Warning Signs of Bitcoin Pump and Dump Scams

"At the end of the day, Bitcoin has become nothing more than a giant pump-and-dump scheme, and investors should be protected from the scheme just as they would be from a penny-stock biotech company whose sole existence is a website plus a closet with a phone in Salt Lake City"

submitted by moteur_action to Buttcoin [link] [comments]

02-05 04:53 - 'What does a "leveled" space mean to you? Killing altcoins isn't going to stop scams and neither will a lower bitcoin price. There's penny stock pump and dump schemes in equity markets. Price stabilization below $9000 will slow...' by /u/nicetryu removed from /r/Bitcoin within 7-17min

What does a "leveled" space mean to you? Killing altcoins isn't going to stop scams and neither will a lower bitcoin price. There's penny stock pump and dump schemes in equity markets. Price stabilization below $9000 will slow down price growth and let regulators pass one or two laws and that might be a good thing if they actually take the time to study the market. The only way to truly protect people from scams is to educate them beyond what cable news is capable of.
Did you notice cable news took all that time talking about Bitcoin and Ripple and didn't spend any significant time warning people that there were a lot of scams or making a distinction between POW networks of decentralized trust and other systems that promised returns based on nothing. Or ICOs that literally have no functioning product and indemnify themselves from damages if they never provide one.
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Author: nicetryu
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Open letter to Mister Porter Stansberry

First of all, Hello!
I hope all is well and you don't plan to die very soon like your good friend Rey Rivera.
But let's talk about Rey.
When I first started on Rey's Unsolved Mysteries case I did not think I would be solving ”who stole Johnny's bike” as some Reddit user (maybe one of yours) mocked me.
But neither did I exactly think I would be uncovering one of the biggest, most successful Ponzi variant pyramid schemes in the history of the world.
Now I was very surprised that the FBI ruled the ”ramblings” as paranoid, delusional and with evidence of a persecution complex. The document is quite congratulatory towards you Mister Stansberry, you had done a marvellous job until that point for your patrons, except for the few slaps on the hand you had received for overreaching a bit, the overall tone is very positive towards you, the very able tech savvy guy.
But let's talk about the note shall we. Why would a paranoid, delusional, suicidal man make a great little list of people on which he would put his wife by her maiden name instead as ”my wife” or ”Allison Rivera (wife)” similarly to the other family members.
And also put your own family, several people (who don't all work for you as the media claims) that are members of Bill Bonner's secret society club, The Oxford Club; And Chuck Batchelder (the owner of a local stock corporation) the future Bitcoin Belle and to investment advisors connected to the fund your secret club urges people to put their money into.
I know Rey had attended at least two Oxford Club events, but did he really know Addison Wiggin, Wayne Ellis and Bill Bonner so well as to put them on his little suicide list and wish some reward on them as on to the others? And why would your dead friend be found at Bill Bonner owned properties? And Steve Sjuggerud only joined with you at Stansberry Research after Rey left. So neither would he be close to Sjuggerud, a former higher up of Oxford Club.
Let me tell you what I think. I think this note is partial MoM of a meeting. Do you disagree? I'm sure you will have to. But indulge me a bit. Let's say it is. When could this meeting have taken place?
Well Thom Hickling ”gave his life for this pursuit” in December and so did Anne Rayburn,sister to George Rayburn (I am told by suicide as well,shocking). So it would have to have been after that.
Ray was at one of the Oxford Club events in March, The Investment U event, the one he was working at when he died.
Not only that, but this game that was ”so enjoyable” and ”had to end” in Rey's letter happens to coincide with a certain withdrawal of yours and Bill Bonner's from the executive committee and panels of the Oxford Club. Perhaps due to the attention you were receiving because of Ryals and the SEC? One has to protect home base isn't that so?
Let's talk about that for a moment before returning to Rey. Your mentor Bill Bonner speaks so kindly of you in a reply for mother jones, and adamantly sustains what you have already claimed that there is just no profit in being wrong that you don't trade in the stocks you advise on. But for 5k a secret private investor report I should think there is some profit to be made. He also boasts about some of the things you managed to warn about in advance.
So Mister Porter how can you both be bad and exceptional at your job? I'll tell you how. You're paid to do it. You Mister Porter are the MiddleMan. Well, one of them.
In one of the Oxford communiques it is eloquently explained how to do short selling and deal with penny stock. It also tells you while it is demonised it is not illegal. Well, not unless you accompany it with rumour mongering or pump and dump.
How would this work? I wonder as someone with no financial background. Well, I suppose it's actually as easy as giving conflicting advice and letting your secret friends at your secret club know when your ”advice drops” and when to act.
But what did your secret friends really want in the USEC case. Well. This was a long play game not a short term one. In your speech you so proudly say that all you did was interrupt a monopoly USEC had and if only the people who bought the stock held on to it they would be making money. So I guess you said it yourself, what the purpose was, people just didn't catch on.
Ah! but alas, The Oxford Club's member list is very very secret. What can be proven though is your place in it. And since we're on that. One of your big accentuated statements in conversations with Ryals was that you have barely had any contact with Jim Davidson (you called him Jim, same way as he is so fondly referred to at times in the communiques)
In fact, before that time he was very active in the Club. You of course started at the Club, before opening your own branch, The Oxford Club made you. I would assume being on various positions, Advisory Council, Exec committee, you would have no choice but do deal with James Dale Davidson. So why did you deny him so harshly?
I suspect the name Keith Richards in the letter could very well be substituted by James Davidson and the speech in Rey's letter would make sense.
PS Let us not forget naming Skousen, he was a frequent panelist and active member as well but Ryals did not have the Oxford Club connection, all he had was you being at events together.
While we are on the Ryals subject, both he and the note mention some patent debacle. He talks about a Stanford patent and a Mister Cooke. Who would that be, Boxley Cooke or Mr Cooke Senior, the father of his beautiful wife Julia Guth Cooke.
But let us get back to Rey. He is the reason we all are doing this. The three friends that found him. Steven King and George Rayburn specifically, not the rookie they dragged along to ”find” the body.
They were both rising stars of The Oxford Club. While George had remained affiliated with Stansberry for a while, he is now VP at Oxford Club, imagine that. But King did not work for you at all, he was an event manager of sorts for the club. Following year he was in the exec, well done Steven. All in all both rising stars of the club.
Now I am just going to be upfront, after publishing my research on a discussion board that was swiftly taken down, someone PMed me a confession. A confession to lead every enquiring mind to you Mister Porter.
Amongst the things this person said where that Thom Hickling was a whistleblower that was chirping to someone already connected to Agora. He alleges that 9/11 was the reason Thom wanted out in the first place, and that he tried to recruit Rey Rivera but he refused, explaining why Rey was being watched and the break-ins etc.
What I found interesting was that he said that it was you specifically who called Rey to meet up and forced him to take a sprinting jump off the building. And the Netflix episode points the finger at you as well.Heck, everyone out there is trolling your social media accusing you. But Mister Porter you, I'm told, had an alibi.
So what is the catch? Are you ready to give your life to this pursuit of wealth too, or do you believe you won't have to?
Because to me, all the evidence points to The Oxford Club and your secret secret friends.
George Rayburn was hanging around a gay bar whilst waiting for his buddy King to bring the third witness, witnesses say Rey had a fight with someone at a gay bar prior to his death.
This person that gave me the ”leaked information” alleges there was someone in the room while the body was on the floor, so access to the place was needed.
Rey's missing money clip, the fact that Cheetos leave the stomach way earlier than 5 hours as Mikita alleges she heard the bang at 10pm.
Web of lies. He was never on that roof. He died shortly after he got where he was going.
And I don't believe you gave the order.
Now I am going to tell you the trouble with secret societies, brotherhoods and secret friendships. There is a narrative surrounding it that makes you look insane when you dare speak the name. And that is exactly what happened to Rey. How convenient don't you think?
But one has to ask who really is delusional here, someone seeking an abstract power through wealth or someone believing that there are people out there that have succeeded in what we all want. To be top dog.
Freemasons claim that their pursuit is making men who are their friends better psychologically, at least this is how they explained it to me. But now, the way I see it, that can only be achieved by training empathy or psychopathy. Care to venture which one it is?
If Rey was seeking information at the lodges it was because he was looking at someone not because he was insane.
Of course the lodges would consider the club you were part of to be one of the organisations that they call clandestine.
Interestingly enough this little club you are part of even had a Rothschild on their wealth protection panel for years.
You often refer to your top secret investors as masters, and in one issue you attribute star names to your investors in your All Star Portfolio.
And then there is that line that just cannot be placed in the screenshot of the cut up note.
”I know the importance of our servants that is why I cherish them as secrets.”
This line exists, you can see it in the photo of the note still in the baggy it was placed in.
Couple that with all of the mason talk and the information someone gave me about how certain organisations separate minutes in a meeting by saying Junxit Mors Non Separabit, a question begins to peer its head.
Did Rey Rivera even write the note at all? And who cut it up?
The confession I received to make me stop said Rey wrote it that way so Agora would think it was nothing while specifically implicating you. But I believe the code cannot be completely cracked by anyone but the ones who agreed upon the code. You being one of them.
Allison Jones ”Rivera” came out and said that she knows what all of them mean separately she just doesn't understand why Rey would have it. I find that a very interesting thing to say. Couple that with everyone pointing the finger at you, one wonders if Rey wasn't doing it for you to have leverage.
So let us join you Mister Porter Stansberry, and your secret secret friends, on this endeavour to find the truth. But not for its own sake. In accepting this quest for the truth, we all hope to make ourselves, with your help, into people worthy and ready to receive it.
I think during this crysis other people could really use some of your truth to keep, especially the US who you predicted would fall. (the interests in China are going very well aren't they)
After all, what are masonic type organisations (recognised or not), but a very successful mafia that have elevated street smart to something that belongs in a castle.
A castle like the one Bill Bonner sits in, drinking wine that he caters to the Chairman's Circle and training the next generation of psychopaths.
Just a regular person.
submitted by Idkoctavia to reyrivera [link] [comments]

