Altcoin Spotlight: Jupiter (JUP)

Most cryptocurrency enthusiasts spend at least some portion of their day watching the top charts for new cryptocurrencies. We here at MintDice.com do the same and recently became aware of a new cryptocurrency to break into the top 50.

That cryptocurrency is Jupiter. But what exactly is this project, and should you consider investing? We will answer both of those questions and more, so read on.

What is Jupiter?

Jupiter is a decentralized cryptocurrency exchange that allows individuals to trade certain crypto pairs. Jupiter was built on the Solana blockchain, and it uses technology similar to the Ethereum platform to act as an Automated Market Maker or AMM in the cryptocurrency world.

Jupiter is known as one of the easier-to-use and speedier DEX exchanges and offers limit ordering—something that isn’t usually found on these types of cryptocurrency exchanges. Limit ordering allows sellers to set their own price for their cryptocurrency rather than being forced to match the market rate. This gives the platform more of a feel of peer-to-peer trading than other DEXs.

Additionally, Jupiter features a unique DCA (dollar cost averaging) feature, which allows individuals to set up automatic orders for specific cryptocurrencies. This is a useful feature for those who are approaching cryptocurrency with an investment mindset.

In March 2024, things really began to take off for Jupiter when it passed the trading volume of the next most popular decentralized exchange, Uniswap, by almost $20 billion.

While Jupiter started out as a simple swaps platform, it has been developing and growing, with creators sharing plans to add a full ecosystem of DEX products in the coming years. Some of the additions include adding support for perpetuals trading as well as a platform specific stablecoin.

How Does Jupiter Work?

Jupiter uses a unique consensus mechanism that is similar to Ethereum’s 1inch protocol. This protocol provides liquidity by spreading it across multiple liquidity pools but providing a single interface for users to minimize volatility and slippage.

Picture the 1inch protocol a bit like a digital broker who can access various markets on your behalf, combining liquidity as needed to support your trade. This is especially useful when making large value trades that likely cannot be supported by a single liquidity pool.

In recent years, Jupiter has expanded to offer a variety of APIs to let developers create their own dApps on the Jupiter platform.

What is JUP?

JUP is short for “Jupiter United Planet,” and it is the native token of the Jupiter platform. It was first awarded to individuals through a large airdrop in 2021 and has since grown to become popular among those who use the platform.

JUP was not designed to be a utility token, but rather a governance token—however, it is often used to pay for the fees to make trades on the platform. The creators of the token have spoken out and mentioned that holders of the token will be able to participate in future voting events to decide the future of the blockchain.

Currently, 50% of the Jupiter supply his held by the creators while the remained 50% was allocated via airdrop to users.

Who Created Jupiter?

Jupiter was created by an individual with the pseudonym Meow. The platform was launched in 2021, though it didn’t gain widespread popularity until it was named Solana’s default swap provider a few years later.

Although the creators of the platform don’t make themselves known, they have quite the cult following. Besides the meaning of the token JUP, users of the platform are known to call themselves “space cadets” in online forums.

Should You Buy Jupiter?

Compared to some of the projects we feature in these altcoin spotlights, Jupiter certainly doesn’t seem as bad. That being said, we recommend that any potential investors proceed with their Jupiter investment with caution.

First and foremost, Jupiter seems like a reasonably safe DEX, and if you want to use the platform, it is likely safe to do so. Like always, however, we recommend that you don’t store cryptocurrency on the platform itself and instead continue to use a cold storage wallet.

With that out of the way, we do have a few concerns about Jupiter, especially coming from an investment standpoint.

To start, we are always cautious regarding platforms that don’t disclose the name of the platform creator. We don’t know if the individual behind Jupiter is someone who simply wants privacy or a potentially malicious actor.

To add to that, red flags always go up when token creators keep 50% (or more) to themselves, which is the case with Jupiter. With the owners holding 50% of any project, it increases the risk of a rug-pull or pump-and-dump scam.

With that out of the way, we do need to mention the good aspects. Jupiter has been around for a while, and it doesn’t have any current complaints about possibly being a scam. But just because it had been around for over 3 years doesn’t make it safe either.

For that reason, we invite you to make your own choice when it comes to investing in Jupiter. If you are new to cryptocurrency investing, it is probably better to skip this one, as it is considered a high-risk investment, but if you are interested in the future of the platform and use it on a regular basis, there are worse things you could do with your money.

Where Can You Buy Jupiter?

If you have decided to move forward with your investment, you are likely wondering where you can buy Jupiter. Jupiter’s utility token, JUP, can be purchased on several major exchanges, the most popular of which we have listed below.

·      Binance

·      Coinbase

·      Kraken

·      Bitpanda

·      KuCoin

Additionally, many decentralized exchanges will offer opportunities to trade for or buy JUP.

Overall, Jupiter isn’t a terrible project, but we aren’t sure that it is 100% on the up and up either. So, if you are considering it for a potential investment, we recommend proceeding with caution—as you should with any cryptocurrency investment.