Is Augur a Good Investment?

Augur is a probabilistic betting platform and prediction market protocol that allow users to buy or sell positions based on the outcome of events. It is a limitless global betting platform that allows anyone anywhere to buy and sell stakes in event outcomes. It is the world’s first decentralized prediction platform that allows users predict by creating a market that answers three classes of questions. These questions can be yes/no, multiple-choice, and scalar.

Market creators can be anyone with a Web 3.0 enabled wallet such as MetaMask and set the parameters for others to make predictions. From elections, to ecomies, the events you can place a bet on are almost unlimited on Augur. Market creators create an event with a possible outcome, while traders place bets on that outcome staking on either a yes or a no using DAI stablecoin. Users can also buy shares that can yield huge gains if the outcome is positive. The reporter reports the result of the outcome in 24 hours while the disputer disputes the outcome to make money if the outcome is wrong. Making the platform decentralized creates a source of undisputed truths on certain events. Prediction rewards or outcomes are paid in REP tokens.

Advantages of Augur

Industry Size

The global betting industry is about $66.8 billion. Augur will not lack participants as it offers a better way to do what is already being done and more efficiently. If only a percentage of the industry's total value comes into Augur, the price of the REP token will skyrocket.

Low Fees

Augur claims to be a non-profit predictive market platform. The fees charged by the platform are quite negligible. When you compare the cost of transactions on Augur to a traditional betting platform, Augur is always the better option.

Decentralization

Having a prediction markets platform on the blockchain gives no one control over it. Augur itself does not control transactions or outcomes on the platform, which is an added advantage that will get a lot of attention. Market participants can also be sure that the prediction results are manipulation free.

Disadvantages of Augur

Restrictions

Major countries like the US and the UK have been listed as unqualified to access the platform due to regulatory issues. If such a vast market share cannot participate on the platform, the potential will be crippled significantly.

User Protection

Most legislations ensure that betting platform users are protected if some persons have an addiction or spree issues. However, on Augur, it will be hard to implement such restrictions because of its decentralized nature.

Augur Expectations From Now Until 2025

The latest all-time high of Augur was $52 in 2021. In 2018, the price of Augur increased by 2,200%, from $4 to $88. 2019 was a sad year as the token plummeted from $79 in January to just $8 in December of 2018. 2019 ended in a break-even at about $9, while the price doubled between January and December 2020 from around $8 to $16. 2021 saw a slight surge from about $16 to $19, while there has been no significant movement since January of 2022. Going by the current trends, there may not be so much surge in the price since the average price from the launch could increase and could see the REP token peaking at about $44. There needs to be a lot of work for this to happen.

Should You Invest in Augur?

The launch of the Augur Turbo in 2021 did not seem to gather much traction for Augur. Yet the platform remains useful for its original ideas. The platform recently published a plan to create the AugurDAO. It will be a community-led autonomous organization that will reignite the fire and keeps Aurgu’s dream of being the number 1 prediction market protocol alive. Augur may start to draw attention and eventually be a great investment in the short term and potentially long-term, judging from its current price and the chart pattern formation. The current surge of DAOs and the big takeover from decentralized organizations may help end the stalemate.