In the nascent digital currency sector, the pioneer cryptocurrency Bitcoin influences the price of a vast array of altcoins on the market. However, one man is ready to change the status quo to let all the alternative digital assets control their fate themselves.
The Coinage Paradigm Shift
On June 13, 2018, Coinage announced the launch of their mobile-focused cryptocurrency exchange to cater to the needs of retail investors in the Cryptospace.
In an interview with Venture Beat’s Stewart Rogers, the CEO of Coinage, Chad Pankewitz noted that his exchange is determined to champion a paradigm shift away from the norm.
Pankewitz strongly believes that it is improper to link the valuation of ICO-generated coins in the cryptosphere to bitcoin, as all the firms behind the coins have their unique projects, team, utility, and levels of funding; therefore his mobile-friendly Coinage exchange is aimed at changing this system.
In his words:
“From a long-term perspective, we want to take a stand, and the first steps toward moving the market away from being tied to Bitcoin. There are thousands of projects in cryptocurrency – distributed apps, blockchain use cases, and smart contract platforms across every industry vertical. Each has their project, company, team, utility, levels of funding, traction, community, and business model. We believe these companies’ valuations should not be tied to Bitcoin and should be valued on their individual merits, much like a traditional stock market.”
Of a truth, a decoupling of the over 1600 altcoins available on the market from bitcoin could be beneficial to the digital currency space because such a scenario will enable the price of tokens with real use cases to reflect the general performance of the project not the price of bitcoin.
Similarly, on June 3, 2018, BTCManager reported that the CEO of Ripple, Brad Garlinghouse believes that the phenomenon will come to an end by the end 2018, as markets will soon start treating cryptocurrencies as unique entities rather than using the flagship crypto as a benchmark for price movement.
“There’s a very high correlation between the price of XRP and the price of bitcoin, but ultimately these are independent open-sourced technologies. It’s early, over time you’ll see a more rational market and behaviors that reflect that,” Garlinghouse said. Mission Impossible
At a time when the United States Securities and Exchange Commission chair, Jay Clayton has made it clear that bitcoin is the only cryptocurrency that is not a security, the Pankewitz mission to break the link between bitcoin and the altcoins seems an impossible task at the moment.
However, the Coinage chief is determined to give it its best shot:
“For our customers, this approach brings a couple of things. When trading and investing, it is much easier to understand numbers in dollar terms versus bitcoin terms. It is crazy that we are made to figure out these difficult decimal numbers, such as BTC 0.0014758, when trading. We want to bring simplicity back to trading crypto.”
At press time, the price of bitcoin has resumed its free fall with other coins declining significantly as well. It remains to be seen if the Coinage effect will truly decouple bitcoin from the entire cryptosphere.