Internet Computer (ICP) token has been holding steady in its price range, despite facing criticism from a prominent crypto researcher. The token is currently trading at $11.18, showing a 93% increase from its 2024 low. However, it has not seen the same level of growth as other major cryptocurrencies like Bitcoin (BTC) and Ripple (XRP), which are nearing their all-time highs.
The criticism towards ICP came from Justin Bons, a well-known figure in the crypto space. He raised concerns about the centralized and insecure nature of the Internet Computer network. Bons pointed out that ICP relies on a limited number of independent subnets, each responsible for its own security. In contrast, other networks like Avalanche (AVAX) and Polkadot (DOT) utilize shared security among their subnets, making them more secure.
One of the key issues highlighted by Bons is that ICP openly lists the data center locations of its nodes, making them vulnerable to potential attacks. He also questioned ICP’s claim of infinite scalability, pointing out that the network’s scalability is limited as all subnets must communicate with each other.
Another area of criticism focused on ICP’s approach to solving the oracle problem using HTTP outcalls, which allow smart contracts to retrieve data from Web2 APIs. Bons argued that this method is flawed as it relies on centralized tools, undermining the decentralized nature of blockchain technology.
These criticisms have likely contributed to Internet Computer’s underperformance compared to other blockchain projects in the industry. The network hosts only a few DeFi applications with a total value locked of $41 million. Its stablecoins market cap is relatively low, with Tether accounting for the majority of it.
From a technical analysis perspective, the daily chart for ICP shows a slight uptrend in recent days, following a double-bottom chart pattern at $9.33. The token has moved above the 200-day moving average and the 50% Fibonacci retracement level, indicating a bullish trend. A breakout above the double-bottom’s neckline at $12.72 could trigger a rally towards the next resistance level at $15.60, its November high.
Overall, while Internet Computer has faced criticism for its centralized and insecure nature, its price action suggests potential for a bullish breakout in the near future. Investors will be closely monitoring developments in the network to gauge its long-term viability in the competitive crypto market.