The first altcoin on the market is trading today at $1.80.
Its birth in 2013 spawned more than 20,000 cryptocurrencies in the market.
Today marks the 9th anniversary of the launch of the first altcoin, which was then called Mastercoin. This historic event, which happened on July 31, 2013, is remembered in the community for giving way to over 20,000 cryptocurrencies in the market. Also, being the source of one of the most popular memes in the bitcoin community: shitcoin.
Let’s start by finding out what this concept is all about. Said the English word that brings together the words “dirty” (Stool) and “parts” (coins), is used by the community to pejoratively refer to any “useless” cryptocurrency of real or dubious origin. Precisely because they think it is a worthless financial asset, was created aimlessly, or looks like a copy of other cryptocurrency projects.
Despite this strong negative charge attributed by the bitcoiner community, the market is full of so-called shitcoins and they are hailed by many as an investment.This is why some people like to call them “altcoins”, which means “alternative currencies”. Any other cryptocurrency other than Bitcoin (BTC) is called so, which was the first and most successful in history.
According to CoinMarketCap, there are currently over 20,000 altcoins on the market. Most of them are barely worth tens of thousands of cents. To get a comparative idea, bitcoin price is at least 1300% higher than the rest. However, they continue to spread and are part of what decentralized finance and the internet offer users around the world. But do you know how this whole ecosystem started? So let us tell you.
Mastercoin was the first “Shitcoin” on the market
can you say that The world of altcoin or shitcoin started in 2012 when JR Willett, a computer science graduate from Seattle, published the idea for the Mastercoin project. He proposed to use the bitcoin network as a protocol layer to expand its interactions and functions. In other words, to build a decentralized bitcoin financial market and expand its monetary possibilities, the cryptocurrency world is taking shape as we see it today.
Along with posting thoughts, Willett opened a discussion forum on the subject and helped troubleshoot issues with the bitcoin network. So, His mastercoin plan has garnered a lot of interest from the community And the following year, they started raising funds by issuing the first ICO in history. In English, this acronym stands for “Initial Coin Offering”, an expression that refers to an activity undertaken by a company to finance its projects through an offering of tokens, shares or votes in the future. of trading.
Thanks to the ICO, everyone who invested in the project by sending bitcoins to their address received back 100x their investment in the platform’s Mastercoins (MSC) tokens. In addition, some of them received an additional bonus in the form of an early adoption bonus.
The project was initially a complete success, achieving a collection of 4,740 BTC. At the time, this figure was equivalent to approximately 500,000 US dollars. Considering the price of bitcoin was around $105 back then. Thus, Mastercoin was launched exactly 9 years ago, i.e. on July 31, 2013.
Altcoins have plagued the market since Mastercoin originated 9 years ago
The initial demand for mastercoin led to a rapid rise in its price which quickly collapsed.After investors did not agree with the policies of the organization and the emergence of other cryptocurrencies in the market, its success was short-lived and gradually it began to be put on hold. side.
This led to the Mastercoin protocol being renamed OmniLayer in 2015 to refresh its image. Today, the OMNI (formerly MSC) cryptocurrency market is trading at $1.80, as shown in the following chart of its historical behavior. Its peak price was in early 2013, when it was priced at US$200. In other words, she never saw her golden age again.
Since then, the biggest breakthrough for altcoins came when Ethereum entered the market in 2014. Its ICO raised $18 million worth of bitcoins in the first 24 hours and continued to gain market share over the years. year. Its cryptocurrency, Ether (ETH), is the most valuable altcoin today, trading at around $1,700, despite the fact that in 2017, amid the rise of BTC, many gained in popularity and hundreds of ICOs have been carried out. .
History has shown that when the value of bitcoin increases, new shitcoins or altcoins usually emerge, and many people take advantage of these events to speculate on them.However, there are many that disappear during the recession and generate huge losses for the community., as expected this crypto winter. For this reason, it is always important to research the true value of a coin and understand its usefulness before investing in an ecosystem project.
Meanwhile, according to calculator Cryptonoticious, none of the market-filling altcoins have managed to outperform the originator of this ecosystem: Bitcoin, which is trading at US$23,800 at the time of writing.