Need ideas for making a wall street bets version of drug wars game

For those who didn't play it, drugwars is a simple text game where the character starts with like $5000 debt to a loan shark, $2000 cash, space for 100 drugs in his pocket, and 30 days to pay off the loan shark and try to make a huge profit ($50,000,000 is considered perfect).
To do this, you go around five boroughs and buy and sell from a selection of like 8 drugs including cocaine (usually about $20,000), heroin (about $9000), weed (about $800) and so on. When you go to a different city, drug prices change slightly. However, a special event occurs as well including stuff like "a pharmacy was raided. Ecstasy is being sold for really cheap!" or "a cocaine bust occurred. Prices have skyrocketed!" (Which means ecstasy can fall from $1000 to like $300 or cocaine goes from $20,000 to $90,000 for example). There's opportunities to find drugs on dead people when you're going between cities, and sometimes officer hard ass attacks you - if he catches you, you lose all your drugs and pay a fine. You can try running or shooting him.
So basically here's what I need your help with. I wanna make a stocks based game which is based on that game. It'll be a Robinhood trader trying to take advantage of illegal shit ("4chan hacks Robinhood. Berkshire Hathaway stocks are being temporarily sold at a steep discount!" or "insider trading has occurred. A pump and dump has made Facebook stocks worth a lot more than normal!").
The problem is I need ideas on what stocks to use for the game. The cheapest of my stocks will just be a generic thing called "penny stocks". Since it'll be about doing electronic stocks, what would I use in place of going city to city? I'm thinking website to website might work, but it's still not a perfect plan.
Instead of officer hardass, the SEC will go after you. You can try to "run" by attempting to use legal loopholes. If you succeed, the SEC backs down for that day. If you fail, they steal all your stocks (and levy a fine). If you can afford it, you can buy a lawyer and have the lawyer fight back, but this makes the SEC mad and they do damage (damage can be represented by "evidence", and if you take 100 evidence worth of damage, you lose because you're jailed).
So basically, what stocks should I use? I need ideas on illegal events that occur that can raise or lower the prices of stocks. Random events where I find a Bitcoin (and make free money) or get phished (and lose stocks). And I need an idea for why I can only hold 100 stocks (pockets won't work since it's digital). Thanks.
submitted by OnlySeesLastSentence to AskProgramming [link] [comments]

Top 7 Bitcoin Scams

1. Malware Scams

Malware has long been the hallmark of many online scams. But with cryptocurrency, it poses an increased threat given the nature of the currency in and of itself.
Recently, a tech support site called Bleeping Computer issued a warning about cryptocurrency-targeting malware in hopes of saving customers from sending cryptocoins via transactions, reported Yahoo Finance.
"This type of malware, called CryptoCurrency Clipboard Hijackers, works by monitoring the Windows clipboard for cryptocurrency addresses, and if one is detected, will swap it out with an address that they control," wrote Lawrence Abrahams, computer forensics and creator of Bleeping Computer.
The malware, CryptoCurrency Clipboard Hijackers (which reportedly manages 2.3 million bitcoin addresses) switches addresses used to transfer cryptocoin with ones the malware controls - thus transferring the coins to the scammers instead. And, according to Asia Times, even MacOS malware has been connected to malware scams involving cryptocurrency investors using trusted sites like Slack and Discord chats - coined "OSX.Dummy."

2. Fake Bitcoin Exchanges - BitKRX

Surely one of the easiest ways to scam investors is to pose as an affiliate branch of a respectable and legitimate organization. Well, that's exactly what scammers in the bitcoin field are doing.
South Korean scam BitKRX presented itself as a place to exchange and trade bitcoin, but was ultimately fraudulent. The fake exchange took on part of the name of the real Korean Exchange (KRX), and scammed people out of their money by posing as a respectable and legitimate cryptocurrency exchange.
BitKRX claimed to be a branch of the KRX, a creation of KOSDAQ, South Korean Futures Exchange, and South Korean Stock Exchange, according to Coin Telegraph.
BitKRX used this faux-affiliation to ensnare people to use their system. The scam was exposed in 2017.

3. Ponzi Scheme - MiningMax

"Ponzi bitcoin scam" has got to be the worst combination of words imaginable for financial gurus. And, the reality is just as bad.
Several organizations have scammed people out of millions with Ponzi schemes using bitcoins, including South Korean website MiningMax. The site, which was not registered with the U.S. Securities and Exchange Commission, promised to provide investors with daily ROI's in exchange for an original investment and commission from getting others to invest (basically, a Ponzi scheme). Apparently, the site was asking people to invest $3,200 for daily ROI's over two years, and a $200 referral commission for every personally recruited investor, reports claim.
MiningMax's domain was privately registered in mid-2016, and had a binary compensation structure. The fraudulent crypto-currency scam was reported by affiliates, resulting in 14 arrests in Korea in December of 2017.
Korea has long been a leader in technological developments - bitcoin is no exception. However, after recent controversy, it seems as though this is changing.
"But a lot of governments are looking at this very carefully," Yoo Byung-joon, business administration professor at Seoul National University and co-author of the 2015 research paper "Is Bitcoin a Viable E-Business?: Empirical Analysis of the Digital Currency's Speculative Nature," told South China Morning Post in January. "Some are even considering putting their currencies on the blockchain system. The biggest challenge facing bitcoin now is the potential for misuse, but that's true of any new technology."

