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November 05, 2017, 10:59:29 AM |
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The problem I see with much of the ICO space is that the people investing are often times not even savvy investors and the people running the ICO's run the gamut of being professionals to professional scammers. On the investing side, it's often times a bunch of kids that own zero other investments whether it be stocks, mutual funds, real estate, businesses, etc. They throw their money at hype and like lemmings, simply invest in what is getting the most attention, often times getting their info from their favorite youtube pump and dumper who get more coins themselves by having their followers click their referral links. They then turn around, sell their tokens and move on to the next pump and dump. Cryto currency and ICOs are the wild west. There's little to no regulation and very few safety nets for investors. If people don't know how to do their own research on a particular coin or token, and are unable to analyze what they're even investing in, they should come back at a later date when they do.
As for electroneum, I found the whitepaper questionable. The whole catch to this particular ICO was the mobile mining. Upon further inspection of that claim I saw that the miner was "virtual" which was suspect to me immediately. Virtual mining to me sounded identical to just turning on a printing press and printing out fiat currency. Again, marketing. That was simply to create hype. Will that miner eventually put coins into people's wallets? Yeah, probably but so what. If they take zero actual hash power to create, then their overall value will reflect that.
The second thing was the amount of coins. 21 billion is a lot of damn coins. I'm not saying thats a deal breaker, but from the whole "virtual mining experience" to the max supply of minable coins, I don't think the people behind this project really understand the crypto space. I think despite owning whatever other companies the CEO owns in Britain (and the profits of those companies have been brought into question multiple times thus far), when it comes to the whole blockchain and crypto space, these people are amateurs.
Admittedly I threw a total of $30 at this, give or take, big deal. I do however know others who threw in tens of thousands and higher on other forums. After analyzing the project myself I just didn't have much faith. I appreciated the idea of mass adoption by 2.2 billion smart phone users and all, but I didn't think the team behind that idea would be able to execute it properly. I unfortunately think they bit off more than they could chew here, but hey I hope I'm wrong. I hope the coin does find adoption somewhere and that it brings crypto to the masses. I just doubt that will ever happen given what we've seen thus far. At the end of the day, at least its not Paragon coin lol.
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