Komodo Price Defies Craig Wright’s ‘Scam’ Critique as Multi-Chain KMD Jumps 62%
The value of Komodo (KMD) jumped 62% in the space of ninety minutes on Wednesday morning. The pump came shortly after Dr Craig S. Wright took aim at ‘blockchains that work with other blockchains’, adding that any project which tries to sell you this is a scam.
Perhaps the most unique aspect of the Komodo project is its goal to unify existing blockchains into one cohesive network – with 95% of the world’s blockchains apparently already integrated by the Komodo team.
While the KMD price may have shown defiance to Faketoshi’s critique in the short term, Komodo’s sudden surge aligns with last week’s ‘Komodo Trade Recommendation’. The sell targets of 0.000288 and 0.000344 satoshis were well cleared for the duration of the spike’s peak, which saw KMD’s satoshi value rise to 0.00039474.
Craig Wright Calls ‘Multi-Blockchain’ Projects Scams
Craig Wright was in typical caustic form on Tuesday, as the good doctor took to Twitter to do what he does best – ruffle feathers. He tweeted:
“If anyone is trying to sell you a “blockchain that works with other blockchains” or an altcoin that works with a family of coins, then they are: Stupid, Scammers, (or) Both. These are the ONLY options.”
This description fits more than one current blockchain project – I’m sure the average reader here is holding, or has held, a coin that this applies to. The most obvious may be Komodo – more on which can be read in this rundown of ‘Why Investors Should Pay Attention to Komodo’.
“One blockchain removes middlemen. Multiple “Blockchains” adds middlemen back. You end with gateways that add friction and lower transaction rates and allow value capture. This is why others seek this of course, not to create, but to capture funds.”
There Can Be Only One!
Wright posted the graphic below, and suggested that any kind of blockchain network would ultimately find itself subject to natural market forces. Wright suggests that eventually all activity would congregate onto whichever blockchain was the most cost effective/valuable/useful.
“And this occurs until only one general blockchain exists (just as this occurred with Network Protocols in the early 90s).”
When asked by one of his followers if Ontology (another multi-chain project) fit his description of a scam, Wright responded in the affirmative. Neither the Ontology or Komodo team have seen fit to respond at this time, although that’s hardly surprising.
Komodo Price – KMD/USD
Wright’s critique of multi-blockchain projects paints a broad target – too broad. Anyone can download and use the open-source Komodo repository on Github, which at the moment comes with Atomic Swap technology, coin jumblers, asset pegging, ZK Snarks, and the ability to build your own chains.
Furthermore, as developers and companies start to use their own blockchains for their own specific purposes, the notion of every blockchain competing with each other would become a moot point. Trucks and cars both use engines, but that doesn’t put them in competition with each other.
On Wednesday morning the KMD price jumped from $0.946300 up to $1.54 – 62% gains in just over ninety minutes. That took KMD to a new six-month high, while trade volume of $39 million hasn’t been witnessed since December 2017 – right before the super mega pump. The coin price reverted to $1.09 following the pump, while volume continues to rise.
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.