Klaytn had been operating at a price level of $0.47 before the new year began. The cryptocurrency had been struggling to cross the $1 mark up till then. The bull run of 2021 resulted in Klaytn skyrocketing. The cryptocurrency soon cross $1 and established its all-time high at $4.38 – although the ATH price was not sustainable and it was known that KLAY coin will fall subsequently. Klaytn suffered from the bearish momentum amidst the market crash and fell below $1 once again.
The market trend has reversed since most cryptocurrencies bottomed. The cryptocurrency market has turned bullish and coins are picking up the bullish momentum. Klaytn has been climbing upwards since August. At the time of writing, KLAY stands at a price level of $1.89. The price has increased by 10% in the past twenty-four hours while the weekly performance shows a growth of 17%. KLAY coin is currently the thirty-first largest cryptocurrency with a market capitalization of $4.75 billion.
The origin
KLAY coin has been founded by a South Korean corporate giant, Kakao. The firm also has a messaging app by the name of “KakaoTalk” which is considered the WhatsApp of South Korea with nearly 90% of the populace using it. Kakao also has a taxi-hailing app and an online bank. Being this large a corporation, Kakao is under the regulatory lens which could hinder Klaytn’s progress but Kakao has strategically launched the cryptocurrency through subsidiaries which gives Klaytn Kakao’s reputation without any regulatory backlash.
The CEO of Kakao has regarded KLAY coin working to be similar to that of Libra and; hence a strong competitor. The cryptocurrency was also launched recently on KakaoTalk app through the built-in Klip wallet. The Klip Wallet is used by companies to reward their loyal consumers.
What is Klaytn?
KALY coin’s aim is to boost the mass adoption of the blockchain technology. The network employs a unique consensus mechanism called Practical Byzantine Fault Tolerance. The PBFT eliminates the competition between Proof-of-Stake and Proof-of-Work as it is much superior in terms of speed and cost. However, the PBFT compromises on the decentralization of the network.
The decreased decentralization leads to KLAY coin being regarded as the centralized alternative of Ethereum. The network uses Ethereum token standard which means that Ethereum’s ERC-20 and ERC-721 are utilized on the network. While the essential offering of the network is similar to that of other cryptocurrencies, the governance is centralized. The network is governed by a body of 30 companies with a rotating chairman who has more power and control than the members.
