See how I make room for more than 20,000 cryptocurrencies

Key facts:
  • Today, the first altcoin on the market is trading at $1.80.

  • Its inception in 2013 led to the emergence of more than 20,000 cryptocurrencies on the market.

Today marks the ninth anniversary of the launch of the first altcoin, which at that time was called Mastercoin. This historic event, which took place on July 31, 2013, is remembered by the community for giving way to more than 20,000 cryptocurrencies on the market. Also, being the source for one of the most popular meme terms in the bitcoin community: shitcoins.

Let’s start by exploring what this concept is all about. Said the English term, which combines the words “filth” (shit) and “coins” (Coins), used by the community to refer to any real “worthless” cryptocurrency or of dubious origin. Precisely because they consider it a useless financial asset, that it was created aimlessly or that it appears to be a copy of other cryptocurrency projects.

Despite these strong negative fees that the Bitcoin community takes credit for, the market is filled with so-called shitcoins and are valued by many as an investment.. For this reason, some prefer to call it “altcoins”, which means “alternative currencies”. This is how any cryptocurrency other than Bitcoin (BTC), which was the first in history and the most successful, is named.

According to CoinMarketCap, there are currently more than 20,000 altcoins on the market. The vast majority of them are barely worth a thousandth of a cent. For a comparative idea, the price of Bitcoin is at least 1,300% higher than the rest. However, they are still proliferating and are part of the offer that decentralized finance and the Internet provide to users around the world, but do you know how this entire ecosystem started? Well, let us tell you.

Mastercoin was the first “Chetcoin” on the market

This is possible The world of altcoins or shitcoins started in 2012 when JR Willet, a computer science graduate in Seattle, has published the idea for the Mastercoin project. This suggested using the Bitcoin network as a protocol layer to extend its interactions and functionality. In other words, to build a decentralized financial market in Bitcoin and expand its monetary potential, just as we see today the world of cryptocurrency taking shape.

In addition to spreading the idea, Willett opened a discussion forum on the topic and helped address issues with the Bitcoin network. in this way, His Mastercoin scheme has received a lot of attention in the community The following year, he began raising funds by issuing the first ever initial coin offering. This acronym in English means “initial coin offering”, a phrase that refers to the activity of a company to fund its projects by offering tokens, shares or votes in the future of the business.

Through the ICO, everyone who invested in the project by sending Bitcoin to their address received 100 times their investment in Major Coins (MSC), the platform token, in return. Also, some of them got an extra bonus as a reward for early adoption.

The project was initially quite successful, generating a total of 4,740 BTC. At that time, this number was equivalent to about 500,000 US dollars Given that bitcoin was worth about $105 at the time. In this way, Mastercoin was launched exactly 9 years ago, on July 31, 2013.

Altcoins plagued the market after the origin of Mastercoin 9 years ago

The initial demand for Mastercoin caused it to have a rapid price increase that quickly collapsed. After the disagreement among investors about the policies of the organization and the emergence of other cryptocurrencies in the market, its success became short-lived, and little by little, it began to decline.

This led the Mastercoin protocol to be renamed Omni Layer in 2015, in search of updating its image. The cryptocurrency OMNI (formerly MSC) is trading in the market today at $1.80, as can be seen from the following chart of its historical behavior. Its maximum price was initially, in 2013, when it was equal to 200 US dollars. In other words, he never witnessed his golden age again.

This has been Omni’s behavior since its inception. Source: CoinGecko.

Since then, the biggest altcoin breakthrough came when Ethereum entered the market in 2014. The ICO raised $18 million worth of bitcoins in the first 24 hours and has continued to gain market share over the years. Today its digital currency, Ether (ETH), is the most valuable digital currency, trading around $1,700, despite the fact that in 2017, in the midst of the BTC rally, many gained popularity and hundreds of ICOs were executed.

History has shown that new Chetcoins or altcoins tend to appear when the value of Bitcoin rises, and there are many who take advantage of these events to speculate on.. However, there are many of those that disappear when there are downturns and cause huge losses to societyAs expected this crypto winter will happen. For this reason, it is always important to research the true value of a currency and understand its usefulness before investing in any ecosystem project.

Meanwhile, none of the altcoins filling the market have been able to bypass the creator of this ecosystem: Bitcoin, which at the time of writing is trading at $23,800, according to the CriptoNoticias calculator.

 

 

 

 

 

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