Bancor Rebounds after troubles?

At the time when Bancor initially held its initial coin offering (ICO), they managed to raise a significant amount of money but they also faced a significant number of questions that needed to be answered. 8 months have now gone by and it appears that they have at last found their feet and found a position for themselves in the market.

It was last week that the company based in Israel announced that they are now aiming to make the process of launching tokens much easier and they also showcased that they have experienced significant growth since they launched back in June of 2017, a time when they managed to raise about $150 million through their ICO for their BNT tokens.

There are a total of 35 different tokens that people can trade on their platform, with plans being in place to increase this number up to more than 100 different tokens.

They have also seen improvements in the token exchange volume on their platform, having been about $3 million a week back in November to having jumped to about $37 million a week in January.

There are not too many token projects that to date have managed to already bring their live products to market and have a steady base of users. Bancor always had an aim of providing adequate liquidity for tokens that did not have too much demand and which struggled to get accepted by a lot of exchanges and it seems like this approach has a significant demand from users. As more and more tokens are issued, there needs to be a place for them to be housed.

There have been a lot of criticisms levelled against Bancor since their ICO, with some critics such as Phil Daian and Professor Emin Gun Sirer making claims that the BNT tokens are useless. They argued that ether could play the role of being the medium of exchange between these tokens.

The majority of the tokens that have been listed on Bancor are not significant markets for the most part. There are exceptions of course, as the likes of kin, Sirin and EOS having reached trading volumes daily of over $500,000 on the Bancor platform.

As the tokens are all brought together on the network, this means that all of them are straight away convertible with each other. All tokens can be traded for BNT and vice versa once they are on the platform.

The platform on Bancor gets new token projects to have a certain sum staked of their token in order to purchase and stake a certain sum of BNT which needs to be done before the token has hit the markets and is traded.

As the sum that has been staked increases, the higher the liquidity for a given token will be and this means that larger trades are able to be executed.

It will certainly be very interesting to watch how Bancor performs in the future and to see whether their levels of growth continue to trend upwards. Whatever the case may be, they appear to have found their role in the market.

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