The crypto markets didn’t responded well to the launch of Augur’s digital asset. The ethereum-based prediction market came out of the gates strong last week, with its reputation (REP) tokens quickly getting listed on markets like Poloniex , Bittrex and Kraken . However, the market value of those tokens fell sharply in post-launch trading. Since then, some market observers have moved to voice their concerns about the blockchain token’s long-term viability, and the viability of ‘ appcoins ‘ in general. Intended to act as an incentive for prediction market users who provide reliable reports on the Augur platform about real-world events, Augur raised roughly $5.3m in a sale of its REP tokens last year. The platform launched its public beta in March, but until last week, they weren’t able to be freely bought or sold. The public release is a notable test of the appcoin model, in which tokens are issued via a blockchain to both spur adoption and provide a mechanism for supporting a project. While advocates say the model represents a new way for startups to raise cash and build momentum, critics have argued that an appcoin is little more than ‘ snake oil ‘ with a new name. As for how traders see it, the answer is less clear, though Augur provides a valuable data point. The price of REP took a sharp hit soon after launch, falling 52% from an opening price of $13 on 4th October to a low of $6 on 6th October. REP prices are currently reported at an average of roughly $6.50, Poloniex data show. Amid these sharp declines, Whaleclub ’s Petar Zivkovski expressed his concerns that the REP launch was largely beneficial for those who bought in early. He told CoinDesk: “[REP] has rewarded accumulators, its founding team, the early […]
