PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

With Ethereum In Free Fall, Is R3’s $150 Million Valuation Sustainable?

Tim Sloane by Tim Sloane
December 7, 2016
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

A CoinTelegraph article points out that Ethereum’s value, which is also the blockchain platform of choice for R3, has dropped almost 50% in value since October 2016:

“Ethereum has just entered free fall. The second most popular cryptocurrency plunged nearly 20 percent at the time of writing to trade at $5.88 to the ETH, compared with its position 24 hours earlier on the Poloniex exchange.

Ethereum has been constantly falling and as the chart below shows, the cryptocurrency has fallen from its previous level of $12 at the end of October 2016 to nearly half of that as of Dec. 6, 2016.”

The focus of R3 is to establish smart contracts that can manage business between banks and bank customers, but CoinTelegraph suggests that it is the smart contracts aspect of Ethereum that is a key contributor to the decline, along with too many unexpected hardforks:

“Ethereum has been plagued by disaster ever since it came into being. The cryptocurrency has undergone at least four hardforks, which have left investors impatient and exhausted. Readers would recall the infamous Dao incident, which was being hailed by many as the first application built on the smart contracts functionality that Ethereum offered.

The proverbial last straw seems to be November’s accidental hardfork, which resulted in Ethereum’s two main clients, Parity and Geth, losing consensus. Meanwhile, Ethereum Classic, a currency based on a former Ethereum Blockchain, which is a result of one of the hardforks, has been a gainer in today’s ETH bloodbath on the exchanges. The classic variant was up by 0.14 percent in 24 hours and trading at 0.7610000 levels.

As to why the currency is failing to keep its head up, it would appear that investors are wary of what’s going on with Ethereum and seem to be giving up. As Reddit poster theswapman put it:

‘Unnecessary hardfork splitting chain, multiple bugs, no apps except the notoriously failed DAO and notoriously delayed REP. The fundamentals are absolutely not stronger than ever.’ ”

R3 appears to be making a huge bet that it can implement smart contracts, which requires more than a stable blockchain, it also needs smart contracts that are reliable, trustworthy, and entirely comprehensible, which hasn’t yet been achieved and which will be hard to develop even if Corda proves stable.

Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group

Read the full story here

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Google Wallet Expands Features

    Google Wallet Continues to Bet on Digital with Expanded Features

    June 2, 2023
    digital value

    How Embracing Digital Value Can Help Solve the B2C Payments Conundrum

    June 1, 2023
    instant payments, real-time payments, RTP

    Banks Developing Instant Payments Products in the U.S. Should Focus on Billers to Generate New Revenue Streams  

    May 31, 2023
    Digital Wallet Use Delivers on Convenience and Security

    Digital Wallet Use Delivers on Convenience and Security

    May 30, 2023
    5 Ways to Protect Your Financial Institution from a Cyberattack

    5 Ways to Protect Your Financial Institution from a Cyberattack

    May 26, 2023
    traditional banks

    How Traditional Banks Can Modernize Without Risk

    May 25, 2023
    identity fraud

    Javelin’s Identity Fraud Study Highlights the Changing Nature of Fraud

    May 24, 2023
    SASE, security-as-a-service

    Security-as-a-Service Secures
    Distributed IT Models

    May 23, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download this complimentary report from CSG Forte: