Many of the new cryptocurrency projects that have been taking off recently have been focused on relatively narrow applications, such as disrupting a specific industry or providing particular digital functionality. However, some projects, such as Komodo, are much more ambitious. The creators of Komodo seek to not just create a new cryptocurrency, but an entire ecosystem around it, making it easy to create new applications and trade currencies on top of its basic system. This ambitious goal has led to some exciting Komodo price predictions, but so far it has been difficult to say how successful Komodo will be in taking on the giants of the crypto world. In this article, we offer a deep dive to put together our own comprehensive Komodo coin price prediction.
What Are the Komodo Price Predictions for 2018?
When one browses any of the many write-ups of the Komodo project, it can be easy to become quickly overwhelmed by the sheer amount of the different things that the Komodo team tries to do. Different Komodo applications are aimed at creating custom multi-currency wallets, carrying out atomic currency swaps, cross-chain links, creating private blockchains, facilitating ICOs, transaction anonymization, and a large number of other things.
This is certainly ambitious, which gives the coin a large potential value, but it also clearly pulls it in many different directions. Many users have complained about certain bugs in many of the projects remaining unfixed for months as the developers move on to the next big project without polishing off the existing ones. It also puts Komodo in competition with a lot of other cryptocurrencies, with many having a much larger user base and a stronger developer backbone.
As a development environment, it competes with the likes of Ethereum, as an anonymous currency it runs up against Monero and ZCash, and it also takes aim at many of the existing cryptocurrency exchanges with its liquidity tools and atomic swaps frameworks.
As it grows, it is likely to attract a lot of attention from far larger players. With a strong focus and an innovative spirit, it can take on one or a few of them, but with so many competitors it can easily fall behind as developer attention becomes spread too thin.
As such, we are reticent in placing a high upper bound on our Komodo price prediction. Aside from the major rally at the start of this year, it has not traded above the $5 mark, and our continued Komodo price predictions show that it is unlikely to do that for the rest of the year barring a large market-wide spike.
A quick look at the price chart for the Komodo coin is likely to give pause to any investor outside of the most adventurous and risk-tolerant. The Komodo token has proven very volatile over the past year and a half since its initial release. It has seen rallies of up to 400% before dropping down to its previous level, all in the span of a month or so.
This could, of course, represent a significant windfall for day traders or wild speculators throwing a few hundredths of a BTC at potential prospects, but can easily be a huge loss for investors looking at mid-range or long-term positions. That is not to say that Komodo has no place in anyone’s portfolio, but it should certainly only form a small part of your outstanding positions and be hedged with a number of safer investments.
Another negative in our long-term Komodo price predictions for 2018 comes from its overall trajectory over the course of this year. Since the start of the year, when it reached its all-time high valuation in dollars on the back of a strong BTC, Komodo has lost 90% of its dollar-denominated value.
Some of that has been due to the subsequent drops in Bitcoin prices, but it also has lost about 70% of its Bitcoin-denominated value as well, suggesting that it is on a steady downward trajectory. Of course, it has an established user base and a variety of active applications, so there is a floor to consider when making Komodo price predictions. Based on our calculations, this is likely to be around 0.0002 BTC or about $0.50 per KMD.
Linked to Bitcoin
Komodo uses a number of innovative tools in order to ensure its security, anonymity, and fast transaction processing speed – all issues that have been the goals of cryptocurrencies ever since the original release of Bitcoin.
However, Komodo’s solution to these issues links it to Bitcoin in a way that could be problematic for the currency’s future value. Its delayed Proof of Work algorithm provides security and transaction speed by effectively backing up its blockchain to the Bitcoin blockchain.
It is a clever solution that makes Komodo both smart and secure, but it adds a certain complication to using Komodo-based blockchains – they require using Bitcoin to function. This creates a peculiar feedback loop.
As Komodo sees wider adoption, its use will also increase the demand for Bitcoin, increasing Bitcoin’s price also. At the current levels, the effect is effectively zero, but if Komodo becomes a dominant player, it could effectively be propping up its own competitor.
Furthermore, sharp spikes in Bitcoin prices can also hurt Komodo users by raising their cost of doing business. Ironically, that means that when the general crypto market is doing well, Komodo users will suffer, creating a damping effect on Komodo pricing.
Combined with the existing high volatility of Komodo tokens, that means that creating a stable ecosystem around it will be a difficult proposition for many developers, keeping it from attaining a dominant position. That in turn, gives the coin a poor outlook in the eyes of investors and traders. This supports our earlier prediction that Komodo is likely to continue on its downward trajectory over the current year unless it makes rapid changes to its model.
Poor Team Player
As competitive as the cryptocurrency development community is, there is still a shared feeling of community among crypto enthusiasts. After all, everyone in the crypto community shares similar values when it comes to transparency, independence, and decentralization. That makes it particularly shocking when one cryptocurrency team moves to directly attack its competitors. That is exactly what the Komodo development team has allegedly done.
After its competitor SAFECOIN, which is based on the same codebase, launched and began getting media attention it suffered a coordinated attack that took down its network, based on a vulnerability in the code that the Komodo team was aware of but did not patch. While, as with many such things, it is difficult to separate truth from conjecture in this case, leaving vulnerabilities in your code to exploit against competitors is likely to leave many developers cautious about working with Komodo.
After all, if their project threatens one of the many different things the Komodo team is developing, how likely is it that they will also be a target of a previously undisclosed bug as well. Unless Komodo moves to quickly build up more developer trust, it will have difficulties building its ecosystem to a sufficient size to take on its many competitors effectively.
Komodo, like many ambitious projects in the crypto space, has started with very high expectations but has lost focus and suffered from feature creep in the last year and a half that it has been active. Its price has reflected this, jumping up at the announcement of each new feature to only drop back down as it failed to match the hype. In the current bear market, this is simply not enough to remain competitive, and Komodo has seen its price steadily dropping. Our Komodo price predictions for 2018 show that this is likely to continue for the rest of the year, barring a strong rebound on the wider market or a major restructuring of the project itself. What do you think about Komodo’s potential? Tell us here what are your own Komodo price predictions!