While the news that the United States Securities and Exchange Commission (SEC) was suing the Coinbase and Binance exchanges threw a shadow over the world of cryptocurrency, it was by no means the only thing to involve blockchain-based finance in early June 2023. Other coins and tokens went about their business, albeit losing a fair chunk of their value as potential investors stayed away from a potential legal headache. One crypto that did something interesting at that time was BitDAO. This token, which aims to support new entrants to the wider cryptosphere, announced the latest of its monthly unlocking events, releasing 187 million new tokens onto the market on June 15. However, in the run-up to the unlocking, BIT was unable to truly break free of the impact of a bearish market, and its price still fell.
But what is BitDAO (BIT)? How does BitDAO work? Let’s take a look and see what we can find out, and also examine some of the BitDAO price predictions that were made on 13 June 2023.
BitDAO is, as its name suggests, a decentralized autonomous organization, or DAO for short. This means that it is an organization involved with the blockchain, with no official leadership and a flat, democratic and decentralized, structure. It was set up in an attempt to bring more people onto the blockchain and into crypto and decentralized finance (DeFi). It was launched in August 2021, claiming to hold “billions in existing assets and billions in forecasted contributions”, although where, or what, these existing assets are, or where, or from whom, they come from is rather unclear.
The platform itself was launched via Bybit, a Singapore-based derivatives exchange and it is designed to help fund projects on the blockchain. It is powered by its native crypto, known by the ticker handle BIT, which is used to give holders the right to vote on proposals regarding the network and can also be bought, sold, and traded on exchanges.
BitDAO, whose founders are, in keeping with the ethos of DAOs, anonymous, operates by dividing its membership into three groups. There are people who hold BIT, community members who are active on forums and social media but do not hold the token and contributors and partners. These are institutions and organizations, such as exchanges, that are willing to work with BitDAO.
BitDAO allocates funds for the DeFit and blockchain products and also gives money to people on the BitDAO network, with projects including governance and community management, with all decisions made through the BitDAO proposal and voting system.
One important thing to note is that BitDAO is based on the Ethereum (ETH) blockchain, so it is a token, rather than a coin. You might see references to such things as a BitDAO coin price prediction, but these are wrong.
Let’s now cast our eyes over some of the BitDAO price history. While past performance should never be taken as an indicator of future results, knowing what BIT has done in the past can help give us some useful context for a BitDAO price prediction.
BitDAO first came onto the open market in August 2021, when it was worth $1.50. The coin’s price ended up going on a broadly upward trend and, on 16 November, it reached an all-time high of $3.64. After that, though, the market slumped and it closed the year down to $1.94.
While 2021 had been a promising start, BIT could not avoid the turmoil that saw 2022 being a year where the crypto market crashed repeatedly. The collapse of the Terra blockchain saw it sink below the dollar in May and things got even worse when the FTX crypto exchange declared bankruptcy in November, sending BitDAO down to an all-time low of $0.2699 on the 22 of the month. Things managed to get a little better, but not much, by the end of the year, and it closed 31 December at about $0.34 , leaving it down by more than 80% over the course of the year.
So far, 2023 has been a bit better for BitDAO, with it breaking past $0.50 in January and briefly topping $0.60 the following month. In early June, though, it slid down the price charts and, on 14 June 2023 it was worth $0.425. At that point there were 1.8 billion BIT in circulation out of a total supply of 10 billion. This gave it a market cap of $784 million making it the 46th largest crypto by that metric.
It initially appeared like BitDAO had escaped the worst of the fallout from the SEC’s legal cases. While it fell from the $0.4958 it traded at on 5 June, by 9 June it was worth $0.4825, meaning it had only dropped by about 2.5%. However, by 12 June, it was down 12% in three days to $0.4207. Although the next two days saw it recover by about 0.3%, it was still down more than 14% from where it had been before the crash.
It is now time to look at some of the BitDAO price predictions that were being made as of 14 June 2023. It is important to remember that price predictions, especially when they are for something as potentially volatile as cryptocurrency, have a reputation for being wrong. Also, keep in mind that many longer-term crypto price predictions are made with an algorithm, which means they can change at any time.
First, CoinCodex had a short-term BitDAO price prediction for 2023 that said things would get worse for BIT before they got better over the coming weeks. The site said the token would drop to $0.4061 by 19 June before rallying to trade at $0.7223 by 15 July. Nevertheless, the site’s technical analysis was bearish, with 21 indicators sending downbeat signals compared to just nine making bullish ones.
When it came to what other sites thought might happen to BitDAO this year, CaptainAltCoin was also pessimistic about the token’s short-term chances, saying it would drop to $0.269 in August and make a small comeback to $0.3533 in December. Bitnation was more upbeat, saying it would trade at an average of $0.6381 this year, while DigitalCoinPrice was even more optimistic, predicting a BIT price of $0.87 in 2023.
As far as making a BitDAO price prediction for 2025 went, DigitalCoinPrice was very optimistic, saying that it would be worth $1.44 in two years time. Bitnation was even more upbeat, making a BIT price prediction of $1.49 for that year, while CaptainAltCoin said that, while the price would rise, it would not break the dollar, trading at $0.8785.
In terms of a more long-term BitDAO price prediction for 2030, Bitnation said that BIT would continue to grow, reaching $3.62. DigitalCoinPrice also saw significant growth, with it breaking to a new all-time high of $4.28. On the other hand, CaptainAltCoin only saw doom for BitDAO by the start of the next decade, saying it would fall to $0, becoming a de facto dead coin.
BitDAO is designed to help create funding for other blockchain-based projects. While the token has suffered over the last 18 months or so, that has not always been the case, so there is some cause for optimism. What might cause some concern, though, is that, while BIT has not been directly involved in the SEC’s court cases, it is still not immune from the overall direction of the crypto market. Furthermore, its decentralized, anonymous, nature might end up putting off potential investors who like to have some accountability when it comes to deciding where their money is going. Some of the more breathless claims that BitDAO makes – saying that DeFi is going to “disrupt” the world of banking and become a trillion-dollar sector, for instance – might also be the sort of overenthusiasm that could put off a more thoughtful and healthily skeptical investor. Either way, it is vital that you do your own research before deciding whether or not to invest in BitDAO.
No one can honestly tell right now. While CaptainAltCoin said that the token would collapse into nothingness by 2030, other sites were more positive, suggesting prices close to or above the current all-time high by then. Remember, though, that price predictions are very often wrong. You should also remember that prices can, and do, go down as well as up.
Before you invest in BitDAO, you will need to do your own research, not only on BIT but on other crypto coins and tokens. At the end of the day, though, you will have to decide for yourself. Before you do, you should make absolutely certain that you never invest more money than you can afford to lose.
As of 14 June 2023, there were 1.8 billion BIT in circulation out of a total supply of 10 billion.
It could do but, if it does happen, it may not happen for quite some time. The most optimistic BitDAO crypto price prediction, which came from DigitalCoinPrice, said that the absolute maximum that BitDAO could reach over the coming years would be $8.26 in 2032. Keep in mind, too, that the token’s all-time high is $3.64, which it reached on 16 November 2021.
The BitDAO (BIT) token is used to support the BitDAO crypto platform, which helps fund blockchain-based projects.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.