Golem (GNT) has once again appeared on the radar after a long time. The reason this time is the recent Coinbase Pro listing which resulted in a new wave of interest in the cryptocurrency. Golem (GNT) is without any doubt one of the most promising projects in the blockchain space. The team behind this wonderful project has achieved so much even during the bear market. Instead of complaining about lack of funds or other impacts of the recent market meltdown, Team Golem (GNT) has been focused on hard work to deliver a working product to the market and position Golem (GNT) as the leader in the shared computing arena. The team behind Golem (GNT) has done a really good job at making it easy for anyone with a computer to share their computing power with others.
Transactions on the Golem Network are made in GNT which naturally raises demand for Golem Network Tokens (GNT) with the passage of time. As there are a limited number of GNT coins, with rising demand, the price per coin will rise as well. This makes Golem (GNT) one of the few utility tokens with a sound economic model. Most utility tokens that we see on the market have flawed token economics. Their goal is just to lure in investors with unreasonable promises of rewards or free tokens on a regular basis. When the market takes a turn for the worse, most of these projects go belly up and investors are left holding the bags with big losses. For investors looking to diversify and accumulate some utility tokens given the risks associated with security tokens, GNT/USD presents the best risk/reward.
Chart for GNT/BTC (1D)
Most of the 2,067 cryptocurrencies that currently exist in the market are scams, dead coins or projects built around weak fundamentals. There are also plenty of projects within the top 100 that fit this description. As the cryptocurrency market grows, it will become more and more difficult to separate the wheat from the chaff. Investing in altcoins is no different than investing in a startup and therefore requires the same level of scrutiny, research and due diligence if not more. Fortunately for cryptocurrency investors, this market is more focused on transparency and access. Investors who are willing to go the extra mile can find all the information they need to follow what a project has been up to and where it is headed next.
The price of Golem (GNT) is likely to receive a big boost from the recent Coinbase listing but this listing should be seen more as a stamp of approval than as a gateway for future investment in the cryptocurrency. Coinbase follows a very rigorous process when it comes to listing new cryptocurrencies. They are more careful now than ever as they have a huge following and a reputation as an industry leader to uphold. Anything that ends up on Coinbase ends up on the radar of institutional investors who are just getting ready to put their money in this market. As altcoins continue to outperform Bitcoin (BTC) in terms of gains, most of these institutions will start looking beyond Bitcoin (BTC) to invest in other promising blockchain projects. When they do that, they will see Golem (GNT) as one of those projects.