Lisk sidechains enable developers to create applications with their very own blockchain technology backing them up.
Lisk uses the consensus algorithm: Delegated Proof-of-Stake (DPoS). This allows for any LSK holder to vote for mainchain delegates who are responsible for securing the network. There is a maximum of 101 active mainchain delegates at any given time. Other delegates are either on standby to becoming a mainchain delegate, or are busy securing Lisk sidechains. All delegates are rewarded in LSK for helping to maintain the Lisk network.
LSK, or Lisk coin, is the currency associated with Lisk, used primarily in the DApps on the Lisk main chain itself. Unlike Bitcoin and others, it is not a digital currency that merchants will accept as payment, but rather a currency for developers using or wishing to use the platform.
General Market Movements and Sentiment Shift
The downfall of altcoins that were mainstream media darlings at the start of the year, LISK among them, can be attributed, in part, to new, naive investors getting scared off once the bear market kicked in with a vengeance. Every resurgence of bitcoin in recent period, was met with the, for the most part, weakened ability of altcoins to rally with it.
Reason for that can be novice investors learning from their mistakes, while smart money that was previously watching from the sidelines has begun to enter into bitcoin.
These entities weren’t about to buy BTC when it was trading at an all-time high, but they’ll take a look now, having missed the boat the first time around. None of them, it seems, are interested in altcoins however, despite the fact that many are trading at a 5x discount. Institutional investors may be cautious, but they’re not foolish.
Some altcoins will continue to have some speculative value for the foreseeable future. But just like the now infamous tulips, the hysteria will eventually subside. We are already witnessing the first phases of that slide and even though most of the bag holders react emotionally to articles that criticize their coins, these observations are not opinionated but based on the developments on the market. You better start emotionally detaching yourself from your “great sounding” coin because if goes nowhere, ideas are worthless without execution and real users that see value in the project.
2018 was a very interesting year overall for the broader DLT community, “ICO projects” came and burst in a spectacular, fireworks similar fashion.
While the mass death of barely-alive-in-the-first-place projects causes some uncertainty and skepticism among the newcomers, it is something veterans and pioneers of this space have been longing for.
In order for DLT to become established, we need quality over quantity, we need convergence on standards and consolidation of communities to bring to life what we’ve been working on for years. With less noise, 2020 will act as a Darwinian selection mechanism, much like that of which the IT companies post-dotCom Bubble experienced.
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This is a good thing and absolutely necessary for the real maturation of the space.
Captain Altcoin’s LSK Token Price Prediction for 2020
LISK, as the rest of the market, is tied at the hip of bitcoin’s price action. If bitcoin embarks on another bull run, LISK can hope for one as well.
Since a strong Bitcoin move in 2020 is very likely, we can expect some swings and moves upwards by Lisk as well. So 2020 will be a year of potential big moves (more likely upwards) and we can see LSK at least doubling its end of 2019 price value.
Of course, we speak about Lisk price denominated in USD. In terms of its BTC value, it is more likely that BTC will outperform it and LSK will be worth less Satoshis by the end of 2020.
The main currency in cryptocurrency markets is Bitcoin and given this, altcoins tend to fuel Bitcoin runs and Bitcoin tends to do the same in return. Given this relationship, Bitcoin price movements (or lack thereof) tend to effect altcoin prices.
When Bitcoin goes up swiftly, it will likely:
- Suppress or depress altcoins as money flows into Bitcoin;
- Or, take altcoins along for the ride
In cases when Bitcoin plunges, it will likely:
Check out our guide on the next big cryptocurrency.
- Depress altcoins as money flows into fiat;
- Or, cause altcoins to boom as money flows into them, but this is rarely the case.
When Bitcoin moves sideways, it will likely:
- Cause altcoins to mimic that as traders wait for a clear sign on the direction of the market;
- Or, cause altcoins to flourish as traders look for returns in altcoins and try to get favorable trades in terms of BTC pairs.
To summarize, Bitcoin is the focal point of the crypto market in many ways, and with BTC trading pairs on every exchange, the gravity of Bitcoin is hard to evade.
Overall, the price change of any altcoin token is explained by the dynamics of the bitcoin-influenced market. However, there are also fundamental reasons for the individual token rise and fall in price, which can be pinned down to a big tech upgrade or more often, big partnership.
The majority of projects will fail — some startups are created just to gather funds and disappear, some would not handle the competition, but most are just ideas that look good on paper, but in reality, are useless for the market.
Vitalik Buterin, co-founder of Ethereum said:
“There are some good ideas, there are a lot of very bad ideas, and there are a lot of very, very bad ideas, and quite a few scams as well”
Lisk Coin (LSK) Future Outlook
However, not all projects have the same chance of failing (risk), nor do they have the same potential upside (reward).
