BRC-20 tokens are a new and exciting development in cryptocurrency. They are tokens created on the Bitcoin blockchain using the Ordinals protocol, allowing developers to create fungible tokens on the most secure decentralized blockchain. With a total market cap of over $475 million, BRC-20 tokens are quickly gaining popularity and offer many advantages over other token standards, such as increased security, efficiency, and decentralization. This Cryptopolitan guide will explore some of the most popular BRC-20 tokens and their significance in cryptocurrency.
What are BRC-20 Tokens?
The BRC-20 token standard is a new and experimental standard for creating fungible tokens on the Bitcoin blockchain. It was created in March 2023 by an anonymous developer named Domo and allowed developers to create NFTs and tokens on Bitcoin without modifying the core protocol. However, it is essential to note that some risks are associated with using them. For example, not all Bitcoin wallets support BRC-20 tokens.
These tokens use ordinal inscriptions to mint and transfer fungible tokens on the Bitcoin blockchain. Ordinal inscriptions assign unique identifiers to each satoshi on the Bitcoin blockchain, allowing developers to create and manage token contracts and send and receive tokens.
BRC-20 tokens use JSON data to represent collections of tokens. JSON data specifies the features of the token, such as its name, symbol, supply, and distribution. To create a BRC-20 token, developers need a particular wallet to write JSON data on satoshis and set up token deployment, quantity minting, and token transfer functions.
Features of BRC-20 Tokens
A key component of BRC-20 tokens is their fungibility and interchangeability. All tokens of the same type have the same value and can be exchanged with others. This allows for easy trading and transfer of value on the Bitcoin blockchain.
BRC-20 tokens are integrated with the existing Bitcoin network, leveraging its popularity and prestige. Developers can create tokens on the most secure decentralized blockchain using its established infrastructure and user base.
These tokens are freely spendable and can be easily transferred and used within the Bitcoin ecosystem. This allows for seamless integration with existing Bitcoin wallets and services, making it easy for users to adopt and use BRC-20 tokens.
Factors to consider when purchasing a BRC-20 token
Investing in BRC-20 tokens can be exciting, but weighing several factors before purchasing is essential. These include:
The credibility and reputation of the token creator: As BRC-20 tokens are a new and unregulated technology, there is a risk of fraudulent activity. It is essential to research the background and intentions of the token creator to ensure that they are trustworthy and reliable.
Wallet compatibility: BRC-20 tokens use a different technology than traditional Bitcoin transactions, requiring a specialized wallet to interpret the JSON data attached to satoshis. Not all Bitcoin wallets are compatible with BRC-20 tokens, so it is essential to verify that your wallet can support them or find one that does.
Market liquidity and volatility: BRC-20 tokens are a relatively new and niche market, which may cause limited trading volume or liquidity on exchanges. Buying or selling tokens at your desired price or time can make it difficult. Additionally, BRC-20 tokens may experience significant price fluctuations due to market speculation or hype.
By weighing these factors, you can make an informed decision when investing in BRC-20 tokens.
Popular BRC-20 Tokens in the Market
ORDI
Ordi is the first project to use the BRC-20 standard, built on the Ordinals protocol. The Ordinals protocol is a solution that allows users to record information on the Bitcoin blockchain without being constrained by the block size. It uses a method called mint minting, which mints or creates a new token, generates a unique ID and stores the information in its metadata. The coin can then be sent and verified on the Bitcoin network as a regular transaction.
The Ordinals token (ORDI) has a fixed supply of 21 million tokens, the same as the maximum supply of Bitcoin.
Several exchanges, including Gate.io, Bitget, BingX, and OKX, support ORDI. It has a market cap of $154 million, making it the most popular BRC-20 token. As a pioneer in the BRC-20 space, Ordi offers an exciting opportunity for investors and traders interested in this new and experimental token standard.
PEPE
Pepe (PEPE) is a BRC-20 token based on a famous internet meme. It was inspired by Pepe the Frog and it’s a cheerful token that celebrates the culture and community of Bitcoin and cryptocurrency. Pepe has a total supply of 1,000,000,000,000,000, half burned at launch, a quarter given to early adopters for free, and the rest kept for liquidity, development, and marketing.
PEPE has snowballed in price and trading volume, with early investors making much money. Many people want to buy Pepe because they think it will be the next big meme coin after Dogecoin and Shiba Inu.
Several exchanges, including Uniswap, Binance and DigiFinex support Pepe. As a popular BRC-20 token with a strong community and culture behind it, Pepe offers an exciting opportunity for investors and traders interested in this new and experimental token standard.
NALS
NALS is a BRC-20 token that aims to be a meme coin for the crypto community. With a total supply of 21 million tokens, the same as Bitcoin, NALS has a limited supply that could potentially increase its value over time. While the token does not have an official website or social media presence, information about it can be found on popular cryptocurrency tracking sites such as Coingecko and Coinmarketcap.
