Blog Crypto Kusama (KSM) coin review: Polkadot’s upstart cousin

Kusama (KSM) coin review: Polkadot’s upstart cousin

date June 22, 2021 time 4 min read 642 views

Founded in 2019, the Kusama network is widely seen as a cousin of Polkadot. One of its core aims is to serve as a platform for developers to “test” their applications before going on to the main Polkadot network. The network’s coin, kusama (KSM) coin has attracted a lot of attention in the past year.

With interest in decentralized finance (DeFi) platforms surging since the second half of 2020, the kusama coin enjoyed a rapid ascendency until the flash crash in May 2021. As of mid-June 2021, KSM was hovering around the $250 mark, representing a drop of over 100% from its all-time high of $597 on 18 May 2021. 

Despite the drop, $250 still represents a significant rise in just 12 months, where the price was just $5.50 in June 2020. Year on year, it was an increase of over 4,000%. 

Clearly, the kusama coin has been on a ride. What is driving the prices? What’s in store for the future? Is kusama coin a good investment? We will help you answer these questions.

We will review the kusama coin in greater detail, but first, let’s take a look at the network itself.

Kusama is largely seen as a canary for Polkadot
Kusama network is largely seen as a canary for Polkadot (Source: Polkadot.network)

What is the Kusama network?

Kusama is a decentralized network with relaxed governance, enabling developers to design and recalibrate their projects before deploying them on the main Polkadot blockchain. The two networks share the same features such as:

  • Ecosystem of blockchains: As a decentralized network, it is interoperable with other blockchains (inside and outside of cryptocurrency) and allows for the exchange of information
  • Community-based decisions: Projects are either approved or declined by members of the community – stakeholders and nodes – who have a vote. 
  • Use of parachains: As we’ve written before on a previous review of Polkadot, parachains are private, permission-locked blockchains. These are used as a testing ground for projects before they move on to public blockchains. 

The two platforms also synergize with Ethereum, with some of Kusama and Polkadot’s leadership teams having strong ties with the world’s most actively used blockchain. 

In other words, Kusama is an unaudited version of Polkadot, using the same code base and structure, but Kusama processes transactions far quicker. 

The quicker processes make it appealing for developers to use the platform as a testing ground for the main Polkadot network. However, some developers choose to use Kasuma even after the testing phase and allow their applications to gain traction before moving to Polkadot.

Given the similarities between the two platforms, it’s not surprising to find Kusama founders – Gavin Wood, Robert Habermeier, and Peter Czaban – are also co-founders of Polkadot. Their stated mission is to provide a “risk-taking” platform that enables “change agents to take back control, spark innovation, and disrupt the status quo.”

However, the open nature of the platform doesn’t mean it takes governance lightly. The Kusama network relies on three branches of governance – which includes a referendum chamber (which includes all KSM holders), an elected council and technical committee.

The idea is to have a decentralized network balancing the need for democratic decision-making processes with minimal delays. 

Can kusama coin scale the heights reached by ethereum?
Can kusama coin scale the heights reached by ethereum? (Source: Bitcoin and Brew)

Kusama coin explained

The key behind the kusama (KSM) coin is that its value is tied to its applications and what it permits holders to do. As a result, KSM stakeholders can play an active part in developing the Kusama network, approving projects, and running the governance.

Now, you might be wondering whether you’ve missed the boat. With the emergence of DeFi, together with its pivotal role in the Polkadot platform, there’s little doubt the kusama coin will continue to attract the interest of investors.

Is kusama coin a good investment? 

Another factor to look out for is the relatively low number of KSM coins in circulation – just over 8.4 million in June 2021 – compared to its market cap of over $2 billion. For example, among its comparative peers – only maker (MKR) coin has a lower circulation and a price of over $2,000 at the time of writing.

The low number of coins in circulation indicates a high demand and low supply situation, which can help push the price up. However, it is difficult to predict the future of the kusama coin price – or indeed, any of cryptocurrency. Prices fluctuate by nature, and, as with any investment, it comes with risks. 

That said, the team behind the Kusama network are veterans of the game, and there are positive signs in the way its blockchain is being used. For example, on GitHub, Kusama was joint second with Polkadot in terms of development activity in April 2021.

Kusama and its cousin, Polkadot, are streets ahead of other better-known blockchains in terms of development activity
Kusama and its cousin, Polkadot, are streets ahead of other better-known blockchains in terms of development activity (Source: Reddit)

The success of the Kusama blockchain model places the KSM cryptocurrency in a good position for future growth. Whether you should buy kusama coin is down to your own research and whether you feel it is a good addition to your portfolio. 

One thing is for certain, kasuma coin is one to watch, with the network recently carrying out parachain auctions. 

Where can I buy kusama coin?

If you like what you’ve read so far, you may well be wondering where to buy kusama coin. Fortunately, thanks to platforms like MyConstant, there’s more choice than ever regarding how you can do this and what you can use your crypto for once you buy it.

Why not collateralize your kusama coin to receive instant loans with low-interest rates so you can make further investments? 

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Alternatively, you can simply store your crypto in our secure multi-currency wallet.

Sound interesting? Sign up for a free account today and start investing in kusama coin.

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George Schooling

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