As Encrypgen Nears The Finish Line, A Competitor Drops Out
Several weeks ago, I wrote an introductory article on Encrypgen. Due to several requests and a major development, I feel a second article is warranted. I will provide a quick summary but new readers should definitely check out the first article.
Encrypgen (DNA) is the undisputed leader in the genomic blockchain security space. Last month, Encrypgen released a beta version of its Gene-Chain. Consumers will be able to safely upload and store their genomic data on the Gene-Chain. In addition, consumers will be able to earn passive income by selling their data to researchers. Investors and researchers were eagerly waiting for that release which caused a temporary explosion in the DNA token price. Encrypgen continues to progress and expects to release the working version of the Gene-Chain within the next few months.
A few questions were sent to me about how Encrypgen will make money. That is certainly the end game for all businesses and crypto is no different. Let’s first remember that the DNA token is a utility token. Platform usage will determine the value of each token. In order to purchase data from consumers, researchers will need to first buy DNA tokens. Although researchers can certainly buy tokens direct from the exchanges, there will be an easier way.
Researchers will have the option of buying DNA tokens direct on the platform (i.e FIAT to DNA). Encrypgen will set the rate of each token above market. The tokens will come from a pre-determined supply (roughly 3 million) that the company currently holds. Since researchers will need to pay an above market rate, Encrypgen can then use the funds to purchase additional tokens on the market to replenish its supply. In theory, that will drive up the price of the DNA token while simultaneously providing Encrypgen with substantial profits. The profits can then be used for additional marketing, development, and other essential corporate activities.
Competitor Drops Out
The genomic space is getting a lot of attention lately. And with lots of attention and relatively few barriers to entry, competition is natural. Until recently, Nebula Genomics was seen as the primary competitor to Encrypgen in the genomic blockchain space. Nebula put together a great team and generated a lot of buzz. In August, the company received a $4.3 million seed round from several VC firms.
Throughout the process, Nebula was claiming to be a blockchain company. In Telegram (a popular method for companies to communicate with investors), Nebula was telling people that the future plan was to do an ICO. However, that has all changed and it appears Nebula has said “goodbye” to crypto.
I took a screenshot of the Nebula chat on Telegram. In that chat, Nebula appears to be confirming that there will be no public ICO. However, they strangely leave open the option to sell 50k blocks to investors. I’m not quite sure I understand that. But what is clear is that Nebula is not a blockchain company. They never were and they never will be.
I’ve been confident in Encrypgen’s success for a long-time. One of the concerns I had was regarding the competition that was entering the genomic blockchain space. Because of the strength of the team and the marketing, Nebula appeared to be the main threat to Encrypgen. Now that Nebula has raised the white flag and is dropping out of the crypto market, Encrypgen appears to be full steam ahead!
Featured image courtesy of Shutterstock.