Popular crypto analyst Elliot Wainman says several low-cap and upcoming crypto projects could explode in value due to their associations with the Polkadot (DOT) ecosystem.

Wainman tells his 327,000 YouTube subscribers that he’s betting big on projects that will win Polkadot parachains.

Polkadot, founded by Ethereum co-founder Gavin Wood, is a relay chain that does not support smart contracts itself. Instead, it secures smart contract functionality from additional blockchains (parachains) that plug into the relay chain. Only 100 parachain slots are available on the relay chain, which makes the process to attain one competitive.

Explains Wainman,

“You [need] to get tens of millions of dollars to have your own parachain and win a parachain auction through a crowd loan. Well, guess what? Not only are those insanely expensive and hard to actually get the funds for, but even if you have the funds, you can’t just buy one. You need to actually vie for a very limited amount of spots, and that means that the projects that do win these crowd loans and do win these parachain auctions will be in insane places to actually benefit from massive pumps as they’ll have protective moats. Other projects can’t just build on Polkadot. They need to go through this process.”  

Acala, the “DeFi Hub” of Polkadot, is a frontrunner to win one of the parachains, according to the analyst. Acala is already live on the Polkadot testnet, but Acala’s governance token will not launch until the project secures a parachain slot.

Read Also:   Hip Hop Titan Eminem Announced an NFT Collection

Wainman says another frontrunner is “Acala’s cousin,” Karura, the “all-in-one DeFi Hub” for Kusama (KSM), a sandbox for Polkadot projects. Karura will also launch its native KAR token when it wins a parachain option.

The trader also notes that Phala Network (PHA) is in “prime position” to get a parachain. The privacy coin project has already been awarded a testnet parachain. PHA is trading at $0.921121 at time of writing, according to CoinGecko.

Also on Wainman’s list is Moonbeam, an upcoming smart-contract parachain for Polkadot. Moonbeam’s token is also forthcoming.

l

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines

Read Also:   Here's Why a Chinese Software Giant Is Buying $40,000,000 in Bitcoin and Ethereum

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/GrandeDuc




Download MAXBIT Android App, Your best source of all crypto news!
Google Play

Source link


These Crypto Projects on Polkadot Could Bring Huge Gains to Investors, Says Trader Elliot Wainman

by Garland K. Clancy
Choose A Format
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format