compared to large-cap or mid-cap cryptocurrencies.

The market capitalization of a cryptocurrency is calculated by multiplying its circulating supply by its current price. In the case of IOST, the circulating supply is 21,315,000,000 coins, and the current price is $0.008669. This results in a market capitalization of $184,779,743, which is significantly lower than that of large-cap cryptocurrencies, which have a market capitalization of $10 billion or more.

The low rank and market cap of IOST can be attributed to several factors, including regulatory scrutiny, cybercrime, toughening regulations, state-wide crypto bans, network issues, and hard forks. These factors can impact the price trajectory of cryptocurrencies and may contribute to their low market capitalization.

Despite the risks associated with small-cap cryptocurrencies, some investors are attracted to IOST and other similar coins because of the potential for high returns in a relatively short period. Retail investors and traders view cryptocurrencies as an accessible financial market where assets can potentially generate 100X to 1000X gains, which is not achievable in more traditional markets.

Additionally, the global economy and traditional markets are facing challenges, and conventional stores of value, such as fiat currencies and precious metals, may be less reliable. As a result, more people are turning to cryptocurrencies, including IOST, as an alternative investment option.

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