Preface
Yesterday, the NFT public chain Flow, which was publicly offered on Coinlist in October 2020, finally traded on Kraken. Flow is a bright opportunity in the NFT field that I am optimistic about. However, due to the current low circulation of FLOW, it opened. The price is high. Last year, the price of the Flow public offering was 0.1U, and the price of the subsequent community auction was 0.38U. After Kraken was launched yesterday, the highest rushed to nearly 12U, and it has now fallen to about 6U. It is expected that the price of Flow will continue as the unlocked tokens are released. Fall, I expect the short-term price will be below 3U.
FLOW token circulation and distribution
Let me talk about the token economy of FLOW tokens. The total token supply of FLOW is 1 billion, which is the same as many public chains (NEAR, DOT). Therefore, the price of 6U means that the current public chain valuation is already 60. 100 million U.S. dollars. It is already a very high valuation for a public chain project with a short mainnet. However, the off-site price of FLOW has risen sharply recently. The main reason is the NBA top operated by the team behind FLOW. Shot has been out of the circle recently. At present, only one exchange has launched Kraken and Flow is online, but only open transactions for pledge rewards, so the initial circulation will be extremely small. According to the public offering documents of FLOW, it is expected that there will be only about 30 million in the six months after the issuance ( 3%) for circulation, the circulation may reach 30% after one year. Therefore, the current scarcity of tokens, coupled with the popularity of NBA Top Shot, caused the price to break through 10U.
FLOW's team and Backers
Regardless of the price, I think Flow is a public chain project worth paying attention to in 2021. Flow is different from many "Ethereum killers" we have seen. It has a clear goal, which is to become a new generation of games, applications and digital assets. Its operating platform is clearly distinguished from the avalanche protocol that focuses on the financial public chain, the open network NEAR, the privacy computing OASIS, and the cross-chain Polkadot. Flow focuses on entertainment and NFT. I think NFT is another inferior in 2021. Due to the market opportunity of DEFI, and FLOW has taken the lead in this field. You must know that the crypto kit that was once all the rage on Ethereum in 2017 was created by Dapper Labs behind Flow, which means that it is now the top 2 in the history of the NFT field. The famous phenomenon-level games are all created by this team. It can be seen that this public chain is likely to be a strong competitor such as dega (degame) decentralized games and decentralized entertainment.
The founder of the FLOW team once revealed in an interview that Flow and CryptoKitties were born almost at the same time, because within a week or two after the launch of CryptoKitties, the team found that they needed to build an underlying technology platform by themselves to solve similar network paralysis. , Congestion and other extreme situations (in fact, Ethereum encountered a larger-scale congestion due to DEFI in 2020), so the first problem that Flow solves is speed, throughput and cost, and the second thing to solve is related to availability and user login. . The Flow team has actually operated thousands of phenomenal DAPP experiences per day, so it has more say and experience in how to upgrade blockchain applications to the Internet level, and blockchain games are a very good way to enter the mainstream crowd’s vision. The way.
In addition to the team’s advantages in blockchain applications, the investors behind Flow are also star-studded. Flow was led by A16Z and USV in 2019, raising a total of US$11 million in funds, and subsequently obtaining approximately US$11.4 million in financing. . Nearly 23 million US dollars of financing, excellent team and technical capabilities, and strong investment institutions can enable the team to maintain full market competitiveness and development capabilities in future public chain competitions.
