INTRODUCTION
At the beginning of the year, I made a promise to myself to invest more than I spend. With cryptocurrencies as a great choice of investment with a meager income, I knew I had to learn as much as I can about them. There are over 6000 cryptocurrencies currently on the market according to coinmarketcap.com and sure there’s always confusion on what coin to invest in. Going through the first part and second part of the How to invest in cryptocurrencies lesson by @besticofinder has really been helpful and informative for me. Comparing the various features, stats and plans of cryptos is clearly the best way to make a choice rather than asking around and ending up with wrong info.
In this post, I’m going to be comparing Aelf and Lisk which according to coincentral are competitors. This post is in response to the assignment with the following tasks:
You need to select two crypto currencies and do a fundamental analysis comparing each other. When selecting the two crypto currencies try to compare two currencies which are competitors to each other ( Optional) Compare the factors we discussed in lecture 6 and this lecture 7 decide which will be the best investment option. ( coinmarketcap.com : Token Rank Should be between 100 - 400 range )
Read the project whitepaper and compare the concept
Compare the social reach , project purpose , team , response from the market
Compare Market capitalization, Liquidity and trading volume,Circulating supply ,Active addresses , Maximum supply, Transaction count etc.
Decide which coin will be the better currency form the selected two currencies. Support your decision with above facts.
Let’s get right on it...
AELF
The Aelf token was officially announced on the 21st of December, 2017 with the symbol ELF. On the 10th of December 2020, the Aelf Mainnet was launched with the backing of a number of investors.
Aelf project concept
Aelf describes itself as a “branched ecosystem”. Instead of the normal single chain system, aelf blockchain is made up of one main chain and multiple side chains independent of themselves. According to aelf.io, “the main chain acts as the backbone of the system and connects to the multiple side chains interacting with them by Side Chain dynamic indexing.” The aelf side chains consists of built-in aelf Side Chains and other chains generated based on the aelf operating system or aelf kernel. Speaking of which...
ælf is a decentralized self-evolving cloud computing blockchain network that aims to provide a high-performance platform for commercial adoption of blockchain technology. In order to establish a blockchain infrastructure for various commercial requirements, ælf provides an efficiency-focused multi-chain parallel-processing system with cross-chain communication and self-evolving governance. " messari.io
Aelf blockchain stands out from other blockchains because it provides a customizable operating system service for individuals, businesses and government organizations. Users can decide to use the custom OS design or create their own designs to suit their needs thanks to this flexibility feature.
The Aelf platform operates on a proof-of-stake consensus meaning the more you have the more you can mine.
Aelf team
Aelf was founded by the CEO of Hoopox, Ma Haobao. Michael Arrington (CEO of TechCrunch) and Zhuo Shouji serve as advisors. Other team members include Chen Zhuling, Wen Shan, Liam Robertson, Kenneth Oh, Deng Guanglei, Rong Peng and Yang Yalong.
Aelf is known for making strategic partnerships with notable companies and organizations.
Other partners and investors of Aelf include Draper Dragon, Bitmain, Huobi Global, DHVC, Blockchain Ventures, Chain Funder, FGB Capital, etc. " forex.academyaelf is now working with Innovation Alliance for increasing the acceptability of blockchain technology which will ultimately increase adoption of aelf’s blockchain. " coinswitch.co
Indeed, the project proved so popular that they had to turn down interested investors after hitting their 55, 000 goal just two weeks after the sale began. This testifies to the potential of Aelf. " forex.academy
By this we can conclude that Aelf is a really special coin that a lot of investors view to have huge potentials. As we would say over here in Nigeria, it’s a hot cake.
Aelf has also partnered with tech giants like Huawei, Google cloud, Microsoft Azure and Amazon.
Aelf social reach
Going through the Aelf website I was impressed when I found out that they had accounts on multiple social media platforms including an email address. Some social media stats include:
| 85.8k followers | |
| 5,606 followers | |
| YouTube | 20.6k subscribers |
| 33.3k members | |
| 12,999 followers | |
| Bananatok(Aelf Chinese) | 5,374 members |
Aelf also has an active account on Medium.com and collaborates with internet hosting subscriber GitHub.
