The introduction of the Internet Computer Utility Token has had a wild first day of trading after its long-awaited stock market debut.
Dfinity’s ICP token was listed on Coinbase Pro and several leading exchanges including Binance, Huobi Global and OKEx on May 11th.
Within four hours, prices for the newly launched token have dropped from an early intraday high of $ 700 to $ 250 before recovering 70% in 10 hours to trade for $ 425 at the time of writing. Coingecko estimates that $ 1.8 billion worth of ICP tokens were only traded 14 hours after trading began.
The Internet Computer is a decentralized blockchain project by the Dfinity Foundation. Dfinity describes the protocol’s mission as extending the functionality of the public Internet from a network that connects billions of people via standard protocols to a publicly accessible global supercomputer based on its own ICP protocol.
It has a high ambition to replace the trillion dollar internet and IT industry by allowing developers to install their code directly on the public internet – without hosting companies, servers, commercial cloud services and tech monopolies .
As with Ethereum, the platform would allow developers to run computer applications on a decentralized infrastructure. However, Dfinity claims superior scalability over Ethereum’s Layer 1 mainnet.
While Dfinity has focused on building this internet computer since 2016, much of the internals of the project have been puzzling due to its closed-source development policy. The platform’s Mercury Genesis launch event took place on May 7th, marking the platform’s public launch after its mainnet initialization completed in December 2020.
ICP tokens can be used in the governance system to receive “voting rewards” or converted into “cycles” that can be used to perform intelligent contract calculations. The Internet computer platform runs on a Network Nervous System (NNS), an open algorithmic governance system that monitors the network and the token economy.
The system is divided into several subsections which, in addition to “neurons” and “canisters” that control the network autonomously, contain ICP tokens and are explained in more detail in the Dfinity blog.
The project began raising funds under the DFN ticker before the ICO boom in 2017, but has since been renamed ICP.