Why did the pump BAT ?

April 22, 2019

Recently, the BAT coin broke into all the news reports, and the reason was the growth of BAT to Bitcoin by 216%. Why is the whole 2019 year going pamp BAT?

BAT is a utilitarian token of the Brave project.

Competition is the engine of progress. Being present in all spheres of our life, it is especially noticeable where really big players with really big money are spinning. In this regard, for the cryptocurrency market, the “first sign” of large investments, and, consequently, great competition, was the ICO market in 2017. This year has shown that blockchain projects are extremely attractive and promising from the point of view of investors all over the world. Filecoin – $ 257 million, Tezos – $ 232.3 million, EOS – $ 230 million, all these and many other projects have collected the necessary investments for themselves in the shortest possible time.

One of these projects was Brave, the world’s first blockchain browser. Not being a record holder in the number of funds raised, he distinguished himself by the speed of their collection. Initially announced $ 35 million collected in 30 seconds after the opening of sales! All in all, the developers managed to attract $ 73 million. Let’s try to figure out what exactly made investors from all over the world, in one burst, believe in such an ambitious project.

  • Brave browser is fast. Because it loads content on a page 7 times faster than regular programs.
  • Brave browser is anonymous. Because, it supports Tor anonymizer, with the ability to transfer traffic through its network.
  • Brave users always have the option to completely block unwanted banner ads and pop-ups.
  • Brave has a built-in system that helps create marketing statistics by tracking user behavior. True, the function is paid. It is used as one of the main methods of monetization of this project.

The Brave Payments system allows you to reward the publishers you like, compensating for the effect of ad blocking.
There is also a reward program for viewing ads. A decent share of advertising revenue, namely, 70%, relies to those who click in the settings of your browser button “allow advertising display.”
The result is that everyone is happy: advertisers are advertised as efficiently as possible, and users voluntarily receive money (BAT) from viewing it. But not everything is so simple. After all, the CEO of this project is the well-known Brendan Eich, the creator of revolutionary JavaScript and one of the founders of Mozilla. For many years of work in Silicon Valley, he realized that investors do not like to give their money for marketing. And it is necessary to promote the project for the money of the founders and the first investors, which essentially “erodes” their shares in the company. That is why a fund of 300 million BAT tokens was created at Brave Software to attract new users. It is this token that pays all rewards provided by the browser.

“However, tokens allow users to be rewarded without any financial implications. Token, unlike the dollar, is the currency of social credit and does not cause a devaluation of funds, ”explains Brendan Eich.

This tricky way of redeeming costs will work only when there is a high demand in society. The cost of issuing tokens to new users will fall on the shoulders of existing holders. It remains only to create such a demand that the rise in prices for BAT tokens, provoked by the excitement, covers all the losses. And if everything works out, then all the participants of this blockchain ecosystem will be directly interested in the development of the project in the long term. Brendan Eich is thus trying to create a kind of self-contained “Brave community”. Money, represented by BAT tokens in such a system from a means of payment, is converted into an indicator of interest and value of the participants of this system. And this is much closer to the initial ideas of the “progenitor” of the blockchain technology – Satoshi Nakamoto. Even the integration of this financial system into other applications and websites is not denied. That is, the possibility of spending the earned money to pay for various Internet services is not excluded. The success of this project falls under the direct dependence on the demand for BAT tokens integrated into the system. They should become truly “useful” tokens (utility tokens), that is, help expand the network and ensure the correct operation of specific decentralized applications.

At first glance, everything is perfect: anonymity, speed, mutual assistance of the system participants, fair distribution of advertising rewards, etc. But this if only at first glance. A closer look reveals that 24 billion tokens sold during the ICO settled on only 130 addresses. And only 20 purchases exceeded 2/3 of the total. It turns out that large investors again took as much as they could carry. This is sad. The result is, as always, ambiguous. Let’s hope that such a promising idea again will not turn into a regular and banal instrument of speculation, and BAT highs are still waiting for us in the future.

All the articles