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Is PHA Token a Good Investment?

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Phala Network Good Investment COVER

Although the massive crypto bull run which started in December 2020 seems to be losing some momentum as of late, and the Bitcoin price has been underperforming in recent weeks, many less known digital cryptocurrencies are still doing very well. Of all the altcoins that are currently gaining popularity, Phala Network is definitely one of the most noteworthy ones. But what is Phala Network exactly, and is PHA really a good investment?

What Is the Phala Network?

Phala Network is a privacy-oriented, blockchain-based cloud computing platform. Phala Network includes the same quality of service as traditional cloud solutions, however, it massively enhances the privacy of distributed data storage by utilizing blockchain technology.

In order to achieve increased data confidentiality without having to sacrifice the efficiency of accessing the data, Phala Network separates the cryptographic consensus mechanism from the layer of cloud computation. In other words, the users of the Phala Network can enjoy the same level of service as with leading cloud solutions on the market, but which massively increased privacy compared to centralized alternatives which do not utilize blockchain technology.

On a technological level, Phala Network is built on Substrate and operates as a parachain of the Polkadot blockchain ecosystem. Because of that, it can be very easily integrated with other blockchains, DeFi protocols, or smart contract platforms.

Phala Network was created by five co-founders: Hang Yin, Marvin Tong, Zhe Wang, Jun Jiang, and Shunfan Zhou. Together, they have decades of combined experience in blockchain development and cybersecurity and have worked for renowned companies like Tencent and Google in the past.

What Is the PHA Token?

PHA is the native utility token powering the Phala Network ecosystem. The PHA token is a multi-functional digital asset fulfilling various purposes, such as:

Accessing Computing Resources – the main purpose of the PHA token is to serve as the native currency of the Phala Network ecosystem. PHA tokens can be exchanged to purchase decentralized computing resources, not only limited to traditional data storage, but also including both on-chain and off-chain computing and data processing.

Exchanging Data With Smart Contracts – the users of the Phala Network cloud computing services retain full control over their data, and can decide whom to share it with, which also includes the option to monetize it by sharing the data for a fee. Thanks to the PHA token, the process of sharing data with others is made much easier and more secure.

Enhancing Security of Cloud Computing – participating in certain actions on the Phala Network requires staking a specific amount of PHA tokens in the user’s wallet. Malicious behavior can result in lowering the number of staked assets, which in turn provides a massive incentive for keeping the entire ecosystem secure.

Enabling Community-Driven Governance: the utilization of PHA tokens allows the Phala Network to remain a highly decentralized project. Everyone who owns a certain amount of PHA is empowered to join the Phala DAO (Decentralized Autonomous Organization), and be eligible to vote on all important decisions regarding the future development of the Phala Network.

The Phala Network Tokenomics and Price History

Since March 2020, the development of the Phala Network was mainly focusing on testing the groundbreaking blockchain-based cloud computing technology on multiple successive test nets. In September 2020, the PHA token was released to the general public.

PHA is an ERC-20 (Ethereum-based) token, with a total supply of 1,000,000,000 PHA. However, only 177,634,380 PHA tokens are currently in circulation, which is a relatively small part of the total supply. The remaining PHA tokens are being gradually released to the community through token sales, airdrops, and mining.

For the most part of 2020, the PHA price remained under $0.01. In January 2021, the Phala Network started rapidly appreciating in value, eventually reaching its current all-time high of $1.41 on May 15th, 2021.

Even though the Phala Network is a relatively new project, it was already able to provide a return of investment of over 662%, which is why so many analysts and experts agree that the PHA token is a good investment.

Part of the reason for the quick price growth of the Phala Network was the fact that the Phala DAO managed to acquire a large number of important strategic partnerships with projects such as Polkadot, Kusama, Plasm, Bifrost, Crust, Acala, and Mask.

PHA Token Price Predictions

YearPredicted ForecastHigh Forecast
2021$4$5.5
2022$6$7.8
2023$8.1$10
2024$11$13.1
2025$15$17.9

The general outlook regarding the Phala Network price among the members of the crypto community is decidedly bullish. However, the precise PHA price forecasts vary a lot, and there seems to not be any consensus when it comes to the exact Phala Network price target for 2021.

Some of the lowest PHA price predictions claim that the Phala Network token will not be able to reach more than $4 by the end of the year. Forecasts like that were published for example by the Twitter crypto analysts MATRIX and KryptoKes:

Another similar, although slightly higher PHA price prediction for 2021 was posted by the user Btc Lee, who is convinced that the PHA price will be able to surpass $5 by the end of the year. However, BTC Lee also notes that it’s a very conservative prediction and that the Phala Network token can trade for much more than that.

Crypto investor Mark Landers has posted a more bullish PHA price forecast. Landers is convinced that the Phala Network will trade for at least $7 by the end of the year.

However, some people believe that the Phala Network might be worth much more in the future. For example, the altcoin expert going by the name Crypto Husky is claiming that the PHA token can even trade for $15 by the end of the year.

PHA Price Forecasts According to the Experts

The Phala Network price predictions shared by YouTube analysts are similar to the PHA price forecasts made by the crypto community on Twitter. The popular channel LockInThe Value believes that the PHA token will appreciate by 6x by the end of the year, which would make the Phala Network price reach $5-6.

However, some YouTube experts are not as convinced and hesitate to give long-term PHA price predictions. For example. KILLSHOT CRYPTO is sure that the PHA price will reach $1.5 in the near future, but claims that given the current situation on the market it’s impossible to precisely predict how much the PHA token will be worth at the end of the year.

Where to Buy PHA Tokens?

Since the Phala Network is an ERC-20 token, it’s available on a large number of exchanges, including centralized exchanges like Binance, Huobi Global, Kucoin and Okex, as well as all Ethereum-based decentralized exchanges like Uniswap or SushiSwap.

Will the Phala Network Reach $5?

Most experts are convinced that the PHA token will reach $5 by the end of the year. However, some members of the crypto community give a slightly lower PHA price target of $4.

Is the PHA Token a Good Investment?

All things considered, the Phala Network definitely looks like a good investment to be made in 2021. The PHA token has a strong technologic potential and fulfills many important use cases, all while still being largely undervalued and having a lot of room for growth.

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