Coin ReputationRank: It's time to showcase the best investments for new crypto users. No more scam coins!
coinmarketcap.com or a competing service will start ordering coins by reputation. Find out how it works!
A coin ReputationRank, is a score, much like your personal "credit score"... that shows how good or bad a coin reputation has... Some of these should be chosen by the user, depending on how much certain things mean to them.
If you release a crypto coin, during it's lifetime it's reputation should go UP or DOWN depending on how it grows.
Serious investors enjoy preying on weak hands (new users who do not research correctly) gain an advantage. Serious investors like this advantage.
But eventually even serious investors are going to lose out, and this is why...
However, the problem exists for the scam coins out there, who:
- Give cryptocurrency a bad name
- Take legitimate dollars that could be put towards good coins and developing our futures
- Create a sour experience for a new users which limits whether or not they'll reinvest again
- Creates negative publicity which the main stream media and crypto media loves to distribute
- Encourages MORE scams, since old and current scams are so profitable
Whether or not you think scams are a good "learning tool" for new users. I'd rather not see the likelihood of scams eating up so many funds that could be better spent into legitimate cryptocurrency projects.
Hiding coin history, obscuring coin details, and confusing users with information overload, has this effect on users:
Scammers chase away more users from getting involved in cryptocurrency:
In traditional life, you report scams to the police or other government agencies. Due to the nature of anonymity and cryptocurrency privacy in general, this isn't easily done.
So what we need to do is come up with a Coin ReputationRank which addresses things that normally takes years of experience. Let's look at some possibilities:
a) Fair PRE-ANN (pre-announce) prior to launch (add 50 points)
b) No premine (if premined, lose 50 points)
c) No initial launch bugs that allowed some with coding ability to mine more, before bugs were fixed (add 50 points)
d) Numerous coin name changes (this one kills me. If you keep changing the name of the coin, it's the same thing as a thief being chased by police, who keeps changing his clothes during the pursuit) -- lose 50 points
e) Supernodes, Masternodes, and other transactional points. Good, Bad (this should be user selectable) +25 or -25 points
f) Algorithm, consensus, mining pool atrocities (more points to be lost or added here)
g) The rich list. (if only 25 or less holds more than 30% of the coins, lose 2 points)
h) Exchanges the coin is on. Daily volume (if only small exchanges, lose 15 points)
i) Volume in comparison to actual chain movement of funds. (How much of this volume is bots creating fake volume on exchanges)
j) Number of coins in circulation vs ACTUAL number of coins in actual circulation. (Ripple was a problem with this in the beginning)
k) How "new" the coin is. How "old" the coin is
l) Size of blockchain now. (Each gigabyte, lose 0.5 points)
m) predicted size of blockchain in 15 years (each terrabyte, lose 0.5 points)
n) Developer abandons, new developers take over, they abandon, new developers AGAIN take over
o) ....it goes on and on...
Currently this is what a scammer could do:
1. He could take something like Netcoin (which is basically dead. Trading at 3 satoshi), fork the code. and Call it "Netcoin plus"
2. He could premine 2 million coins. On coinmarketcap he would only have a little asterix next his coin name for the premine.
3. He could convince his friends and other to start mining the coin and asking for it to be on exchanges
4. Many smaller exchanges will carry a coin for a setup fee.
5. He could get poloniex or bittrex to try and carry the coin after showing fake trading volume on cheap exchanges and enough propaganda out there.
6. Next thing you know, steemit users are going oh! look! Netcoin Plus is trading at $75 a coin!! (Meanwhile it's the premine person buying/selling to himself to artificially pump the price)
7. Enough users start buying in. Premine dev creator slowly starts selling his coins. Coin value drops. People freak out. He rips the carpet out and dumps the rest.
8. RINSE / REPEAT. Do this again, and again.
Know what would stop this? Coin ReputationRank --- he would have scored almost 0 in his initial few years for launching this way.
Without it? Now you know why we have abandoned pump/dump and crash coins littered all around us.
It's been 7 months since I posted this video, but I thought I'd show it again for all of the new users who have recently joined steemit and haven't seen it before:
The reason I say coinmarketcap.com or a competing service will start ordering coins by reputation, is because it is long over due, and this is something we need in this industry.
What kind of things do you think should follow a coin's reputation?
Personally I'm sick and tired of trying to follow old bitcointalk.org threads only to find that the post has been editted, the coin name changed. Threads abandoned, new threads created. Moderators locking threads, etc.
Coin Devs changing hands 3 or 4 times after developers dump their coins and walk away. It is terrible trying to research anything. These things need need to be summarized and let the reputation follow the coin.
Here's some startling comments by @craig-grant who admits that he pretends (for-profit) he cares about crypto, to take advantage of those who do want to see crypto change the world. It helps explain how you can pump a coin with youtube videos to your followers, and then dump it on them. You decide what he was saying.. for me.. that's what I see. He might step back from what he said and put a different spin on it. But this thread was posted on a non-popular post by @kyle.anderson 3 months ago where @craig-grant was brutally honest and it shows how people are making money at the pain and peril of others who could use something like a Coin ReputationRank score to help them see through this deliberate fog:
To make things worse, this is what craig-grant said 2 months ago:
This seems like a very bad idea, there is no way to rank projects in the way you describe, even in a decentralized way. Although you might think that having a source to weed out these shitcoins is a good idea, it adds dangerous centralization to people's investment information. Investors of these "Netcoin plus" projects deserve to loose their money.
