Factom Coin: A Cryptocurrency for the Verification and Storage of Data on the Blockchain

Factom Coin: A Cryptocurrency for the Verification and Storage of Data on the Blockchain

Factom Coin (FCT) is a cryptocurrency that supports the development of the Factom platform, a decentralized, open-source platform that specializes in the verification and storage of data on the blockchain. The platform provides the infrastructure to create and manage data entries on the blockchain, as well as to verify their existence and ownership through its Proof of Provenance (PoP) protocol, which uses the Ethereum network and the Interplanetary File System (IPFS). FCT is a utility token that allows users to create and access data entries on the platform, as well as to pay for the network’s services. FCT was launched in 2015 by Factom, a company that develops the Factom platform and its products. In this post, we will explore the coin’s introduction and features, market analysis and trends, project updates, investment analysis and recommendations, and outlook and community response.

 

Coin Introduction and Features

Factom Coin was created in 2015 as part of the Factom project, which was initially based on the Bitcoin protocol, but later developed its own consensus mechanism and data structure. The project distributed 8.75 million FCT in its initial coin offering (ICO), which raised $1.1 million in 15 minutes. The project also allocated 2.5 million FCT to the Factom Foundation, a non-profit organization that supports the community and the project. The total supply of FCT is capped at 32.5 million, with 9.4 million in circulation as of April 20241.

FCT is a utility token that powers the Factom ecosystem and enables users to access and enhance the decentralized services on the platform. Some of the main features of FCT are:

• Data creation: Users can create data entries on the platform, which are immutable and timestamped records of information that can represent various types of data, such as documents, transactions, contracts, or identities. Users can also attach metadata and signatures to the data entries, which provide additional context and verification.
• Data access: Users can access data entries on the platform, which are stored on the blockchain and distributed across the network. Users can also verify the existence and ownership of the data entries, as well as their integrity and authenticity, through the PoP protocol, which uses cryptographic proofs and hashes to link the data entries to the Ethereum network and the IPFS.
• Data processing: Users can process data entries on the platform, which are organized into chains and groups according to their categories and purposes. Users can also perform various operations and functions on the data entries, such as searching, filtering, sorting, or analyzing.

 

Market Analysis and Trends

FCT has experienced significant price volatility since its launch, reaching an all-time high of $87.16 on January 6, 2018 and an all-time low of $0.08 on March 13, 20201. As of April 2024, FCT is trading at around $0.17, with a 24-hour volume of $0 and a market cap of $1.6 million1.

FCT has shown a negative trend in the past year, decreasing by over 99% from its high point in January 2018. Some of the factors that may have contributed to this decline are:

• The lack of adoption and demand for the platform and its services, especially in the field of data verification and storage, which faces competition from other platforms and projects, such as Chainlink, Filecoin, and Storj.
• The lack of development and innovation of the platform and its products, which have not released any major updates or features, such as the Factom Harmony, the Factom Asset Token, and the Factom Protocol 2.0.
• The lack of community and media exposure of the platform and its services, which have not received much attention or recognition from the users and supporters, as well as the celebrities and influencers.

 

Project Updates

Factom is a static and stagnant project that rarely releases new updates and announcements for its users and supporters. Some of the recent and upcoming updates are:

• Factom Harmony: This is a platform that allows users to create and manage data entries on the Factom platform, as well as to integrate them with various applications and services, such as document management, identity verification, and audit trails. The platform is powered by the Factom API, which provides a simple and user-friendly interface to interact with the Factom platform.
• Factom Asset Token: This is a project that aims to create and issue tokens backed by physical or digital assets on the Factom platform, such as gold, silver, or art. The project uses smart contracts and the PoP protocol to ensure the security, transparency, and authenticity of the tokens and the assets.
• Factom Protocol 2.0: This is a proposed upgrade of the Factom platform, which aims to improve the scalability and performance of the platform, as well as to introduce new features and functionalities, such as sharding, interoperability, and governance. The upgrade is still in the design and development stage, and has no clear timeline or roadmap.

 

Analysis and Recommendations for Investments

FCT is a risky and uncertain token that offers limited benefits and opportunities for investors. Some of the reasons why we do not recommend FCT to investors are:

• FCT is the gateway to the Factom platform, which is a decentralized platform that specializes in the verification and storage of data on the blockchain. However, the platform has a low and declining user base, as well as a weak and outdated ecosystem of services and partners. It also has a slow and inactive team of developers and contributors, who rarely improve and expand the platform and its products.
• FCT is a utility token that has multiple use cases and functions on the platform. However, the platform has a low and diminishing value proposition, as the data verification and storage market is saturated and competitive, and the platform’s services are costly and inefficient. The platform also has a low and decreasing revenue stream, as the network’s fees are negligible and the data entries are illiquid and volatile.
• FCT is a potential token that has no room for growth and appreciation. It has a high and increasing market cap and price compared to other similar tokens and platforms, which indicates that it is overvalued and has no upside potential. It also has a negative trend and momentum, driven by the lack of adoption and demand, the lack of development and innovation, and the lack of community and media exposure.

 

Outlook and Community Response

FCT has a bleak and pessimistic outlook, as it is backed by a weak and outdated project that aims to create and manage data entries on the blockchain. It has a vague and unrealistic vision, mission, and roadmap, which do not reflect the goals and milestones of the platform and its services. It also has a dissatisfied and disengaged community, which does not support or engage with the platform and its features.

The community response to FCT and the Factom platform has been generally negative and critical, as evidenced by the following indicators:

• The social media presence and activity of FCT and the Factom platform, which include over 50,000 followers on Twitter, over 5,000 members on Telegram, and over 3,000 subscribers on Reddit. However, the social media platforms are also used to share complaints, criticisms, and frustrations, as well as to demand refunds and updates.
• The user reviews and ratings of FCT and the Factom platform, which are mostly unfavorable and negative. For example, the Factom Wallet has an average rating of 2.7 out of 5 stars on Google Play, and 2.4 out of 5 stars on App Store, based on dozens of reviews. The users criticize the wallet for its bugs, errors, and delays, as well as its lack of features and functionality.
• The media coverage and recognition of FCT and the Factom platform, which are mostly neutral and indifferent. For example, FCT and the Factom platform have been featured and mentioned by few and obscure media outlets and platforms, such as CoinCodex, CryptoSlate, and Crypto Briefing. The media outlets and platforms report the facts and events of FCT and the Factom platform, but do not provide any analysis or opinion.