Why Investors Should Be Paying Attention to Insolar

The last few months have seen big companies like JP Morgan and Facebook announce their plans to release their own cryptocurrency, as well as companies like Amazon and IBM integrating blockchain services into their business plan. These companies obviously come with a size advantage, but there are also companies sprouting up within the cryptocurrency space who have a great offering for potential clients.

Explaining Insolar

Insolar is one of those companies, and its goal is to develop distributed networks for business using blockchain technology. This has been said time and time again, but one of the top benefits of using blockchain technology is their secure nature, and Insolar is working to make sure all their blockchains are interoperable.

Although labelling themselves “Blockchain 4.0” is rather precocious, but there is clearly a need for projects of this type out there. Insolar started as a consumer goods blockchain company, but pivoted in November 2018, which makes it quite young comparatively. It was founded by the same team behind Instacart, which means they are extremely strong on the logistics and retail sales side.

Now, Insolar aims to attack three big problems in the business to business space:

  1. Businesses have increasingly complex operations and structures
    Decentralized decision-making needs to be integrated into business systems
    Most blockchain companies haven’t been able to offer any solutions that work for B2B

Basically, the way businesses run is changing, and Insolar thinks they can provide a solution.

How the Platform Functions

The way the platform will work is that INS token will be used to cover payments on the platform. There are services and resources that the company will supply, and this will be part of their method of monetizing. In this way, it is a very traditional utility token that works on a Proof-of-Stake algorithm. Essentially, there will be different domains that are permitted access to other domains based on contracts that control the available functions.

The Insolar website boasts use cases in supply chain and logistics, energy & utilities, retail & consumer goods, and the automotive industry. They clearly view themselves as having a very grandiose purpose, but time will tell if they can actually get the traction and clients required to compete with companies like Amazon or IBM.

The only recent news for Insolar in the last few months is that they introduced their testnet in late January 2019 and released their technical white paper shortly thereafter. This showed good momentum because they had only existed in their new form as a B2B company for 8 weeks at the time. The company had already received a big “pop” in price when they announced their pivot, but the market is still parsing the shift in a lot of different ways.

The Insolar Trade

INS is still very much in altcoin territory at 319th in terms of market capitalization. It is currently trading down over the week, but I think this makes it a good buying opportunity for those looking to view it as a “tech” stock similar to Salesforce rather than a blockchain buy.

It’s available on Binance and seems to be bouncing off support levels right now. Proper sell points would be around 750 satoshis and 800 satoshis, although it could break through the 2nd target and turn into a successful uptrend. However, the only way this could happen is with a ton of volume behind it.

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.