Is ADX Crypto A Good Investment?
The ADX cryptocurrency is the native token of AdEx, a next-generation Web3 advertising platform that has gained strong traction with companies and marketers.
The platform leverages blockchain and AI-powered programmatic ad placements to ensure a transparent and fraud-free ad-buying experience, enabling Web3 advertisers to reach out beyond native crypto audiences, and the ADX crypto plays a central role in the its economics.
ADX tokens have wide utility within the AdEx ecosystem, being used as the primary method of payment for ad-buyers, rewarding network validators, staking and network governance. For advertisers, it’s essential for them to stock up on ADX to pay for their ads, while validators will earn rewards for maintaining the integrity of its underlying blockchain network. Meanwhile, stakers can earn generous rewards by delegating tokens to a specific validator. And everyone who holds ADX can suggest proposals and vote on matters of governance.
How Does AdEx Work?
The AdEx platform was originally launched in 2017 as a supply- and demand-side platform, catering to both advertisers and publishers. With its rebrand in 2024, AdEx has shifted its focus and is now strictly a demand-side platform aimed at advertisers only, geared towards helping them reach highly-targeted Web2 audiences. Traffic is sourced via third-party supply-side platforms and a diverse network of publishers.
As the first advertising platform to integrate OpenRTB into Web3, AdEx’s programmatic ads employ advanced targeting methods with more precise audience segmentation based on various metrics, including interests, demographics, behavior and more.
The key features of its platform include integrated AI algorithms that advertisers can use to optimize campaign performance and mitigate ad fraud risks, while improving their overall targeting. By delivering better results, AdEx allows advertisers to stretch their campaign budgets much further.
Another key innovation is AdEx’s Zero-Knowledge targeting engine, which was developed to enhance user privacy and replace the reliance on third-party cookies. Its proprietary ZK technology enables users to retain full control of their personal data, which lives on their device instead of on a centralized server. Users can set their own preferences regarding the kinds of ads they want to see, block specific types of ads they’re not interested in, and earn ADX rewards for participating.
Advertisers benefit from flexible payment options, as AdEx supports USDC, USDT and DAI cryptocurrencies, in addition to ADX. However, those customers who use ADX benefit from discounted campaigns fees of just 4% of their ad spend, as opposed to the normal rate of 7%.
Why Is AdEx Unique?
The most innovative concept of AdEx’s platform is that it gives internet users unprecedented control over their advertising experiences, enabling them to avoid seeing ads they’re not interested in altogether. It also gives back to users who agree to share personal data with advertisers they’re comfortable with. In doing so, they become eligible for regular rewards, paid out in ADX tokens, based on the number of ad impressions they see, and how many ads they click on.
Users can customize their profile accordingly, so if they’re not interested in seeing ads for cars or cat food, for instance, they can specify that they don’t want to see them. They can also indicate the kinds of ads they are willing to see.
Another advantage of AdEx is it enables advertisers to connect directly with publishers, eliminating the need for a middleman like Google or Amazon. As a result, advertisers get more ad impressions for their buck, while publishers collect more of the revenue generated from ads on their platform.
What Gives ADX Its Value?
ADX derives its value from its status as the payment method of choice for most advertisers, as well as its utility in rewards, staking and governance. Because advertisers obtain significant discounts for paying in ADX, this fuels strong demand for the cryptocurrency. In addition, ADX also pays out regular rewards to stakers and validators, incentivizing long-term holding.
How Is The AdEx Network Secured?
AdEx is a proof-of-stake network with fully transparent operations, secured by validators who are required to stake a minimum amount of ADX tokens to participate. The validators are chosen by ADX holders who stake tokens in the system’s staking pools, effectively delegating that stake to their validator of choice.
New validators are selected for each advertising campaign launched on the AdEx platform, and are required to validate payments from advertisers. The security of AdEx’s network is therefore dependent on staking. The more stakers there are, and the greater the amount of ADX is staked, the more secure its network becomes.
ADX holders can delegate tokens to a validator through the AdEx staking portal or the Ambire Wallet to earn regular rewards through transaction fees. The network is currently offering a generous APY of around 15%.
Will The Price Of ADX Increase?
As of Sept. 19, 2024, the price of ADX was $0.14, with a total of 144,046,027 tokens in circulation out of its maximum supply of 150,000,000. That suggests its market capitalization of just $20,874,952 is perhaps a little low, especially considering that it’s showing a decent trading volume, averaging $4,023,514 per day.
ADX therefore stands out as an intriguing investment. It’s an essential cog within an established Web3 platform aiming to disrupt an online advertising industry that’s estimated to grow to more than $2 trillion in value by the end of the decade.
With the vast majority of its capped supply already in circulation, that should act as a strong anti-inflationary mechanism. Moreover, the price of ADX remains far below its all-time high of $3.71 in Jan. 2018, suggesting there’s lots of scope for it to grow.
What Are ADX’s Long-Term Prospects?
Ultimately, the value of ADX will be dictated by the success of the AdEx platform itself. If AdEx achieves its goal of becoming the top advertising platform for Web3 advertisers, the value of ADX is likely to reflect that success.
Of course, the price of ADX will always be susceptible to the regular ups and downs of the broader crypto market, which is known for its volatility characterized by frequent asset price fluctuations.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
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Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