4. Fake Bitcoin Scam - My Big Coin

A classic (but no less dubious) scam involving bitcoin and cryptocurrency is simply, well, fake currency. One such arbiter of this faux bitcoin was My Big Coin. Essentially, the site sold fake bitcoin. Plain and simple.
In early 2018, My Big Coin, a cryptocurrency scam that lured investors into sinking an alleged $6 million, was sued by the U.S. Commodity Futures Trading Commission, according to a CFTC case filed in late January.
The CFTC case further details that the suit was due to "commodity fraud and misappropriation related to the ongoing solicitation of customers for a virtual currency known as My Big Coin (MBC)," further charging the scam with "misappropriating over $6 million from customers by, among other things, transferring customer funds into personal bank accounts, and using those funds for personal expenses and the purchase of luxury goods."
Among other things, the site fraudulently claimed that the coin was being actively traded on several platforms, and even mislead investors by claiming it was also partnered with MasterCard, according to the CFTC case.
Those sued included Randall Carter, Mark Gillespie and the My Big Coin Pay, Inc.

5. ICO Scam - Bitcoin Savings and Trust and Centra Tech

Still other scammers have used ICO's - initial coin offerings - to dupe users out of their money.
Along with the rise in blockchain-backed companies, fake ICOs became popular as a way to back these new companies. However, given the unregulated nature of bitcoin itself, the door has been wide open for fraud.
Most ICO frauds have taken place through getting investors to invest in or through fake ICO websites using faulty wallets, or by posing as real cryptocurrency-based companies.
Notably, $32 million Centra Tech garnered celebrity support (most famously from DJ Khaled), but was exposed for ICO fraud back in April of 2018, according to Fortune. The company was sued for misleading investors and lying about products, among other fraudulent activities.
The famous DJ wrote his support in a caption on Instagram back in 2017.
"I just received my titanium centra debit card. The Centra Card & Centra Wallet app is the ultimate winner in Cryptocurrency debit cards powered by CTR tokens!" Khaled wrote.
The U.S. Securities and Exchange Commission even issued a warning in 2017 about ICO scams and faux investment opportunities, brought on by a slew of celebrities who promoted certain ICOs (like Paris Hilton and Floyd Mayweather Jr. to name a few).
"Any celebrity or other individual who promotes a virtual token or coin that is a security must disclose the nature, scope, and amount of compensation received in exchange for the promotion," the SEC wrote in an Investor Alert in 2017. "A failure to disclose this information is a violation of the anti-touting provisions of the federal securities laws."
Another example is Bitcoin Savings and Trust, which was fined $40.7 million in 2014 by the SEC for creating fake investments and using a Ponzi scheme to scam investors. According to Coin Telegraph, Trenton Shavers, the organization's leader, allegedly scammed investors into giving him 720,000 bitcoins promising a 7% weekly interest on investments - which he then used to pay back old investors and even fill his personal bank accounts.

6. Bitcoin Gold Scam - mybtgwallet.com

Nothing catches the eye of the naïve quite like the promise of gold - bitcoin gold, of course.
That is exactly what mybtgwallet.com did to unsuspecting bitcoin investors.
According to CNN, the bitcoin gold (BTG) wallet duped investors out of $3.2 million in 2017 by promising to allow them to claim their bitcoin gold. The website allegedly used links on a legitimate website (Bitcoin Gold) to get investors to share their private keys or seeds with the scam, as this old screenshot from the website shows.
Before the scam was done, the website managers (slash scammers) was able to get their hands on $107,000 worth of bitcoin gold, $72,000 of litecoin, $30,000 of ethereum, and $3 million of bitcoin, according to CNN.
Bitcoin Gold, the site's wallet used in the scam, began investigating shortly after, but the site remains controversial. Still, firm released a warning to bitcoin investors.
"It's worth reminding everyone that it will never be truly safe to enter your private key or mnemonic phrase for a pre-existing wallet into any online website," Bitcoin Gold wrote. "When you want to sweep new coins from a pre-fork wallet address, best practice is the same as after other forks: Send your old coins to a new wallet first, before you expose the private keys of the original wallet. Following this basic rule of private key management greatly reduces your risk of theft."

7. Pump and Dump Scam

While this type of scam is certainly not relegated to just bitcoin (thank you for the education, "The Wolf of Wall Street"), a pump-and-dump scam is especially dangerous in the internet space.
The basic idea is that investors hype up (or "pump up") a certain bitcoin - that is usually an alternative coin that is very cheap but high risk - via investor's websites, blogs, or even Reddit, according to The Daily Dot. Once the scammers pump up a certain bitcoin enough, skyrocketing its value, they cash out and "dump" their bitcoin onto the naïve investors who bought into the bitcoin thinking it was the next big thing.
Bittrex, a popular bitcoin exchange site, released a set of guidelines to avoid bitcoin pump-and-dump scams.
While "stackin' penny stocks" may sound like an appealing way to earn an extra buck (thanks to its glamorization by Jordan Belfort), messing in bitcoin scams is nothing to smirk at.

How to Avoid Bitcoin Scams

With the inevitable rise of bitcoin in current and coming years, it is becoming increasingly important to understand and be on the lookout for bitcoin scams that could cost you thousands. As more people become interested in Bitcoin, more people are also likely to try and pull off a scam.
There is no one formula to avoiding being scammed, but reading up on the latest bitcoin red flags, keeping information private, and double checking sources before investing in anything are good standard procedures that may help save you from being duped. Cryptocurrency can be a confusing topic even for the experienced Bitcoin enthusiast, so the more you read up on the world of Bitcoin, the more prepared you can be. After all, knowledge is power.
submitted by PresentType to bitcoinscaminfomore [link] [comments]

I will tell you exactly what is going on here, this is critical information to understand if you are going to make money in this space. How prices work, and what moves them - and it's not money invested/withdrawn.

