The UNI token has fared remarkably well in the light of recent cyber-attacks and hacks. The latest one, in which over 4 million ETH was stolen from ICO projects, was managed very well by the UNI Foundation and only caused minor fluctuations. The UNI price is around $0.03 at present time. Some factors will affect its value, but it is worth noting that it is not based purely on speculation or pump-and-dump schemes as other coins are. The key to understanding the implications of this price goes back to understanding what exactly an ‘ICO’ is and how it differs from a business start-up or venture capital investment for a company like Uber, for example.
It is not an investment in the traditional sense of the word, but rather a crowd-funding opportunity. It allows people to get in on the ground floor of an idea, much like Patreon but with an ownership stake. Rather than receiving a service such as access to early beta software or content, investors in an ICO receive tokens that will be used within the network once it has been built. Many ICOs are not fully completed projects; some are just whitepapers. So UNI is far from being ‘overvalued’ at $0.03 – it may still be undervalued for what the project hopes to accomplish.
Uniswap is an exchange that can be used to gain UNI, as well as other cryptocurrencies. The service utilizes a ‘Uniswap’ currency, which is pegged to the USD. The value of this currency is determined by the demand and supply of UNI. If the price of UNI rises substantially, Uniswap will change from one US dollar to one Uniswap dollar. If the value drops too much, it will change back to one US dollar for every one UNI traded. Therefore, if demand for the cryptocurrency grows and it becomes attractive for users to buy more UNI with fiat currency (the USD), then it will also increase in price. If the opposite happens, it will decrease in price.
This system is possible because UNI is not tied to the value of any other currency. The Uniswap exchange can theoretically be used to buy and sell any cryptocurrency, with one exception being that the token cannot be exchanged for fiat currency (USD) if it is trading at $0.
The market for ICOs is volatile, but there are a few things that will happen in the future with this cryptocurrency. Firstly, the people who are already invested in ICOs and contribute to them will continue to do so. Companies may even turn to an ICO because of the low cost and benefits of a crowd-funding campaign. This can be seen as something of a threat to venture capitalists or angel investors, as it provides an alternative source of funding for projects.
Secondly, companies will continue to issue new tokens during their ICOs, which could lead to a fall in value for UNI when there are more tokens in circulation than those held by companies like Unikrn.
The Fourth of July marked the first anniversary of the largest cyberattack ever against an initial coin offering (ICO) project. On that day in 2017, a hacker stole over 4,000 Ethereum tokens worth about $40 million from ICO projects. This attack is likely to have affected the price and value of UNI, but it would be wrong to say that this attack was responsible for a large decline since then.
UNI has been trading between $0.03 and $0.041 on popular exchanges like Ether Delta, YoBit, Cryptopia, and Index since late June. This is down from its high in December 2017 when it reached nearly $0.
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