Recently, pseudo-anonymous crypto analyst and influencer “Coin Bureau” explained why he is so bullish on Kusama (KSM).
Here is what the Kusama team say about the upcoming parachain slot auctions:
The key to Kusama’s scalable multichain architecture, parachains connect to the network by leasing a slot on the Relay Chain via permissionless auction. As Polkadot’s canary network, Kusama will roll out parachain auctions first for testing and optimization. Parachains will likely be onboarded to Kusama gradually at first to make sure everything is running smoothly, but no promises.
As reported by “The Daily HODL”, Coin Bureau told viewers:
The crazy thing about parachain slot auctions is that they will give you a chance to pick up that next 100x coin or token without having to give up a single penny of your hard-earned cash.
Coin Bureau predicted the launch of parachain slot auctions would lead to a surge in demand for KSM, driving the price higher:
I suspect that most individuals and institutions that are planning on participating in Kusama’s parachain slot auctions have been accumulating KSM since last year. After all, it looks like they’re going to need hundreds of millions of dollars in KSM to secure a parachain slot. I reckon these early investors are smart enough to know that if they waited to buy until the parachain slot auctions began, the sudden surge in demand would send KSM to prices they are unwilling to pay.
Coin Bureau claimed there was still more room for KSM’s price to grow, despite demand for parachain slot auctions being partially priced into the token:
What this means is that the demand that will be created by parachain slot auctions on Kusama has already been priced into KSM. However, something tells me that there are more than a few people who haven’t been paying attention to what Kusama’s been up to. Heck, even I didn’t know that Tether will be launching USDT on Kusama.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.