/edit: Hi /all. While I have your attention, I want to take 5 seconds of your time and bring some exposure to something that is threatening our existence as the human race. If you aren't interested, please skip down to the main article. I'm talking about finding a way to live sustainably on this planet, regenerative agriculture, where we get our food from, and how we can make sure that our kids and grandkids have something left once we leave.
Please consider reading up on Permaculture, sustainable living, Forest gardening, Backyard Chickens, etc. Consider following what I did and do it for yourself. This all used to be a useless lawn.
Bored for a night? Go watch "Sustainable" on Netflix.
Look into people like Geoff Lawton, Mark Shepard, Sepp Holzer, these people are going to save us.
Want to make a small change yourself? Grow a tomato plant on your balcony in a pot. Reduce transport of the tomatoes you eat, and make ~$50 per plant in saved money. Want to do something bigger? Plant a fruit tree in your backyard. Maybe two. Maybe a raspberry bush. You are now part of saving the human race.
If everyone reading this planted a fruit tree, or even some wild flowers, we could save the bees.
While you are at it, planting a fruit tree has been shown to be one of the best investments on the planet. There's pretty much no investment on the planet that is more financially lucrative (while still being nearly bullet-proof safe) than planting a fruit tree.
You can get a tree at an end of sale auction for literally 5-10 bucks, and that tree will produce THOUSANDS of dollars of fruit for you in it's lifetime. Go spend $200 bucks at an end of season sale, plant 10-20 trees (if you have room), and that $200 will be worth tens of thousands of dollars of saved money.
Do it right, set it up right and it's almost no work because you offload the work to nature - as it has done for the last few billion years. Go learn how, let me show you how. If you do it right, it's zero work after you have planted and wood-chipped, and all you do is pull dollars off a tree.
Original post starts below. I apologize for the shilling of Permaculture, but I think loss of topsoil will impact us all if we don't reverse it soon. We need soil, we need bees, we need food. We need to stop buying December Bananas in Canada. We need to start supporting local permaculture sustainable farms. We need to do this or we may not make it, and our grandkids stand no chance.
I also expended the "now what happens" section, to explain how these pullbacks are a good thing, make crypto more stable, and why we keep seeing larger ceilings after every pullback... this stuff is really important for you to make money on this thing, if that's your goal....
I've made a similar post in a few spots, and this is something that is absolutely critical for people to understand... what impacts price, and what is going on lately. Price has only a very minor correlation with money invested, and a major correlation with opinion.
... and Humans are an emotional bunch.
So what drives price of any commodity, crypto, gold, pizzas, whatever? The money invested in it, right? Kind of, but not really. What if I told you that you could theoretically raise bitcoin from $15k to $20k by spending $1, and lower it from $25k to $1k by spending the same $1? Crazy right?
This is going to start out slow, I want to make sure I get everyone on the same page before I pick things up and lift the curtain. Stick with me here....
This is an example to help illustrate why prices aren't driven by money invested, but rather consensus and opinion. Lets imagine the following exists (we will use bitcoin as an example, but this is how everything on the planet works)
Lets say Bitcoin is currently priced at $10k (the last sale). From $11k to $99k, every $1k there is someone with a sell order of 1 full bitcoin. From $9k to $1 dollar, every $1k on the way down there is someone with a buy order of 1 full bitcoin.
So, right now if you wanted to buy bitcoin you have several options... meet the lowest seller's price of $11k, or, put your own buy order up, above the highest buyer's bid order (overcut them). If you decide to just place an order, the price doesn't change. If you decide the buy the $11k bitcoin, now bitcoins value is $11k, with a new lowest sell offer of $12k, and a highest buy bid of $10k. Someone else comes in an overcuts the buy bid and puts 1 BTC for sale for $11k. No trades are made until someone matches a buy/sell.
Okay, that's kindergarten stuff, most people here understand that. So how much money drove the price up in this situation? $11k, and BTC price raised 11/10, 1.10, or 10% from the last sale. Now the entire marketcap of BTC raised 10% (last sale multiplied by circulating supply). So it takes $11k to drive a 10% increase, right? Not at all. Lets look at what happens when news is released.
News comes out that Warren Buffet thinks bitcoin is a scam, a bubble, and he wouldn't touch it with a 10 foot pole because he only invests in things he understands and he doesn't understand crypto. People panic everywhere, and believe "this guy is smart, I'm overvaluing this thing".
Suddenly people don't want to buy this scam anymore, and the buy orders for $11k, $10, and $9k are taken down.
At the same time, the people wanting to sell start to panic and just want out. The guy at $32k (who just had that offer up "just incase it moons") drops down to $11k sell order. The guy at $12k, who was the lowest, now undercuts him to $10k.
The other buyers see the sellers undercutting and think that if these people want out, why am I buying in. The $8k guy pulls his offer, and so do the $7k, $6k and $5k guys. The highest offer is now $4k.
The sellers panic further and the $14k guy undercuts the $10k guy and puts up a $9k sell. The $15k, 17k and 11k guys all see this flurry of panic and now a storm undercutting is triggered, to $8k, $7k, and $6k. The $8k order pulls his again and goes down to $5k.
The price on the buy and sell orders has moved around a ton, but no sales have actually happened yet. Technically, BTC is still "worth" $11k, and the market cap reflects that. All this horseshit has happened, and it only happened in 10 seconds, but the price hasn't moved yet.
The $27k guy wakes up and checks his phone. He had a $27k offer just incase the price moved also, and he also only has a tiny infinitesimal fraction of a BTC. Well, he decides "he's out" and fills $1 worth of the part of the $4k guys buy offer.
The latest price information is now updated, and BTC fell from $11k to $4k price per BTC with the movement of a single dollar.
This is exaggerated example, but this is what moves price. Not money in vs money out. The ONLY THING that moves price is perception.
Now the above example only happens if everyone simultaneously believe the same thing... this the asset they are holding is a steaming turd. What happens in reality is there's no black and white, it's shades of gray. It's flow in vs flow out. But again, not flow MONEY, but rather OPINIONS.
If 66% of the holders of something all of a sudden unanimously decide that their asset is overvalued, then they panic sell. Even if 33% of the people decide they are going to buy up as much as these panic sellers sell, if the panic is strong enough, and they are slitting eachother's throat to sell, then the buyers just happily sit and let them do that, and time their buys in. Very little money has to actually change hands in order for this price to crash, all that matters is the FLOW OF OPINION has to be swift and violent, and in majority. The sellers will leapfrog eachother on the way down, faster than the buyers scoop up their sales, and the net result is a crashed price.
Note, this happens both ways... fear, uncertainty and doubt (FUD) as well as overhyped FOMO (Fear of missing out).
So now what happens?
Time goes by and all holders opinions of their asset hasn't changed. They still think it's worth $11k and they got great deals scooping up what these sellers were selling. The weak hands have left the market and have been replaced with holders. Overall, now a higher percentage of holders believe in the product they are holding and are unwilling to sell for the panic prices of the last week. Panic sellers were also replaced by new money, people who have wanted in for a while and are now in on their perceived ground floor.
Also, people who bought BTC at $1 ten years ago and have been looking for an exit to cash profits have now been replaced by either long term holders, or by these new people who are thrilled to have finally entered, and they are looking to hold long.
So what happens on pullbacks? The number of people waiting to jump off the ship has decreased. The new ground floor is established. Are we done? Who knows, this could go on for another year, but what matters is that people who want off are getting off and people that want on are getting on.
People who have panic sold and never believed in this in the firstplace... people who have wanted out for 10 years... they have been replaced by people who are now getting in on THEIR GROUND FLOOR, and are going to be holding long. The market is suddenly increasingly more stable today than it was yesterday, even though prices are down.
This is a good thing. This is why crypto keeps bouncing back from pullbacks and reaches new higher ceilings and floors each time. Old money who wanted out, and new panic holders, they are gone. They are replaced with adopters, holders, believers in this technology. These people aren't selling anytime soon, because they believe that this thing is going to revolutionize the world. Every crash brings more of these people in, and removes more panic sellers out.
Moving forward
Now news releases start coming out about how stock ETFs are being created, NASDAQ index funds, bank support, government support. Companies are using this tech, and companies who use blockchain for transportation are putting non-blockchain companies out of business.
