Will DashDonates Really Make Outsiders Want to Invest in Dash?
Dash coin (DASH) has announced the launch of DashDonates, a new crowdfunding resource that will make it easier to invest in emerging projects and, according to its developers, boost the value of DASH. With the price charts making for somber reading in recent months, the company is hoping the new funding system will encourage more people to invest in Dash.
“It was created in order to facilitate crowdfunding of projects our great community is passionate about. The recent and ongoing price decline is having significant impact on proposals that have gained strong momentum or hold the potential to greatly increase the reach and adoption of Dash,” reads the August 5 Reddit post.
A Better Way to Organize the Crowd
Although Dash won’t hold any money donated to the listed projects, it will provide up-to-date funding data. In essence, DashDonates will serve as the official fundraising platform for all Dash-related projects. By listing the startups, the amount required and the current amount donated, those looking to invest in Dash should have a clear overview of the ecosystem. What’s more, the company itself will provide links to where it found each listed wallet address so that users can verify its authenticity for themselves.
ICO-related scams have become a recurring issue in 2018. With emerging crypto projects raising $1.5 billion in June alone, cybercriminals have been finding new and inventive ways to dupe unsuspecting investors. At the start of August, hackers gained access to the KickICO smart contracts. After creating 40 fake wallet addresses, the criminals were able to siphon off around $7.7 million in KICK tokens. With scams like this an ongoing threat, the Dash team wants DashDonates to become a safe space for new and existing investors.
Since the start of 2018, the price of DASH has dropped dramatically. Following a high of more than $1,300 in January, the USD price was hovering around the $180 mark on August 8. With fewer people looking to buy DASH, the team has taken matters into its own hands. Despite German exchange Stuttgart Börse announcing its intentions to launch a regulated ICO platform, Dash’s direct action could buoy its current value. Indeed, whenever a company takes decisive action, the community at large often responds positively.
Innovation Unlikely to Make More People Buy Dash
If investors follow this line of thinking, the number of people looking to buy Dash could certainly increase as we move towards the end of 2018. However, the issue of projects not getting the necessary funding may not be the only reason people aren’t investing in Dash. Despite its advantages, Dash does have direct competitors in the form of Ripple and Verge. In the past, we’ve described Dash as a hybrid of the two. Being a mashup certainly has its advantages. However, for outsiders looking to make an investment, the fact Dash doesn’t offer something truly unique could be hurting its value.
Put simply, Dash transactions are fast, but they’re not as fast as Ripple. Similarly, the transactions are anonymous, but they aren’t as anonymous as Verge. While enthusiasts will argue that the system actually offers more benefits than either of its peers, it’s important to look at the situation from a general perspective. Explaining to a layman that Dash is a bit like X and a bit like Y is likely to garner the response: so why not just invest in X or Y? To put it another way, the project’s hybrid status could be seen as a reason not to invest in Dash by casual observers.
Based on this, the DashDonates platform is likely to appeal more to those already interested in the project. Naturally, this may mean more existing fans buy Dash. However, it’s unlikely to cause waves outside of the community. As the crypto price slump continues, analysts believe coins need to establish some sort of utility if they want to see their value increase. As a recent report by Goldman Sachs states, “cryptocurrencies do not fulfil any of the three traditional roles of a currency: they are neither a medium of exchange, nor a unit of measurement, nor a store of value.” While DashDonates is a neat innovation, it doesn’t address these points. Because of this, it’s unlikely to make outsiders want to invest in Dash.