Investors in crypto need to mature if we want to see the market caps grow.
We talked about this a bit in the hangout today. There are sites like coingecko that give statistics far outside the realm of coinmarketcap. There ARE metrics that can help people figure out the health of a coin. I agree 100% that this is better than how cmc does it...however still does need improvement
Your right, there certainly are third parties that are bringing more metrics to the table. I would actually argue this mentality where some random coin listed on coinmarketcap has ~ a few hundred thousand trading around this new promise of mastersupernodes looks like an attractive investment. There is only one way these less educated investors are going to learn their lesson: they need to lose their money. What is happening now with the influx of money into this space is these "net coin plus" shitcoins are actually generating huge returns. Hardly causing any investor to learn anything meaningful.
Exactly. And pumping them is not cool becaise it simply amplifies the damage of each. If a coin doesnt have a solid community i say that sucks...and the coin will likely die. No devs? Again...death..
Buying a dead coin and BUILDING A PLATFORM OF TRUST so you can sell lies though is nothing less than total bullshit.
Right. But the only way investors are going to learn they need to look for tangible things like code and development is losing their money.
A lot of bullshit is going to get peddled before investors learn.
When Bitcoin was released in 2009 (and now it is 2017) that is 6 years of this... yes, I fully agree.. investors need to learn the hard way.
The problem is that new people are onboarding everyday, and it is no longer early investors that need to learn their lesson. We're past the early investor stage.
This is a new breed of investment, a new breed of banking. A new breed of money. We need to find ways to protect new oncomers from old scams and old ways of taking their money without government protection or intervention.
If any of this is going to become commonplace or mainstream, the crypto industry itself needs to come up with standardized checks and balances to give a hint to what is proper and is what is not...
If we don't, then crypto in general is always going to be seen as an underground scam and should never be trusted. That's the way mainstream news and govt is currently selling it. We need to break free from that mold. So what I am proposing with Coin ReputationRank is simply a start into the right frame of mind for new users that show up today and tomorrow.
It might not be picture perfect, but it's the right idea. Let's keep on this path...
I have the same idea to have a coin rank and ALSO a rank and reputation bank for inividuals who want to retain thir good ratings and reputation from al their clients and past customers all in one place...we need soething where anyone any comppany any coin can singup, or BE tagged by others, and maybe count how many users are all satisfied with he service they are offering.... consolidated centralized rating system.....like linked in I suppose....
yeah we should just add something to coinmarkketcap, some way for people to rate the coin on how good the etch is or how good of an experience they had with it.....
i ca tell im all our of idea,s its hard to thin an be on247! i will come back when i have more ideas onhow to do this whole coin rating system!
Yes...which is why I prefer to actually try to warn my following (those who trust me) of the scams in the space....instead of using my platform to perpetrate scams on them.
I dont disagree with u man...but shady IS shady.
If you see any of the crypto posts I make, I make it quite clear the dangers of these unsubstantiated shitcoins.
https://steemit.com/cryptocurrency/@kyle.anderson/crypto-markets-are-exploding-can-the-market-keep-up-revisiting-a-note-of-consensus-in-this-time-of-cryptocurrency-chaos
https://steemit.com/cryptocurrency/@kyle.anderson/burst-my-bubble-an-opinion-on-the-dangerous-influx-of-altcoin-posts
My point is that thete really isnt much of an excuse for craig using his platform to dump shitcoins on people.
Great point. Good considerations in the list though!
No Kevin, you might be wrong. Please come back and see what has developed since your last comment. Especially listen to this audio archive about what I said on "the air".. about it:
https://steemit.com/beyondbitcoin/@glitterfart/intelliguy-2017-04-28-beyond-bitcoin-radioshow-raw-recording-for-impatients
I think it would be a very good idea... and beyond my opinion, I think that the appearance of such webs is inevitable in the case that the use of crypto spreads...
thank!
what you think about pinkcoin?
There is absolutely no need for pink coin.
I have to research it further. It has some good points. One worry I have is the 30 second block time. Syncing it from genesis with blocks appearing every 30 seconds means there should be a large chain even without activity.
(just checked it as of April 27, 2017)
Right now they are at block# 3,438,306 since 2014.
That's a problem. :(
Even Bitcoin is only at block# 463,793 since 2009.
Faster block times isn't good in the early stages of a coin.
Thank for you checked @intelliguy!
Two things I observed in all the shit coins are :
Just my 2 cents.
There are so many pink wallets owners and they surely won't choose ether to fill 'em with hehe
nice post, i upvoted, and wow about craig grant look, everyone who bought cloud mining conttracts with him has already had them pay for themselves and are now all reaping profits!
genesis mining is onoy a scam if btcoin stays the same price and never goes up! it takes over a year to pa off with bitcoin prices not going up!
thats why i only bought pool.bitcoin.com LIFETIME 1TH contracts lol why get a 1 year when it takes a year to pay itself off people are short sighted
BUT imagine when you bought a contract last year, bitcoin prices have gone up so much, that youve probobly already paid back your mining contract by now, even if it was a terrible genesis ining deal that takes a year to pay of! well it takes a lot less thanthat with bitcoins privce going up!
but yeah you cant just ASSUME bitcoin proce is going up (well yoou can, and it will, ) but yeah we get why it seems liek a "scam" but its really not a sca its ust a really realy bad deal, and he profiits off the referals,, but hey, everyone whp singup up under him with gnesiss ended up making a profit!
so really can you actualy knock him an genesiis?