Although Ethereum platform still dominates the ICO landscape, things are starting to change. Ethereum’s notorious scalability and transaction speed problems paired with frequent network clogging are starting to chase away new ICOs to other platforms.
The choice ICO teams have is more than abundant – EOS, NEO, VeChain, Stellar etc. We reported about the first VeChain dApp about to be launched that is yet another migrant from Ethereum – Dbet. Another two examples of such “emmigration” from Ethereum to their competition are covered in this article.
This time the competitor that stole the projects is not VeChain, but Stellar Lumens.
The latest deserter from Ethereum is Kin – a cryptocurrency launched by the Kik company that operates Kik Messenger which touts to have 300 million monthly users. Launched on ethereum early in the ICO boom, Kik has now announced that it will close kin’s atomic swap with ethereum. Without specifying a date, the KinEcosystem Foundation said Wednesday that it would soon release a tool for kin holdings off of ethereum.
Stellar’s has a simple, easy-to-use built-in token issuance system that is permissionless and accessible to anyone. Second, Stellar offers built-in token capabilities that can support multi-signature authorizations, generate dividends, limit who can hold tokens, and more. And probably most importantly, Stellar features a decentralized exchange where any Stellar network token can be instantly traded without relying on a third party exchange to list the token. This means newly issued tokens can be traded on Day 1.
Transaction fees and processing times are also superior features of Stellar platform so it is no wonder that teams decide to leap from Ethereum to Stellar.
Is Ethereum’s supremacy slowly coming to an end?
Does the supremacy of Ethereum begin to crumble somewhat? In January, the ICO of the start-up Mobius, whose token sale took place in the middle of the month, made a name for itself. The reason for the increased attention, however, was neither a remarkable use case nor the sum received of 39 million US dollars. Rather, the ICO was distinguished by the fact that it was the most extensive so far, which was not carried out on Ethereum but on Stellar.
For a long time Ethereum was unavoidable when looking for a platform on which to set up a blockchain project and carry out an ICO. Ethereum offers a suitable and convenient infrastructure that allows you to create your own blockchain. In addition, with ERC20 there is also a unified standard, on which tokens based on Ethereum can rely.
However, this past dominance is wearing off. There are currently thirteen blockchains – besides Ethereum – on which a successful listed ICO has already taken place. Beside the above mentioned Stellar, VeChain and EOS these are among others Tron, NEM, Qtum, BitShares, Lisk and Waves. However, it can be assumed that in the near future further well-known blockchain projects will enable ICOs.
Ethereum scaling issues are pressing issue and the pending transition from PoW to PoS consensus will pretty much decide ETH’s fate. The hungry wolves are out there and ready to pounce should the Ethereum falter.