Lition, Fantom: Two Deeply Undervalued Cryptos
As Bitcoin makes new rally highs, it has confirmed and reconfirmed the crypto bull market of 2019.
So, since I continually review the technology of new coins covered by Weiss Crypto Ratings, I figured this would be a good time for me to jump in and identify a few that I feel are deeply undervalued.
Today, I’ll cover two of them:
Undervalued Crypto #1: Lition (LIT)
This coin is described as “a scalable public-private blockchain with deletable data features, made for commercial products.”
Does “private blockchain” fly in the face of decentralization? And does “deletable data” contradict the immutability of blockchains?
Not entirely. To work with businesses, some data needs to be public; some needs to be private. And that’s why Lition has both.
Lition will be a sidechain to Ethereum. So the public portions of Lition will be recorded on the Ethereum network and will be fully transparent to anyone who wants to conduct an audit.
But, at the same time, Lition needs private sidechains anchored to Lition itself. This way, a business using Lition can store and edit information that it needs to keep confidential — data used for regulatory compliance, for example.
Prior to developing the Lition blockchain, the team already had a revenue-generating business known as Lition Energy. And soon, the team plans to develop Lition for use cases like peer-to-peer energy trading and bank lending. It can also be used as a platform for Security Token Offerings (STOs), which are expected to be more like securities than ordinary tokens.
Recently, the Lition team has modified the token lockup period. And this should reduce the active supply significantly in the coming months. In fact, already, Lition in circulation is expected to be reduced to 30 million in July, compared to about 70 million recently.
Plus, here are some other positives I think could be critical:
- The folks behind the Lition team are likely to develop a Bridge to Binance Chain, enabling interoperability between them. And they will apply for listing on Binance Chain, which could pave the way for eventual listing on Binance central. End result: These efforts could significantly increase trading liquidity.
- The Lition Mainnet will launch in Q3, enabling staking and masternodes.
- Lition has a partnership with the German software giant SAP. Unlike typical crypto partnerships, SAP will invest some real effort into Lition, primarily to develop its smart contract platform.
Lition is currently trading at 14 cents, which is quite near the Initial Coin Offering price of 10 cents. And I think that’s dirt-cheap.
It’s available on the Bibox and IDEX exchanges. But it has not yet gotten exposure on any major exchanges. This is the primary pitfall investors should watch out for: poor trading liquidity.
As a result, true price discovery can only happen once liquidity increases with a listing on major exchanges like Binance Chain or Binance.
Undervalued Crypto #2: Fantom (FTM)
Fantom is cryptocurrency that does not use blockchain. Instead it uses an innovative approach called directed acyclic graph (DAG).
I won’t dwell on the technical details. But suffice it to say that, unlike blockchains, it’s infinitely scalable with the capacity to do virtually anything that’s done today on the internet. For example …
- It could be used as the nervous system for smart cities.
- It could be the infrastructure backbone for a complex network of devices connected via the Internet of Things (IOT).
- And, as such, it could be a secure and efficient platform for public utilities, medical records, healthcare services, identity storage and more.
A key innovation Fantom has pioneered is Lachesis consensus. This enables Fantom to settle transactions instantly and run smart contracts at a high speed. In recent testing (Testnet), it achieved 25,000 transactions per second. Once launched (Mainnet), we conservatively estimate it could reach speeds exceeding 100,000 transactions per second.
Other DAG-based cryptocurrencies have similar aspirations. But Fantom can run smart contracts. Nano cannot and IOTA is just developing a smart contract platform.
Fantom does have one serious DAG competitor — Hedera. But Hedera is permissioned, whereas Fantom is not.
Some other pluses:
- Fantom has completed its OPERA core layer development.
- It has launched a beta Virtual Machine and a Testnet.
- It’s listed on Binance.
- Its Mainnet launch is coming in the third quarter of this year.
- Its price recovered nicely from a low of 0.8 cents to 4 cents, thanks mostly to its Binance listing.
- But it’s still trading a bit below its ICO price, another major bargain.
All very positive! Just bear in mind that Fantom also has two challenges:
- Fantom’s biggest competitor is Hedera Hashgraph. It raised $100 million compared to Fantom’s $40 million. And it’s ahead of Fantom in terms of development. Still, Hedera could be limited in that it’s run by a group of companies and the technology is patented. So if Fantom can adhere to its Q3 Mainnet launch date, it will be one of a kind in the crypto world.
- DAG-based Distributed Ledger Technology is still largely experimental. With the launch of Fantom’s Mainnet, we will finally see if it can live up to its grand promises of scalability and decentralization.
Stay tuned! As the new crypto bull market heats up, coins like these could appreciate rapidly. And I’ll review more at the next opportunity.
Dr. Bruce Ng is a respected educator in the field of Distributed Ledger Technology (DLT) and has been a lead crypto-tech analyst for Weiss Cryptocurrency Ratings since shortly after their launch. He combines the strict discipline of a Ph.D. in physics, robust experience as a software developer, and deep knowledge of blockchain. The result is uniquely scientific and 100% objective reviews of individual coins and the space as a whole.