Another ERC-20 token. But this one is actually trying to do good.
After the 2017 mania and the subsequent 2018 ‘altpocalypse’ you will not blame us for being quite fed up with the idea of yet another alt-coin. We comfortably checked out of the process of analyzing new coins and tokens since it became clear that most coins are nothing more than refined pump and dumps, thriving on announcements of announcements and exaggerated partnerships.
Today, however, we will briefly brush over the release of a new ERC-20 token. There isn’t that much to say about the token, so our focus will be more upon the team that actually partnered up with this sympathetic initiative.
From Wall Street to Charity
The story starts with a UK-based trader. Working as a ‘quant’ at a high frequency market maker in index and stock options, Jay was obviously interested in highly volatile markets.
“In the end, if you trade options, especially as a market maker, you don’t care about the direction of the underlying. You just want it to move a lot. Up or down, it does not matter. The more volatility in the market, the more chance you will have to make money on the spread. Which in the end is the core business of a market maker. Another thing you want is two directional trading. Otherwise you have to risk of getting pushed into a big position.”
Jay continued to explain the principles behind option market making and the growing role of quants that make fully automated trading systems. I decided to release this part of the conversation in another publication since I want to focus on his experience in Bitcoin and other Cryptocurrencies, but at this point in the interview it became clear that Jay had tons of experience in traditional markets, but was still open for new and upcoming phenomena like Bitcoin. To my surprise he comes up with a quite clear analysis of the current state of ‘cryptosphere’:
“Look at what people are building with Ethereum. Or the creation of Dexes. Or take a look at what ChainLink is trying to accomplish. That is some big brains, advancing the world by thinking multiple steps ahead of the current tech giants.
That is the other part of this industry. One that actually gets too little attention. The most famous names for outsiders are the exchanges, the scammers and the promoters. And yes it is logically those exist as well. Some smart people put of all their effort in capitalizing on the hype. The BitMEX guys are really clever. It didn’t really contribute a lot to the whole environment, but they are smart and made a pretty solid money machine. I’ve met 2 of the guys behind BitMEX before they started and those guys are very sharp. Their success is well deserved.
That is more or less the choice you have now if you are smart and you want to do something with blockchain and cryptocurrencies: put it to use to advance the world or use it to increase your own bankaccount. Of course the two are not mutually exclusive, but I see that it’s quite a clear division between most industry players. I see idealists as Erik Voorhees, Vitalik and Sergey Nazarov. And I see smart sharks like Arthur Hayes, Brad Garlinghouse and CZ. I don’t condemn it. It just is. In the end, even their contributions will at the very least help the market mature.
I made money in crypto in a few different ways. First I just had stellar returns by buying all flavors of shitcoins, like a lot of us did. I remember DRGN, DBC, Jibrel and XRP multiplying my money more than tenfold each. And I sold in time. Skill? Absolutely not. Just pure dumb luck. And of course a little bit of cajones to even buy those coins. This is how I made a comfortable stack. Later I moved to arbitrage trading by building a python framework that would allow me to buy and sell on different exchanges if the difference in price was significant. This was fun to do and also improved my programming skills. Pretty low risk as well, except for the times an exchange gave difficulties withdrawing. It is mainly counterparty risk you have.
But in the end the feeling is the same, you are not contributing to the ecosystem and the only ideal you serve is increasing your bank account. That’s when I decided to go on until a certain amount of money and then quit. I passed the threshold last year and then stopped.
After spending a part of my profits on improving the life of some people very close to me, I felt an urge to do something for the betterment of the world. I donated some money and I even started my own charity organization. But I soon found out I am not good at running a charity. It is not that easy and there are tons of people who actually do excel at it and have a passion for it. So why do their job, but do it worse?
This is why it immediately clicked with me when I heard about the initiative of JamaiCoin that uses the overflow of money in the system to support charities. Subsequently I decided to support this initiative in name of my firm (gocryp.to).
It takes the dubious thing about this world -the overabundance of money- and uses it for something good. Money is literally flying everywhere in this scene. Look at coins outside the top 20. So much money is going pretty much nowhere. Why not tap into that for a good cause?
So many projects are promising to bring big changes. To revolutionize this-or-that industry or system. But it is all very shaky. YAH doesn’t promise, it actually brings change the moment it trades. But not by its own technology, it just simply funds the people that actually visibly make the world (or in this case Jamaica) a better place.
The token is mainly used for remittance and donations. Every month holders of the JamaiCoin (YAH) are allowed to vote on their favorite charity causes. The winner will receive 10.000 YAH or the USD equivalent of that.
The donation process will be handled by a smart contract, so it might be used as an example as well. Increasing the likeliness of others to follow. The whole project is run by volunteers and completely transparent.”
And with that our conversation more or less completes in terms of cryptocurrencies. Jay tells me a bit more about his biggest trades (in terms of profit and losses) and I can’t help but think he will be back in trading very soon. Even if he says he won’t.