Ontology (ONT) Token Swap – Why You Should Use An Exchange
ONT and TRX, running on the NEO and Ethereum blockchains, respectively, are about to launch their mainnets. In preparation, both projects are soon to perform their token swaps. Token Swap is a term referring to the transition of a coin from the blockchain where it is temporarily hosted, to its own network. For instance, Ontology is currently being hosted on the NEO blockchain, and will migrate its token (read burn the old and create new) in order to allow ONT tokens to run on its native blockchain. As for EOS, Huobi has decided to support both token swaps, meaning that users holding both ONT or TRX on Huobi will receive the new tokens automatically, without having to perform any actions themselves.
The Ontology team has announced that the token swap is scheduled to start on June 30th and end on October 1st. However, users will ne to migrate their ONT, as soon as possible, in order to benefit from the production on ONT GAST (ONG), a NEA GAS-like token. In the same way, as NEO holders benefit from generating GAS, people owning ONT will generate ONG. Moreover, if the tokens are not swapped prior to the deadline, they will remain on the NEO blockchain will be valueless as they will never be able to be used on the Ontology network.
Failing to perform the token swap could likely result in the loss of all funds. Users have two ways of swapping their tokens. They either can deposit their token on an exchange which will take care of performing the swap, or they can perform the transition themselves with the use of private wallets. For many users, it is worth depositing their funds on Huobi or their chosen, supported exchange, for the sake of convenience and peace of mind – though keeping your tokens under your own control, of course, comes with the benefit of added control, if you know what you’re doing.
Another benefit of depositing your holdings onto the exchange during a Token Swap is the ability to trade the coin. Both TRX and ONT are not going to be transferable from wallet to wallet, or wallet to exchange, during the migration – rendering the holdings highly illiquid, which has the potential to be costly due to the opportunity cost of not being able to trade, especially if a glitch or bad news (“FUD”) occurs during the migration.
For instance, during the EOS Token Swap (which Huobi supported as well), users who deposited their tokens to Huobi.com could trade their tokens, and benefit from the price swings coming along these type of event. At 4 a.m. on the first of June, the token was trading at $12, while on the same day, at midnight, the token reached a high of $15.2, a 25% swing opportunity. In contrast, on June 11, the token retraced to its pre-mainnet levels and continued to follow a downward trend moving forward (-20% in comparison to June 2).
Despite the fact that we have no way of knowing the direction ONT and TRX are going to move, this demonstrates that being able to trade a token during a mainnet release is of interest not only to traders but also to accumulators.
This project aiming at creating a platform for distributed trust and collaboration has been built by the same company as NEO, and unlike most projects, Ontology did not perform an ICO, but decided to airdrop most of the current circulating supply to the public and to NEO holders as part of a marketing scheme. The least we can say is that this airdrop strategy paid off as the token price has been moving upwards since its release in March, and its peak of search interest occurring just before the NEO airdrop. Moreover, since its apparition on the market, the team hasn’t ceased to update its community with news of collaborations and partnerships – which is certainly not uncorrelated with the increasing interest surrounding the platform.
For instance, Ontology is the first Chinese project to join the DIF (Decentralised Identity Foundation), a group of renowned companies such as Microsoft, Accenture, IBM, Tieron, Iota, Civic, and R3, among others. The aim of the foundation is to build a standardised decentralised ecosystem for online identities, with privacy, security, and shareability being the cornerstones of the project.
The project also announced cooperation with renowned VCs, such as Sequoia Capital China and ZhenFund, to explore application development and incubation, and to build the next generation of public blockchain infrastructure with which to support real business applications and scenarios. Ontology also pledged to set $1.5 billion aside, to support entrepreneurs and technology experts to build applications on top of the Ontology blockchain.
As the last example of the degree of professionalism and development standards on the Ontology team, we would like to discuss their hardware integration solution. To this end, the project partnered with COT (Chain of Things) in order to create hardware systems to run on a co-build platform within the Ontology ecosystem. This newly established platform will enable community and business-based trust identification, collaboration, transactions, but also trust transfer. For more information on Ontology, we invite everyone to watch the 20th episode of Huobi Talk, which covers the whole Ontology ecosystem in a 90 minute format.