Songbird was built to test features of the upcoming Flare network.
Polkadot pioneered the concept of a crypto canary network. Canary networks are operational blockchains that are used as a testing ground for the mainnet. Polkadot used the Kusuma blockchain as a canary network. Such a network allows the developers to stretch the boundaries of the blockchain without worrying about the consequences.
Songbird is one of the few such canary network projects currently active in the crypto world. Today let’s talk about the Songbird Network.
Songbird is a blockchain with a limited token supply. It was built to test features on a related mainnet for the layer-1 protocol, Flare. Songbird uses a consensus protocol that does not rely on mining or staking. The main priority of the Songbird network is to test the architecture of Flare, the functionality of F-Asset and FTSO and ensure the stability of the network before the actual launch.
Flare is the technology behind Songbird. It is a low cost, highly decentralized smart contract platform with high scalability and low carbon footprint. Flare offers two main products: Flare Time Series Oracles (FTSO) and F-Asset. FTSO uses a decentralized method to provide external information to the network. F-Asset is a new token standard that represents assets from another blockchain.
In the long run, Songbird will continue to test new features and add updates to the Flare Network. In addition to the core utility of testing the Flare network, Songbird also gets its share of secondary utilities. The collaboration between Flare and Allianceblock takes place on the Songbird Network. Flare also launched a DEX FLareX on the Songbird Network.
SGB Token: Basics
SGB or the Songbird token is the native token of the Songbird platform. The SGB token has the same distribution ratio as the Flare token (FLR). In addition to being a native token, SGB can also be used to participate in the governance of the Flare network and vote on key decisions, including the addition of new blockchain compatibility or F-Assets.
SGB has a starting supply of 15 billion and an annual inflation rate of 10%. It has a circulating supply of 9.98 billion tokens.
Short term technical analysis
SGB token is trading today at $0.062 and is outside the top 1000 cryptocurrencies by market cap. Due to its relatively low trading volumes, the coin is prone to frequent price increases. However, it has managed to respect technical levels and has fluctuated between a trendline support and trendline resistance.
Source: TradingView, Coinex
Today, it appears to be positioned to break resistance at $0.064. If this level is maintained, short term targets of $0.068 and $0.072 are possible. However, if the market remains bearish, it may revisit $0.61 and below.
Songbird was recently listed and got off to a good start in September 2021. But as the Flare Network gears up for launch, the prices of the SGB token have fallen sharply.
Despite the slump, Songbird is a crucial step for the entire crypto industry helping tokens on networks without smart contracts. It enables the tokens to be used trustlessly and in a non-custodial manner with scalable smart contracts. While the token continues to show bearish signs, we can expect the SGB token to gain momentum as more utilities are added to its network beyond its “canary in the mine” job.
Until it becomes part of the top 500-1000 crypto lists, SGB will remain a high risk investment.
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Disclaimer: This article was written by Giottus Crypto Exchange as part of a paid partnership with The News Minute. Investments in crypto assets or cryptocurrency are subject to market risks such as volatility and have no guaranteed return. Do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.