In January 2019, a new cryptocurrency called BitTorrent Token was launched. Currently ranked as the 56th biggest coin on our list of top cryptocurrencies, the name might seem familiar to some. BitTorrent Token happens to be the official coin of BitTorrent, the popular peer-to-peer file sharing protocol. That’s all well and good, but what exactly is BitTorrent Token – who created it, what does it do, and how does it? We’ll answer those questions, and others, in this handy guide to BitTorrent Token (BTT).
About BitTorrent Token
BitTorrent Token, which uses the BTT ticker, is a cryptocurrency designed to tokenize the world of peer-to-peer file sharing. It was created following the acquisition of BitTorrent, a popular peer-to-peer file sharing protocol with over 100 million users worldwide, by TRON, one of the world’s largest cryptocurrency networks, as reported by Inc.com:
“One of the notable developments taking place in the cryptocurrency field is TRONs recent purchase of software company BitTorrent. Together, they share a vision of a decentralized, barrier-free internet.”
In the traditional world of file sharing, there were only few ways to speed up the download of a file you wanted particularly quickly, and there were equally few incentives for seeding, or providing, files to the network. The tokenization of BitTorrent aims to solve this problem across file sharing networks, starting with BitTorrent itself, by allowing users to:
- Spend BitTorrent Tokens to receive downloads faster.
- Receive BitTorrent Tokens for seeding files.
How Does BitTorrent Token Work?
The BitTorrent Token is a TRC10 token, which means that the token itself runs on the TRON network. The TRON network, like many other cryptocurrencies, uses a blockchain to keep track of all transactions. However, unlike most popular coins, TRON uses a Delegated Proof of Stake (DPoS) consensus mechanism. This means that users who verify the blockchain must hold a stake of TRON tokens, and be voted on by others.
BitTorrent Token Airdrops
The TRON team has decided to distribute BitTorrent Tokens by means of an ICO, which is described below, and regular airdrops. Starting February 2019, BitTorrent Tokens will be airdropped to – in other words, distributed to – existing TRON holders every month until February 2025. The total number of airdropped BTT coins will amount to just over 10% of the total supply of BitTorrent Tokens.
As for the compatibility side of things, any TRON wallets that support TRC10 tokens will be able to automatically claim the airdrop. This includes major TRON wallets such as Tron Wallet and Trust Wallet, as well as some exchange wallets such as those of Binance, OKEx, and Huobi.
Why Use BitTorrent Token?
BitTorrent Token has a clear purpose: to tokenize the peer-to-peer file sharing space – but why exactly would you, the user, use BitTorrent Token? Here are some potential use cases for BitTorrent Token.
BitTorrent Token Use Cases
- For file sharing purposes – The primary use case for BitTorrent Token is aimed at those who use file sharing services. If you regularly download files from BitTorrent, you may be able to use BitTorrent token in order to speed up the transfer of chosen files. If you seed files on BitTorrent, you may be able to earn BitTorrent Token by doing so!
- As an investment – Like many other cryptocurrency projects, BitTorrent Token can also be viewed as a cryptocurrency investment. If you’re impressed by what the TRON and BitTorrent teams are doing, you could purchase this coin in the hopes that its price would rise.
- As a currency – Although it definitely wasn’t designed for it, BitTorrent Token – like many other cryptocurrency tokens – can be sent and received just like any other currency. As such, you can use BitTorrent Token as a currency if you can find a buyer or seller willing to accept it.
Criticisms of BitTorrent Token
Despite its short lifespan thus far, BitTorrent Token has already been the subject of multiple criticisms. Most notably, the project has been criticized in the context of its ICO, and by former BitTorrent executive Simon Morris:
BitTorrent Token ICO Controversy
The TRON cryptocurrency itself is valued at over a billion dollars, suggesting that the team has plenty of money to work with. Nevertheless, the TRON team, which is in charge of the BitTorrent Token project, made the decision to carry out a separate, second ICO to raise funds. This point has been a serious concern for some investors – after all, why wouldn’t the TRON project invest the funds it already has into this project?
Simon Morris on BitTorrent Token
Former BitTorrent executive Simon Morris has also shared negative thoughts on the BitTorrent Token project, with his main concern being the choice of the TRON network. Morris has said there is “no way” that the TRON network can handle the load needed to tokenize the BitTorrent network.
Should I Invest in BitTorrent Token?
At first glance, BitTorrent Token seems to be a well thought-out cryptocurrency project with a clear, practical use case – and perhaps it is. But does that mean you should invest in BitTorrent Token?
Of course, we can’t tell you the answer to that. Even if BitTorrent Token is a fantastic project, you can never be sure the token’s price is guaranteed to rise. However, if you’d like to learn more about BitTorrent Token, we suggest you check out the resources listed on our dedicated BitTorrent Token page.
BitTorrent Token ICO and Price History
The BitTorrent Token was launched by means of an ICO, or Initial Coin Offering, in January 2019. The ICO raised a total of $7.2 million at a BTT price of $0.00012 per token, meaning that 60 billion BitTorrent Tokens were sold. Interestingly, the token sale – which was hosted on Binance’s proprietary platform – sold out in just minutes.
Just three days after its ICO, the price of BitTorrent Token had increased fivefold. Since then, the price of BitTorrent Token has increased to almost eight times its original ICO price, as of February 16th 2019. It’s unclear where the price of BitTorrent Token will go from here, but you can continue tracking it on our website.