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Author Topic: A Guide For Altcoins Rating  (Read 1288 times)
nemgun (OP)
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April 03, 2017, 10:43:36 AM
Last edit: April 03, 2017, 11:16:37 AM by nemgun
 #1

This guide won't tell you how to invest your money, or which coin is the best, or anything like that. It is focused on teaching investors how to rate a coin project prior to the investment decision.

First, i noticed that a lot of people in the forum, especially in the Altcoin section, are rating/following/supporting coins because of their price. It means that the unique argument taken in count for their investment is the price of the coin. Doing this leads most of the people to loose their investments because of a value dump in the best scenario, or to an ICO scam in the worst.

In order to determine wether a coin/project is good for investment, you should consider at least some of these points :

1- The price of a coin isn't determined by the investors, especially in her early days. Because of the low price, the coin developer or a whale (sometimes the exchange itself to draw more volumes) can Pump the coin, in order to simulate a growing attention on the coin, leading other investors to buy it. When the price is high enough, the Dev/Whale/Manipulator proceeds to the Dump, leading to the coin's death. The last part is the result of several Pump/Dump process, as the objective is to keep it attractive long enough to get at least a 25% return. This is the basic P&D schem.

2- The coin/project code is by far the most important criteria to be taken in count, i will explain why some exchanges refuses to list clone coins. First, you should know that the Coin/Project DevTeam size isn't to be taken in count, you can have a single Dev doing a lot of great improvements, as long as he is supported by a community who trusts his work, this is one of the best scenarios for investors, a good developer, backed by a supporting community. The Code aspect is bound to the features introduced, the QT-Wallet isn't to be considered as it is the least important face of a project as many users in the forum can provide you with advanced features in the QT-wallet, you can for example check the work of OSMIUMCOIN.

So as long as there is no new features in the "Daemon", you should investigate the project prior to invest, because it means that it is either a "ShitCoin" made for P&D schemes, or a "ScamCoin" made for ICO scams, or a "NewbCoin" made by unexperienced users. Note that a few projects with cloned coins are legit, and these have an appreciable value.

3- The community, this point should be taken causiously because it can be easily faked/manipulated, and depends strongly on the funds allowed to it. If you have enough funds you can raise a coin's community with ad campaigns, fake twitter/facebook/linkedin/reddit accounts, so in order to get a more realistic representation of a coin's community, the best is to check them on bitcointalk, if there is a lot of newbie/Jr accounts posting in the thread, then it is a fake community.


So there are 3 aspects to be checked when ever you want to invest for either short term, or long term :

1- The code
2- The community
3- The price

Check these in this order, code, community, price, and you should have a general overview of the coin.

Now how to check for scam projects ? Try to get as many IP addresses as possible and google them first, you will have their location and could check if they have been aleready used in past projects. Check the website with tools like whois.domaintools.com, you will have informations for the domain, you could know if it is a dedicated server or a shared plan, it doesn't really matters, but at least, when scrolling down you can have the ID of the website owner. If it is protected by whoisGuard, then it is possible that the project is a scam, as generally ICO projects discloses their team IDs.

If there is no Team ID disclosure in a ICO project, then it is sure at 50% that it is a scam !

These are the basic detection methods for scam ICOs, ShitCoins, NewbCoins.

So when you talk about a coin, don't talk about the price because it is irrelevant.

-How the exchanges can fake volumes ?
Any developer knows that exchange informations are held in a database, this means that it can be easily changed by a simple query especially if the database is made in order to ease the faking process, so do not trust these informations.

-Why some exchanges refuses to list clone coins ?
Simply because they are regulated, and in this case, they could be guilty of "Money laundering", and in some rare cases "Terrorism financing" or even "Criminal financing". So in order to avoid these troubles who can lead them to jail, they decide not to list clone coins, or shit coins, and they are totally right about this.
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April 03, 2017, 07:28:45 PM
 #2

or TL;DR ... buy some fucking WBB before it's too late!

also, no whales to manipulate or dump the shit out of it like EVERY OTHER COIN!

$ADK ~ watch & learn...
nemgun (OP)
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April 03, 2017, 07:34:19 PM
 #3

From 4800 to 5860
Dash 📈 in last one hour

He just talks about not judging altcoins by their price and the first thing someone says is some crap about Dash? New level to altcoin shilling.
Btw, the original post should be helpful to many people. The point about searching up IPs and seeing if they have been used before had never occurred to me.

This post just killed me. I guess it is a bot or something like that.

