Investors assume that Factom will land many partnerships in the future with companies that use the platform for their data structures. One example is Equator Homes. According to a press release, the US software company wants to use the Factom Harmony platform for its loans. Following the announcement on 13 November, FCT then launched its small Bull Run. Within the next 14 days, the token temporarily increased by 300 percent, but then fell off again. Currently, an FCT costs 8.49 US dollars.
This accolade is of course water on the mills of speculation about cryptosoft
According to reports, the US Department for Homeland Security is also interested in cryptosoft and in July this year made 192,000 US dollars available for research and development on the Factom platform.
However, it can be said with some certainty that the rise in the share price is not driven by greater use. We remember: Factoids are burned on the blockchain when they are converted into data records. Therefore, the number of burned FCTs is a good indicator of the actual use of the service. However, as you can see from the graph below, the number of FCTs burned is currently low.
The blockchain-based document revision is one of the large use cases of the technology. As Factom Incorporated has been in existence since 2014, the company has a competitive advantage over all the ICO projects of 2017. However, FCT’s green candlesticks are currently speculation-driven. Until a real user base is formed underneath, it will probably take some time for this to happen.
Ultimately, the Factoids’ price is strongly correlated with the use of the network. The more companies that rely on Factom for blockchain-based data processing, the higher the demand for Factoids. Furthermore, the Factom “burns” all FCTs that are used for the acquisition of entry credits. This means that the supply becomes scarcer with heavy use of the blockchain, which of course manifests itself in a higher price.
This then leads us to the next point.