Pantos (PAN) the forgotten project by Bitpanda – what’s behind it?

Pantos (PAN) has been known in the German-speaking community for years but is still in the shadow of the major cryptocurrencies. Bitpanda’s first cryptocurrency and ICO attracted attention not only with promising goals at the beginning, but also with the strong price performance immediately after the ICO.

In the meantime, the initial hype has subsided and disillusionment is spreading in the community. The criticism of Pantos and Bitpanda continues and many have already turned away from the project. Today we look at the reasons for the criticism and want to give an outlook on the relevance of the project from Austria.

Pantos (PAN) wants to connect blockchains

Pantos (PAN) is the first ICO of the Austrian broker Bitpanda. In cooperation with the Technical University of Vienna, Bitcoin Billionaire reviews is trying to solve the interoperability between the various blockchains with PAN. The goal is to create a multi-blockchain token system to communicate decentrally between different blockchains. As the name suggests, a token should run on several blockchains at the same time. According to Bitpanda, this would not only make decentralized trading easier, it would also create additional arbitrage opportunities and eliminate dependence on a single blockchain.

There are now many different blockchain infrastructures with integrated smart contracts. This enables many projects to create and program their own tokens in order to implement their ideas and to collect money for the actual development of the project. Although there are different solutions, most of the projects focus on the Ethereum blockchain. This is mainly due to the network effect of Ethereum and the resulting documentation. In addition, there are already many applications and wallets for Ethereum that remove the barriers to entry from developers.

Ethereum is no longer unrivaled

Due to the increasing scaling problems at ETH, other infrastructures are becoming more and more relevant. At the moment, the main focus is on Polkadot, Cosmos and Cardano. But the most important blockchain of all should not be forgotten at this point – Bitcoin. Therefore, interoperability between these blockchains is becoming increasingly important and many projects have been working intensively on possible solutions for years.

But back to Pantos (PAN). Pantos takes a new approach to interoperability. Here, existing tokens should not simply be integrated from one to another blockchain, as is the case with Wrapped BTC (WBTC) and renBTC, but rather run directly on several blockchains at the same time. Pantos wants to create this through a second layer to ensure communication between the various blockchains. The off-chain relay is intended to prevent double spending, ensure the secure transmission from blockchain A to blockchain B and vice versa, and make smart contracts interoperable.

Criticism of Pantos (PAN)

The open source development of Pantos is exciting and gives the entire cryptospace additional added value. But at this point there is also criticism that not only scared me at the beginning, but now also long-established investors and enthusiasts.

Arbitrage trading

Pantos advertised arbitrage trading right from the start. In the whitepaper opportunities were promised to earn money in arbitrage trading with Pantos. The explanation in the whitepaper was inadequate and left a lot of room for speculation. Many investors have believed that Pantos, in collaboration with Bitpanda, will provide arbitrage bots to make money at the push of a button. It took more than a year for those responsible to shed some light on this.

We now know that Bitpanda and Pantos will not provide trading bots. They just wanted to draw attention to the fact that multi-blockchain tokens can create new arbitrage opportunities.

Basically, price differences for the same asset in different markets are a problem that has been resolved for centuries by various arbitrage mechanisms. Bitpanda thus creates a problem by splitting a token over several blockchains, which has to be solved by arbitrage. In addition, the already low liquidity and trading volume are further divided, which sometimes makes liquid trading no longer possible. Listing this as an achievement in the whitepaper is more than marginal.

Use case of a multi-blockchain token

The Pantos use case is also up for debate. The official explanation is that with the multi-blockchain token system, a token is no longer dependent on a single blockchain. Thus, one could continue to use the token on another blockchain if the other blockchain is no longer functional. How realistic this scenario ultimately is can be answered by everyone at this point.

In addition, there have been some projects in the past that have switched from one blockchain to another. This is not as problematic as some imagine and does not require an additional solution like Pantos. In addition, such changes take place very rarely and usually have other reasons.

In addition, one should ask oneself what added value the user ultimately has from one token on several blockchains. Most in the cryptospace do not use their tokens at all, but keep them on centralized exchanges in order to sell when prices rise. It’s not about much more than that. Therefore, there is currently no apparent advantage of a token on multiple blockchain. Exceptions are Bitcoin and stablecoins such as Tether, which already have working solutions.