Ethereum lacks bitcoin’s celebrity status, yet is a massively more malleable token in architecture, something that has endeared it to developers worldwide.
With the new crowdfunding model of the ICO rapidly gaining pace and volume, Ethereum is intrinsic to emerging projects far more often than not. Most ICOs employ the ERC20 protocol, the Ethereum network token construct. Not only does this promote application of the network in diverse forms, it is also slowly driving a solid value gain in the altcoin.
There are two immediately obvious routes to capitalizing on ICOs by employing and holding ethereum. One has immediate benefits, while the other is a long-term view. Either way, while bitcoin was de rigueur a year ago and remains every digital asset investor’s latent dream, ether seems to avoid much of the bad press and remains ever busy.
Coupled with its almost symbiotic relationship to the majority of the world’s ICOs, the fundamental value in application of ether is getting more and more noticed in 2018.
Avid ICO-watchers will know that many projects not only employ the ERC20 standard, they also offer enhanced ease of uptake for ETH holders. While it can take some digging through the ICO presale and staggered sale terms, very often users will gain value from the fact that they have and can transact with ether, something the ICO favors in some way.
Even in the absence of specific ETH benefits, the vast majority of ICOs enable ETH as a payment option. Indeed, many built using the ERC20 protocol become so enmeshed in Ethereum that the preferred payment takes the form of ether. These are typically the ICOs that reward ETH holders.
The second and greater benefit of being an ETH enthusiast looms over a longer term. As more and more ICOs build upon the ERC20 standard, the value of ETH is slowly rising. Although the digital asset market is a volatile and unpredictable animal to date, ETH has been making shadow gains beneath the BTC umbrella.
A more modest market cap, Ethereum has always seemed to work harder than any other project at earning it. The community remain adamant that ethereum is not a currency first and foremost, but a computing system. It is precisely this kind of solid technical focus and application that has kept the coin off center stage, in the wings building real value.
While it can be argued that Ethereum has experienced its own giant spikes and dips, as has bitcoin, seasoned investors note the difference in volume as indicative of latent value. While bitcoin sits and waits for heady investor enthusiasm, ether is quietly colonizing the world in the background.
There have been complaints about utility token ICOs on Reddit and other forums – an inevitable result of the sheer number of monthly ICOs at present. In all cases, it appears that the projects have bungled application of the ERC20 standard, and not that the standard is failing to meet expectations. With that being said, as evidence of its constant development, Ethereum is promulgating at least 10 other token standards for trial too.
Users can glean small rewards that sometimes add up to bigger ones simply by buying ICOs that interest them with ether. HODLs and those with a diverse portfolio can invest in ether with remarkably more certainty than in any other digital currency right now. No other project is pouring out use cases like Ethereum. Were it a legacy share, its development and application alone would rate it as an undervalued penny share, destined for much greater heights.