Altcoins News

Story: What You Need To Know Before Buying Kusama (KSM)

By Sydney TheCMO

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Parachain auctions

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If you have been in the crypto market long enough, chances are that you understand the importance of market cap and circulating supply in determining the price of a cryptocurrency.

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Kusama is currently trading at $207.79 after tanking by 42.89% in the last 7 days although it has recovered by 11.97% in the last 24 hours.

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Kusama’s latest price action found support at $161 before bouncing back above $200. The current price is down to February 2021 levels after dropping from its peak price of $625…

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Kusama was founded in 2019 by the Web3 Foundation as a pre-run for Polkadot which was also made by the same foundation. Kusama and Polkadot are very similar with a few differences.

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Parachains are vital for hosting smart contracts on Polkadot and Kusama. However, each can only support a maximum of 100 parachains.

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Projects can secure a large amount of KSM through a Parachain loan offering which is a similar approach to ICOs.

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It is worth noting that lending your KSM to a parachain means they will be locked and cannot be sold until the parachain expires and the tokens are returned.

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The parachain auctions influence the supply and demand for KSM. The more Kusama tokens locked in the blockchain, the lower the supply in the market, and a low supply when demand…

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