The Good, the Bad and the Ugly, Classifying the crypto-coins.
Some time ago I wrote a medium story in which I searched for the coin with the most potential to grow into a new crypto payment system.
And more recently a story in which I pleaded for the white hat ethical investor to stand up. (only in Dutch). Both pieces mentioned scamcoins. The coins that do not take it so closely with the truth or are just scams. How nice would it be if there was an overview of coins in which the traders/investor should trade or not trade. In this research an impetus is given to this list. We just start with the number 1 of Coinmarketcap. Not that any value is attached to the order of priority on that list (see this story) but simply because it is easy to have all data neatly at hand and not to skip a coin.
So we don’t look at the value of the coins but just examine whether a certain coin is reliable or unreliable. It will not be said that this coin and that coin is a scam, for that hard evidence is needed and often cannot be provided, but there will be advice given on which coins should be avoided and which looks reliable.
Due to there being over 2000 coins in the wild, this research cannot be complete, because of the enormous amount of work involved. What is possible is that there will be a public spreadsheet in which all data will be placed and that this is regularly supplemented with data from new surveys that can be supplied by anyone via this valuation form. Make a copy and send it to the author of this piece. I will then make sure that the sheet, after checking, is added to the list of examined coins.
Research into the reliability of a coin focuses on the following issues:
- Decentrality of a coin. If a crypto is working in a centralistic way, the designers have not understood anything about crypto or have a different plan. Choices are High, Moderate and Low.
High is the case when there is nothing or almost nothing to say about it,
Moderate scoring coins with Masternodes, supernodes etc.
Low are the coins that don’t want to know anything about decentrality like Ripple, EOS with its 21 block producers or the 27 ‘Super Representatives’ of TRON etc. - Traceability of the technical data of the coin and blockchain
Choices are Good, Moderate and Bad
Good: if everything can be found on their own website.
Moderate: if only the main characteristics can be found
Bad: when lots of data with “googling” must be found. - The transparency that is sought. Are they at Github findable or not.
Choices: Yes / No - Is there activity at Github? To judge if there is still active development of the coin. More than 700 commits in the past 12 months is considered active, 150–700 as moderate and little to no activity if less than 150 commits are given. The source for this is Cryptomiso.
- The amount of premine/instamine or start amount (more than 25% of the max. supply or 50% of the circulating causes a red flag)
- Irregularities in the circulating supply. This often indicates manipulation and therefore gives a red flag. To this end, the (processed) historical data of Coinmarketcap is plotted in a graph.
On the basis of the data, a sheet is made per coin with the results and the justification. The investigated Coins can “earn” the following predicates:
- “Approved by the White Hat Ethical Investor” These are the coins/tokens that are not much to say about and are recommended to trade with.
- “Doubtful” These coins are neither recommended nor discouraged. There are suspicious edges to the coins. Decide for yourself whether you want to trade in them.
- “Avoid trading” If you do trade in these coins/tokens, you support the bad image, crypto has, in the media and fill the pockets of the crypto-cowboys.
Disclaimer! The results of this research are only based on my ideas about how the crypto-world should act. In my opinion the philosophy of crypto is about a decentralized system and network where the people who make the network exist get a reward for the consensus to be achieved. The main reason crypto came into being is to get rid of the middle man, to become your own bank and not let anyone control your money or assets. Therefore, a lot of importance is attached to the decentrality of the coin and the amount of premine and what happened to it . A small premine to pay for the necessary development is OK, but 100% premine and then a large part “reserve” is not good. It then is too easy to manipulate the price or just fill the pockets of the founders!
The results can’t be seen as an advice but more as my opinion on how crypto currencies should be.
By the way, I do not have any of these coins in my possession, I only have Gulden, NLG as a hodler.
Below you will find a list of the coins that have now been examined. Click on the links for more information, it will lead you to the relevant testimonials.
Bitcoin, BTC: Approved by WHEI
Ripple, XRP: Avoid trading
Ethereum, ETH: Doubtful
Bitcoin Cash, BCH: Doubtful
Stellar, XLM: Avoid trading
EOS, EOS: Avoid trading
Litecoin, LTC: Approved by WHEI
Tether, USDT: Avoid trading
Cardano, ADA: Avoid trading
Monero, XMR: Approved by WHEI
Tron, TRX: Avoid trading
Iota, MIOTA: Avoid trading
Dash, Dash: Approved by WHEI
Binance Coin, BNB: Avoid trading
NEM, XEM: Avoid trading
Ethereum Classic, ETC: Doubtful
NEO, NEO: Avoid trading
Tezos, XTZ: Avoid trading
Zcash, ZEC: Approved by WHEI
Bitcoin Gold, BTG: Doubtful
Vechain, VET: Avoid trading
Maker, MKR: Avoid trading
Ontology, ONT: Avoid trading
Dogecoin, DOGE: Approved by WHEI
OmiseGO, OMG: Avoid trading
Qtum, QTUM: Avoid trading
Decred, DCR: Approved by WHEI
0x, ZRX: Avoid trading
…
