Why is the Waves Price on the Move all of a Sudden? Vostock on Horizon?
The valuation of Waves (WAVES) has been in flux since the end of November, when a fall to the ninety cents range (an eighteen-month low) was met with a 151% surge which peaked earlier this week. That was followed by a 41% drop-off which made it look like Waves had fallen victim to a typical (relatively) low volume pump and dump.
However, the series of higher lows which followed shows a coin holding on to some of its recent gains, perhaps swayed by anticipation for the upcoming launch of the Vostok ICO, which will grant a portion of its tokens to Waves holders.
Vostock is a private blockchain platform which will utilize the Waves blockchain, while acting as an institutional intermediary, and blockchain processor for governments and big business.
Waves Price Anticipates Upcoming Developments?
Waves recently jumped 57% in value overnight, helped in part by the rebound of the broader market at the time. This coincided with the launch of a new Waves mobile wallet, and the announcement by CEO Sasha Ivanov that ‘Smart Assets’ – Waves’ version of the ERC-20 token – would now be live on the platform.
Since then, attention has turned to the launch of the Vostock platform – a project overseen by Ivanov himself. The ICO, which is yet to be given a specific launch date, was named in a recent Forbes article as one of the coin offerings to watch in 2019, and represents a private, government-friendly version of the Waves ecosystem.
What is Vostock?
According to the project website, Vostock is:
“…primarily intended to connect public administration services, banks, registries, and payment providers to form the foundation of the digital infrastructure for the certifying, registering and tracking of data.”
The service offered by Vostock sounds similar to some of the centralized services offered by Ripple, and the whitepaper confirms that centralization will be a feature:
“Essentially, Vostok is running on the principles inspired by public blockchains, but represents a transition between permissioned systems and fully open decentralized ledgers.”
“Vostok network is maintained by nodes distributed worldwide, with access granted and regulated by a centralized committee. The network architecture offers the possibility to assign certain features to particular nodes located in different jurisdictions.”
Some Waves holders may be surprised to learn about the direction being taken by Ivanov and Vostock, however it is unlikely to affect the existing principles of the Waves blockchain. Community members are not completely in tune on this subject, with some worrying that attention will be taken away from Waves, in favour of the commercialism offered by Vostock.
Either way, some of the recent gains may be coming from speculators interested in the 3% token share which will apparently be distributed to existing Waves holders.
The Waves dollar valuation climbed 24% over the weekend, peaking on Sunday morning at a price of $1.71 – up from Friday’s $1.37. The price continues to rise at time of writing, helped by an 81% increase to trade volume since yesterday, and the sudden upturn of the market in general.
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.