Raiden ICO – RDN Tokens Fast, Scale & Cheap Ethereum Blockchain?

Raiden is the most highly anticipated network upgrade in Ethereum’s history. And now, we’ve learned that the Raiden Network will have its own ICO.

The ICO will be used to raise funds for development of the payment protocol. The funds will be used to finally complete the network, enabling Ethereum users to send payments back and forth at higher volumes without the need for a trusted middleman.

The Raiden Network ICO will be led by blockchain consulting firm Brainbot and its co-founder Heiko Hees.

Raiden, for those out of the loop, is a project that was first unveiled in 2015 as a scaling solution for the world’s second largest blockchain. Raiden is expected to increase Ethereum’s network capacity to 1 million transactions per second – which could make it the first blockchain to compete with VISA, PayPal, and other traditional payment platforms.

Should You Buy Raiden ICO Tokens?

Why would you buy Raiden ICO tokens? Well, the Raiden Network will likely cost fees. That’s because Raiden requires users to “watch” their payments channel for a certain period of time to ensure their funds aren’t stolen. Most users won’t want to watch their computer themselves. One “fix” involves outsourcing the watching of payment channels to other vendors in an open marketplace.

That marketplace will use Raiden Network tokens, or RDN. You can pay someone to watch your payment channel in return for a small RDN payment.

This is what’s expected from the Raiden ICO – we’re not 100% sure if this is how the tokens will actually be used, or if there will be other uses for the tokens.

The Raiden ICO Will Be A Dutch Auction To Downplay Hype

The Raiden Network ICO will be a Dutch auction, which means the price of the tokens will decrease throughout the length of the sale. This means investors who know about the sale have an incentive to keep quiet –if fewer people know about it, it means they can buy tokens at a cheaper price in the future,.

Unlike most ICOs, the Raiden Network ICO isn’t designed to generate hype. The creators of the ICO are hoping the opposite takes place.

Obviously, we saw something similar occur last spring for Gnosis. The company tried repeatedly to discourage speculation and reduce hype, but still saw $12.5 million of tokens sold in 15 minutes.

The Funds Will Be Used For Other Improvements

Funds raised from the Raiden ICO will also be used to complete uRaiden, a recently announced version of the off-chain solution designed for applications built on Ethereum that don’t require complex micropayments.

If there’s enough money left after development of uRaiden, the developers have other projects in mind. They have plans to extend Raiden so that it works for more complicated smart contracts, for example. That project is called Raidos. The goal of Raidos would be to run decentralized applications much faster.

Any remaining funds would be used to fund decentralized applications on the Raiden network.

There’s Some Controversy About The Raiden ICO

The Raiden ICO has created controversy in the cryptocurrency community. One popular Reddit post was entitled, “To the Raiden Devs: Why do you need an ICO, seriously?” In that post, one user called it “politically the worst possible move in the current times”.

Meanwhile, Ethereum co-founder Vitalik Buterin has spoken out against Raiden’s ICO. He has promised to donate his advisor shares in other ICOs (including 100% of his OmiseGO tokens) to charity, or to fund open-source, non-profit projects across the Ethereum platform.

Buterin released his statement almost immediately after Raiden’s developers announced plans to run an ICO campaign. The Canadian-Russian wunderkind took issue with the fact that Ethereum projects must have no baked-in profit scheme, including an ICO token (otherwise, they’re not eligible for funding as Ethereum infrastructure projects).

Raiden ICO Conclusion

Ultimately, the Raiden ICO sounds like a big deal – but the developers are purposely downplaying the sale. They’re simply seeking to raise funds to complete development of the Raiden Network, the long-awaited Ethereum upgrade that’s expected to vastly improve the transactional capacity of the network. The Raiden Network tokens (RDN) are expected to be used to pay for fees on the network.

We don’t know when the Raiden ICO will take place. However, you can visit to stay up to date on the latest information from the development team.

[vc_row][vc_column][vc_btn title=”Most Popular Cryptocurrency Expert Reveals All” color=”juicy-pink” size=”lg” align=”center” i_icon_fontawesome=”fa fa-btc” button_block=”true” add_icon=”true” link=”|title:Most%20Popular%20Cryptocurrency%20Expert%20Reveals%20All||”][/vc_column][/vc_row]

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide