Dfinity Foundation, a non-profit tech organisation focused on disrupting the internet while leveraging blockchain technology, has launched its much-anticipated Internet Computer protocol and its native token ICP on Monday.
ICP Token Drops To Eight Spot
Even before its launch on May 10, the high-profile project gained remarkable attention from the crypto space. Days prior, centralised crypto exchange FTX had listed Dfinity’s ICP in its futures markets.
It opened trading at $700 and shot up immediately to the number five spot on Coinmarketcap before it went bearish and traded under the $400 mark. It has not attained its previous high and has fallen down the crypto rungs since then. It is now the eighth-largest cryptocurrency by market cap, which still no mean feat for a token that is only a week old.
Dfinity’s ICP has a maximum circulating supply of 469,213,710, with only 26% of the tokens in circulation, per research from Messari. Currently, ICP has a market cap of $40 billion.
Dfinity is a Swiss-based non-profit foundation seeking to transform the internet with blockchain technology. According to the tech foundation, it plans to use its innovative protocol, ICP (not to be confused with the token), to expand the functionality of the internet.
Dfinity wants to create a decentralised, scalable cloud-like platform that stores data, performs computation, and supports community-driven governance. The foundation says its “Internet Computer” would enable developers, enterprises, government agencies to input software and services directly on the public internet, thereby eliminating the trillion-dollar IT industry by using distributed data centres.
Like decentralised applications (DApps) platform Ethereum, it would also enable developers to run computations on the decentralised internet easily. But ICP is looking to go further than this. According to Dfinity, its ICP protocol will be faster, cheaper, and more scalable than Ethereum.
Dfinity’s ICP May Be Crypto Overkill
The five-year-old project has attracted a lot of investment. According to crypto data firm Messari, Dfinity Foundation has raised the most non-frozen capital of any project to date, after securing $160 million worth of investment over two years.
Commenting on the rationale behind the project, the principal at digital assets firm Arca Funds David Nage, maintains that the ICP protocol is not doing anything different from other DeFi projects.
According to Nage, Ethereum rivals like Polkadot and Solana are already covering the lapses ICP wants to correct. Dfinity’s founder Dominic Williams says he knows this and says the protocol wants to complement the blockchain ecosystem.
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Author: Jimmy Aki