CoinJanitor - Saving The Crypto World From Decay
Is it me or are there too many cryptocurrencies now in circulation?
Seems like anyone can just think of an idea or "vision statement", whip up a logo and with a few lines of code, use open-source software to create his/her own token. Seriously, it's that easy now.
When it comes to crypto currencies we have different categories
- The custom cryptos that exist independently with their own blockchain. E.g. Bitcoin, Stellar, Doge.
- The tokens that were created from smart contracts and depend on the Ethereum blockchain for execution. These are divided into erc20 and erc223 standard tokens with the former being the most popular occurrence.
According to Eidoo, there are over 700 functional erc20 tokens, and over 18000 useless ones. These include test projects, scam projects, ponzis, copy-cat projects and deadcoins that do absolutely nothing.
What are ERC-20 tokens?
As explained before, ERC-20 tokens are tokens designed and used solely on the Ethereum platform. They follow a list of standards so that they can be shared, exchanged for other tokens, or transferred to a crypto-wallet. Source.
Now we all know the original(first) cryptocurrency was Bitcoin. Bitcoin was created in 2009. It was built on the premises of decentralization and with it the world was introduced to the blockchain as a "transparent and immutable decentralized ledger".
Litecoin followed with a similar framework but slightly different protocols. If Bitcoin was digital gold, Litecoin was digital silver.
The namecoin project followed in 2011. We then saw the rise of Swiftcoin, bytecoin, doge, gridcoin, primecoin and ripple. Coinnounce lists cryptos in chronological order.
Ethereum was officially released on July 30, 2015. Ethereum came with its own unique feature, Smart Contracts. Ethereum's feature of "programmable money" opened the door for endless possibilities of applications of cryptocurrency and soon different industries started modeling their custom tokens to run on the Ethereum blockchain.
This was the beginning of the undermining of cryptocurrency. With the simplicity it took to "issue" a token, it was a no brainer that sooner or later some devious minds would utilize the opportunity to fabricate projects to fraudulently acquire funds from the general public.
Coinscamlist contains a frequently and ever-increasing list of fraudulent projects built to scam over eager investors out of their hard earned money. Some of these projects even go to great lengths such as getting a celebrity cosign or lying that they are working in partnership with the government or big firms.
Like the gold fever of the Wild West, many ill informed investors rushed to buy up various tokens no doubt spurred by the glorious tales of Bitcoin millionaires and in the end got burnt. Some were able to sell off to the next unfortunate soul, some made partial losses, and some saw their entire investment reduce to zilch.
There is a popular saying,
This applies to many "blockchain projects" we see on the internet nowadays. Some people think that all they have to do is write up a smart contract, decide the total amount to be created/generated, do some advertisements/bounties/airdrops and when they launch their ICO's investors will come running. It doesn't work that way!
There was a token called NOBS that was released some months ago and hyped by MacAfee himself but upon review I discovered it served absolutely no purpose. Many investors rushed in and when I asked my friends why they were always talking about NOBS their reply would be "it will moon, McAfee is hyping it". Sadly as soon as the NOBS tokens were airdropped, the NOBS token that was supposed to be worth $20 each were dumped on all available exchanges for a fraction of a cent. NOBS is yet to break 1 cent till this day.
Cryptocurrency is designed to be decentralized and thus it's true value can only be decided by the market forces of supply and demand. For there to be demand and supply, the crypto must actually BE USEFUL. That is why the price of Bitcoin is so high, because it is used most widely and it also serves as a "gateway coin" which can be used to buy lesser coins.
Likewise, Ethereum has so many contract tokens running off it that its network is always busy with transactions. This also translates into importance(value) and allows Ethereum to maintain a healthy price.
So what does coin XYZ actually do? what are its use cases? These are questions any serious investor should ask before diving into a commitment(investment).
The lack of foresight has resulted in so many projects crashing even after successfully raising funds via ICOs. Here is a Bloomberg survey result
According to the research results, less than 4 percent of ICOs with market caps of $50 million to $100 million were successful or promising. Most ICOs were raising money without having an experienced development team or an actual product. Many just concocted white papers studded with far reaching promises. It is estimated that investors have lost over $4 billion and counting.
It gets worse. What's worse than a dead coin? oh.. a rebranded dead coin. Time and time again we have seen cases where a developer revamps a coin he has been passively mining(and now owns a large number of). With a few changes it is presented as a new project and more people rush in to invest.
So what's the way forward?
CoinJanitor claims to have a solution to this problem. Startup CoinJanitor has partnered with Dead Coins, and claim they want to help investors and developers recycle failed coins with market caps of under $50,000.
"We take as many coins off the market as possible," CoinJanitor Chief Executive Officer Marc Kenigsberg said. “Every time we absorb a project, we have more audience and more marketing reach. Instead of linear growth, we should hit some kind of hockey stick growth. All the tokens we get we destroy, we actually burn them. Turn off the entire blockchain." Source
CoinJanitor plans to take over dead projects, and to burn the dead coins. To do so, it’s created its own token.
In the next article, we will discuss how CoinJanitor will take over dead/abandoned projects and remove them from existence in order to make the crypto space safer for every investor.
To learn more about CoinJanitor, you can visit any of the following links
CoinJanitor Website: https://www.coinjanitor.io/
CoinJanitor Products & Services: https://www.coinjanitor.io/#how-it-works
CoinJanitor whitepaper: https://www.coinjanitor.io/wp-content/uploads/2018/03/CoinJanitor-White-Paper-v4.5.pdf
Link to a press release: https://www.trustnodes.com/2018/04/27/press-release-coinjanitor-project-charge-cleaning-cryptocurrency-markets-dead-coins
CoinJanitors Next event: https://www.decentralized.com
CoinJanitor Social Media
Related Articles
• https://www.coinjanitor.io/news/coinjanitor-ico-battle-at-icoin-summit/
• https://www.coinjanitor.io/news/coinjanitor-and-deadcoins-com-join-forces-to-clean-up-crypto/
• https://www.bloomberg.com/news/articles/2018-06-28/crypto-coin-graveyard-fills-up-fast-as-icos-meet-their-demise
DISCLAIMER: The information contained within this post shall not be taken as financial advice. I am not a financial advisor and none of your investing should be carried out based on any information presented here. You can lose all of your money by not investing wisely. The above information is for educational and awareness purposes only. Kindly Endeavor to DO YOUR OWN RESEARCH.