Bitcoin Billionaire Discovers False Metrics On Augur Platform
Augur, a decentralized platform for predictions and bets, overestimates significantly its own popularity indicators. Alex Sunnarborg, a bitcoin billionaire and founder of the crypto fund Tetras Capital, stated this in his blog.
The trader analyzed the weekly report, in which the platform indicated the amount of funds in the stakes. Augur asserts that currently around $2 million is circulating on all its markets, which users have bet on certain events.
However, Sunnarborg remarked that the figure provided by Augur includes information that is no longer relevant – bids that have expired. Further, the expert deducted the amount of bets on completed events and found that in reality only $100,000 circulate on the platform.
Thus, the blockchain platform overestimated its real usage by 20 times.
Other representatives of the industry also noticed significant differences between a small number of Augur users and the means that the platform attracted during the ICO in 2017. Currently, 11,000,000 Augur tokens (REP) are circulating on the market, and the project has a market capitalization of more than $100 million.
Earlier, Bitcoin developer Jimmy Song calculated that with a declared user base of 25 people, each of them had to deposit more than $3.6 million each day to the platform to maintain its capitalization. However, Song called the project quite successful, adding that not every startup manages to launch its product on the market after ICO.
Recently, the tZERO platform has begun distributing tokens sold during ICO.