Sorry for the cross-post, but this does belong in here too.
[quote=“ppcman”]I think too many people take coinmarketcap.com too seriously. It rates Dogecoin as one of the major upcoming competing currencies, and we all know that is dogecoin will probably always be a popular joke coin.
In the top right corner of their site, they have a switchable link to turn mineable on / off
Try it with only mineable coins:
NXT disappears quite quickly.
Proof-of-work initially is important to fairly distribute new coins during the first year or so of launching a new coin. We know how Peercoins were created based on proof-of-work, and then held by proof-of-stake afterwards. This gave everyone a fair chance at obtaining PPC.
NXT Initial Stake Holders might have hidden their true holdings by transferring them to multiple wallets.
Since NXT didn’t have proof-of-work for initial coin creation, we have to assume that the initial stake holders and coin giveaways, etc, were all fair. We have to assume that NXT coins were distributed to strangers and legitimate investors. We also have to assume that the majority of NXT holders to date, are assumed to be people who legitimately bought the currency on exchanges for actual value and not given to friends and family. We also have to assume that transfers of NXT from wallet to wallet, are in fact different people, and not a bunch of coins held by the same group of people who have “spread out the load” with different wallet addresses. Doing so, would artificially inflate NXT, and we assume that no one involved in the creation of NXT would want to artificially inflate its value, right?
So if we assume that the distribution of NXT is indeed fair, then we should assume it hasn’t been pumped. We should also assume that multiple wallet addresses are different people, even though there is no way to prove that…
I prefer the hybrid approach that Peercoin used when it launched. It basically made it “provably fair” for the initial creation of the coins and distribution of wealth. Too bad NXT can’t say the same thing.
To really put NXT in perspective, a purely PoS coin, couldn’t the following artificial inflation work?
John and Jane are brother/sister
John has 25000 NXT. He wants to give 12500 to his sister Jane, because they are family.
Instead of just transferring it to her, he tells Jane, we can artificially inflate the value of the currency by doing this, it is going to cost us 0.2% of an exchange fee to buy and 0.2% of an exchange fee sell, but the perceived value on coinmarketcap.com will be worth it. This way we can show the trading volume and the price.
So John lists 12500 NXT for sale on exchange XYZ at 0.10 USD = $1250
Within seconds, Jane buys $1,250 USD of NXT (from John basically) at that price.
There is a combined 0.4% exchange fee for this transaction, which is $5 for both sides of the transaction.
Guess what happens?
John now has 12500 NXT, Jane now has 12500 NXT, they paid an exchange $5 to “show the transaction”
coinmarketcap.com reports the transfer, oh look, NXT just traded at 0.10 USD in the amount of 1,250 coins! However, the NXT coins stayed in the same family, and brother and sister have colluded together to artificially inflate the true value of the coin.
Now. Think of this same situation again, but this time it isn’t John and Jane. Because John can do this himself, through two different wallets, and two different exchange accounts.
In fact, all initial NXT take holders could be teaming together to pump up the majority of the initial coins through a bunch of fake wallets, and all suckers who invested legitimately in NXT are just there for the ride until they decide it’s time to dump.
Peercoin’s method of purposely having proof-of-work as part of its launch stops this from happening while the coin is young. Once again, Sunny King thought of this when he came out with Proof-of-stake. He knew what type of abuses a single proof-of-stake system could cause.
[b]NXT = most probably a scam coin.
We’ll find out in 1-3 years, won’t we?