When Bitcoin was first released, it was the only cryptocurrency on the market. Since then, the crypto market has been flooded with many new platforms and tokens. This has made it much harder to give investment advice on the topic due to the sheer number of different digital assets to invest in.
Thankfully, we can provide some advice, as we will compare various coins with one another. In this piece, we will be specifically comparing LEO token and Ethereum to see if both (or either) are a good investment.
History
If you want to find out more about where your money is going when you invest, you should first look at the history of a digital asset.
Ethereum (ETH)
Many tokens and platforms emerged after Bitcoin’s success; none as successful as Ethereum. Ethereum appeared in November 2013, when principal founder, Vitalik Buterin, published the whitepaper. This whitepaper would explain the concept behind the Ethereum blockchain.
While Buterin came up with the general idea for the Ethereum blockchain, he needed help to execute the project. His co-founders include Mihai Alisie, Joseph Lubin, Jeffrey Wilcke, Anthony Di Lorio, Amir Chetrit, Charles Hoskinson, and Gavin Wood.
While some insiders in the blockchain industry knew about Ethereum, the world would only find out about it in 2014. Buterin took advantage of a Bitcoin conference in Florida to publicize Ethereum.
Not long after this conference, consumers could purchase ETH tokens. However, these token holders would only be able to sell, move, and use their ETH tokens once the Ethereum blockchain went live on July 2015.
LEO Token (LEO)
UNUS SED LEO token, more commonly known as LEO token, was launched in May 2019. It is the native token of the Bitfinex exchange, but its whitepaper was published by its parent company, iFinex.
It did not take long for the UNUS SED LEO token to rise to prominence, as it was close to being in the Top 10 token ranks only a month after its launch.
LEO is often considered a utility token or an exchange token. It is used on the iFinex ecosystem of trading platforms and other trading platforms.
What It Does, And Why It Was Created
Not all crypto assets are intended for investments only. Knowing this can help you determine what to do with these tokens once you have purchased them.
Ethereum (ETH)
While Ethereum has many co-founders, Vitalik Buterin got the project going. He came up with the idea for the project after hearing about Bitcoin in 2011.
Bitcoin didn’t catch his attention initially. However, he liked the idea of a decentralized network to disempower governments and banks. This is why Ethereum also acts as a decentralized platform.
Its functions include being used as a payment system, run decentralized applications, and store data. The Ethereum network established a peer-to-peer network to execute and verify application code (smart contracts).
LEO Token (LEO)
The UNUS SED LEO token is more of a utility token, which is why people don’t often invest in it the same way they do with Bitcoin or Ethereum.
The UNUS SED LEO token is at the heart of the Bitfinex ecosystem. Its function is to optimize the trading processes on the Bitfinex exchange.
iFinex incentivizes LEO holders to keep their LEO tokens, as they offer a 25% reduction in trading fees. The funds iFinex generates from selling UNUS SED LEO tokens are used to further strengthen the company’s working capital.
LEO token also uses a token burn mechanism to deflate its value.
Price History
The price history of a cryptocurrency is the most critical factor to consider when investing in the crypto market. This can tell you just how much the price has fluctuated over time.
Ethereum (ETH)
Ethereum’s ETH tokens first went on sale for $0.31 each in 2014, but they wouldn’t stay this cheap for long. By 2016, ETH tokens would significantly increase in value, with one token worth 100 times more than its opening price.
The value of ETH tokens would fluctuate for the next few years but would also steadily increase until they eventually spiked in 2018. The ETH token would reach its first major milestone, with one token worth just over $1,000.
The crypto market began to decline after the boom it experienced in 2018, which is why the token did not gain much value during this period.
The next crypto boom would take place in 2021, which caused many tokens to reach their peak. Ethereum was no different, as one token reached a staggering $4038 by the middle of the year. The token’s value had increased even further by the year’s end, reaching its ultimate peak of $4,701.
After this boom, the crypto industry as a whole would, once again, begin to decline. This is why one Ethereum ETH token is worth $1,283 in December 2022.
LEO Token (LEO)
When the UNUS SED LEO token made it to the market in 2019, LEO tokens were worth $1.03. Many investors began to show serious interest in the UNUS SED LEO token after it spiked in value only a month after its launch.
Early UNUS SED LEO holders were likely surprised to see that the value of a LEO token had increased to $1.91 in only one short month. Unfortunately, the UNUS SED LEO token would not continue to increase in value for a while after this.
The token dropped below $1 in early 2020 and didn’t decrease or increase in value for quite a while. The crypto industry boomed in 2021, though, which saw the value of a LEO token increase to $3.75 by the middle of the year.
The price would soon plummet after this before continuing to increase slightly in value for the rest of the year. Strangely, the LEO token would reach its peak value in 2022, which has been a poor year for cryptocurrency overall. At the beginning of 2022, one LEO token was worth $7.50.
The token would continue to decrease steadily in value throughout the rest of the year, which is why one LEO token is worth $3.79 in December 2022.
Market Cap
Market capitalization refers to the total value of a cryptocurrency, which is why it is an important factor to consider.
Ethereum (ETH)
Ethereum currently has a market cap of $157.236B. Ethereum has the second highest market cap of any digital asset on the market.
LEO Token (LEO)
LEO Token currently has a market cap of $3.584B. LEO token has the 19th highest market cap of any digital asset on the market.
Similarities
- Both LEO tokens and Ethereum ETH tokens can be purchased from crypto exchanges.
- Both platforms have experienced major hacks in the past.
- Both Ethereum and LEO token reward token holders for hanging onto their tokens.
Differences
- LEO tokens are available on two blockchains, while Ethereum tokens are only available on one.
- LEO token is not meant to last forever due to the token burn mechanism. Ethereum is planned to last for as long as possible.
- Ethereum is a decentralized network, while LEO token is governed by iFinex.
Risks
There are always risks in investing in cryptocurrency, as it is an extremely volatile industry. There are specific risks that apply to certain digital assets, however.
Ethereum (ETH)
Ethereum faces the risk of possibly becoming centralized due to its moving to a proof-of-stake consensus mechanism. This is because four parties have 60% of the stake and will, therefore, have the final say about whatever decision is made.
LEO Token (LEO)
LEO token has been able to increase in value even in times when the rest of the crypto community was failing. This is a good sign for cryptocurrency. However, there is always the possibility of a new competitor edging it out.
Where You Can Buy It
Ethereum (ETH)
You can easily purchase Ethereum ETH tokens from these exchanges:
LEO Token (LEO)
You can purchase LEO tokens from:
How Can You Exchange ETH For LEO?
You can use either Coinbase or Coinmama to exchange ETH tokens for LEO tokens. Unfortunately, these are the only two exchanges that support both tokens.
Future Plans
Ethereum (ETH)
Ethereum is still in development to some degree. This means many new features and functions are yet to be added to the platform.
Analysts have predicted that the next few years will see ETH tokens increase in value. However, it is impossible to know how much.
LEO Token (LEO)
LEO token has increased in value steadily, despite facing many challenges over the years. This is why some analysts have predicted that the token could be worth around $7.15 in 2023.
Sources
https://coinmarketcap.com/currencies/ethereum/
https://ambcrypto.com/predictions/leo-token-price-prediction
https://capital.com/unus-sed-leo-price-prediction
https://coinmarketcap.com/currencies/unus-sed-leo/markets/