Here are why Kusama (KSM) Parachain Auctions are a Goldmine, says top analyst Mike Jenkins
In a recent video, the widely followed crypto KOL Mike Jenkins from Coin Bureau reviews Kusama (KSM), a potential 100x smart contract cryptocurrency for the upcoming 8-month bull market that has yet to unleash their enormous ecosystem.
Kusama Overview
Kusama was created by Dr. Gavin Wood as a way of testing Polkadot under real economic conditions. Unlike a regular testnet, Kusama exists as its own independent cryptocurrency
According to Jenkins, in terms of technology, Kusama and Polkadot are basically identical.
“The two primary differences are that Kusama’s code is not audited, and all non-transaction related processes are 4 times faster on Kusama”.
Parachain Slot Auctions Recap
Regular parachains are acquired through the parachain slot auction process. Like regular auctions, parachain slot auctions involve bidding on a slot using money, in this case KSM or DOT tokens.
As Jenkins says, in contrast to regular auctions, the winner of a parachain slot auction is determined based on a snapshot that is taken at a random time shortly before the auction ends.
“The team who wins the auction will then quickly move to its mainnet launch of their parachain. For any team who does not win, they can choose to participate in one of the next auctions”.
How To Pick A Polkadot/Kusama Project For PLO
The analyst advises to use the Slot tab of the Polkaproject website to keep track of which projects will be launching on Kusama.
“Once you’ve identified a few Kusama projects that you think have potential, the next step is check what the terms and conditions are for their parachain loan offerings”.
KSM Price Analysis
“It’s possible that the demand that will be created by parachain slot auctions on Kusama has already been priced in to KSM. Late adopters could still push up the price like mad when they begin however”, the crypto KOL says.
Last week, KSM rallied 55% to a new all-time high of $593 as investors rushed into new positions in order to participate in the hype surrounding the upcoming parachain auctions.
“Three reasons for the recent price appreciation for KSM include the upcoming launch of parachain auctions, recent integrations that helped enhance the interoperability of Kusama with other networks and increased opportunities to stake or lock up KSM to earn a yield”.
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