Harmony: Is ONE The MOST Undervalued Crypto??

Mar 18, 2021

👨‍🏫What is Harmony? 👨‍🏫

Harmony was built from the ground up to properly address the issues of scalability, security, decentralization, and also privacy, which its founder once referred to as the “fourth trilemma”. Much of Harmony’s tech stack is inspired by leading projects in the smart contract space, notably Ethereum and Cardano. However, it seems to be much further along in its development.

⛓How does Harmony work?⛓

The Harmony blockchain is a sharded smart contract compatible blockchain consisting of 4 shards. These four shards use a delegated proof of stake consensus called Effective Proof of Stake or EPoS for short. In EPoS, validator nodes are randomly assigned to one of the four shards every epoch, and this randomness is guaranteed through a verifiable randomness function. To prevent a large validator from corrupting a shard, validators are economically incentivized to break up their stake on a single shard if it is too large by lowering their staking reward.

💰Harmony Staking💰

The minimum amount of ONE coins you need to be a validator is just 10 000, which is around 1000 dollars at the time of shooting. You only need 1000 ONE to be a delegator, currently worth 100$. Staking rewards on Harmony vary depending on what percentage of ONE’s total supply is being staked. These can range from 9% to 164% per year. All staked ONE have a one week unlock period. Validators who try to double sign a transaction are slashed and booted from the network, whereas validators who are offline for too long are just temporarily removed from the network.

💸ONE tokenomics 💸

At genesis, the ONE coin had a supply of 12.6 billion. 22.4% of this supply was allocated to the private investors of the aforementioned 2018 seed sale at a cost of just over half a cent per coin. Another 12.5% of ONE’s supply was sold through the Binance Launchpad IEO for just under a third of a cent per coin. The remainder of ONE’s initial supply was allocated to the Harmony team in some manner, and all ONE coins are subject to various vesting schedules lasting between 2-4 years. The actual supply of ONE is unclear given that the Harmony block explorer does not provide this information, and ONE continues to exist as a token on Ethereum and the Binance Chain.

📈ONE price analysis📉

One has seen a 20x increase in price since January, and this was primarily driven by its integration with Ethereum combined with its robust tokenomics. As a lower cap cryptocurrency, it still has lots of room to grow and given the performance of its competitors (Polkadot, Cardano etc.) ONE could still gain in price by a significant amount.

🕵️‍♂‍Harmony Concerns🕵️‍♂‍

Harmony has had a few hiccups when it comes to security, transparency, and adoption. For starters, the Harmony One browser extension wallet was hacked in November 2020, with 9 users losing their funds. The Harmony team has not been entirely transparent about how many ONE coins they have. They only recently published an article revealing which wallet addresses are theirs and what they are doing with those funds. Harmony has a very hard time onboarding users. Only 5000 people have downloaded their browser extension wallet, and their development updates and partnerships are rarely covered by the crypto media.


📜 Disclaimer 📜

The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.