Christy Lynn
Quick answer: Internet Computer (ICP) is a high-risk, high-potential investment. Its technology is ambitious (a blockchain that hosts full web apps and AI models on-chain), but the token has a painful history: it launched in May 2021 near $700 and fell more than 95% within about a year. Whether ICP is a good investment today depends on whether developers and users adopt the network. Keep any position small and diversified.
What is Internet Computer (ICP)?
The Internet Computer is a blockchain developed by the DFINITY Foundation, led by Dominic Williams. Instead of only running simple smart contracts, it aims to host entire applications (websites, back-end code, data and even AI models) directly on-chain, using “canister” smart contracts. ICP is used to pay for computation (converted to “cycles”), to stake in the Network Nervous System (NNS) for governance, and to reward node providers.
Reasons investors like ICP
- Ambitious technology: full-stack apps and on-chain AI that donโt rely on cloud providers like AWS
- Chain-key cryptography: lets ICP interact directly with Bitcoin and Ethereum (ckBTC, ckETH)
- On-chain governance: ICP holders who stake in the NNS vote and earn rewards
Risks to consider
- Price history: ICPโs 2021 launch crash damaged trust, and the token trades far below its launch price
- Inflation: new ICP is minted for staking and node rewards
- Adoption: developer activity is real but small compared with Ethereum or Solana
- Competition from other smart contract platforms
How to evaluate ICP
Look at developer activity, the number of active apps and users, the amount of ICP staked in the NNS, and how much ICP is burned for computation. Our guide on how to research cryptocurrency walks through this process.
How to buy ICP
ICP is available on major exchanges including Coinbase (open an account), Kraken (visit Kraken) and Binance outside the US (visit Binance). You can store it in the NNS app or a Ledger hardware wallet.
The bottom line
ICP is a bet on a bold vision for decentralized computing. It may suit investors with a long time horizon and high risk tolerance, as a small slice of a diversified portfolio. See how to use position sizing.
Frequently asked questions
Why did ICP crash after launch?
ICP launched in May 2021 with a very high valuation, and early holders and insiders sold heavily as tokens unlocked, along with the broader 2022 bear market.
Can I stake ICP?
Yes. You can lock ICP in “neurons” in the NNS to vote on governance proposals and earn rewards.
Is ICP on Coinbase?
Yes, ICP is available on Coinbase in the US.
