A token built on the Stellar (XLM) blockchain – Ternio (TERN) – spiked to the tune of 1,103% within a span of 90 minutes on Friday. That immediately launched Ternio into the market cap top hundred – with an estimated cap of $80 million; up from $6 million earlier in the afternoon.
Yet a few minutes later, the token with a four-figure trade volume sunk just as quickly as it rose, as the spike proved to be short lived.
Ternio takes aim at the digital advertising industry – a sector worth an estimated $224 billion per year. The team claims a blockchain capable of processing 1 million transactions per second, and Visa-backed crypto credit card has been promised in the near future.
Let’s take a look under the hood.
What is Ternio (TERN)?
The Ternio project was announced on April 12th, 2018 on the Bitcointalk forum pages. The opening pitch describes some potential problems to be solved in the digital advertising industry. The solution? Blockchain, of course:
“Ternio is the future of digital advertising. There are 3 main problems in the digital advertising industry that Ternio is planning to solve.
Delay in payments to publishers
Transparency in the supply chain”
The project does not use Proof-of-Work or Proof-of-Stake, but rather utilizes a Byzantine-based system, like Stellar. A hybrid technology, Ternio is built using a mixture of Hyperledger, and the Stellar blockchain. TERN is a Stellar-based token – one of many to pop its head above water in recent times.
When one sharp-eyed forum member questioned the ability of Ternio to compete with the main purveyor of digital advertising – Google – the team had this to say:
“Not compete, but complement. Google has many advertising products. Some are software tools like DFP (doubleclick for publishers) and DBM (doubleclick bid manager). Others are closed ecosystem ad networks like adwords/adsense. With adsense, google is selling the media (advertisements). Ternio doesn’t sell any media. That’s why so many companies are fine utilizing our tech – it doesn’t threaten their business.”
The token lost over 97% of its value between launch in 2018 and the cryptocurrency market low in December of the same year. TERN is mainly traded on Stellarport, and the Stellar Decentralized Exchange. The token is also listed on BitForex, but all three exchanges have processed no more than $18,000 in volume during the past month. Volume sunk as low as $13 on April 30th.
Friday’s spike may have had something to do with an outlier price appearing on the Stellar DEX. The value of TERN rose to over $0.72 on that platform, while the other two platforms showed a price in the $0.01 and $0.02 range.
On Friday that was enough to shake up CoinMarketCap’s data readings, and briefly put Ternio among the top hundred tokens. From an average daily low of $0.019426, TERN shot up to $0.242194 within just five minutes.
Around ninety minutes later TERN was back where it started, after the price from the Stellar DEX was excluded as an outlier.
Those claims of 1 million transactions per second have drawn a lot of attention among Bitcointalk forum members. Many believe it just to be typical marketing hype. When you consider that Visa currently processes a mere 1,700 transactions per second, the tendency is to agree with that sentiment.
One prospective investor on the forums wrote last year:
“Been following this one. The advertising part isn’t even interesting to me. The 1.2 MIL TPS is what’s crazy! I think this is the next sleeper ICO.”
That user was right for about ninety minutes on Friday.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via CoinMarketCap.