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a_massive_investigation_of_instamines_and_fastmines_for_the_top_alt_coins [2014/07/08 19:46]
whoisthelorax [Maxcoin]
a_massive_investigation_of_instamines_and_fastmines_for_the_top_alt_coins [2018/07/29 01:22] (current)
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 ===Reddcoin=== ===Reddcoin===
 *type of alogrithm: scrypt *type of alogrithm: scrypt
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 *PoW (and PoSV?) *PoW (and PoSV?)
 +A previous edition of this wiki was quite harsh on Reddcoin. The author instinctually checked the blockchain of the coin (not knowing anything about it and noticed the usual premine that is seen in many of the unsavory coins. ​
-This is another worrisome coin with questionable first startsparticularly relevant today as they describe their Proof of Stake Velocity+However, Reddcoin did have a publicly announced IPO (or IPCO) and the premine was actually for investors who fronted BTC, not the developers. The developers could use the BTC to make endorsements,​ advertisements,​ literature, paying programmers (likely some of themselves) while a group of investors shared in owning 5% of the total Reddcoins. ​This is actually a preferred method in comparison to the straight preminewhich lacks the investors and simply takes the coins for the developers at the coin user's expense.
-Using their blockchain data ((https://​altexplorer.net/​block/​9f1f5a21034ef45bf096da7a1ede1d9cc2f6d2e80013781969fc01d8acdcb0e2))one can see that an **appalling 545 million Reddcoins** were created ​in one blockConsidering there are roughly 21 billion ​coins currently todaythis first block represents more than 2% of the currency total as of now.+In addition, the IPOs of coins like NXT and Qora pale in comparison to ReddcoinIn case you weren'​t awareNXT is a coin that is fully Proof of Stake, which means no coins are generated from mining ​in the traditional Proof of Work senseStaking receives money from a block'​s transaction fees, which means the amount of coins in NXT never increases. Thusall the coins that NXT will need were created on the first day. NXT choose to have an IPO via the bitcointalk message board and with very little press or presentation about what they were doing. The IPO ended weeks early. To top it all off, there is evidence to show that the initial investors began to sell their NXT at 50x markup immediately! The coin struck gold by going live just as the November/​December cryptocurrency gold rush of 2013 set in, and NXT vaulted past its absurd markup. Initial investors were able to turn 100 bucks into six figures in under two months
 +Qora is a sort-of-clone of NXT and they also did an IPO. Their IPO followed in the same suit, where investors put up money and the initial sale of the coins on market places shows that the amount they were selling for vastly exceeded what the investors paid for, but not quite to NXT levels. This is suspicious because one usually requires investors to provide capital, and that capital is provided under the assumption of risk. These operations showed hardly any risk and ridiculous gain. Those kinds of characteristics fit the model of scam more than an IPO.
-[[http://​i62.tinypic.com/​a47cd0.png|{{http://i62.tinypic.com/a47cd0.png}}]] ((https://​altexplorer.net/​block/​9f1f5a21034ef45bf096da7a1ede1d9cc2f6d2e80013781969fc01d8acdcb0e2))+Reddcoin, on the other hand, had a perfectly reasonable IPOOne can view the IPO result page in the links provided here ((http://www.reddcoin.com/ipo-result))
 +The IPO closed on February 1st ((http://​www.reddcoin.com/​ipo-result see bottom of page)) and the price of bitcoin was around $825. If we look at the results page, investor ID number 562 donated exactly 1 BTC (unfortunately it does not say when this was sent so we shall use the value of the BTC at the moment of closing). They received 14,445,728 Reddcoin for their investment.
 +When Reddcoin was first tracked at www.coinmarketcap.com,​ It appeared at a price of 5 Satoshi'​s,​ dropped quickly to a price of 3 satoshi'​s,​ spiked up to 12 satoshi'​s,​ and then trended back down towards 5 satoshi'​s until July ((http://​coinmarketcap.com/​currencies/​reddcoin/​)).
-But that's not allFollow the link ((https://​altexplorer.net/​block/​9f1f5a21034ef45bf096da7a1ede1d9cc2f6d2e80013781969fc01d8acdcb0e2)) and click "​next"​ to see the second blockIt'​s ​the same generation amount...another half a billion Reddcoins. This continues all the way to block 10+$825 x .00000005 ​(or 5 satoshi= 0.00004125, this gives us a rough value of one Reddcoin at both Reddcoin'​s ​starting price and initial trending price.