The people on the outside looking-in feel they are missing out. They now start coming in and buying. They start overpricing eachother on their buy orders, and eventually it gets close enough to a sell order that someone decides they are just going to meet the sell price. The sale goes through.
Sellers (HODLERs) see this action, and they start pulling sell orders off the table almost as fast as they fill. Sure some trades go through, and incoming money is driving the price up as market orders are filled. But what's also happening is people are seeing this flurry of volume, and sellers are pulling sell orders and placing them higher.
Junk coins and pump and dump scam coins are dying by the millions. In their ashes, good solid technology projects whose coins have fundamental economic reasons for growth, these are rising. Corporate partnerships continue forming. The real world continues to create actual use cases. Companies start storing more and more corporate information on blockchain. Public companies use blockchain to store scientific research (See Canadian Research Council announcements), and blockchain acts as a Library of Alexandria. People can travel out of country without any monetary exchange, using their chosen cryptocurrency to buy the things they need abroad. The world is slowly actually USING this technology.
Money is coming in, but more importantly, OPINION IS CHANGING. Literally nothing could have happened in terms of fundamentals, partnerships, etc... this can all be driven entirely emotional, so long as it's wide-spread and strong. Infact, the market could THEORETICALLY rebound in this way from $4000/BTC to $1 MILLION PER BITCOIN by the sale of ONE PENNY. $4000 sound low? Does that number make you uncomfortable? We may go that low. We may not. If we do, I'm not panicking and selling, I'm buying more.
A lot of new money has come in from Nov-Jan, and they don't really know what they are investing in. Sure some of them have done great research and are smart investors but most people aren't and isntead they are buying Symbols and Names and trading on speculation. They are treating their favorite coins like a sports team, and will follow them irrationally off a cliff.
These new people came in and invested in cryptocurrency because their OPINION was heavily influenced in Nov, Dec, Jan, from media. They saw this money making machine called crypto. They were willing to pay huge, ride the wave up, keep buying, etc. They were "ground floor adopters" and were going to get rich.
They outnumber the old money by A LOT. Their OPINION MATTERS. It matters the most.
To keep this in perspective, they are also a VAST MINORITY of "new money" that will enter the game in the next decade. This cycle will continue over and over and over.
Their opinion rose nearly unbounded and price rose accordingly. Market cap rose from 10B to 750B, and it could have been VERY LITTLE actual money that did this. How much did it need to be though? Literally ONE PENNY, theoretically. All that matters in moving price is MOMENTUM OF OPINION. I believe it has been estimated that as low as 6B USD was responsible for the bull rush.
These people then started hearing "Bubble", "Scam", Fake news about governments banning. They don't understand how technology wins, always. Crypto is beyond government control. If they could have stopped Bitcoin they would have done it already.
Most investment opportunities go first to "accredited investors". You need to have multimillions in order to get in on the ground floor for most stock IPOs, and we're seeing that start to happen with coin ICOs. Bitcoin was a joke for the first few years, while lunatics picked it up. At this point, it was really too late to get in "early", and who would have wanted to anyways, it was all still a joke. So Wallstreet, banks, governments have generally watched on the sidelines as average Joes who were crazy enough to be early adopters and toss $100 on fake internet money slowly became millionaires.
Not only that, but the idea of blockchain started to become understood. The power and value in it became understood. Not only as a way to track "monetary value" but for many other applications as well. Platforms were created, business uses brainstormed, products started being made. This thing started taking off, and wasn't a joke anymore. But regardless, big money wasn't in on the ground floor. They have stakeholders opinions to think of, and what do they say to investors when they lose all their money on magic internet points?
But they have woken up now. This thing has "popped" many times now and keeps recovering. This thing won't die. could they have been wrong all along? If they want in, how do they get in? They are no dummies, they have been controlling the world their whole lives? Look at the media experiment that Trump is doing? He is testing just how we work... you can do literally anything and we remember it for like 30 seconds, until the next news story comes out. We change opinions very easily. We are swayed very easily. We are their puppets. Media controls the world. They know their way in.
They have ONE WEAPON against cryptocurrency.
And they know it.
That's why FUD is so powerful and needs to be respected. It's why we need to read more than titles on news articles. We need to question what we read, whether it's good news or bad news. We need to think about "what are the motives of the person saying this to me". Does the government have a conflict of interest when they state that crypto is gambling? Do they have skin in the game?
What about wall street? Does WEISS ratings possibly have incentive to come out with poor ratings? Do banks have incentive to lock accounts in order to "protect" customers from "unsafe investments" when their entire business model revolves around holding as much of your money as possible and making money off it? Do you think banks have any super secret hidden interest in preventing you from storing your money elsewhere? I'm not sure, maybe you can critically think about that.
Just understand that this goes both ways. When crypto is booming and Fox news is showing people how to buy $4 ripple on prime time, you may want to start putting in some stop loss orders. When the suicide hotline is stickied at the top of /cryptocurrency and everyone is panic selling, you may want to start picking up some firesale deals.
So, the question is this... Is crypto undervalued or overvalued at it's price today? Where is the price going long term? I'm not talking about it's use case, I'm talking about in the court of public opinion, where is THAT going? Because THAT is what is going to drive price in the future.
Without a crystal ball, this is of course impossible to know. Do your own research and form your own opinion. It could very well be that the technology having a use-case will in and of itself drive opinion, and thus price. But make sure you understand that it's not the technology itself, it's not the value of the business itself, it's not the use case itself that will drive price, it is the publics OPINION of that thing which drives price. They are intertwined, but they are NOT the same thing.
TLDR: VERY VERY little money has to move around in order to swing prices drastically, up or down. Money in and out doesn't drive price, OPINION does. How do you let the news you read impact your opinion?How are you being played (on both sides, shilling and FUD).
Something is only worth what people think it's worth. Often that's based on reality, value, business, money, but often it's entirely emotional.
Structure your portfolio in a balance, intelligent way, using risk methodology.. Invest money you are willing to lose. Support legitimate technology and teams who are actively driving their product to completion, coding, and marketing. Stop trying to make money overnight in pump and dump scams, or pyramid schemes.
Every day, take one coin, do a deep dive on it, learn it inside and out. Look into their team and their past. Do that every day for a year, and you just learned 365 coins inside and out. Ask yourself the following key questions:
Have those members consistently jumped ship on previous projects? Is that where you want to invest in? Is their team capable of executing on their vision? Are they trying to solve world hunger, and their team is a few 16 year olds in a garage? How active is their github? Are they adding chunks of code regularly, or is a ghost town? Are they marketing their product at all? Or is marketing the only thing they are doing?
What are the economics of their coin itself? Is it required to be used to gain access to their technology? Are there burns? How premined is it, and what portion do the founders hold?
What about their vision? Are they trying to solve a problem that needs to be solved? What are the economics of that problem and how much money does the solution potentially save clients?
These are all questions you should be asking when you give your money to someone else. We're a lot more stable than we were - a correction was bound to happen. Too much early money wanted to cash in profits. These people have been replaced by new money who is holding on their own ground floor. The whole industry in general is still in very early stages. Rest assured that anyone reading this is still very much an early adopter. Just make sure you are investing in actual technology, and supporting capable teams, and not buying air. Buy the Googles and Amazons of Crypto, not the pets.com or flooz.com of cryptos.
Happy investing everyone.
/EDIT: some have asked to donate some crypto. Do me a favour instead, sub to my YouTube channel (link at top) watch my videos how to get started properly, and plant your own trees and establish food sovereignty for your family and your community, and help save the bees, save our topsoil, and sequester carbon to reverse global warming. My goal is to get a gardener back into every home on the planet. THAT is how we heal this world.
submitted by Suuperdad to CryptoCurrency [link] [comments]

