Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche


A Dive into the DAOs with Wings (WINGS) and Aragon (ANT)

What happens when two cryptocurrencies try to accomplish the same goal? Wings (WINGS) and Aragon (ANT) are trying to answer that question.

To explain, Wings and Aragon are building blockchain platforms for the creation and management of decentralized autonomous organizations (DAOs). Essentially, a DAO is an organization administered by a decentralized app (DApp).

oth Wings (WINGS) and Aragon (ANT) are DAO building solutions. In detail, both allow you to build a networked, decentralized organization on the blockchain. All the recordkeeping, fundraising, governance, finance, payments, and administration of the DAO will be handled in the blockchain.

Wings (WINGS) and Aragon (ANT) fight for DAO dominance

A key difference between Wings (WINGS) and Aragon (ANT) is that Aragon claims to be the “world’s first digital jurisdiction.” I imagine that means Aragon DAOs operate beyond any government’s legal jurisdiction.

However, I do not think the digital jurisdiction is legally possible or enforceable. To explain, the laws of the countries they live in will govern Aragon users. Hence, some government will regulate any Aragon transaction a person makes.

On the other hand, this could lead to a legal nightmare if several people in several countries with different laws are taking part in a DAO. A related problem is that different countries use divergent legal systems.

For instance, English-speaking countries operate under common law based on historic legal precedent. Conversely, nations like China and France have national legal codes usually based on France’s Code de Napoleon.

Instead of simplifying DAO governance, Wings (WINGS) and Aragon (ANT) could complicate it. For instance, what court will adjudicate a legal dispute over ownership of a DAO between citizens of several countries?

What is the difference between Wings (WINGS) and Aragon (ANT)?

Another difference between Wings (WINGS) and Aragon (ANT) is that Wings adds DAOs to existing or new blockchain platforms. For example, Wings’ website lists DAOS for a wide variety of blockchain schemes including Ethereum (ETH).

An interesting twist at Wings, is that Wings itself functions as a prediction market for blockchain products. For instance, a person can forecast the success or failure of a project through Wings’ website.

In addition, Wings lets members of its community function as analysts making predictions about the projects listed.  For instance, it is possible for anybody to test a project at Wings. Moreover, Wings lets developers start projects and fund them through its marketplace.

Comparing Wings (WINGS) and Aragon (ANT)

In contrast, Aragon offers a toolkit for construction of DAOs and a network for DAOs to operate in. For instance, it is the Aragon Network that deliberately functions as an “independent jurisdiction.”

However, the Aragon Network functions as a self-governing community offering such services as dispute jurisdiction. Hence, the Aragon Network can take the place of governments.

In addition, users can build Aragon DAOs with the aragonSDK (software development kit). Plus the Aragon Nest grants program will fund the system through individual donations.

Should Wings (WINGS) and Aragon (ANT) be cryptocurrencies?

I have to wonder why Wings (WINGS) and Aragon (ANT) are offering cryptocurrencies.

To clarify, these organizations are really selling services; DAO building and maintenance . I have to wonder why they do not sell the services directly for Ethereum (ETH), Bitcoin (BTC), EOS (EOS), or fiat currency.

If the services are good, people will pay for them. Moreover, not having a cryptocurrency will simplify payments and administration. Plus, Wings and Aragon could redirect the resources used to build and maintain the altcoins to improving their core businesses.

Do Wings (WINGS) and Aragon (ANT) have a bad business model?

Hence, creating a cryptocurrency to fund a software development seems like a bad business model. Perhaps the Wings (WINGS) and Aragon (ANT) teams should concentrate on DAO building and leave the payments to somebody else.

After all, Microsoft (NASDAQ: MSFT), Oracle (NYSE: ORC), and GitHub do not offer their own currencies. Instead, those build or distribute the software and let somebody else take care of payments.

Under these circumstances, a smart business could be a cryptocurrency payment solution for blockchain software services. Instead of creating their own cryptocurrencies blockchain developers will sell their products through a platform for Bitcoin (BTC), Ethereum (ETH), or EOS (EOS).

 An advantage to not offering a cryptocurrency is that a developer could ignore dilemmas like the blockchain scalability problem. Instead, the developer lets the brains at EOS or the Raiden Network worry about that headache.

Finally, I think Ant and Wings developers should concentrate on marketing their core product; DAO-building kits, and ignore the whole problem of cryptocurrency. I have to wonder why blockchain developers keep trying to reinvent the wheel.

Is Wings (WINGS) a Good Cryptocurrency?

Coinmarketcap ranked Wings (WINGS) as the 277th most valuable cryptocurrency on 27 December 2018.

Notably, Wings (WINGS) had a Market Capitalization of $7.294 million, and a Coin Price of 7.6¢ on 27 December 2018. In addition, Wings had a 24-Hour Market Volume of $428,674 on the same day. Wings achieved those numbers on a Circulating Supply of 95.912 million WINGS and a Total Supply of 100 million WINGS.

Thus, Wings is a fairly priced cryptocurrency, however, its present value is theoretical.

What Value does Aragon (ANT) Have?

Interestingly, Aragon (ANT) has more market value than Wings (WINGS). For instance, Coinmarket cap listed Aragon as the 191st ranked cryptocurrency on 27 December 2018.

Moreover, Aragon had a Coin Price of 43.2¢ and a Market Capitalization of $12.616 million on the same day. Aragon also achieved a 24-Hour Market Volume of $94,474 on the same day. There was a Circulating Supply of 29.177 million ANT and a Total Supply of 39.610 million ANT on 27 December 2018.

Hence, Aragon has more market value than Wings largely because it seems to have more street credit. On the other hand, neither cryptocurrency is demonstrating real value.

How Wings (WINGS) and Aragon (ANT) can Make Money

To explain, Wings or Aragon could achieve real value by making money selling DAO solutions. My suggestion is for speculators to stay away from both Wings (WINGS) and Aragon (ANT) until they show they can make money with DAOs.

Backing a cryptocurrency with an unproven piece of technology is a poor business plan.  Wings (WINGS) and Aragon (ANT) would be better off marketing DAO solutions than peddling questionable cryptocurrencies. For instance, they might be better off selling DAO SDKs through GitHub than marketing cryptocurrencies.

I think there will be a huge market for DAO solutions in a few years. On the other hand, I doubt there will be a large market for either WINGS or ANT as cryptocurrencies.