RED Coin is a cryptocurrency launched in January 2018 immediately prior to the ICO crash in early 2018. Many people have forgotten about this cryptocurrency because it never really took off after a fairly successful ICO, but it does in fact still exist.
This article will cover everything that you need to know about RED Coin. This includes the purpose of the coin, the current price, market cap, and whether or not RED Coin is a good investment.
What is RED Coin?
In extremely simple terms, RED Coin is a utility token that can be used as a sort of tipping tool in the RED community. Basically, a developer could receive a RED token as a tip for making a contribution to an open source project. Or someone that uploads a file to the blockchain could receive a tip.
Unfortunately, these big plans of developing a cohesive community around RED Coin never really came to fruition. For those that don’t know, a utility token does not have much value (nor utility) if the community it’s used for is not popular.
That is simply the reality of how utility tokens are valued.
With that in mind, let’s take a look at the financial details of RED Coin.
Price, Market Cap, and Trading Volume of RED Coin
RED Coin does not have an active community. And as mentioned previously, a coin without a utility coin without a community does not have much utility. The only real use for RED Coin is trading – the actual use for the coin is practically nothing.
This is reflected in the price of $.007 per coin with a total market cap of approximately $971,000.
We will admit that a market cap of nearly a million dollars is not a particularly small market cap. The problem is in the trading volume – it’s abysmal at only $60,000 per day with most of that trading volume occurring on a single exchange (Gate.io).
Is RED Coin a Good Investment?
In our opinion, RED Coin is not a good investment. The project has had a few years to become popular and nothing has happened with it. In fact, the price has cratered from a high of $0.20 at the launch of the coin to under a cent within a few months.
It has not gone over a cent in years, so it seems improbable that it will ever go above a cent in the future. The other problem with RED Coin is that the trading volume is so low that the
Due to those reasons, we will say that RED Coin would probably make a poor investment. Granted, no one knows the future, but the hype surrounding the coin dissipated pretty quickly after the launch of the coin.
That covers it for our thoughts on RED Coin. It’s a fairly basic concept for a cryptocurrency – a utility token meant for tips in the RED community.
Of course, the problem is that the RED community never became popular, which makes the coin borderline useless outside of strictly investment purposes.