Understanding Bitcoin and Its Many Tokens

The current state of the cryptocurrency market is a good example of traders not being able to see the forest of tokens for the big tree that is Bitcoin. There is no question about Bitcoin's parabolic ascent since the United States Securities and Exchange Commission approved a couple of ETFs to start trading on Wall Street; this has resulted in a concentration of institutional investors who are very interested in profiting from BTC/USD, but what about competing tokens and altcoins?

Over the last few weeks, active traders and market analysts who follow emerging tokens, particularly those that facilitate the operations of decentralized finance projects, have noticed a few bullish trends forming. If you look at the list of tokens that have been surging the most since November 1, you will notice that only a few of them are familiar ones. Ethereum and Gnosis come to mind in this regard, but what about Tokemak, Illuvium, and the Liechtenstein Cryptoassets Exchange?

Illuvium is an ERC-20 token that powers the virtual economy of an online game. Similar to Axie Infinity, Illuvium is a virtual game world where you can earn, trade, win, and mine tokens that can be ultimately exchanged for stablecoin and fiat currencies. Tokemak is a DeFi project that focuses on building liquidity pools. The LCX token is the most interesting of the bunch because it powers an exchange platform duly authorized by a sovereign regulator in Europe.

The Financial Market Authority Liechtenstein is the latest European jurisdiction that has shown actionable interest in attracting cryptocurrency investors. Although in the past the Principality of Liechtenstein has been considered to be an offshore financial haven, regulators have made conscious efforts to clean things up through increased oversight, compliance, transparency, and enforcement. These initiatives have been successful in attracting some of the top global blockchain projects, particularly those that support digital assets.

In light of all this, it makes sense that Illuvium, Liechtenstein Cryptoassets Exchange, and Tokemak have seen the greatest uptrend since November 1, as they all offer solutions and use cases that are essential for the DeFi space. DeFi is booming right now. It’s a space that is quickly growing, and as it continues to do so, it has an insatiable appetite for more projects, more services, more products, more tools, and more data.