Ever since the meteoric rise of Bitcoin, cryptocurrency space has undergone a massive transformation. The number of altcoins - alternative cryptocurrencies that came into existence after the success of Bitcoin - has increased at an unimaginable pace. Considering that there are hundreds of these altcoins in the market, it has become increasingly difficult to find the right coin that is capable of delivering a decent return on investment. MCAP aims to solve this precarious problem by becoming the ‘one token to rule them all.’
What is MCAP?
MCAP tokens, developed by MCAP Labs, have been designed using the ERC 20 protocol whose aim is to enable even the most average user to earn substantial returns on investment in the long run by just investing in one token. In other words, MCAP Labs wants to help people earn huge returns by investing in their cryptocurrency - MCAP tokens.
MCAP Labs plans to achieve this ambitious goal by investing the funds earned through the sale of tokens in three distinct fields -
- Mining of Bitcoin and other altcoins
- Investing in Initial Coin Offerings (ICOs)
- Evaluating ICOs
The profits that MCAP Labs makes through mining and investing in these cryptocurrencies will be used to buy back MCAP tokens from the market at higher prices. In order to select the right altcoin for the purpose of mining and ICOs selection, the development team at MCAP has designed algorithms based on several parameters like the scope of the product idea, the background of the team, et cetera. Furthermore, MCAP Labs, in its white paper, has mentioned that almost 80% of the capital raised will be invested in mining hardware and utilities.
Therefore, the basic idea here is that MCAP will take your money and give you MCAP tokens. In turn, this money will be invested in mining cryptocurrencies and ICOs, chosen with the help of meticulously designed algorithms. Lastly, the profits made through mining will be returned back to the investors. This is quite similar to having an asset management company mine cryptocurrencies on your behalf. As a result, an ordinary user can easily bypass the mining constraints by simply buying MCAP tokens and letting the company behind it take care of the rest.
Being an ERC 20 token, all MCAP transactions will be recorded on the Ethereum Blockchain, thus making them immutable and secure. Coming to the total supply of MCAP tokens, the cap is at 100 million.
Where to buy MCAP?
MCAP token, being an altcoin, is available for purchase on several leading cryptocurrency exchanges like CEX.io, HitBTC, Mercatox, et cetera. Keep in mind that you will have to exchange MCAP with either BTC or ETH.
Being an ERC 20 token, MCAP coins are compatible with any Ethereum wallet. Some of the popular options are Myetherwallet, Jaxx, Exodus, et cetera. However, the best way to store your MCAP tokens is by using a hardware wallet like Nano Ledger S or Trezor.
It is not possible to mine MCAP tokens. However, the capital invested in MCAP will be utilised by the company to mine altcoins.
MCAP Price Trends
At the time of writing this article, 1 MCAP token is worth approximately 0.15 USD. Interestingly, MCAP has followed a different path when it comes to its prices. It commenced trading on exchanges at around $5 mark and moved up to go beyond $7 in June 2017. However, the price declined soon thereafter and went down to be traded at less than $3. The currency has failed to bounce back ever since. In the month of December, the price rose slightly but it stayed well below $2 mark. In 2018, the price went down further.
Risks associated with investing in MCAP
There are many reasons why investing in MCAP tokens is a bad idea. When something is too good to be true, it usually is and the same is applicable to MCAP as well. The company behind the token says that its goal is to empower users to earn huge returns in the long run. However, their white paper explicitly states that MCAP tokens are not securities. Furthermore, it also states that no promises of future performance will be made with respect to MCAP. Unlike other cryptocurrencies, there is no technology that is driving MCAP.
In addition to this, the official website has not mentioned any information regarding the development team, that is, their names, background and other relevant details. All these are classic tell-tale signs of a scam and therefore, it is not advisable to invest in MCAP.
Instead, you can look into other safer instruments like mutual funds.
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