Death of Crowdcoin, long life to Crowdcoin

London, Sept 28th, 2018

Introduction

Crowdcoin community project started early November 2017 as a response to high fraudulent rate in the market of cryptocurrencies. The big mission of Crowdcoin was to create a platform that would enable to increase the trust and checks on newly created ICOs, an entire ecosystem that could inform, train, and allow to safely invest in cryptocurrencies and purchase related services.

The coin was available in the market since 29 November 2017 and the masternode finally activated on 1 December, since the first day the coin was available on the infamous Coinsmarkets. During the same week of launch, the coin also got listed on stocks.exchange after the payment of 0.15BTC.

Then I have personally paid 5 equivalent bitcoins to Cryptopia when the rate of bitcoin was 20K USD. Half of the sum was provided by the auction of the initial masternodes. By surprise, on 28th December, Cryptopia listed Crowdcoin on its own exchange.

Stu, was a well-known sysadmin in masternodes coins, accepted Crowdcoin as a method of payment for his VPS rent service and that have contributed in the initial development of Crowdcoin, suddenly in Jan 2018 disappeared, it was a big loss because he was managing the seed servers for Crowdcoin.

Just to mention it, all the servers needed for Crowdcoin where on my expenses so far for more than a total of 3000 USD paid.

December 2017 was a great month for the world of cryptocurrencies and for Crowdcoin as well. Bitcoin increased and Crowdcoin was also affected by it. The development team of those that claimed to be committed to Crowdcoin were increasing until we reached a number of 30 contributors but only 4 of them were on the product development team.

Everything was doing great in my perspective as we were giving the previous price record for 20 days in a row. Then suddenly the reality became clear and was not until the mid-January 2018 that I finally understood that majority of those subscribed in our channel have had big expectations, thrilled by the announcement of social media advertisers that were not affiliated to our project.

At that point in time, I realized that the majority of people listed as our contributors were providing poor quality work or were only there to grasp the news in advance before the majority to trade with profit on that info.

It was a big realization and hassle to overcome at that point in time.

Then the Coinsmarkets scam happened. They disappeared with all the funds of our users. Flooding the market with all the stolen coins and dropping the price of Crowdcoin. Meanwhile, few of the community of more active contributors started disappearing reducing the list until it was just me, Metalmilitia, Ravec, CryptoFacto and Alberto and the project manager, with the work of Chris on the Whitepaper.

The Whitepaper itself it has been a 3-month task because every line has had to be perfected from marketing and legal perspective with a regulation that was changing daily.

Then we rearranged the resources with the project manager, but we have had problems with him because he was trying to manage his daily job and work with Crowdcoin as well.

The work relation with the PM resolved with him moving out of the project because I spent the majority of my 20+ hours time explaining and teaching him all the time regarding technology and giving him all the task assigned.

As a result, he had not even spoken to the team and ended up with me talking to the rest of the team that he was supposed to be managing.

Then the leaving was unfortunate because I paid 3000 USD equivalent in cryptocurrencies for the work that he was supposed to have done.

Since Jan until March, I have had to vet and evaluate the potential deal with Amon which He refused because I found out that they were generating more tokens than what they were claiming on their site.

Then we have had a trial with Alberto on tech side teaching him about how to handle the software of the currency of our script for easy installation.

Alberto’s work started in the end of April, consisted of 90% installation script for the masternode, the first version of the official website, the documentation that was sent to the Indian software development company that has prepared the front-end of the first MVP of Crowdcoin platform, a decision taken due to lack of funds.

Alberto decided to resign due to personal issues and got paid 2000 Euros for his work in late May 2018.

Until the end of June 2018, I was directly following up on our social media, email, and Linkedin where I received messages related to Crowdcoin.

I have attended 4 meetups each week until June 2018 creating a big network of useful connections while working on answering to the community and managing the ongoing tasks.

This has led me to get in contact with the proper entities for legal assistance related to ICOs and cryptocurrencies. I was lucky to be able to attend the Houbi and few other events in London related to cryptocurrencies like London Crypto investors summit.

I was able to get in touch with Pillar. consensus, R3, Veracity, Blockport, Poloniex, London Crypto Exchange, Radix, Gem coin, and many others.

June 2018, we have had the potential client, intro official meeting, we have had a few informal before.

The big trouble during the meeting was that due to lack of resources I have had to assign to an Indian software development company the front end development task and they were not ready to deliver even after the confirmations the previous week.

They tried to show the ongoing status of the MVP during the meeting with the client but was a horrible view because it was incomplete, even though they have had 1 month delayed work.

I have asked for the assistance of one of my business consultants and friend that have worked to support me during the meeting with them to explain the quality of our plan but with that vision, there were no option to continue with them.

Then they stepped back, and it was a shame because we were ready with all the other aspects of the ICO.

All of those have been provided as well as my full-time commitment for 3.9% of the coins supply.

Last June, I was also able to get in contact whose nickname was Robin87 who made clear that he could only provide his spare time and not full-time commitment. He deployed the nodes check page and the seed servers. I am really grateful for him for being direct and confidential.

His approach gave me motivation when the situation was not looking great at all because Cryptopia has delisted Crowdcoin without previous notice. In reaction, Metalmilitia exploded and wrote a long post with personal attacks about the work I have done so far. In reaction to Metalmilitia, the private investor that I was trying to make an investment in Crowdcoin and get an introduction to 2 famous VCs decided to step back even though we were in a good relationship and was on our third meeting to discuss the investment opportunity.

In three weeks, I was finally able to get in touch with Cryptopia and after five emails, I was able to demonstrate that they have false accusations and they listed Crowdcoin again.

I decided to get back to Italy in early July 2018 to recover and re-evaluate the status of the project and move forward.

Admission

When I started Crowdcoin, I genuinely thought that my role was mainly on product development. I found that the expectation on the role of coin developer is by far greater than that. The public expects the coin developer to cover all the business marketing, communication, and business relation tasks.

I have realized whatever work I am going to provide, the actual community is too much focused on how much they could earn instead of working on product development or what we can achieve with it.

This adventure demonstrates clearly that it is no more possible to mainly rely to the community on the development of coins that are also available on exchanges because of delays that is due to the fact that the contributors have other commitments such as daily job, family, etc.

Delays that are not compatible with the needs of the marketing, business and general public expectation that has to compete with teams whose members are fully committed.

I am still grateful with the experience and the people I have met along this path.

The Decision

My decision is to step back from the community project and re-found the project as a business structure. To be grateful to those who have been part of it so far, I will create a procedure that will allow those who invested in Crowdcoin community project to get the coins that are supported by the business.

I can say that the mining algorithm is going to be x16 with a plan to change it within 24 months with RoseQ that is under development and that have the power of 16 quantum computer resistant algorithms, every hodler of the old coin will receive 100 of the new coin for each coin he or she has before the start of the swap.

The coin swap is going to take place from the November 12th 11 a.m. London Time Until November 23th 5 p.m London time. All the coins not claimed on time will be used for the project budget.

Its also my intention to bring to the public 2 products I have worked on with the assistance of my freelancer teams, I will mention them further as soon as I will get the approval to do so,

  1. masternode management system, to easier manage the masternode
  2. mobile wallet, with the benefit of having every needed service for your private coins available directly in the wallet app.

Note with crowdcoin I plan to keep launching products and services crowdcoin will be used for in the future will not be limited to the 2 mentioned.

Further details will follow at 2 pm London time Friday, 12th October, with the release of the new whitepaper and further details of the tech of the new coin and the procedure to follow for the swap.

Luca Paterlini,
The Still Proud Founder of Crowdcoin