NALS is currently available for trading on Bitget, a leading cryptocurrency exchange, where it can be exchanged for USDT. As one of the earliest BRC-20 tokens, NALS has gained popularity among investors and has seen significant growth since its launch.
NALS offers a fun and lighthearted investment opportunity for those interested in the BRC-20 token standard. However, as with any investment, it is essential to research and understand the risks before investing.
DRAC
DRAC is a BRC-20 token named after Dracula, the famous vampire. It is one of the pioneers of the BRC-20 standard and has attracted much interest from BTC fans. DRAC has a fixed supply of 106,824,000 DRAC coins, all in circulation. The current price of DRAC is $0.0037.
DRAC uses a technique called Ordinal inscriptions to create and manage token contracts, as well as to send and receive tokens. This allows for easy minting and transfer of DRAC tokens on the Bitcoin blockchain.
As a pioneer in the BRC-20 space, DRAC offers an exciting opportunity for investors and traders interested in this new and experimental token standard.
BANK
BANK is a BRC-20 token based on the Bitcoin base chain that uses the Ordinals protocol to create and trade fungible assets. It is one of the many BRC-20 tokens that emerged after the Bitcoin Taproot upgrade enabled users to add data to satoshis, the smallest unit of Bitcoin.
According to bra-20.io, BANK Token has a market cap of around $3 million and a circulating supply of 100 million tokens. It can be bought and sold on Gate.io, a digital asset exchange. As a popular BRC-20 token with a strong market presence, BANK offers an exciting opportunity for investors and traders interested in this new and experimental token dard.
VMPX
VMPX is a BRC-20 token launched on May 7 by XEN crypto founder Jack Levin. VMPX is a component of Jack Levin’s XEN global currency initiative.
VMPX is a reasonably new token that has attracted the attention of crypto degens. According to Coinmarketcap, It trades at $0.06 and has a market value of $6M as of May 30, 2023. The token has a fixed supply of 108,624,000, and all have been created already—several exchanges, including Gate.io, BingX, Bitmart, and Unisat Exchange, support VMPX. As a new and experimental BRC-20 token, the token offers an exciting opportunity for investors and traders interested in this new token standard.
NOOT
NOOT is a BRC-20 token inspired by penguins, the adorable and chilly animals that inhabit the poles. It aims to mix memes’ fun and humorous side with blockchain technology’s serious and innovative side. NOOT has a total supply of 1 billion tokens, shared fairly among the community.
It is a community-driven project, which means that the value and use of NOOT depend on the adoption and involvement of its users.
As a meme coin based on internet culture and humor, NOOT aims to entertain and amuse its users. As a BRC-20 token, it offers an exciting opportunity for investors and traders interested in this new and experimental token standard.
PIZA
PIZA is a BRC-20 token that operates on the Bitcoin blockchain and was inspired by the historical event of the first Bitcoin purchase, when two pizzas were exchanged for 10,000 Bitcoins on May 22, 2010.
The token uses ordinal inscriptions of JSON data to mint tokens and attach extra data to satoshis.
PIZA has a maximum supply of 21 million tokens, and you can purchase it on UniSat, Bitget, and Gate.io. As one of the many BRC-20 tokens created as an experimental way to make and transfer tokens on the Bitcoin network, PIZA offers an exciting opportunity for investors and traders interested in this new token standard.
MEME
Meme is another BRC-20 token based on memes like the Pepe meme coin. It allows users to have fun, be creative with their memes, and share them with others. Users can also trade and collect MEME tokens on Uniset and CEXs.
MEME has a total supply of 99,999 tokens and a market cap of around $5.7 million, according to brc-20.io. It claims to be the most significant BRC-20 token by the number of holders. As a popular meme coin with a strong community, MEME offers an exciting opportunity for investors and traders interested in this new and experimental token standard.
Purchasing and Storing BRC-20 Tokens
There are two primary ways to buy BRC-20 tokens: through centralized exchanges that list them or through Ordinal exchanges. The process for buying on centralized exchanges is similar to purchasing other cryptocurrencies. To buy BRC-20 tokens on an ordinals exchange, you’ll need an ordinals wallet from platforms like ordinalswallet.com.
It’s important to note that BRC-20 tokens aren’t compatible with MetaMask or other Ethereum-based wallets. BRC-20 tokens use a different technology than Ethereum-based tokens and require a specialized wallet capable of interpreting the JSON data attached to satoshis.
By understanding the requirements for purchasing and storing BRC-20 tokens, you can make informed decisions when investing in this new and experimental token standard.
Conclusion
BRC-20 tokens are a new and exciting development in cryptocurrency, offering many advantages over other token standards. With popular tokens such as ORDI, PEPE, VMPX, MEME, NALS, PIZA, DRAC, BANK, and NOOT, there are many opportunities for investors and traders to get involved in this emerging market. However, as with any investment, it is essential to consider the risks carefully and research before investing in BRC-20 tokens. By understanding the features and benefits of BRC-20 tokens and the factors to consider when buying them, you can make an informed decision and benefit from this new and experimental technology.
