Why do I think it's a good investment?
Alephium has not experienced a bull run so far. Personally, I'm a fan of Proof of Work, and my speculation is that more energy-efficient and innovative Proof of Work coins will once again have a chance to gain attention in the space.
The founder, Cheng Wang, is a brilliant mind. Here's a short excerpt from an interview with him:
"Cheng Wang: The first time I heard about Bitcoin was around 2014 during my PhD at EPFL on consensus algorithm research. My advisor asked me if I had heard about it because he might have been interested in doing some research on it, but we ended up not pursuing it. It was very traditional research where we focused on theory and didn't pay much attention to potential industry applications.
Then, I proposed the first linear-time Byzantine agreement algorithm and published it on the Internet.
In 2015, Vitalik Buterin and Casey from the Ethereum Foundation read my paper. They realized I was also in Switzerland and invited me to Zug at the Ethereum Foundation to discuss it with them. That's when I delved deeper into Bitcoin and Ethereum to prepare for the meeting.
At that time, I found Bitcoin's simplicity, as described in its whitepaper, more appealing. Ethereum seemed more complex, with a much broader attack surface, and I was concerned people might try to exploit it."
In general, I'm also convinced by the team. While they haven't raised the largest amounts of investment, they handle their funds carefully, are down-to-earth, answer all questions, and take criticism or advice from the community seriously.
Here's a glimpse from one of their wallet developers:
https://www.youtube.com/watch?v=QHmb87sT9nITokenomics are well explained in this thread::
https://twitter.com/zkitbeats/status/1645357818088771584?s=20There was a pre-mine of 140 million coins.
Out of these, 30 million were sold for $0.05, 30 million for $0.12, and 4 million for $0.6.
16 million coins can still be sold or burned.
30 million + 30 million are allocated for ecosystem, development, team, etc. All of these have vesting periods and only count towards the circulation supply after being moved.
Looking at the overall chart, understanding the background is important. In the early stages, the circulation supply was quite low. As a Proof of Work chain, it's a fact that the first 2-3 years see the most coins entering circulation. And while still in the development phase and being a small chain, maintaining a steady price can be challenging. At least for the initial years, which, in my opinion, represent the accumulation phase (see Kadena).
The maximum supply is 1 billion tokens, but this will never be reached due to 100% burned transaction fees and proof of less work. Proof of less work is activated at a hashrate of 1 EH/s, where miners need to burn coins to mine new ones.
https://medium.com/@alephium/tech-talk-1-the-ultimate-guide-to-proof-of-less-work-the-universe-and-everything-ba70644ab301Considering the market cap of 11 million, I see a lot of room for growth in the long run, despite the growing circulation supply.
With Ayin, the first Community DEX was developed.
https://www.ayin.app/swapCurrently, the team is building a bridge to BSC and ETH to facilitate high-volume trading. Once Alephium's price rises and the community continues to grow, building on Alephium becomes more appealing for developers. Then Alephium's technology comes into play.
Example:
https://medium.com/@alephium/alephiums-aps-eliminating-evm-token-approval-risks-5407e7e70a33
