Augur purple logo 601x500 - Augur's Users Have Disappeared

Augur’s Users Have Disappeared

Back in July 10th, Augur was launched allowing users to create and bet on prediction markets. Starting then, the project was able to enter the ranking of the top Ethereum dApps (decentralized applications) by daily active users. Shortly after, the number of users using the platform abruptly decreased, but why?

Where Are All the Augur Users?

Augur (REP) has been created by the Forecast Foundation that started as an initial coin offering (ICO) back in 2015. Using the Augur platform, it is possible to make bet on real-world event such as elections, sport events, and cryptocurrency prices, among many others.

Right after its launch, Augur became one of the most popular applications running on the Ethereum platform. As predictions.global shows, at the moment of writing Augur has $1,324 million dollars at stake in 951 different markets.

But indeed, as soon as the platform launched, users rushed to start trading and exploring it. And yes, Augur passed CryptoKitties as the fifth most active dApp on the Ethereum (ETH) network. CryptoKitties being one of the more infamous Ethereum applications ever created back in December 2017.

But some weeks later, Augur users left the platform. This situation led to a loss of its position in the ranking reaching the 22nd position, under the 0x Protocol.

Edan Yago, founder and CEO of the software company Epiphyte, wrote a tweet that says:

“I like Augur and what it represents. BUT… The protocol is valued at $308m and has 64 daily users. That’s $4.8m per user.”

Of course, the platform may not have its value from the number of users it has. Indeed, some investors may be betting on the future growth or potential of the platform. And about that, Joey Krug, co-founder of the project, confirmed that they are not concerned about the number of users ‘as long as markets are getting resolved correctly.’

The end of the 2018 World Cup could have affected the number of users betting on the platform. This event is one of the most important around the world, similar to the Olympic Games.

Another problem that Ryan Berckmans, co-founder of Predictions.Global, explains is that Augur markets have no liquidity. Indeed, Prediction.Global shows that there are only 100 liquid markets, over 10% of the total number of markets in the platform.

Augur has been live for less than a month, and this is something that we need to take into account. This is a platform that needs time to be built, gain liquidity and be used. Time will bring the users, the value, and ultimately make it one of the most used platforms based on Ethereum.

Conclusion

Have you used Augur? What do you think? Do you think users will come back if more liquidity is added in? Let us know your thoughts in the comments!

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