This article will cover my opinion of the main value proposition of the Dragonchain project ($DRGN) in 2018. For an overview of how the Dragonchain Blockchain Platform and Enterprise Ecosystem functions I would recommend starting with this article, this article, and this Reddit thread.
Dragonchain started life at Disney in 2014/15 and is featured as part of the Disney Open Source Project. The CEO (Joe Roets), Foundation President/VP Strategic Partnerships (Eleen Quenin), and CTO (Paul Sonier) are all ex-Disney.
Whilst there is no claim from the Dragonchain team that they are still involved with Disney and the continued affiliation is a disputed topic on the subreddit (see 6 Reasons to Call it Disneychain), in my opinion there is still a strong connection.
Strategic Partnerships and advisors are one of the key ingredients of a successful Blockchain project and I believe the Disney affiliation and strategic connections will be a great asset going forward.
2. Excellent Branding
An important element to consider when considering the value proposition of Blockchain projects is whether the name, logo, ticker and marketing is well thought out and likely to be appealing to other investors and partners. New money coming into cryptocurrency is attracted to strong branding.
3. Currently Trading At Around 80% Below ATH
$DRGN hit an all time high of $5.27 on January 9th 2018. Many strong projects that hit their ATH in the December/January peak will see new highs in the impending Spring/Summer bull run. In addition, The Dragon has taken a pounding recently due to it’s postponing of the IAGON token sale.
Whilst this is potentially a cause for concern, the delay in Dragonchain ICOs appears to be related to the lack of clarity regarding regulation of cryptocurrency by the SEC. If the U.S. Government and the SEC bans all forms of ICOs and cryptocurrency trading then the slump is likely to continue.
However, I don’t believe this to be the case. The U.S. is already lagging behind South Korea, Japan and China with regards to the adoption of Blockchain technology and IMHO the regulatory stance will only soften as we go further into 2018.
4. Not Yet Listed on Binance
When(/if) Dragonchain finally gets listed on Binance and some of the other larger exchanges, IMHO the increased volume and exposure is likely to drive the price of $DRGN back beyond its ATH.
5. Incentives For Token Holders To HODL Dragons.
The Dragon Days of Slumber Score incentivizes Token holders to hold their tokens off exchange, restricting supply.
Dragon Slumber Score (DSS) takes into account both the Dragon balance and length of time each Dragon is held. Based on this “Dragon Slumber Score,” token holders gain priority access to Dragonchain Incubator token sales and pre-sales.
6. Established Coding Languages Supported and Currency Agnostic
There is currently a major shortage of Blockchain programmers (and programmers in general). By making it possible to use established programming languages such as Java, Python, Node and C# Dragonchain reduces the friction to integrate Blockchain by enterprises. This offers a key strategic advantage over other Blockchain infrastructure projects.
In addition, the ability to communicate with other Blockchains and make use of the Smart Contract Library will make the Dragonchain platform an attractive proposition for businesses looking to implement a Blockchain element to their existing business.
7. Roadmap For 2018 & Upcoming ICOs
Notwithstanding the recent delay in the IAGON token sale, once the projects within the Dragonchain incubator start to reach the stage at which they are ready for ICO there will be a significant impact on the desire to buy and hold Dragons.
To begin with, the projects themselves must hold $DRGN tokens in order to successfully apply to be incubated. In addition, in order to participate in a Dragonscale ICO, participants must hold Dragons, with ICO priority will be given to Dragon holders with the highest Dragon Slumber Score (DSS). Once projects start being rolled out at a quicker pace, this will begin to be reflected in the price of $DRGN. So far the incubated projects approaching ICO are IAGON, Givewithnothing, BioCrypt, Look Lateral, and Metropolis
The BioCrypt Technologies project is developing a microchip wallet (implant or bracelet) that acts as an intermediary for fiat payments and cryptocurrency. The interview below is from the 7th May.
Although there are only these 5 projects listed on the website, from the AMA with Joe Roets (CEO), it would appear there are many projects within the incubator at various stages of completion.
As well as the upcoming ICOs, the Roadmap indicates the team will be working on improving cross chain interoperability across Neo, Bitcoin, and Ethereum Classsic, as well as updating the smart contract library.
8. Starbucks Rumors [BONUS]
I have to begin by stating that this factor is complete speculation. The other reasons alone are sufficient to be bullish on Dragonchain. That being said, if there was a future partnership with Starbucks the impact on the price of $DRGN would be immense. Even if the chance is just 10% I personally would include the expected value of such a partnership. If you judge the evidence to be flimsy, feel free to disregard it.
To begin with, Starbucks has indicated that it plans to integrate blockchain technology into its business. I believe this would either be in the form of a digital currency or to improve supply chain management.
With regards to the links between Dragonchain and Starbucks:
Clearly the above is just conjecture but I judge the implication to be relevant.
This is not investment advice. Do your own research before making any investments. I hold some Dragonchain but am not affiliated in any way with the project.
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