Distributed ledger technology (DLT) has come a long way over the past decade. And it seems that each day another revolutionary crypto project is launched. However, it’s actually very difficult to get any project off the ground without a trustworthy platform for the launch. Lightning wants to become that platform. Using Lightning coin (LIGHT), perhaps this might be the solution for ambitious developers.
What is the Lightning network about?
In order to understand the role of the Lightning network, you need to know how most crypto projects are launched. The developer initially comes up with the prototype and makes a pitch to investors for funding to complete the project. This is easy enough on mainstream financial markets. But with over 13k cryptos according to CoinMarketCap, it’s incredibly difficult for both investors and developers.
On the Lightning network, though, developers will have access to an incubator. On it, developers will be allowed to publish their projects and market to potential investors. Lightning will also provide additional resources to the developer they wouldn’t have got otherwise on their own.
The second feature of Lightning is the Launchpad. It will act as the platform where projects held in the incubator are listed. Investors can then see which projects are open to investors and make their investment if inclined to do so.
For the investors, this will be a safer and more secure way to invest in crypto projects since Lightning monitors and audits everything in the incubator. Such investments are referred to as Initial DEX Offerings (IDOs); similar to IPOs and ICOs except that they are held on decentralized exchanges such as the Lightning network.
Underlying the incubator and launchpad is Lightning coin (LIGHT), which is the native token for the network. It is used by investors to purchase a stake in the project they have an interest in. LIGHT is a BEP-20 token, meaning that it’s hosted on the Binance Smart Chain (BSC). Presently, it can only be bought through PancakeSwap as it is yet to be listed on any major crypto exchange.
Is it worth investing in Lightning coin?
The main role of Lightning coin is to act as a native token for transactions within the Lightning Network. Already, LIGHT has been used to fund AutoMatic, which will be launched on the Polygon Network after raising 1,341 BNB. Being the intended use for the token, it’s good to see that it’s already being actively utilized.
Moreover, Lightning coin has other benefits to investors through staking. By committing a particular amount of LIGHT to the network, you earn interest from the fees charged for transactions on the network. As you can see below, over $30 million is currently locked in Lightning and the APR is over 80%.
Add to that, the more you stake, the more you can invest through launchpad as we saw earlier. That means you could increase your performance by holding a bigger stake. It’s also probably why the value of LIGHT since being launched in March 2021 as you can see on the price chart on Poocoin.
However, Lightning is still a relatively new entrant in crypto and that makes it a risky investment. If you choose to invest in Lightning coin or any project listed on the launchpad, you need to be careful and only risk what you’re willing to lose.