LianGuai Observation | Upbit coin effect reappears, CTC surges nearly 4 times in a single day. What is special about Creditcoin?

LianGuai Watch | Upbit Coin's Resurgence Brings 4x Surge to CTC. What Makes Creditcoin Stand Out?

Author: Climber, LianGuai

On December 12th, Upbit, a leading cryptocurrency exchange platform in South Korea, added CTC-KRW trading pair. As soon as the news broke, the price of Creditcoin token (CTC) skyrocketed from around $0.2 to $1, a staggering increase of almost 400%, marking a new high for the year.

Being listed on a major exchange is always seen as a positive development, and Upbit’s influence on prices is particularly evident. LianGuai previously mentioned in an article titled “ZhuangJiaPanJuShanZhaiLuanWuUpbitFanHuaChangHuoYinXianJinLiuWeiShuaiZaoJiu” that several tokens including LOOM, IMX, HIFI, STORJ, CYBER experienced significant price fluctuations due to the news of being listed on Upbit.

As an investor, it is worth paying attention to projects that are favored by prominent CEXs, especially the Korean exchanges that have become almost a national craze for cryptocurrency trading. Regardless of the source of their value, whether it comes from the project itself, community consensus, or simply behind-the-scenes manipulation, it is worth studying and preparing to invest in CTC while its relative price is still low.

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Hiding in a bull market, boosted by positive news

Since mid-October, the cryptocurrency market has gradually emerged from the bearish trend and entered a long-awaited bull market. BTC has risen from around $27,000 to a peak of $44,700. However, the project token for Creditcoin, CTC, has only increased from $0.127 to around $0.2, which is not particularly impressive compared to many other altcoins.

Nevertheless, with Upbit announcing the listing of CTC on December 12th, a new star has emerged. The price of CTC soared nearly four times initially, followed by Bitget announcing the listing of CTC on December 14th, and Kucoin listing CTC as the second-highest gainer on the 24-hour price increase rankings, with DOVI and RATS taking first and third places respectively.

Looking at the hourly price chart of CTC on OKX, it can be seen that for most of December 12th, the price remained relatively stable, fluctuating around $0.2. However, after 4 pm, it suddenly surged to a high of $1, an increase of 400%. Although there has been some retracement since then, the current price is stable around $0.57. With the already existing listing on Upbit, it undoubtedly provides CTC with additional liquidity, making it possible for another potential price surge in the future.

However, looking at its historical trend, we can see that CTC once reached its historical low around $0.2 in June 2020. Since then, it has been on the rise and eventually reached its all-time high of $9.12 in March 2021, representing an incredible increase of 4460%.

Currently, the market value of CTC is approximately $114 million, with a circulating supply of approximately 200 million CTC. The lowest price in history occurred in October of this year, at $0.12.

After CTC was listed on Upbit, the only mainstream CEX platforms that have not listed the token are Binance and Coinbase. In the future, if these two platforms continue to list CTC, there will likely be a surge in its price.

What is Creditcoin?

Creditcoin is an L1 blockchain launched on April 4, 2019, by a team from the United States, Canada, South Korea, Nigeria, and Estonia. It aims to address the lack of credit systems for the unbanked population in emerging markets. By matching and recording credit transactions, creating a public distributed ledger for credit history and loan performance, and connecting Web3 capital with real-world credit investment opportunities.

In its early stages, Creditcoin focused on the lending business, but recently transitioned to RWA and became an NPos chain in September of this year. The project positions itself as the world’s first fully decentralized global credit system, aiming to help millions of unbanked citizens worldwide to create, establish, and use credit with the assistance and support of blockchain technology.

In the Creditcoin ecosystem, tools and resources beyond traditional banking services are used to build a system that rates borrowers and allows them to directly connect with lenders and investors actively seeking projects. The Creditcoin platform allows lenders to connect with accredited borrowers actively seeking funding, making the system valuable for lenders.

Creditcoin was initially developed on the Ethereum blockchain network, and its native token still operates on that network. Since its launch in 2019, Creditcoin has upgraded and developed its own blockchain to support both lenders and borrowers.

Investors and fundraisers can announce offers, match, and record loan transactions on the Creditcoin network. Additionally, investors can transfer their bonds to another user. Creditcoin’s primary use case is to facilitate payments for credit transactions conducted by users on the blockchain. Transaction history is recorded on the blockchain, and investors can verify records, assess credit, and make investment decisions.

According to data from the Creditcoin official website, it has over 9 million users worldwide and received investment from DWE Labs in February of this year. It has also partnered with technology partners, Aella, and other fintech lending institutions, as well as other financial institutions in emerging markets globally.

The Creditcoin network is designed around interoperability, supporting loan transactions on Bitcoin, Ethereum, and Luniverse (Ethereum L2), and establishing integrated partnerships with various L1 networks, including Polygon, Tron, Stacks, and Flow. Through these integrations and partnerships, it ensures that users can conduct transactions and engage in lending activities across multiple chains in Web3. Since the release of Creditcoin 2.0, it processes over 50,000 loans per month.

According to encrypted analysis expert Joshua Yap, Creditcoin has recorded over 4.27 million credit transactions worth $79.7 million.

Token Economics:

As Creditcoin is transitioning towards RWA, positioning itself as a multi-chain credit protocol supporting real-world assets, this may be one of the reasons why Upbit chose to list it. However, the transition also brings some issues, such as confusion regarding token supply and distribution in the CTC ecosystem.

Creditcoin has two types of tokens:

·CTC (ERC-20 | G-CRE): Unlockable and tradable tokens. Can be traded on CEX. Maximum tradable supply of 600 million. No changes compared to the original whitepaper and no additional minting/contract changes.

·CTC (Mainnet): Utility token. Not tradable on CEX. Does not affect the tradable supply on CEX.

Specifically:

CTC (ERC-20 | G-CRE):

It is a trading and unlockable token listed on centralized exchanges. The official contract code is G-CRE. Maximum supply: 600,000,000; Total supply: 549,916,157 (including undistributed tokens, excluding burned tokens); Circulating supply: 310,712,767.

In August 2023, the Creditcoin Foundation will exchange 50 million CTC (ERC-20 | G-CRE) for CTC (Mainnet).

Issuance: Token unlock. No additional minting, and the minting contract is permanently disabled, leading to a decrease in the maximum supply.

Exchange Structure: Can be exchanged unidirectionally for CTC (Mainnet). Only unidirectional exchange, with a 1:1 swap ratio.

CTC (ERC-20 | G-CRE) → CTC (Mainnet).

Investors (Genesis unlock; 6 months to 3 years linear unlocking) – 200 million CTC allocated for supporting network development, business development, partnerships, and support. Any unsold tokens will be transferred to the Creditcoin Foundation with a 6-year unlocking period.

Gluwa, Inc. (Genesis unlock; 6 years linear unlocking) – 300 million CTC allocated for research, deployment, business development, marketing, distribution, and management costs.

Creditcoin Foundation (Genesis unlock; 6 years linear unlocking) – 100 million CTC allocated for long-term network governance, partner support, academic funding, public projects, and community building.

CTC (Mainnet):

Features: Utility token used for network transaction fees, staking rewards, and future Creditcoin 3.0 functionalities. Network transaction fees are burned. Currently, CTC (Mainnet) cannot be directly traded on any CEX or DEX platforms.

Maximum supply: Unlimited.

Previous maximum supply: 2B = 1.4B CTC (mainnet) + 600M CTC (ERC-20 | G-CRE)

Current supply: 156.778M.

Issuance: Mainnet staking rewards. CTC swaps (ERC-20 | G-CRE). No additional minting, burned through transaction fees.

Estimated annual issuance: 4.2 million coins.

Block reward = 2 CTC.

Block time = 15s.

100% of transaction fees are burned.

In addition to the above layout and changes, Creditcoin will also launch Creditcoin 3.0 version next year. This upgrade plan will upgrade the protocol to a Layer 1 blockchain compatible with EVM, with the world’s first universal smart contracts. These main contracts can coordinate, interact, and update smart contracts across multiple blockchains, supporting hundreds of new multi-chain applications.

Summary

The rise of Creditcoin after the Upbit listing can only be seen as a positive sentiment in the news and cannot be considered as a long-term investment reference. However, if the project itself is developing towards the popular narrative of RWA in the crypto industry, it is worth paying attention to its ecological development. Coupled with the precarious situation of corporate and personal credit systems in the context of a global economic recession, the demand for credit loans bypassing banks is increasing, and Creditcoin happens to be in line with this trend. However, caution should also be exercised due to the volatility of the crypto market, ultimately testing the completeness of the project.

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