Understanding the way CoinJanitor operates

Introduction

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Recently I decided to begin researching about CoinJanitor, and so far I have published the introductory article where I shared an explanation about the problem this project is trying to solve.

The problem in question revolves around the idea that in several cryptocurrencies projects that ended up failing, there is still a value that can be used in the code written by the developers of those projects, and in the data the project managed to gather when it was still operating.

Basically, this information can be seen as valuable digital assets that instead of being forgotten, they should be implemented in other projects to hopefully find something useful to do with them.

Which is what CoinJanitor is planning to accomplish, they are looking to acquire dead crypto projects including all of the assets, and later on adding that value back to the market by releasing said assets and to allow everyone to use them in something productive.

Deciding which projects to acquire

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It is clear the projects with the most promising assets should be acquired first as a way to test this new ground and confirm if this type of dynamic can be sustainable for the long-term, as far as I am aware, there is no other project with a proposal similar to CoinJanitor’s, so everything this company is doing is pretty much something entirely new, at least in the cryptocurrency space, besides, once a coin’s value reaches zero or it simply isn’t available on any exchange, the vast majority of the people would decide the coin is dead for good, so going against this natural reaction can be challenging for CoinJanitor, at least in the beginning, however, what is clear, is that recovering value that seemed to be lost is a dynamic in which there are literally no losers, everyone wins.

The procedure that CoinJanitor follows when acquiring the assets of a particular project was carefully designed to act not only as a proper filter, but also to make sure everything is done on a responsible and productive way. There are 3 basic steps explained below:

Profiling the failed coins

The initial step consists in differentiating the projects with the valuable assets from those who are pretty much completely worthless. In order to do this, they take into account several aspects:

• Age of the project: the older the project the most likely it is to have valuable digital assets. It is quite obvious that a 2-year-old project would have much more possibilities in developing something of value, when comparing to a 2-month-old project, just to give an example using simple numbers. Therefore, age is one of the aspects that can influence how CoinJanitor sees a potential project to acquire.

• Exchange volume: since CoinJanitor only looks at dead projects, the exchange volume they check is the one the project had when it was active. The larger the volume, the higher the probability of the project having something of value.

• Hash rate: in simple words, a hash rate can be seen as the amount of computational power a blockchain project currently has. CoinJanitor will research the past hash rate of interesting projects that are currently inactive, the higher the hash rate the more chances there are of finding something valuable by acquiring this project.

• Community reach: successful and exciting projects will always have active users involved with it, and when it comes to digital innovations, users will always flock towards the ideas that seem the more exciting. In this sense, the dead projects that have or had a strong community, will always be favored over those with small or weak communities.

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Establishing contact with the people behind the dead project

Once the people at CoinJanitor have chosen which project to acquire, the next step is to proceed with establishing contact with the project owners and the community members, which usually are the same token holders, and work with them in defining how the purchase should be executed. The way this works is that the team at CoinJanitor sends their own JAN token to the people that hold rights over the dead project, and with this transaction, CoinJanitor becomes the sole owner of the project, including the “GitHub, other code repositories and all marketing assets”. ^Source

It is important to know that every code acquired by CoinJanitor will be released as open source code, to allow every project to have easy access to this work, and find something productive to do with it. It must also be mentioned that the tokens from the dead project are going to be burned, because the idea is acquiring the valuable assets and not the untradable tokens, and after these tokens get burned, CoinJanitor will proceed with the complete elimination of the dead project’s blockchain.

Creating an open source library with recovered code

Finally, the ultimate plan is to have a massive library full of valuable code that anyone can access and use it as they see fit. This can bring value to developers from other projects, students that are learning to code, and any individual or institutions interested in using these codes for anything they might want.

Besides, CoinJanitor will also provide all the information about the projects they decide to buy, so each person can know what type of project was the one behind each peace of code that is stored in the library.

Conclusion

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After the first introductory article, I decided to take a more detailed look into the process that CoinJanitor follows when deciding to acquire dead projects. Besides, it was also explained what is the ultimate goal of this company.

Basically, CoinJanitor wants to work as a recycling mechanism where everything that holds value is re-added into the market, at no cost for the community.

More information about this project can be found in the following links:

· Project Website: https://www.coinjanitor.io/

· Products & Services: https://www.coinjanitor.io/#how-it-works

· Link to a press release: https://www.trustnodes.com/2018/04/27/press-release-coinjanitor-project-charge-cleaning-cryptocurrency-markets-dead-coins

· Next event: https://www.decentralized.com

· Facebook: https://www.facebook.com/CoinJanitor-201490483964845/

· Medium: https://medium.com/@CoinJanitor

· Twitter: https://twitter.com/CoinJanitor

DISCLAIMER

The information contained within this post shall not be taken as a financial advice. I am not a financial advisor and none of your investment decisions should be carried out based on any information presented here. You can lose all of your money by investing. The information presented in this article is for educational and entertainment purposes only.