The ICON network was launched in 2017, by a company in South Korea. The project was founded by Min Kim, the former chief strategy officer of Korea’s largest fintech holding company, DAYLI Financial Group. ICON is a complete network, based on blockchain, and aims to create interaction and connection between different blockchain software programs through it. It is part of the rapidly growing decentralised finance or ‘DeFi’ field. One of the other major projects of the company is to develop blockchain-based driver’s licenses by using its decentralised identity technology (DID). Tweet: https://twitter.com/helloiconworld/status/1482021200243171331
What is the ICON Token?
The ICON token, ICX, has been on the market since 2017 and debuted at $0.50. Interestingly, the price of the token is strongly proportional to that of the Algorand (ALGO) and Cardano (ADA) tokens. It is a part of the DeFi and NFT ecosystems and is connected to the Ethereum network via the Orbit Bridge. This way, Ethereum tokens can be transferred to ICON. The token is used mainly for staking, rewarding users for network participation, transaction fees and paying smart contracts.
Benefits of ICON
Here are the benefits of the ICON project and token:
Through attempts to advance frictionless value exchanges, the network is trying to provide real-life utility to the cryptocurrency industry. By eliminating the intermediaries, transactions are also expected to be cheaper when using the ICON network. It also tries to work in a decentralized identity, digital certificate issuance, NFT, blockchain payments and decentralized finance niches.
Partnerships in the Private Sector
By focusing on enterprises, ICON has been able to establish several partnerships in Korea’s private sector. Among the partners that it has acquired in the country are Shinhan Bank, Danal Fintech and ICONLOOP, the primary contributor to the ICON project.
Scalability could be one of the major issues that the company faces while trying to establish its project on a larger scale. This is because they are trying to connect a huge variety of blockchain communities. Another important factor to note is that the ICX token is not very popular amongst investors. After its initial price of $0.50, it climbed as high as $13 before taking a plunge. And since then, it has not come close to even a third of the height.
Price Analysis for Short and Long Term
At the time of writing, ICX is trading for $1.05. The total supply of the token in the market is 860 million, while the maximum supply is not yet determined. An ICO was held for the token in 2017, with $43 million being raised for 400 million tokens when the offering price was $0.11. Over the last 30 days, the token hit a high value worth $1.97 before dipping and has been hugging the lower band ever since. According to WalletInvestor, ICX is expected to climb to $2.06 by 2023 and is expected to be worth $6.01 by 2027. PricePrediction also has the same view, with their calculations projecting an average value worth $2.23 in the coming year. They also state that the token can reach an average value of $9.55 in 2027.
After remaining fairly stable in 2020, the token has finally started to make gains but has experienced consistent volatility. With a strong project behind ICX, it is predicted that the token will be very bullish in the coming years. However, it hasn’t been performing well over the last three months and there is a considerably high amount of risk involved right now.