-The math almost hurts to crunch...not for the difficulty but for how much of a scam this is. 545,000,000 x 10= **5.45 billion Reddcoins created in, oh, 75 minutes**.+0.00004125 x 14,445,728 = 595.88628This means that the initial value of the coinsgiven our assumptionswas actually lower than what the investor'​s paid for when they started
-Block 11 returns ​to a "​normal"​ 300,000 Reddcoin ​generation ((https://​altexplorer.net/​block/​72af1ca2fbde85e8db84714f2b795fa707d19227b5b800ba92c6664db350ce93))+Now, we cannot get too specific here because we don't know the value of the 1 BTC sent by investor 562, but we can at least see that Reddcoin is in no way like the scam appearing NXT or Qora IPO. To put it bluntly, those coins seem to be created to get investor rich real quick. Reddcoin certainly is not of that categoryas the investor'​s money was break even or less for months for the Reddcoin ​priceWe can conclude that the IPO was fairly launched, reasonably priced, and well executed.
-Who cares about Proof of Stake Velocity with mining statistics that look like this+A previous edition ​of this wiki also lambasted the developers for "hiding" ​the IPO and IPO resultsThis assertion still stands as one can see that the website update doesn'​t provide a link to the IPO resultshowever the IPO web address still exists...if you can find it((http://www.reddcoin.com/​ipo-result))
- +
-EDITED to add: They call it their "IPCO" ​or Iniital Public Coin Offering...(page conveniently not found anymore). Is it convenient ​that they hide this data on most forms of advertisement and information about the coin? +
- +
-If I were an investor, I would want to know front and center that a coin has a massive "​IPCO"​which is in effect a premineThey don't want you to know that +
- +
-Thankfully, some people have saved the page data over at www.reddcoin.com. When it was important to the developers to acquire some cash/bitcoin, they prominently displayed their "​IPCO"​ on their website, right on the front page.+
 [[http://​i61.tinypic.com/​1410d37.jpg|{{http://​i61.tinypic.com/​1410d37.jpg}}]] ((https://​web.archive.org/​web/​20140208091237/​http://​www.reddcoin.com/​)) [[http://​i61.tinypic.com/​1410d37.jpg|{{http://​i61.tinypic.com/​1410d37.jpg}}]] ((https://​web.archive.org/​web/​20140208091237/​http://​www.reddcoin.com/​))
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 The same website image can be seen on the web archive for March 7th ((https://​web.archive.org/​web/​20140430031654*/​http://​www.reddcoin.com/​)). Yet the next time someone saved this page, April 16th, the IPCO information is nowhere to be seen ((https://​web.archive.org/​web/​20140417022653/​http://​www.reddcoin.com/​)) (a picture doesn'​t do justice as the archived page requires a bit of scrolling...follow the link). The same website image can be seen on the web archive for March 7th ((https://​web.archive.org/​web/​20140430031654*/​http://​www.reddcoin.com/​)). Yet the next time someone saved this page, April 16th, the IPCO information is nowhere to be seen ((https://​web.archive.org/​web/​20140417022653/​http://​www.reddcoin.com/​)) (a picture doesn'​t do justice as the archived page requires a bit of scrolling...follow the link).
-As one can see, the website has been redesigned and rather conveniently, ​the IPO link is nowhere to be found. Oh, don't worryif you know to type in www.reddcoin.com/ipoyou will find the information you need. The apropriate link about the IPO is missing for (at least) two weeks and countingHow long do they not want investors to know? +However, the assertion that the developers are hiding ​the IPO is not completely trueas a link has been provided at the Reddcoin FAQ page ((http://www.reddit.com/r/​reddCoin/​wiki/​faq)).  
 +Reddcoin was still mined quite quicklyand while this wiki is under edit, it is possible it will be moved to a questionable standing once all is said and done. 
-This author has tried clicking every link on their current website to find how to find the original IPCO page without knowing about it in advance. It cannot be found, or at the very least, cannot be found easily. Their frequently asked questions page leads here ((http://​www.reddit.com/​r/​reddCoin/​wiki/​reddcoin)). There is a glowing mention of the IPCO "​results"​ that describes a premine in the best way possible...without mentioning the premine. They pat themselves on the back for having..."​386 investors pledged 168.83470154 BitCoins during ReddCoin’s IPCO. This means $100,000+ USD is financially backing ReddCoin."​ That's great, how to did you get 386 investors to send $100,000 USD worth of bitcoin? Oh, right...the premined coins. That would have been the proper time to inform your investing public about that. 
-Remember, less than 1% of the potential coin using popuation scans, reads, or is a member of the www.bitcointalk.org forums. That is not a legitimate place to keep your vital information. 
-The IPCO "​hidden"​ webpage cleverly describes it as... "​Reddcoin will be a 5% premine..."​ ((http://​www.reddcoin.com/​ipo)). Yet as you can see today, describing the premine percentage from the total number of coins that will be created eventually is misleading. That percentage is closer to 25% right now. 

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