Coin Spotlight
17 Dec 2021

Coti (COTI) in Spotlight

Ananda Banerjee

DeFi, also known as Decentralized Finance, is an umbrella term used to describe finance on the blockchain. And while several crypto players are offering specific DeFi-related utilities, Coti is one of the few to offer a wide range of financial services, catering to governments, merchants, and more.

While a lot is going on within the Coti ecosystem, we shall try to keep things simple in this spotlight. Coti ecosystem, primarily touted as a next-gen payment and transaction solution, relies on three key utilities; low fees, stable pricing, and high transactional throughput. 

Fact Check: Coti, an Israeli Fintech solution provider, is an acronym relevant to ‘Currency of the Internet, which justifies its stance as a prospective universal payment solution. 

As an ecosystem, Coti is all about mitigating challenges posed by the traditional financial system. And at its core, there is the COTI token, which is used to pay the network fee and incentivize network participants. But before delving deeper into the Coti network, let us take a closer look at the COTI’s historical price performance. 

COTI started the year at $0.04595(₹3.49) and peaked at $0.65(₹49.44) on the 1st of November, realizing gains close to 1300%. And if the price move wasn’t insane enough, the trading volume jumped up by almost 3000% within the same period. COTI is currently trading at $0.3266(₹24.84) and still experiencing decent daily trading volume.

Key Token Metrics

  • Coin Rank:178
  • Coin Market Capitalization(on the 16th of December): $295 Million 
  • Market Dominance: 0.01%
  • Coin Economics: Fixed Supply
  • Total Coin Supply: 2 Billion COTI
  • Circulating Coin Supply: 868,672,118.03 COTI (43% of Total Coin Supply)

Potential Use Cases

  • Loyalty Rewards
  • Secure and quick payments
  • Fiat-Crypto pegging
  • Fiat-crypto purchases
  • Cashback benefits
  • Offline and online payments
  • Merchant-centric coinage
  • Medium of exchange
  • Cardano payment gateway

Technical Analysis: COTI Price Prediction

As of today, i.e., on the 17th of December, COTI doesn’t look all that strong on the charts. If you look closely, COTI is currently trading at $0.317, and the RSI indicator on the daily COTI/USD daily chart is still in the oversold region, signaling weakness.

COTI daily chart

Source: Trading View

Coming to the EMA indicators, the 50-EMA line that was once a strong support zone is now acting as a resistance. And for now, it is trading dangerously close to the $0.31(₹23.58) support level.

If COTI breaks the $0.31(₹23.58) support level, it might fall further and go lower than the $.30(₹22.82) mark. But if the global sentiments favoring DeFi push the prices up, $0.45(₹34.23) and $0.54(₹41.07) are the key resistance levels to look at. But then, the 20-EMA line crossing under the 50-EMA, and diverging, signals a cautionary trading stance, at least for now. 

Coti in Brief

Coti, as a decentralized network, is analogous to a more ambitious phrase, i.e., ‘Finance on Blockchain’. But in reality, the existing Coti ecosystem scales beyond the usual Blockchain issues, including lower transaction speeds and higher costs. 

The Coti network implements a DAG or Directed Acrylic Graph framework that is infinitely scalable and insanely fast. And the best part about Coti is that scalability doesn’t come at the expense of energy. Instead, there is a ‘Proof of Trust’ consensus mechanism in play that concerns validating current transactions by linking them to two prior transactions.

Fact Check: The Coti network has nodes to prevent double-spending, i.e., DSP (Double Spending Prevention) nodes and handle network disputes as part of the Arbitration Service to minimize errors and fraud. 

But that’s all about scalability and governance. The Coti network takes DeFi to the next level by introducing a MultiDAG layout. This layout clubbed with Smart Contract support allows multiple DAG clusters to be included within the Coti network. And this functionality lets network users issue their own, Cluster-specific tokens, much like stablecoins.

Launched way back in 2017, the Coti network has been upscaling since, with the roadmap hinting at financial inclusivity more than anything else. Transactions initiated over the Coti network are paid for using the native COTI token. And COTI isn’t only restricted to confirmational transactions on DAG clusters but is also used for multiDAG processes. Overall, the Coti network, powered by the COTI token, aims to be a universal payment method, regardless of the crypto, fiat, or the platform of transaction you use, making it one of the more complete DeFi solutions of the modern era. 

COTI Coin Economics

COTI, the native ERC-20 token of the Coti network, dons many hats:

  1. The mutliDAG smart contract-powered structure is based on the Ethereum network.
  2. There is also a BEP-2 variant of the same on the Binance exchange.
  3. The diverse abilities make it the best network to convert, exchange, and trade tokens across mainnets, via the COTI bridge protocol. 

Fact Check: BEP2 or the Binance Chain Evolution Proposal 2 is a specific token standard relevant to the Binance Smart Chain. And it focuses on faster and low-cost asset movements. 

While discussions concerning the Coti network could go on and on, courtesy of use-cases, support for stablecoin creation, and an inventive distributed ledger, tokenomics interests us the most. 

Coti follows a phased release format for its 2 Billion tokens. At present, close to 43% of total COTI tokens are already in circulation, and you can expect the network to release 55% of total tokens while keeping the remaining 45% locked for funding reward programs and on-chain incentives. 

Coti: Growth Prospect

If you are upbeat about DeFi, Coti’s stance regarding decentralized payment will make sense to you. And this universal payment or an inclusive financial realm promised by Coti forays into an untapped area that has the potential to go bonkers. 

And with the network constantly adding newer features to its arsenal, much like the Staking platform that was released way back on the 1st of January, 2020, the Coti ecosystem will soon be able to offer a solution for every problem relevant to the conventional financial setup, like higher cross-border payment fees, security risks, control exercised by intermediaries, and latency or overall transaction delay.

What’s even more convincing is the association of Simplex, one of the top global fiat-crypto transaction processors, with Coti. As an evolving Fintech platform, the Coti network is expected to make the most of this confluence by launching crypto-relevant debit cards and bank accounts, thereby blurring the lines between crypto and fiat.

But that’s not the end of the road for COTI, as the network has even partnered with Cardano’s UTXO-driven, NFT-focussed ADA Handle platform to make fintech products even more accessible globally. 

Overall, keeping the current tech stack and the growth prospects in mind, COTI is easily one of the best crypto players around. And with the global users becoming more conscious regarding DeFi and on-chain FinTech solutions, the sky’s the limit for the Coti Network when it comes to ideating relevant use cases for the interested parties. 

Are you game for other DeFi tokens? Download the CoinSwitch app, check out the available options, and get down to trading asap!

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.


Ananda Banerjee

Content Writer

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