On October 6, Overstock announced the online retailer had hired two Counterparty developers to build a decentralized stock-exchange, code-named “Medici.” CEO Patrick Byrne confirmed the stock exchange would be built atop Counterparty during his speech at the Inside Bitcoins Conference in Las Vegas.
The announcement immediately caused the Counterparty price to surge (Counterparty’s native currency shares the platform’s name and is also known as XCP). However, the price began to cool off on October 8.
Counterparty Price Falls After Overstock Spike
Prior to the Overstock announcement, the Counterparty price had remained fairly stable, resting at a mean of about 500,000 satoshis for several weeks. But the announcement caused the price to explode.
On October 5, the Counterparty price was just over 580,000 satoshis. By the next day, the Counterparty price had risen to ~895,000 satoshis. The Counterparty price continued to climb on October 7, ending the day at 1,001,876 satoshis–an increase of more than 70% since before the announcement.
However, the Counterparty price cooled off on October 8, falling as low as ~777,500 satoshis before recovering slightly. At press time, the Counterparty price was 844,482 satoshis, giving the coin a ~$6.7 million market cap.
Counterparty ranks tenth in both coin market cap and overall coin health (via CoinGecko’s metric ranking algorithm), which indicates the Counterparty price correlates well to its overall coin strength. There is still no indication to what extent the Medici stock exchange will integrate the Counterparty currency and how that will affect the coin’s price over the long-term. Nevertheless, the fact that Overstock selected Counterparty over other so-called cryptocurrency 2.0 platforms bodes well for the long-term prospects of Counterparty both as a platform and a coin.
Disclosure: The author is paid in and holds investments in bitcoin. He is not invested in or affiliated with any of the altcoins discussed in this article. Any advice contained in this article is solely the opinion of the author and does not reflect the views of CCN. Neither the author nor CCN is liable for your investing decisions, so do your homework and never invest more than you are willing to lose.
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