An up-and-coming altcoin called Ignis is making a big splash today. With more than 330 percent of growth in the past 24 hours, this coin has jumped into the tenth-place spot for most valuable cryptocurrency.
In the last week, Ignis has grown by 454 percent in value. In the past month, it’s soared by about 2,500 percent.
But what caused the massive 24-hour gains? In order to understand yesterday’s event, it’s important to first understand how this cryptocurrency came to be.
What type of cryptocurrency is Ignis?
Ignis wasn’t built from scratch. In fact, it is considered a “child chain” of another crypto-coin: NXT (NXT). Similar to the Ethereum (ETH) blockchain, the NXT blockchain can support new cryptocurrencies using the original blockchain as a foundation.
The NXT blockchain is pretty standard. It is a decentralized ledger that supports the NXT currency. What made NXT special was the launch of Ardor (ARDR). Also known as “NXT 2.0,” Ardor is a platform that allows businesses to build child chains. It was built using NXT’s technology.
Ardor is a Blockchain-as-a-service platform – and it’s very fast in creating new chains. The child chains are already set to be installed and implemented quickly. Businesses can essentially develop their own native tokens without needing the technical know-how.
Ignis is the first child chain. Yesterday, when the chain was launched, every person who owned units of NXT (NXT) will receive a share of newly-created IGNIS tokens via an airdrop. As its parent chain, Ardor holders are entitled to these rewards.
Moreover, the original IGNIS initial coin offering raked in $15 million. The remaining available coins were airdropped to NXT owners yesterday, December 28. Each NXT token entitled users to receive 0.5 IGNIS tokens. The new coins won’t be issued until January 1st. They can then be stored in the official ARDOR wallet.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.