Can Bitcoin replace the US Dollar ?

Hear me out , hope I'm not wasting anyone's time. I'm a Bitcoin FANATIC and I love everything about it but I do have concerns. Everywhere i turn i read someone's posts about BITCOIN replacing the US dollar and the US dollar will be worthless soon. BITCOIN Bulls are not HODLing they're pumping and dumping for more USD For now. I've owned fast food restaurants in Detroit all my life and I've seen the change in cash flow to where more then half of my sales are now being paid with credit and debit cards more so then cash. I do believe governments are aiming for a cashless society and I do believe paper cash will not exist within the next 20 to 50 years. But Can BITCOIN replace the US dollar ? I do believe it's a great store of value and the greatest investment of the century. Only doubts I have sometimes is do we true americans want something that's called a Satoshi to replace the dollar or penny etc ? To me it doesn't sound right. America will never let that happen. As for now I can't see anyone who holds less then 1 full bitcoin trying to spend it anywhere because of the price and scarcity of Bitcoin. It's like everyone is HODLing until Bitcoin hits 100 million dollars or something and there little 0.01 Bitcoin is worth 1 million dollars and who knows when this will happen and by then maybe , just maybe Bitcoin will be accepted in every business worldwide along with USD. This is My opinion what's yours ? Salute
submitted by LegendzEnt to Bitcoin [link] [comments]

All cryptocurrency slang you need to know to swim in the crypto ocean

Financial markets have long acquired their own slang, however, the rapid growth in the popularity of cryptocurrencies and the development of cryptocurrency exchanges have led many “orthodox” traders, trying to trade in digital assets, sometimes do not understand what is being said.
To correct this situation, we have prepared for you a dictionary of the most common slang expressions and terms that are in use on cryptocurrency exchanges. What all these words mean, find out below.
Crypts, crypts – the common slang name for cryptocurrencies; BTC – a short name for bitcoin; Fiat – from the expression “fiat currency”, and not the brand of car. Used to name traditional currencies (dollars, euros, etc.); Satoshi – the parts into which bitcoin is divided, a kind of “bitcoin-penny”. In one bitcoin 10 million Satoshi; Altcoin, alt – from the expression “alternative coin (coin)”. Applies to all cryptocurrencies except Bitcoin; Fork is a cryptocurrency that appeared as a result of a “branch” from another cryptocurrency using the same program code. Bitcoin, for example, has several forks: bitcoin cache, bitcoin gold, etc. Crane – a site that pays a small fee in cryptocurrency for performing simple tasks; Transaction, Transa – transfer of funds between wallets; Manichold – from the English. “Money” and “hold”, partial or complete restriction of the ability to deposit or withdraw funds on a crypto exchange; Pump – artificial injection of volumes of purchase transactions in order to cause a sharp increase in the cryptocurrency rate; Dump – the collapse of the cryptocurrency rate, soared as a result of the dump, caused by sales. ICO – from the English. Initial coin offering It is an analogue of an IPO in the stock market. The emergence of a new cryptocurrency on the exchange. A token is an analogue of shares for cryptocurrencies, before their ICO. Crowdsale is the initial purchase of tokens of a new cryptocurrency before it goes to the ICO. We hope that our slang dictionary for cryptocurrency traders will be useful to you. If you know other slang words, please write about this in the comments to the article, we will definitely add them.
submitted by BitFinst to u/BitFinst [link] [comments]

Why is everyone convinced '99%' of altcoins are going to die?

I keep seeing a recurring theme on this board and other groups, websites, etc.
There's this idea that a day of reckoning is coming to wipe out altcoins by the boatload. What is the rationale for such thought? Especially in a market/space that is indeed in it's infancy in the grand scheme of things? We know that blockchain IS the future, even the biggest bears in the space acknowledge the importance of the technology itself. Sure, the random coins trying to be just a currency or the next bitcoin, are shit. But there are SO MANY projects catering to very specific markets/industries and very specific use-cases. (I own the following, for full disclosure) - Enigma for privacy smart contracts via TEE/MPC, Gifto for virtual gifting ($30 billion market, very big audience/market in Asia with the most pro-crypto nations), Neblio for business/enterprise integration, SpankChain for the porn/cam industry ($100 billion market). The list goes on, and on, and on. If blockchain is the future, and countless projects have their own specific use for actual spaces, why the negativity?
Penny stocks have been widely regarded as scams and money pits. Everything from 'shit' to 'trash', pump and dump scams, a guaranteed loss, etc. etc. Television, movies, advisors, financial resources, etc. have been warning the public against penny stocks for literally decades now and yet, they still see tens of billions of capital per year (some estimates as high as half a trillion dollars per year).
This is behavioral economics, retail fomo, and human nature's greed of swinging for the fences. I just don't see any reason for confidence that altcoins are going to "die" or "get wiped out" anytime in the foreseeable future. I'm not telling people to go load up on random alts and micro caps, but if penny stocks are still thriving for decades, how are alts going to die in the infancy of the crypto market?
submitted by PhillyCrypto to CryptoCurrency [link] [comments]

Everyone is missing the bigger picture

You see day in and day out all of this reddit users which might aswell be bots or a group of people tricking you. Stick to your guts and your research that’s why you invested in cardano in the first place. Not because of the twitter announcement or useless hype. You invested in a project with a real professional approach, great minds behind it and a clear vision. The crypto space is full of pumps and dumps that won’t last 1 year before they get destroyed/abandoned or a letter from authorities yet you want every real project in crypto to follow does footsteps. People are too focused chasing moon coins that get P&D while bitcoin,ethereum,cardano and a handful of other cryptos are actually on their way to becoming a global benchmark get bashed and humiliated on reddit and twitter daily probably by the same people accumulating them. Good job you have sold your future for pennies to them. Whenever the time comes cardano can actually hype and show the world what it can do it wont be a copy of ethereum pr bitcoin like every crypto in existence it will be it’s own entity with it’s unique structure and it won’t be worth 0.03-0.10$ anymore yet you all are happy with a mere announcement in the hopes of 20-50% pump?
submitted by luckybat to cardano [link] [comments]

The "Squire Mining" penny stock company promoted by Coingeek could be a nChain pump & dump scam. Here's the evidence...

"Squire Mining" is a penny stock company, with no revenues. In most years, it had operating expenses around $10,000 - $150,000.
For many years, "Squire Mining" listed its business as literally mining for physical metals & minerals, like copper, gold, tungsten, etc.
Then in August 2018, "Squire Mining" suddenly changed its listed business to say that it's now involved with mining Bitcoin & blockchain applications with ASIC chips.
Wow, what a change. From using shovels to mine for metals & minerals, to using ASIC chips to mine for Bitcoin.
Two months later (October 2018), Coingeek is promoting "Squire Mining", which claims that they now have an ASIC miner prototype, that is faster & more efficient than most commonly used crypto miners on the market, and they will deliver them to Coingeek in 2019.
"Squire Mining" also announced that Stefan Matthews is both the Chairman of nChain and director of Squire.
As homopit noted in the comments, Squire's ASIC design apparently comes from "Aracore"
And the aracore.io website is shady as hell.
And the "About" page has blatant stock photos for team members..
At this point, the penny stock company "Squire Mining" looks like a nChain shell company, acquired through reverse merger.
And it could easily be a pump & dump scam, designed to capture the media hype around "blockchain, Bitcoin, ASICs".
Which wouldn't be surprising, given that nChain's Chief Scientist Craig Wright ("Fake Satoshi") is a known fraudster.
submitted by normal_rc to btc [link] [comments]