Liquidity, Market capitalization and other statistics of Aelf.
As mentioned in the lesson, liquidity of a cryptocurrency is a major factor to consider when choosing a currency to invest in. Liquidity is simply the ability to buy and sell a coin without affecting the market price.
from the Binance app
Some stats as of writing include:
| Price | $0.38 |
| Rank | #188 |
| Market cap | $208,380,461.89 |
| Trading volume | $48,581,773.78 |
| Curculating supply | 544,480,200 ELF |
| Total Supply | 880,000,000 ELF |
| Max supply | 1,000,000,000 ELF |
Now let’s move to the next coin...
LISK
Lisk was created from a fork of a blockchain that used to be known as crypti by Max Kordek and Oliver Beddows. The project was announced on the 30th of January, 2016 and the Lisk Mainnet was launched five months later on the 24th of May, 2016 which is actually impressive if you ask me. The symbol for Lisk is LSK.
Lisk concept
Lisk is a cryptocurrency for JavaScript developers. Lisk consists of a Software Development Kit (SDK) that allows developers to create their own DApps and connect them to the main chain as individual and independent side chains. This feature reduces the cost of developing for the developers and makes it easier to make a application with as they write their own codes. The SDK is installed for use but if only a single feature is needed, that feature or plugin can be installed.
" lisk.io
Apps built with the lisk SDK will always share the same codes but that’s not even the awesome part.
But the catch is that if any service is flawed it would affect any dependent applications.“The best part is, if you need one of these services in your Lisk blockchain app you don’t need to re-implement everything. You can just plug into third party technologies and leverage their functionalities from within your Lisk blockchain app.”" medium.com
Just like Aelf, lisk does not operate on a proof-of-work concept. Instead, it utilizes a delegated proof-of-stake consensus which is almost the same concept as Aelf.
Lisk team
As previously stated, lisk was founded and launched by Max Kordek and Oliver Beddows. Max Kordek is the president and CEO while Oliver Beddows is the Vice President & CTO. Some developers include Mitsuaki Uchimoto, Ali Haghighatkhah, Iris Salcedo Garcia, Manu Nelamane Siddalingegowda, etc. The list of team members is extensive with a total of 50 members.
Lisk is in partnership with companies like Microsoft Azure and Chain of Things. I could not find any more info on partnerships.
Lisk social reach
Lisk also has a good social media presence. Some platforms include:
| 188.8k followers | |
| 25,615 subscribers | |
| Discord | 5,360 members |
| 31.8k members |
I found a link to an Instagram page but the link was broken and so the Instagram page is not available anymore.
Just like Aelf, lisk is also on GitHub.
Liquidity, Market capitalization and other statistics of lisk.
Now let’s look at the liquidity of lisk as a cryptocurrency.
from the Binance app
Some stats as of writing include:
| Price | $5.04 |
| Rank | #103 |
| Market cap | $641,530,275.05 |
| Trading volume | $207,799,699.53 |
| Curculating supply | 127,631,982 LSK |
| Total Supply | 143,567,220 LSK |
| Max supply | No data |
My choice
I’ve done a ton of research on these cryptocurrencies and I’ve read their Whitepapers. I’ve decided that I would prefer to invest in Aelf over Lisk. Even though Lisk is ranked higher, the plan for Aelf is much more detailed and trusting to me. Their partnerships are also strategic. Somehow, Aelf attracts more and more investors to it. With the inflow of investors here and there, I feel that Aelf will be major in the long run.
Also Aelf has a better social reach and presence as compared to Lisk.
Conclusion
This assignment was the longest and hardest I’ve done so far but it was worth it. Now I know the importance of research before investing and how to conduct such research to an extent. I’m going to practice my research today with risk investment. Let’s see how it goes...
Special thanks to @besticofinder
Hello @awesononso ,
Thank you for submitting homework task 7 ! You have done a comparison between Aelf project and Lisk with a fundamental analysis. Well organized article with lot of facts considered. Nice work [8]
Thank you
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Thank you professor!
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Professor @besticofinder please kindly review my task🙂
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