IP fetching teached me a lot of things about shitcoins. By the way, there is a guy who is generating a lot of shitcoins with scam ICOs.
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April 04, 2017, 09:22:10 AM
 #4

Oh that's weird, my comment deleted along with the other guys. Lots of people find a coin that seems to be "successful" pricewise,  something like swiscoin or e-dinar coin, which  ranked in the top 20 altcoins, but clearly is a scam.
nemgun (OP)
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April 04, 2017, 12:21:34 PM
 #5

I would like to share with you my analize of the ICO mentionned in the OP :

Novus : https://bitcointalk.org/index.php?topic=1781895.0

This projects seems to have a good idea, but they are suspicious for me, so let's start the rating :

IP lookup: For now there is nothing to lookup except the domain name, they own 2 domain names :
Domain : novusphere.io
Status : Live
Expiry : 2018-02-07

NS 1   : mary.ns.cloudflare.com
NS 2   : plato.ns.cloudflare.com

Owner Name    : WhoisGuard Protected
Owner OrgName : WhoisGuard, Inc.
Owner Addr    : P.O. Box 0823-03411
Owner Addr    : Panama
Owner Addr    : Panama
Owner Addr    : PA

Well, nothing to catch here except a more suspicious information :

Viewing a cached Whois record
Our system is temporarily unable to provide a real-time Whois lookup for this domain name. The record shown here was current on 03/02/2017. If you refresh your browser we will attempt another lookup.

It seems someone is hidding, let's try to dig deeper :

Searching for a company registered in Delaware with this file number : 6358377
here : https://icis.corp.delaware.gov/Ecorp/EntitySearch/NameSearch.aspx

You will find them, but if you do a search by name, with Novus as a keyword you will find a lot more companies.

Here is the result :
File Number:    6358377    
Incorporation Date / Formation Date:    3/24/2017 (mm/dd/yyyy)
Entity Name:    NOVUSOFT, LLC
Entity Kind:    Limited Liability Company    
Entity Type:    General
Residency:    Domestic    
State:    DELAWARE

Let's dig more informations about NOVUSOFT LLC, with google, here is the most interesting related result i got : http://www.novusoft.com/aboutus.html

Sounds interesting, but there is more : http://www.satprnews.com/2017/04/03/novusoft-llc-announces-the-launch-of-an-innovative-system-known-as-advanced-file-index
look at the "New York" statement, so they register in delaware and work in NewYork ? ok, i don't think so as i can't find any novusoft in New York.
So when i was looking for informations about NOVUSOFT LLC i found a single record : https://www.ct-registry.com/645305-novusoft-llc
And it is not in Delaware or New York, it is in CT.

Now i would like you to consider these questions before investing :

- Why do they hide their informations ?
- No Team information, or name ?
- No company address ?
- How could they use the informations of a company registered else where ?
- Are they related or not ?
- Why is the post self-moderated ?

If i had to rate this project, and considering the "Temporar POS coin" they will use, i would give a 2/10. (2 because they are actively posting, and seems to have some early adopters)
Especially because they are hidding too much informations, so untill they reveal their informations, they will be classified as a scam for me.
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April 04, 2017, 09:17:55 PM
 #6

Thanks for the advice!
I heard about this coin a while ago on the forum and at the time I was looking for coins to invest in. However, I could tell clearly from their website that their coin offered nothing new. Still, I didn't expect them to be dodgy in this way.

Out of interest, how long did it take to find out all that information?
nemgun (OP)
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April 05, 2017, 09:53:14 AM
 #7

Thanks for the advice!
I heard about this coin a while ago on the forum and at the time I was looking for coins to invest in. However, I could tell clearly from their website that their coin offered nothing new. Still, I didn't expect them to be dodgy in this way.

Out of interest, how long did it take to find out all that information?

About two hours because i found the names behinde NOVUSOFT LLC in CT, and i had to google them also to find if they are related in a way or annother to the bitcointalk Novusphere project. It could take more time depending on how deeply you are digging, also more informations can be gathered with social medias.

I use to run this kind of investigations, even if i don't invest, and usually i take up to 4-5 hours, if after this i have nothing, then i rate them 7/10 because you can never be at 100% sure that a project is legit, even ZR coin isn't 100% sure, don't think that sacha ivanov is a trust token, he just works as an escrow for the project, so he is not involving his reputation, which means that in he end, it is totally the same.
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April 09, 2017, 09:29:19 AM
 #8

Regarding the activity of this thread, i believe that Alcoins Fans are only attracted by the price, instead of the project it self.
In this case, they deserve to loose money in scam ICOs.
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April 01, 2018, 12:16:45 PM
 #9

If you are a good investor you should not only look for coins that are sustainable to make profits in the short run but your investment should also be distributed among coins which have a current high value preventing you from going bankrupt therefore invest in some already proven coins like ripple.
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