Levels of investment in promising digital technology have increased significantly over the last few years. In particular, 2017 saw a tenfold rise in the popularity of ICOs: while in 2016 initial coin offerings raised a total of about $240 million, last year that number had grown to $5.6 billion, according to the TokenData team.
And while before investors used fiat currency and cryptocurrency to invest in projects, we are now seeing a new trend in the cryptoinvestment market: more and more platforms are accepting tokens from other projects as payment.
How does this work and who benefits?
Tokens can be received for mining (verifying transactions and creating blockchain blocks) or providing services within a platform, or they can be acquired on an exchange. They are typically only used within a system, such as to buy goods and services, and do not have value in and of themselves outside of that system.
There are a few major crypto exchange services, where tokens of well-known projects can be exchanged for cryptocurrencies or other tokens. However, direct conversion without third-party involvement is much faster, more convenient, and generally more in line with the spirit of blockchain and the peer-to-peer principle.
In addition, there is an opportunity for direct profit: in the event of a successful ICO and subsequent exchange trading, the project’s tokens could significantly increase in price. Recently, Market.space, the professional service for secure data storage and transfer based on distributed ledger technology, joined the new wave by announcing that during its ICO tokens of two other decentralized storage services, Sia (SC) and Storj (STORJ) will be accepted for payment. The tokens will be exchanged at the current market rate.
Why is Market.space accepting tokens from competitor projects?
Both Storj (2014) and Sia (2015) have been on the market for a few years now. Both services use a similar model: hosts rent out unused space on the hard drives of their PCs, receiving payment in tokens. Unfortunately, using private computers does not guarantee a high level of fault tolerance or stable operation speeds, and until now many global issues in this field, such as the lack of user privacy, unreliability in system operation, and the risk of data loss or leaks, remained unsolved.
Market.space wants to support the developing distributed data storage sector and give the users of existing services a chance to try a fundamentally new solution. “We want to support the entire industry and give those already familiar with decentralized data storage a chance to look at our model,” explained Alexander Rakhmanov, the platform’s founder.
How is Market.space different from existing decentralized cloud services?
Unlike already existing services, Market.space intends to use the resources of major hosting providers. This will help solve the problem with system vulnerability at the equipment level, while offering providers additional income. Deep encryption and the use of the distributed ledger, combined with the absence of central registration, will ensure reliable and confidential data storage.
In addition to storing and transmitting information, Market.space offers the capability to directly distribute digital content. The platform intends to work together with major record labels and movie studios as well as with individual creators. The absence of a middleman will allow sellers to lower product prices, while the timestamp that is created when a file is uploaded to the system will help establish authorship, if needed.
Where is the MASP token used? How can it be acquired?
In order to increase client trust toward hosts, Market.space instituted a mandatory security deposit in MASP tokens. Hosts make the deposit every time they join the system, and when they leave the system, the deposit is returned.
MASP can be acquired during the Market.space ICO, from April 16 to May 27, 2018. The value of 1 MASP token will be set to $0.35. Tokens will be issued only during the initial sale. The minimum transaction amount is $35, with no maximum. Payment can be made with BTC, BCH, ETH, ETC, LTC, DASH, SC, and STORJ. Funds raised will go toward developing, testing, and launching the project.
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