A Lost Gem In A Sea Of Shitcoins

What’s up everyone!
Yeah, it’s another one of “those”. But honestly, after being in the game for long enough, you end up developing an eye for the good coins. Not the “good” ones, the GOOD ones. Believe it or not, research and common sense is the name of the game!
A little bit more about me: I come from a business & logistics management background. I started investing in cryptocurrencies and trading a little more than six months ago. As a person, I am very detail oriented and I’ve been researching all kinds of cryptos, for hours a day, for the past six months. The more I researched, the more I learned, the more I became hungry for knowledge, and therefore the more i researched. From trading to cryptocurrency basics, their economics, their political implications, the technology revolution they represent, the human psychology aspect as well as emotional trading behaviours (FOMO, FODO, etc.), all of it!
I’ve purchased Ethereum at 150$ (when I first started in crypto). Then NEO back when it was still AntShares and trading under 3$. Gas (Antcoin back then) at 30c, OMG when it was sub-1$, and ETP at exactly a dollar (selling it later at 5$). This was all before I even knew how to do a basic margin trade & was still in the process of learning about crypto (and while tether still had a “reasonable” market cap! LOL)
My approach is pretty simple when it comes to crypto. I split coins into seven main categories:
-Store of Value (BTC)
-Payment (DASH, BCH, LTC)
-Pure Anonymity and/or Evil Stuff (XMR)
-Platform/platform’ish (ETH, NEO, LISK, CARDANO, ETP, Iota, Factom and the likes)
-Shitcoins (99% of ERC20 tokens)
-Absolute Shitcoins (Boolberry, Embercoin et al.)
-Fee Split / Dividend Coins
That last category is my favorite. While I do strongly believe in diversification (10% store of value, 10% payment, 5% anonymity, 25% platform in my case), I always have a “lean” towards coins that make business sense. Coins that derive their value directly from the amount of usage the platform gets (Factom, for example). Coins such as NEO, BNB, Kucoin, Coss, ICN, TenX and the likes, basically coins that either have a direct “dividend-paying” property (NEO generating gas, Kucoin/Coss awarding holders with a % of the exchange’s trading fees) or an indirect “dividend paying” property such as BNB, ICN, TenX using quarterly profits to buy back their own coins and burn them, thus raising the value of the rest of the coins in circulation over time.
Now let’s look at market caps of these direct and indirect “dividend” coins.
Neo: 2.3B
TenX: 246M
Binance: 200M
Iconomi: 155M
Kucoin: 44M (68M at ath, not too long ago)
Coss: 5M
You see that odd one there with only 5M market cap? Yeah. That’s the great buy right now. That’s the x10, x20 or even x30 that most people haven’t realized yet. That’s also the “dividend coin” you can scoop a ton of while it’s on the cheap, and make massive recurring revenue from as the exchange solidifies and evolves.
What is COSS? COSS stands for Crypto One Stop Solution. They’re a Singapore based cryptocurrency exchange with an amazing team that’s currently expanding. They aim at becoming the “One Stop” solution for crypto, meaning A) an exchange, B) a payment gateway for merchants to accept crypto payments, and probably sometime in the future C) crypto debit/credit cards. They offer their own coin (COSS coin), and holders of this coin receive 50% of the trading fees generated by the exchange (more on this later).
Now, what a lot of people still don’t realize in crypto, you don’t invest in the bigger market cap coins expecting to make a killing (“the moonshot”). Sure, they’ll bring you nice long term growth as the whole market matures, and that’s where you want to diversify and solidify your portfolio, solid coins with a purpose. But what if you want more thrill? An actual opportunity to “moon”? You find a project that makes business sense, that has at least a working product, and a good team. Buying NEO at 2.5B market cap? You missed the boat, it was a dollar a few months ago and already went x60 (“mooned”), and now stabilized at roughly x38. OMG had it’s x10-15 already. BNB as well. Their market caps are big, and a lot of buying needs to happen to even double in price.
Antshares (NEO) back then was a steal at 1, 2 and 3$. It was a huge risk, with huge rewards. They didn’t even have a product other than their blockchain. No dApp running or even being built on it, no english resources to even figure out how to code on it and deploy a smart contract, no marketing, hell we didn’t even know if Da Hongfei was still alive. All it was is a Chinese based smart contract platform, with an innovative dBFT concensus algorithm. It was a 100M market cap coin that early adopters believed in, and essentially invested in when it was not much more than a website and a blockchain. Look where it’s at now, with more than a dozen dApps being built on it, a solid team of roughly 10 devs, with the NEO council also funding City of Zion (team of 20+ NEO devs). NEO has grown into an incredible community, and is now launching coding dApp contests left and right, with the latest one in partnership with Microsoft china & offering half a million dollar’s worth in prizes.
NEO holders get rewarded with GAS on a daily basis. When NEO gets further adoption, all fees such as registering an asset, deploying a contract, changing an asset, etc. will be redistributed to NEO holders as well on a pro rated basis. Only transaction fees are not, as those will go out to MasterNodes. If you got yourself a thousand NEO’s back when they were a dollar or two a piece, you’re now generating 7 gas per month. That’s roughly 161$ USD per month, on a recurring basis, at current gas prices, out of a 1000$ investment. That’s a whopping 16.1% PER MONTH on original investment, and not even counting the fact that you pretty much made 37000$ profit on the NEO’s themselves. Today? Well, you gotta dish out 38000$ to buy a thousand neos and make 161$ per month, basically bringing you 0.4% per month on original investment.
Same with bitcoin. Early adopters that got it at pennies. It just hit $10K USD a piece. For every 30 cent spent purchasing bitcoin in 2009, you’d have $10K USD in the bank account. Invested 3$? 100K. Invested 30$? 1M.
Ethereum? From a dollar to half a grand now.
Moral of the story? Early adoption pays off. History repeats itself, and it will continue to do so. Bitcoin was digital money for nerds, ethereum was a cool project that nobody really gave a crap about until they got EEA which showed credibility (early adopters of eth had a great vision, I’ll give them that!). Neo was chinese vaporware. What do they all have in common? Their.Early. Adopters. Made. A. Killing.
Look where they stand now. Look where a lot of coins stand now. Even a lot of ERC20 tokens that don’t even really have a reason to exist have market caps over 100M. And for what? They don’t reward you with anything other than price increasing because more people buy (greater fool theory)? They don’t reward you with dividends from the project/platform itself? Their value isn’t derived directly from the amount of usage it gets (a la Factom, PaulSnow you genius.)? They still don’t even have a minimum viable product to show? When you ask yourself why does it need a coin, and the answer is either “uhh…” or “oh it grants you voting rights” (that nobody gives a crap about, let’s be honest), you should reconsider your investment strategy. Cause I can tell you a lot of people don’t know what the hell they’re doing, and they’d be better off diversifying in the top 5 or 10 coins and holding than investing in the shitcoinfest that crypto has become.
And that’s why COSS is a pretty buy right now. You’re investing in a platform that’s already up and running, not a whitepaper or vaporware. Hell even Eth and Neo were riskier investments for early adopters. Let’s go over the cons first:
It’s ugly. The UI sucks.
It doesn’t have API’s yet, meaning there’s no bots to create liquidity, and therefore low volume.
It’s been fudded to death by KuCoin shills (and their referral links you’ve seen everywhere a month ago).
Charts are horrible
That’s about it. Whenever you read up about coss, those are the cons you’ll find. But what about the pros? Well, all of this is in the process of being fixed, as we speak.
Singapore has lax laws about cryptocurrencies and issued a statement it does not feel the need to regulate them.
It’s securing exclusive ICO’s already despite being a tiny exchange, and has mentioned being able to secure from 4 to 6 per month.
The team listens to the community’s feedback and takes it seriously. This is Gold. One of the first things they were criticized about was trying to do too many things at once (an exchange, a payment gateway, a full one-stop solution for crypto, etc.) and they’ve taken the community’s advice and decided to focus solely on the exchange for now and build it properly, before branching out to the rest. “Better excel at one thing and build from there, than be mediocre at multiple things at once”
Also following community feedback, they are implementing trading promotions “a la Binance”.
