Dr. Gavin Wood and Peter Czaban founded the nonprofit Web3Foundation. The Foundation hosted their first ICO in October 2017, selling half of the total supply of 10,000,000 tokens. Their ICO generated over $144 million in revenue but half of the money collected was lost when their Parity Wallet was exploited. After the token supply increased a hundredfold on August 21, 2020, the Polkapot rose to 7th place in the marketcap.
So what was the reason for this highly successful ICO? It’s all about their innovation in autonomy.
Polkadot aims to provide a completely decentralized web where users are in control. According to the platform’s descriptions, Polkadot is designed to connect private and community chains, public networks that do not need any permission, and future technologies that have not yet been created.
Polkadot also offers an internet service where independent blockchains can securely exchange information and transactions through the Polkadot chain.That’s is huge for privacy and security.
What is the Purpose of the DOT Token?
Polkadot coin holders have full control over the protocol, including handling exceptional events such as protocol upgrades and fixes.
The token uses a game theory methodology where the network stabilizing and secures itself. Holders who act with integrity are rewarded while fraudulent holders lose their shares. Bonding is used as a proof of stake by adding new parachains and removing old bonded chains.
Polkadot Technical Analysis
So, how does Polkadot’s innovation translate into it’s price and earning potential?
First, the price data that we have is limited to after August 21, 2020, after the token’s supply increased a hundred times. Looking at the BTC pair chart, the descending wedge formation indicates that a rise may come. In the USD pair, there is a triangle formation.
What is that mean for traders? The price should be watched carefully. If the price shows strength and break the wedge or triangle then it is a good buy opportunity. The same is true if the price dips past the threshold. It would then be a great time to buy some Polkdot.
Polkadot in it’s Infancy
This polkadot chart analysis shows huge potential for investors who missed the initial ICO. The company and the price of its token are still in their beginning stages. Watch the market closely to catch them before they go big.