Ontology is one of the most discussed cryptocurrencies in 2018. It managed to enter the world top 20 and get fans around the world in just three months of its existence on the market. At the end of this year, it is planned to launch a full-fledged network (Mainnet) Ontology, after which the coin has every chance to enter even the TOP 10. However, how big are these chances and how does Ontology cryptocurrency fundamentally differ from two thousand other altcoins? Is it worth to invest in it and how much profit can you count on? We will describe in this article!
The Chinese company Onchain is known for its connection with the cryptocurrency NEO. However, it gathered the best experts in the blockchain field to launch its own project – Ontology in 2017.
The main goal of Ontology developers is to create a network that will unite the blockchain and the real economy. Unlike other projects of this kind, Ontology emphasizes digital identification and trust management.
For example, Ontology Common (digital user identification), Ontology Custom (building business models in the blockchain), Ontology ID (digital verification for organizing the “Internet of things”) and so on. According to experts, the modules are very simple and resemble a designer, from which you can build anything.
Everything is built on trust in Ontology. Users go through identification and form the so-called trust anchors, which are then combined into “trust trees”. As planned by the developers, over time, the network will consist of solid “trees” and the level of trust in the system will be almost 100%. Such a scheme has not yet been implemented.
Ontology is also different from other cryptocurrencies in technical terms. For example, it uses a modified dBFT consensus protocol, also known as the task of the Byzantine generals. This is a type of PoS protocol, in which the network operability is maintained by the delegates selected during the voting.
However, the developers went even further and set up the protocol in such a way that, by running the application on the Ontology network, the company will be able to choose the algorithm for achieving consensus Proof of Work or Proof of Stake, normal dBFT, and so on.
In fact, Ontology is a global blockchain in which you can use, merge and create other blockchains. It will use internal ONT tokens for operations. Investors are actively interesting in them now.
Unlike most new cryptocurrencies, Ontology did not even have an ICO. The developers have generally abandoned presales and crowdsale. Instead, they organized Airdrop, during which they handed out coins to NEO holders in the ratio 1NEO = 2ONT. A total of 20 million ONTs were distributed and the total emission should be 1 billion coins.
All others can buy ONT on cryptocurrency exchanges. The coin is already being traded on many top-end Binance, OKEx, Huobi, Upbit, Kucoin, HitBTC and others. About 40% of trading falls on the Binance (ONT / BTC trading pair), 20% on OKEx (ONT / USDT), 17% on Huobi (ONT / USDT).
There are no official data on mining of ONT. It is only known that in the full-fledged platform two tokens will function at once – the ONT itself and the ONG (an analogue of the GAS in the NEO network). ONG tokens will automatically be charged to ONT holders registered in the system.
The price of the coin was $ 1.4 in early March, when the Ontology cryptocurrency only appeared on the stock exchanges. It appeared in the listing of the Binance exchange in the middle of the month, and the cost immediately crossed the $ 2 mark and the market capitalization gained 300 million.
Experts attribute the sharp rise in Ontology to the appearance of a coin on the top exchanges. In addition, affinity with NEO had a positive impact on its reputation.
The cost of ONT was already $ 10 in early May, and the market capitalization overcame the $ 1 billion barrier. However, after this, the correction phase began, in which the price varied within 6–8 dollars.
Now the correction is still ongoing. At the time of this writing, the cost of ONT is $ 7.6, and the market capitalization is $ 1.1 billion. Now Ontology closes the TOP 20 of the CoinMarketCap world ranking.
Analyzing the general market trend of Ontology cryptocurrency, experts note its stable upward movement. However, according to many technical analysts, the price peaks and lows observed throughout the spring may be associated with the Pump & Dump scheme.
Experienced traders see bullish and bearish trends on the market chart. In other words, during periods of maximum volatility, the situation in the market was controlled by large players who changed the cost of Ontology by purchasing or merging coins.
There is another interesting point related to the market dynamics of Ontology. According to experts, the price of cryptocurrency did not grow as intensively as one would expect, given the strengths of the project. This could be affected by the initial distribution of tokens.
As we have said, the developers distributed free tokens to NEO holders and those could simply sell coins that they did not plan to add to their cryptocurrency portfolio. Thus, they have reduced the market dynamics of Ontology.
Experienced specialists are working on the development of the platform, who have already submitted an extended roadmap of the project and promised to launch a full-fledged network by the end of this year.
Large Asian companies have long paid attention to Ontology and actively support the project. It will definitely be accepted in the Asian region (which, as you know, feeds the entire cryptocurrency market).
In addition, the project joined the Global Decentralized Identification Fund and the development of an international online identification standard (ISO / IEC TC 307). All this contributes to the promotion of Ontology on the global business arena.
The issue of state regulation is still the most acute. Most of the potential users and investors of Ontology are concentrated in China, which, as you know, has imposed a number of restrictions on operations with cryptocurrency. However, the Chinese authorities have already announced that at the end of the year they plan to revise and even soften some bans.
The optimistic forecast, which most foreign experts are inclined to, calls 30-40 dollars for 1ONT before the end of this year. This is 400-500% more than today.
However, experts advise not to massively buy coins right now. According to their calculations, not all the NEO holders who received the ONT during Airdrop have leaked their coins. However, they can do it at the next rate jump, which will lead to a significant price drop.
Moreover, now the course is in a shallow correction – the price varies in a very small range. That night it went up again (daily dynamics is + 2.6%).