As a result of ICO teams’ incompetence and lack of integrity, fueled by basic human instinct that is greed and crypto investors’ naivety, over 95% of successful ICOs and cryptocurrency projects will fail and their investors will lose money. The other 5% of projects will become the new Apple, Google or Alibaba in the cryptoindustry. Will LISK be among those 5%?
If you asked us this couple of years ago, we would probably say yes. But 2018 was a huge disappointment that hugely modifies that answer to its complete opposite – NO.
The team behind the project keeps quoting plans on addressing the consensus issue after the SDK and dynamic fees have been released/addressed. Other than giving an indication that it would be addressed, we haven’t been given any specifics on how it would be addressed. Seeing the project slow development, it probably won’t happen at all – they will let it die a slow and painful death.
But the team itself is weak, no proven track record of any successes, just the contrary.
First there was Crypti which became Lisk and from Lisk came Rise vision. All these “platforms” do the same thing, they all had an ICO and they all are based on the same code. I think it’s pretty clear these were all money-grabs for the ICO creators.
LISK is mostly a rebranded Crypti. This project was unsuccesful (no one used it) and the fact of rebranding and issuing of the new coin is proof of incompetence.
Another factor against Lisk: basic economics.
ETH had first mover advantage by almost 9 months, the network effects are already kicking in for Ethereum and LSK offers nothing that ETH doesn’t already have or can’t develop easily.
Lisk is already far behind Ethereum and even EOS or TRX, who stole their thunder boasting pretty much same features as Lisk but with much better marketing. And the question is do we need that much dApp platforms at all? We probably don’t – it will be a winner takes all situation while others might niche down to a more specific use case in order to try and survive.
Add to all of this the fact that the team lacks vision and doesn’t honor any roadmap (there is basically no roadmap), they try to sell fake AMAs and irrelevant, minor technical tweaks on the code as big-deal “upgrades” – the writing on the wall is clear, this is a zombie project that no one uses and will never use.
Recent events, or lack of them, have shown LSK has greatly overestimated themselves and underestimated what they are trying to build. There are no guarantees they will actually succeed in what they aim to build.
The only people who benefited from Lisk are the delegate cartels that manipulated the voting process and kept themselves in charge of the blockchain to reap the rewards and control the whole network that was supposed to be decentralized.
According to some allegations, the developers and Lisk Foundation are in on the whole deal, playing a role of an enablers for the crook delegates.
The project is essentially running on fumes of old glory right now, with a group of miserable holders grouching at the sight of their deflated LSK bags.
All of this summed up means one thing: LISK might live through couple of orchestrated and, for a regular trader, completely unpredictable pumps but the majority of time will be murky sideways trading with small volume and no significant interest from the market.
Price will heavily depend on what BTC will do and since many analysts think BTC will not be making big moves in this year, it is hard to expect LISK will do them either. The price will probably stagnate and record slow-moving depreciation or appreciation depending on the team activity, potential technological breakthrough or high-level partnership.
Market prediction for Lisk – LSK Price 2020
With the market being completely unpredictable, forecasting the cryptocurrency price is really more of a gamble and luck rather than a data driven guesstimate.
Let’s throw a glance at the eminent publications and personalities, and their predictions regarding the LISK price, which will give us another point of view to consider:
Cryptoground.com is cryptocurrecy prediction algorithm that is moderately to overly bullish on most of coins, similarly on LISK token as well. They forecast LISK to climb up to $5 per token by EOY, which means a almost 4x increase in comparison to the current price.
Walletinvestor is a popular website that does technical analysis-based price predictions of various cryptocurrencies and traditionally has a skeptical outlook for most coins, but especially for LISK. According to them, LISK is expected to sink by more than 20x – from the current $1.53 to $0.05 by the end of the year.
Trading beasts is on a diametrically opposite side of Walletinvestor and sees a much more bullish future for Lisk token. Their algo forecasts that LISK can ascend to around $9.34 within a year which means it will essentially grow 6x in value in the next year.
Another crypto prediction algorithm that is most conservative in its approach of the 4 we enumerated here – DCP usually predicts price to hover around the same level as the current state, forecasting a twofold increase or reduction for certain coins. LISK is only barely on the bullish side of their algo that sees it reaching $1.72 per coin by December 2020.
Lisk Coin Future: 2021, 2023, 2025
LSK Price Prediction 2021
LSK Price Prediction 2023
LSK Price Prediction 2025
Realistic LSK Price Prediction
We don’t yet know which crypocurrencies will make it out of the crypto winter we’re wandering in right now. There are plenty of coins that stand a good chance of weathering the crypto storm and perhaps becoming more relevant as the market contracts and devours some of the weaker projects. However, there are even more of those projects who are already dead but no one noticed yet.
But, looking at things from this point in time and place, it’s reasonable to say that Lisk had its five minutes of glory but failed to seize the opportunity. The project is most likely going to die a slow death, leaking value month by month until an official shop closed announcement is released.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com