Part of the total supply of COSS tokens will be donated to charities (the community votes to who they go). First of all, that’s just plain nice. Secondly, I find it pretty damn cool that we donate this for good causes, and they basically keep “generating” income from it. It’s basically like a “perpetual donation” on behalf of COSS and all of its users, and definitely will make a lot of people feel good about using the exchange. Thirdly, this pretty much guarantees millions of COSS tokens are going to be in perpetual “HODL” mode, essentially taking them off the market.
They will be implementing a FIAT gateway sooner than later. We all know FIAT gateways are game changers.
They are constantly hiring. The team growing is definitely a good sign.
They are revamping the overall UI and charts, once again following the community’s advice, and the proposed new look is fantastic! Check it out here, as well as other great announcements: https://medium.com/@runeevensen/coss-io-7379b7628d93 EDIT: It has been brought to my attention that there is a UI upgrade scheduled for tomorrow (Dec. 3rd), although it isn't clear if it's a minor one or the actual major overhaul, might wanna keep an eye out on that!
They are upgrading the matching engine and releasing API’s soon to allow bots to create liquidity and significantly raise the trading volume.
Unlike KuCoin, the revenue split (COSS token holders) will always receive 50% of the fees, whereas kucoin will start decreasing it in 4-6months and it will bottom out at 10-15%
The revenue split from trading fees is controlled by a DAO, meaning the COSS team cannot arbitrarily decide to change it later down the line, unlike KuCoin where the control over the fee split is centralized and they decrease it as they please.
The DAO model also avoids it being labeled a security. First of all, those aren’t really “dividends” as dividends would require them to calculate income minus expenses to determine profit, and then distribute this profit to shareholders, and obviously that’s a legal nightmare. With the DAO model, you don’t get a percentage of the “profits”, you get a revenue split from the exchange fees, and it’s done by clicking a “distribute” button which makes a call to the smart contract and distributes your coins. COSS itself is not giving you anything
COSS is still in Beta. It has a tiny market cap. Now’s the time to pick it up, not when it’s out of beta and has become successful, or you’ll be in another Antshares/NEO situation. A ridiculously small move from 5M to 50M in Mcap and that’s x10, a move from 5M to 150M (still under binance levels) and that’s x30.
In the long run, COSS aims to be more than just an exchange. Holders of the token, who currently get 50% of the exchange’s trading fees, will also get 50% of other fees charged from coss. This includes their eventual payment gateway. Merchants around the world wishing to accept crypto payments will be able to use COSS’s gateway and COSS will charge a 0.75% fee per transaction. We, as COSS holders, also get 50% of that. You believe crypto is the future and going mainstream? Well your COSS will entitle you to the revenue generated by tens of thousands, if not hundreds of thousands of businesses accepting crypto payments via COSS Point-Of-Sale.
COSS also mentioned that all other COSS “fee generating” products to come will all be subject to the same DAO/50% split. Logically, If they have 1) The trading platform, and 2) the payment gateway, then the third step is solving the problem of spending the crypto in places that don’t accept direct crypto payment, AKA a crypto credit/debit card. Well, guess what? Users of such cards will be charged a small fee as well when their crypto is being converted to fiat in real time for payment at a gas station. We as COSS holders are, again, getting 50% of that fee. As you can see, this is a coin that makes business sense to invest in. Unless you really, reaaaaaally care about a coin being the “Future of decentralized prediction markets” or “the future of decentralized dating” or the “decentralized gambling coin” and whatnot.
Smart money is smart. It's only a matter of time before savvy investors discover this coin.
What do the dividends look like (credits to lickmypussy28):
Here’s an excel showing the Yearly %ROI based on the COSS exchange volume and your COSS token buy-in price: https://i.imgur.com/XKjjCbZ.png
Here’s another one showing how much you’d make in USD per year based on how many COSS tokens you own, again all relative to the volume on the left: https://i.imgur.com/p15DKAr.png
Lastly, here’s another showing the exact same as above but on a weekly basis: https://i.imgur.com/ezp5FCV.png
ALTHOUGH, keep in mind, the calculations above take into consideration an average trading fee of 0.2% and while this fee is accurate right now, it will most likely average 0.1% once API’s are released and liquidity/market maker bots start operating on the platform. Also, the calculations above do NOT take into consideration that in 4 years from now, there will be 200M (hard cap) COSS tokens on the market. HOWEVER, these calculations also do not take into consideration that by then, COSS will have a fully up and running payment gateway, crypto credit cards, and other revenue-generating products such as a crowdfunding platform, smart contract deployment platform, etc. that are also generating revenue for COSS holders.
All in all, if all goes as planned, the payment gateway/cards/other products will negate the additional COSS tokens released in the market as well as the average trading fee of 0.1%, and therefore the numbers presented in the excel docs will remain sensibly the same. Also, if crypto really takes off in the mainstream, then the revenue split to coss holders from the payment gateway & credit card spending could very well double, triple or quadruple all the numbers you’re seeing in these excel sheets, and that’s on the low end. Remember, the exchange only charges 0.2% (0.1% average once we have bots) out of which we get half, but the payment gateway on the other hand charges a flat 0.75% (7.5x the what the exchange’s fee), out of which COSS holders get half. This could be a massive revenue driver, easily surpassing the exchange itself, and honestly if at that point in time this coin is NOT valued at 3B+ (I mean, even ethereum classic is over that right now..), then I’ll just give up on the whole notion of logical thinking.
Quick example, assuming in 4 years 50M in gateway processing daily (18B yearly), 0.375% of that would be 187.5K USD daily for COSS holders. With 200M Coss tokens total supply, if you hold 10K coss you’d generate 9.375$ per day (65$ per week, 282$/mo.), and that’s purely from the gateway (totally excluding the exchange revenue, crowdfunding revenue, credit card revenue, etc.).
If you have 100K coss you’d generate 93.7$/day, 650$/week, 2820$/mo, again purely from the gateway.
If you’d rather assume more conservative figures (let’s say 25M in daily gateway processing on COSS, all around the globe, or 9B yearly), then simply divide these figures by half. If you wanna go balls to the walls, double them (100M daily, 36B yearly). Play around, have fun with the numbers! To keep things in perspective, square has processed 50B’s worth of transactions in 2016. Therefore I believe using 9B, 18B and 36B for our calculations isn’t too far fetched, and actually pretty reasonable.
Anyway, to sum this up, no matter how you look at it, COSS is an extremely promising project with huge potential, and actually has working math (and a working beta!) behind it. It’s only a matter of a month or two before they’re out of their Beta, have upgrades to their UI and engine, and start really growing from there. The team listens to the community, which is super important, and they’re working on a multitude of revenue streams, out of which not only them, but all coss holders will benefit from, fifty fifty.
Their crowdfunding platform will be a competitor to indiegogo, gofundme, kickstarter, and they’ll have a small percentage fee (50% of which goes to COSS holders). The crypto Point-Of-Sale will be a competitor to Square and the likes (50% revenue to COSS holders). The crypto credit card (also 50% revenue to COSS holders). It is truely an admirable project. Shovel manufacturers made a killing during the gold rush, and COSS is positioning itself as the shovel manufacturer in the crypto adoption gold rush. This is a coin that makes sense to invest in, it is ultra tangible, and will give greater returns than any type of “decentralized [insert function here]” type coins.
On a personal note: Honestly, I believe this is the proper way to ICO, by NOT giving people worthless tokens that only go up in value due to speculation (looking at you, 99% of ERC20 tokens). Let investors guide you, let them reap 50% of the rewards as THEY are the ones funding you. This’ll keep the investors interested in the project, and every single one of them will have a direct incentive to vouch for your product. It’s only right for the investors to get rewarded with something tangible, I’d take that any day over a speculative shitcoin who’s only purpose was to put money in the project’s founders pockets
Oh, and cherry on the sundae: they are planning on launching massive marketing campaigns as soon as UI and trading engine are ready, Q1 2018, as you can see in Rune’s Nov 27th update. I suggest you read it, it puts us up to date on a lot of exciting new things: https://medium.com/@runeevensen/coss-io-update-november-27th-fa74f12