Become the Predator
So you want to be the Predator? You want to be the man who wipes the market of scam-coins? You want to be the first Crypto Raider? Well it’s not going to be as easy as you think, but it’s also a lot easier than it should be. Since it’s never been done before there is a guarantee that this article has flaws. The author by no means believes himself to be an “expert” on the topic. However few others have ever discussed it and there are a lot of factors in need of accounting.
The first thing you must realize about a predator coin is that it must stand on its own two feet. You can’t build a predator coin with the intention of it dying. Even though the explicit purpose of a predator coin is to accelerate the winner takes all aspect of crypto-currency, if it is not designed with a chance of winning, no one will invest in it. The good news is that the current market of scam-coins proves the bar is set very low for creating a crypto-currency that stands on its own.
The secondary consequence of requiring a predator coin to stand on its own two feet is that you can’t market it as a coin that paves the way for Bitcoin. You have to market it as a coin to kill all other coins. Obviously you don’t guarantee anything, but you make that it’s goal. The whitepaper of the predator coin should specifically state it’s intention to hash-war until all other chains using its hash algorithm have died, it is the only coin remaining, or it dies.
One question that needs answered is the question of what is the best hash algorithm for your predator coin? This is of especially great importance for the first predator coin. We are looking for a coin with a lower inflation rate and with many attack vectors. The best option may perhaps be Litecoin because in less than a year it’s inflation rate will drop under 5%, it has Segwit which allows you to utilize the Segwit Selfish Mining attack, and Charlie Lee’s shady history with Coinbase makes for easy propaganda attacks during the mining attack.
When you make your entrance into the world of crypto, you must know you will be hated. You are not Bill Gates, you are not Steve Jobs, you are not Donald Trump, you are not Elon Musk. You are Carl Icahn. You will not make friends, but instead make enemies. If you are not willing to accept the role of the predator you should only work from the shadows. But your message should be clear, you are the young lion looking to kill the old males to take their pride, wives, and territory. You must be loud and let people know exactly what your intentions are. Mark your territory and let the world know who you are.
The goal of Murderous Mining is simply to convince the market that all coins other than your anchor and predator coins are insecure. In order to do this you have to convince the market you are the biggest threat to any blockchain. That way, when they use your chain (or your anchor) they know they are safe. So you have to make a name for yourself. Furthermore, it is always more profitable to achieve your goals without expending any hashpower, so telling people what you are going to do before-hand is beneficial especially if you can get them to change hash algorithms or simply kill the coin through propaganda pressure.
For example, on release day of a Scrypt predator coin you would explicitly call out Charlie Lee (Litecoin’s founder) and tell him you are going to make him your bitch (you could make it more professional, but it needs to be clear you are out for blood). If you’re feeling extra cocky you also call out Brian Armstrong of Coinbase. For the unaware, Charlie Lee was a former employee at Coinbase and there is a lot of speculation that the reason Litecoin was listed on Coinbase so quickly was due to insider connections. Because one of our attacks is the Segwit Selfish mining attack you will use that to target exchanges (more on that below). Obviously at this stage, no one will believe that you can kill their coins, but the point is not to make others believe you, it is to establish your reputation.
Your first target is not Litecoin, your first targets are all the Scrypt coins with less hashpower. Luckily there are many and the price of gaining 51% of these coins is well-under 6 figures (that is hardware and electricity costs according to https://www.crypto51.app/). So you first kill all the lesser Scrypt coins and/or force them to switch hash algorithms. As you kill the Scrypt coins or force them to leave Scrypt you only create more losses for Scrypt miners leaving them two options; go bankrupt or mine the predator coin. Many miners will choose bankruptcy, this is good as our goal is to amass as much hashpower as possible. After they declare bankruptcy their miners will sell very cheaply.
When you finally amass the hashpower to attack Litecoin you Selfish Mine it until you gain the 51% hashpower needed in order to re-route transactions to the wrong addresses without signatures (Segwit Selfish Mining). The moment you re-route transactions to the wrong addresses and without signatures you sue the developers of Litecoin and Coinbase for negligence. If you’ve been advertising this as your plan the whole time then it’s hard to make the case that you as the miner acted nefariously. Furthermore, you do not steal coins from exchanges, you simply hold onto them until you can hand them over to authorities. Theft is not the goal, the goal is to prove the system is broken. So transactions will be re-routed, but never spent (stolen). Again, if you are good at propaganda then you won’t ever need to attack Litecoin, you will just attack the lesser Scrypt coins and then the threat of your hashpower will force exchanges to de-list Litecoin due to vulnerabilities with Segwit. Or Litecoin will switch POW to avoid being de-listed. Either is fine.
At this point each and every Scrypt mining machine mines on your predator coin, or is being sold to you by miners you bankrupted. Again, even if the coins switch hash algorithms, this does not help them. Your goal is hashpower. Once you have gained complete control of one hash algorithm you build another predator coin for the next hash algorithm. As you do this it is likely to cause a massive bear market. This again is good for you because your predator coins are absorbing market share and gaining market confidence all the while the falling price of all coins you mean to destroy makes more miners go bankrupt or switch to mining your predator coins.
The bear is the Crypto Raiders best friend, and the bear’s best friend is the Crypto Raider. Because of this the Crypto Raider will be hated and insulted until he has completed his task. But once the first Crypto Raider has cleared the market of scam-coins he will have given room for Bitcoin and whatever other coins remain to become everything we’ve been promised. The Crypto Raider still won’t be loved, but he will be remembered.