[Cryptography] Altcoin volume

[James A. Donald]

On 2017-09-25 14:13, iang wrote:
> Ha!  Putting biased corporate hat on:  Building, building, building.
> Alpha-grade testnet is supposed to be happening as we speak.  Devs are
> being brought in.  Much conference.
>
> For those who don't follow:  EOS has a novel coin distribution strategy
> that was designed to mimic mining and to eliminate the pump and dump:
> with a 1 year broad distribution using daily auctions. This won't be
> complete until mid next year, at which point the tokens will be switched
> off, the community will start up its chain, and the real EOS tokens will
> be enabled.

But EOS is not working just yet.  Their tokens are trading on the 
ethernet block chain.

EOS wants to get a rather large pile of ether before their 
cryptocurrency actually works or can do anything useful.

EOS is planned to be a proof of stake currency - but the tokens trading 
on ethereum have no voting power, and are not promised to have any 
voting power, so the EOS organization can simply blow off all investors. 
  Which looks mighty like a scam.

If EOS was actually working a proof of stake currency, then buying these 
coins would be somewhat similar to buying shares in the EOS project.

The way it should work is that an angel investor funds development to 
the point where he actually has a working proof of stake blockchain, 
then issues stake to himself, and to people working on the project, and 
to people promoting the use of the crypto coins, and proceeds to sell 
some of his stake to first round investors.  That would be a genuine 
initial coin offering. But this is not what EOS is doing.  All it has is 
a white paper.  If you buy into the EOS ICO, you are paying a mighty 
large amount of money for a white paper.


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