Many investors may not be familiar with the cryptocurrency Qtum (CCC:QTUM), but that is not stopping it from gaining 30% in the last 24 hours. With a big event on the horizon, bulls should definitely give this crypto a look. So what do you need to know? And what are the latest Qtum price predictions?
Those unfamiliar with the digital currency should be sure to understand the basics. According to CoinDesk, Qtum has been around since September 2017, and its blockchain technology primarily targets enterprises. Essentially, it seeks to combine smart contracts from Ethereum (CCC:ETH), stable blockchain elements of Bitcoin (CCC:BTC) and proof-of-stake consensus mechanisms. This also means that many decentralized applications work on its platform.
With a market capitalization of roughly $725 million, it is certainly smaller than its peers. However, something about Qtum (which you pronounce “quantum”) is captivating investors today. It is up nearly 35% over the last 24 hours, hitting a daily high of $7.65. Investors should note that while impressive, this is far off its all-time high of $100.22.
There are also a few general things to consider here. As Bitcoin continues to climb, some investors are calling for altcoins like QTUM to really benefit. This is also true thanks to a recent rally in Reddit stocks. When Robinhood halted trading and placed restrictions on equities like GameStop (NYSE:GME), many retail investors became interested in decentralized finance (DeFi). We have seen blockchain stocks like Marathon Patent Group (NASDAQ:MARA) and other cryptocurrencies rally in the wake of this decision.
However, there is one more specific catalyst to keep in mind.
Qtum Price Predictions and the Qi Token (QI) Airdrop
There is one catalyst close on the horizon that could lead to bullish price predictions for Qtum. What is that catalyst? Well, it turns out that a Qi Token (QI) airdrop is set to take place on Friday, Feb. 12.
As you may know, airdrops are popular marketing tools in the cryptocurrency space. They typically involve sending tokens to digital wallet addresses as a way to promote a new currency. These new tokens are free, and can sometimes be converted into an existing crypto at a set rate. For instance, we recently saw Flare Network give out Spark (CCC:FLR) tokens to XRP (CCC:XRP) holders as a marketing tactic.
Now, it looks like Qtum holders are about to participate in an airdrop of their own. Starting Friday, a Qi Token (QI) airdrop will begin. In this situation, each QTUM token you hold will net you half of a QI token. The snapshot of QTUM holders will also occur on Friday, and some exchanges may temporarily freeze QTUM deposits and withdrawals right before the Qi Token airdrop. Exchanges including Bithumb and Binance have announced their support for this airdrop.
What does this mean for Qtum price predictions? Well, one thing we saw with the Spark (FLR) airdrop was a short-term spike in XRP prices. Investors bought in, claimed their Spark tokens, converted them to XRP and then cashed out. The rally today in QTUM could be much of the same.
However, if you are a long-term crypto bull and like this smaller coin, Qtum certainly is worth keeping on your radar here.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.