3 Things You Should Know About CoinJanitor and Its Business Model.
CoinJanitor is a blockchain-based company that seeks to recycle the value trapped in dead or failing cryptocurrency projects.
The failure of a blockchain project will inevitably lead to the mass devaluation and the loss of value of its crypto assets. This is because the crypto space is still relatively new and highly competitive already. Seemingly, with new projects come slight modifications with better, faster engines when compared to the older ones. This stiffens the competition for the attention of the media and venture capitalists and could eventually knock off less-sophisticated projects from the race for dominance in their respective niches entirely.
Oftentimes, when a project dwindles this way, it is the faithful investors and the community of project enthusiasts who get to suffer as they watch the value of their assets plummet. With time, these assets lose liquidity in the markets and ultimately, are delisted from exchanges. Unable to exchange these crypto assets for others, value is trapped inside such ecosystems.
That is not all. It also renders the project in question 'almost obsolete' since the losses incurred when they function below projected/target capacities are overwhelming. Targets and roadmaps cannot be followed and the project becomes neglected.
CoinJanitor offers a solution.
With all of their services, CoinJanitor offers a way out for such community members. It rids the crypto space of redundant blockchain projects and makes room for the amalgamation of communities that could go on to build better versions of the failed projects.
CoinJanitor will be able to do this by buying out these assets by using the JAN, (an ERC20 based token) and then resuming control over every asset and property owned the blockchains and community being bought.
The community being amalgamated to a larger community can then decide to hold onto their JAN tokens or sell them for top performing cryptocurrencies such as Bitcoin, Ethereum, etc.
At this point, it is needful to state that while this is all clear to understand, there are some important details and information that one should know about this project. CoinJanitor does have some clauses that exist to serve as a guide on the types of cryptocurrency projects it can revive/restore. They also have a different model of business. In this article, we shall be reviewing some of these necessary points.
1. CoinJanitor is a community-driven project.
Despite the creation of the CoinJanitor token as the umbrella coin with which CoinJanitor aims to start cleaning up those failed or dead coins, this project is NOT a regular ICO. CoinJanitor is a community-funded project that aims to do something that has never been tried before and contribute positively to the larger cryptocurrency community - Page 5, CoinJanitor Whitepaper
As clearly stated in page 5 of the whitepaper, CoinJanitor will be community funded and community driven. This means that a consensus needs to be reached between both communities being amalgamated before any further steps are taken. There will be open and transparent communication channels that will allow for concerned communities to state their terms.
In parallel, CoinJanitor and its creators are also interested in starting debates about how to deal with failed projects and dead coins in the space and how best to recycle resources back into future projects. The JAN token will become one of the many tools that will be deployed to achieve this goal. In parallel, supporters of the CoinJanitor project will also be able to suggest ways to develop new tools and processes to carry this mission out in the future.
Currently, there are exactly 10 supporters listed on the project's official website.
2. Not all failed crypto assets will be supported,
Not all coins or tokens will be eligible for the swap on CoinJanitor. Some tokens out there are outright scam projects with no more than a few holders. Such crypto assets will not be considered for swaps.
As outlined in their business model, coins that will be considered must satisfy two important instances first:
1. It should be a real and good-intentioned project with at least 2 years of functionality.
2. It should be POW cryptocurrency above any other.
3. The market cap of the coin should be under $50,000 USD
4. The owners should be contactable.
5. It must NOT be listed on any exchange.
6. Most importantly, the owner and community must be willing to cooperate with CoinJanitor.
CoinJanitor claims that POW tokens are easier to track to see how long it has been inactive in comparison to POS tokens. Perhaps the most important of the above criteria is the last one. Without the agreement of the community being amalgamated, there is really nothing CoinJanitor can do.
3. CryptoJanitor takes over all the assets of amalgamated projects.
Since these 'failed projects' aren't entirely functioning to the expected level, they are often branded as useless. This does not mean that the tools aren't functional or there aren't miners. They might still be some tools that work in good condition. However, a lot of bugs might have been unchecked and the codebase not up to date.
Once consensus is reached by both communities, CoinJanitor takes over every asset owned by the other community. They start by creating an exchange pair for the coin/token in question and its holders will be given the blockchain's burn wallet address to send their tokens to. The holders, in turn, will receive JAN tokens proportional to the coins at an agreed rate and the assets they sent are burned afterwards.
It is important to state that the 'assets' inherited in this sense aren't just in monetary terms. CoinJanitor will take over the blockchain data, community channels and media handles, marketing assets, codebases etc.
These assets are reviewed and useful information or tools that are affiliated to them are further enhanced to grow a similar working project, or they are used for several other good purposes.
If this project interests you, do not hesitate to look-up the official links to Coinjanitor's social media handles and materials below. Also, see the explainer video for a TL:DR option. Thank you.
PS: The CEO of CoinJanitor, Marc Konigsberg, will be speaking at the upcoming Decentralized blockchain event organized by the University of Nicosia, which will be held in Athens, Greece by the 14th of November this year.