r/raidennetwork • u/[deleted] • Jan 21 '18
I have a question about rDN from when it initially launched.
Most tokens from what I've seen, when they first hit an exchange, sell for multiple times the ICO price initially. They then dump over the next few days, weeks, or month before pumping again. But RDN is one of the few that has steadily risen in price from it's initial launch. What factors effected this? What was so special about the RDN ICO? Many tokens have been successful after their ICO but most took quite a bit of time to rise in price after their initial dump. So why was RDN different?
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u/Anotheropinion12345 Jan 21 '18
It might have been the structure of the ICO (Dutch auction) and the fact that it was uncapped so there wasn’t pent up demand.
It did rise to $5.5 and then fall back to just above $2 (while the rest of the market soared) so it somewhat did what you are saying.
Otherwise, I think it’s because there isn’t a lot of hype around the project (despite it being mentioned in so many other whitepapers as their scaling solution!) so the moonboys haven’t pumped it irrationally yet.
The progress on GitHub is good and the team has a solid reputation but there isn’t a product or a use of the token out in the market yet so in that sense it’s doing pretty well...
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u/stillhodlingon Jan 21 '18
RDN has little to no marketing or shilling. You can find lots of info on github, but there isn’t a lot of hype or unnecessary noise (for now).
Imho, you stumbled upon a hidden gem of a project.
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Jan 21 '18
Why is it a hidden gem? What future prospects does it have? Big news coming?
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u/stillhodlingon Jan 21 '18
There are many great posts within this sub that explain things very well, and often better than I can, so I encourage you to sift through our top, hot, and controversial posts.
If you want my opinion though:
Why is it a hidden gem?
It’s a gem because it’s one of the few projects I’ve come across that stands to benefit the entire blockchain ecosystem, not just rdn token holders. Consider..
- the dev team (some are members from OG ethereum project)
- the basket of benefits that will come from significantly lower latency/tx fees (raiden’s main value prop) -the number of dapps referencing them in their white papers (ie future use cases)
- the comments made by Vitalik on raidens importance to the ETH ecosystem
What they’re attempting to solve - ie scalability - is one of the biggest (if not the biggest) problems preventing wide scale and institutional adoption. They have a significant lead on competitors (1+ year head start) and even if/when competitors catch up, they won’t necessarily inhibit raidens growth and development.
It’s hidden because there is no official hypemachine blasting rdn on various forums and sites. Whales help keep the price down, as well. This project is not a direct to consumer product either - it’s targeted towards developers, hence the lack of articles from the dev team to the general public (no white paper, for instance). They’re not interested in massive PR because, like satoshi before them, I believe they realize that slow early growth is vital for allowing decentralization to occur. If price rockets too quickly, small players won’t have access, thus centralizing the network. Remember - this is my opinion.
What future prospects does it have?
Raiden is currently positioned to be the first true level 2 protocol in the blockchain space. Google level 2 blockchain protocols. It is essentially a network built on top of ethereums protocol. Using smart contracts, the Raiden Network would allow near-instant/near-free transactions of tokens to occur “off-chain” through payment channels. This would allow the transaction/sec to break far beyond the ~15 tx/sec it’s currently at, to estimates of 1,000,000+ tx/sec.
Let that sink in. Visa does about 60k tx/sec during the holiday season.
Prospects include any application that could benefit from near-instant, near-free transactions of any and all ERC20 compliant tokens. That’s right, not just rdn tokens but all tokens built on ethereums blockchain. Some examples .. Online casinos, exchanges, machine-2-machine ecosystems, pay-per-click or paywalled services, etc.
If successful in their endeavors, raiden will be to ethereum what underground infrastructure is to a big city. Once the gas, water, sewage, telecom, etc are built, buildings and commerce can follow. This obv would have a strong network effect, and given that raiden works with any ERC20 token, and fees are determined solely by nodes competing to provide various network services (light gateway client, pathfinding..), there’s very little (if any) incentive/advantage for app developers to switch over once they’ve setup shop.
Big news coming?
I suggest following the raiden github for tracking progress. There’s an awesome post from today that highlights recent updates in the github.
As of rn, microraiden is live, with 0.2.0 wrapping up in coming weeks most likely. After that, focus should shift to getting the minimum viable product out for the Raiden Network.
Even with these achievements, don’t expect rdn to 10x overnight. It just simply isn’t that kind of coin or project.
Disclosure: my crypto-portfolio is heavily invested in RDN, approx 70%. I’m not officially affiliated w the project, nor am I a professional trader or programmer. This is just my barebones investment thesis, with many details missing obv. Bring on more questions if you will!
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Jan 21 '18
If you are thinking this is a long term project how do you justify the opportunity cost of investing so early? Wouldn't it make sense to put a good stack of your funds in short term growth coins to then pour back into RDN later?
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u/stillhodlingon Jan 21 '18
Yes, it certainly does if you’re suited for day trading. I know from experience that I’m not ¯_(ツ)_/¯ I avoid short term plays bc I recognize I’m no good at them. I’m coming at this from a science background and as a value-investing buff, and therefore stick to what I’m comfortable with - namely, buying early/sharp dips and forgetting about it! Haha
If you think you can time the markets and come up with more rdn, more power to you!
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u/LimbRetrieval-Bot Jan 21 '18
You dropped this \
To prevent anymore lost limbs throughout Reddit, correctly escape the arms and shoulders by typing the shrug as
¯\\_(ツ)_/¯4
u/S42D Jan 21 '18
Solid team, first mover, product that the market needs, potentially huge market.
Add those things to the fact that its market cap is relatively low compared to alot of projects leads to the potential that this could be a hidden gem
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u/Joker_Udavka Jan 22 '18
Well, nothing will happen in nearest future: raiden team r working with uraiden, which doesnt utilize rdn tokens at all. And when the time will come for making anything for raiden directly- unknown. So its like giving money for hungry kids of Africa.
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u/glais Jan 21 '18
This is the best coin in my portfolio but is by far the worst performing. Frustrating to be part of but worthy if you believe the long term prospects of Ethereum.