Arcblock (ABT): Two Weeks and 266% Growth; Blockchain 3.0, or Scam?
Arcblock just broke into the market cap top hundred after recording 226% growth in the past two weeks. Billed as the provider of ‘Blockchain 3.0’, Arcblock launched its $45,000,000 ICO in January 2018, and was subject to a somewhat uncertain ICO analysis by one of Hacked’s writers at the time.
So what is Arcblock? The project which unites all of the world’s blockchain applications under its ‘Blockchain 3.0’ umbrella? Or a possible scam coin with higher levels of sophistication than its predecessors?
What is Arcblock (ABT)?
In the words of the founder himself, Arcblock represents the blockchain version of Amazon Web Services (AWS). The Blockchain 3.0 label, which many projects assign themselves, refers to the aim of connecting all of the world’s blockchains using one set of tools.
While many aspects of the Arcblock project are open source, the developers make no apologies for the fact that they aim to make money. As the founder and CEO, Robert Mao, said himself:
“ArcBlock is NOT an open source project, and nor is it developed by volunteers, we build it with commercial software development process which I have many years experiences.”
Mao takes the example of Amazon Web Services, noting that Amazon frequently release snippets of open source code, but retain their commercial goals. He said:
“We might consider open source more components in the future. ArcBlock is essentially like a Amazon AWS but for blockchains, you won’t find any core AWS source code anywhere from the github, but Amazon [still] release code samples, some frameworks, APIs etc.”
Accusations of Scams
More than one accusation has been laid at Arcblock’s door since its launch in 2018. This post on the Bitcointalk forum goes in depth as to why ABT could potentially be a scam coin. A similar post on Reddit echoed the same sentiments.
One reason for this mess could have something to do with Arcblock’s ambiguous behaviour regarding a partnership with IBM. Early on in the Arcblock venture it was announced that they had partnered with IBM.
The truth turned out to be less spectacular – all Arcblock had done was apply to join IBM’s Partnerworld program, which just about anyone can do. The founder, Robert Mao, actually appeared on Reddit to address many of these issues.
Arcblock Price – ABT/USD
Going back to April 25th, one unit of ABT was being traded for $0.175537. Fast forward two weeks and the coin price now stands at $0.643945 – a 266% increase.
On May 7th the ABT daily volume hit an all-time high of $274 million. That’s quite some feat considering the Arcblock market cap at the time was a mere $40 million.
Indeed, if we look at Arcblock’s primary markets we see a lot of platforms known for inflating trade figures. Gate.io probably has the best reputation out of those exchanges, and the $1 million passing through their doors is probably a more accurate figure all round.
Open Market Cap shows no figures for Arcblock volume whatsoever. However, that’s unsurprising given the coin doesn’t appear on any of the ten exchanges approved by Bitwise.
Arcblock’s recent surge puts it on an 11-month high, returning to a valuation not seen since June 2018.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.