Let’s fly: Songbird rose more than 20% overnight — is it worth investing in the long term?

Songbird (SGB) token, which is the canary network [a pretesting environment used to safely test features and functions to be implemented] for Flare blockchain, rose more than 20% to $0.009239 in the last 24 hours. One of the reasons for this growth may be related to rumors about the launch of a second bridge between the XCD blockchain protocol and SGB. Read more about that and whether Songbird is a good long-term investment.

The canary network: what is Songbird?

Songbird is a canary network for Flare, which is an EVM-based [Ethereum Virtual Machine] Layer-1 blockchain designed to allow developers to build apps that can use data from other blockchains and the Internet. By allowing decentralized access to a wide range of high-integrity information from other blockchains and the internet, Flare enables new use cases and monetization models.

In turn, the canary network, which is Songbird, is a pre-testing environment that is used for secure feature testing. At the same time, such a network is independent, has its own chain, and is equipped with most or all of the features of the main blockchain, which in this case is Flare.

Regarding functional features, the network provides:

• Better connection. Songbird can link blockchains with smart contracts that were previously mismatched. 
• Full cross-chain compatibility.
• Seamless decentralized integration with Web2 data.

SGB, meanwhile, is a native token of the Songbird network, and is used for:

• Transaction fees;
• Voting on network management decisions;
• Interaction with Songbird applications.

Songbird is co-founded by three former students of University College London:

• Hugo Philion — CEO. Has a degree in Financial Risk Management from Cass Business School and was studying Machine Learning with Sean Rowan.
• Sean Rowan — CTO;
• Nairi Usher — Chief Scientist. Earned a PhD in Quantum Computing from University College London.

The Songbird testnet was launched in September 2021.

Why is SGB rising? 

A possible reason for Songbird’s native token growth could be due to rumors of an upcoming XDC blockchain bridge. XDC is an EVM-compatible chain with enforceable smart contracts that is uniquely suited to revolutionize, decentralize, and liquefy the trade finance industry through the tokenization of real-world assets and financial instruments. 

A crypto bridge, or blockchain bridge, is a special application that connects and enables the transfer of tokens between two different blockchains. That is, XDC holders will eventually be able to transfer tokens into the SGB network, and vice versa, seamlessly.

A message posted by Twitter user @XXXFLR stated that the second bridge, which will be deployed after a sufficient testing period, will be between the XDC mainnet and Songbird, Flare Network’s “canary” network.

The first bridge, which has already been deployed, was conducted between the XDC testnet (Apothem) and the Flare Network testnet (Coston).

In addition, it says that after the launch of the second bridge, this bridge will support a single asset, XDC tokens; therefore, users of XDC will be able to create and use wrapped XDC on Songbird.

Overall, @XXXFLR believes that this news, if true, is a bullish signal for SGB, i.e., the token will potentially grow.

Here’s your bullish news $SGB fam 😈 value bridge will be launched soon. ❤️‍🔥 https://t.co/MpCyeLExQV pic.twitter.com/EUAtHyl7qN

— ﾒ.ｷﾚ尺 ❤️‍🔥 (@XXXFLR) March 27, 2023

SGB current price

At the time of this writing, the token is in the growth phase. According to CoinMarketCap, during the day, the asset grew by 23,94% to $0.009401. At its peak on the day, the asset was trading at $0.009569.

You have not selected any currency to display

Globally, SGB is now in decline. It almost immediately reached a historical peak and was traded at $0.6372. That is, those who invested in the asset at the start now have 67 times less than they invested.

SGB as a long-term investment

So far, the asset is growing, but given the volatility of the crypto market, the decline could start at any moment. Therefore, it is reasonable to study how SGB will behave in the near future and in the long term.

As a rule, the decline can be influenced by various factors, whether it is the general state of the market or the lack of power in the community. That’s why there’s no point in guessing what will cause the decline in value. 

Speaking about the growth, Moon Commander trader noticed that a similar candlestick position is forming on the SGB price chart. Earlier days, after such a position, explosive growth began; therefore, it is not excluded that similar events can repeat.

Come on $SGB! Repeat that PUMP! If we are lucky, it might just play out as before.
pic.twitter.com/Fizfif8Nag

— Moon Commander (@mooncommanderX) March 28, 2023

On the Songbird subreddit, there was a discussion about whether the SGB is appropriate for long-term investing. However, not everyone is convinced. A SilverHoard user thinks Flare’s native token (FLR) is more suited for this since it is the underlying platform.

“If FLR doesn’t survive, then SGB sure as hell won’t. The difference being that FLR can succeed without SGB, but SGB can’t succeed without FLR,” he explains.

However, looking at the current Flare token chart, we get a different impression. Over the past 24 hours, the asset has fallen by 2,15% to $0.040045, while Songbird is growing and showing independence.

By the way, the native token XDC is also growing, increasing by almost 4% during the day. It is probably influenced by the news of the upcoming bridge. For this reason, some are considering contributions to XDC, SGB, and even FLR for passive income (not financial advice).

Booooom $XDC $SGB $FLR Fam Can’t wait to wrap my XDC and stake it on Songbird for some juicy passive income https://t.co/Oucr99MSCS

— CryptoMes (@MesCrypto1) March 28, 2023

However, according to trader Leelord, Songbird’s native token will not fully unleash its power until it is listed on major exchanges such as Binance, Crypto.com, Coinbase, and others. Until that happens, if the token grows, it will only grow a little bit.

Hidden gems like $sgb and many others won’t 1000x in price until they’re listed on big exchanges like @coinbase, @cryptocom @binance. It’s scary buying these assets that keep dropping in price but it’s just a shakeout before the inevitable manipulated pump.

— Leelord (@CYM_Leelord) March 21, 2023