What does the altcoin market need to increase its trustworthiness and marketcap?

[Ariebaba]

I think the altcoin market is shooting itself in it's leg with all the new ICO's and coins with a small marketcap. The big amount of small coins make up for a high volatile market. Because of this 50% + spikes aren's something strange. I think this is what slows down the attraction of new serious investers and only attracts more gamblers and other people only interested in a quick buck without any care about what the projects are really about. Attracting players like this will make the market even more volatile and less trustworthy (vicious circle) like we see lately.

What should happen to make people regain their faith and attract serious investors to increase the marketcap in a sustainable way?

Some (probably impossible and maybe bad) ideas:
-Stop the exchange of a coin temporarily when a coin hits a given increase/decrease  in a predetermined time (say random 30% in 1 hour);
-Give a minimal required marketcap before coins are added to the big trusted exchanges (say random 40 million);

I'm curious for your insights.

[couture]

You are quite right, the current pump and dump groups, ICO rallies and all that shit are geared more towards the opportunistic profiteers looking for quick short term high yield.

What the altcoin market needs to increase its trustworthiness and as a consequence, its market cap, it real world market adoption.


For example, if vendors started accepting Dash, then dash would integrate more permanently into the real-world environment. Since it would then have a true use and true value, it should attract more and more trust and market cap as more and more people adopt it to actually use it, rather than just pump it and dump it.

This really then relies on a coin that has the capability of being used in real world markets. Bitcoin has long block times, too long for quick in-store transactions for example. Each coin, with its slightly different features makes it an evolution of bitcoin in essence. So when a coin is built with suitable characteristics for real world use, it should then grow in adoption.


The crypto scene needs a more direct and established link to real world products and services. Only then will a/those coin(s) become firmly rooted and have price stability akin to fiat currency.

[Snail2]

So you are asking for a soft form of regulation and the same break mechanism what you can have stock markets . BTW those big dumps are used to be panic selling noobs and I don't see why anyone should stop them being dumb. That's their natural right.

[PremiumPumps]

Also, market cap means little. There are coins like Bytecoin which have ridiculously large market cap but are obvious scams. Coins might only reach 40 million for a short period because of speculation.
Stopping certain exchanges defeats the purpose of free market.

[CryptoKraken]

A 20.2 earthQuake on wall st. And in Chi town on the same day.

[just.dont]

What should happen to make people regain their faith and attract serious investors to increase the marketcap in a sustainable way?

Some real net increase due to useful work being done.

An extreme portion of altcoin market doesn't do anything productive and I suspect that a great part of that is intentionally set up not to do anything productive.
A bubble can be blown only so much before bursting.

[Ariebaba]

The crypto scene needs a more direct and established link to real world products and services. Only then will a/those coin(s) become firmly rooted and have price stability akin to fiat currency.

I think the problem is indeed that a lot of 'companies' behind altcoins stay in the development/project fase. And I think it's not that strange that the step from project to real world use of the particular altcoin is a big and difficult one. I mean, why would a big multi billion dollar corporation choose to work with a small altcoin company? They have their own massive IT departments, if they want to use it they can just develop it themselves easily with all the available open source material. I think in this way the altcoins that are really designed as a form of payment at the moment have the highest sustainability.

So you are asking for a soft form of regulation and the same break mechanism what you can have stock markets . BTW those big dumps are used to be panic selling noobs and I don't see why anyone should stop them being dumb. That's their natural right.

I know regulation like this is against the open market idea of bitcoin. However I think the current exchanges especially the ones with a low volume of certain coins show a lack of capability to offer a markt conform price for their coins (the price differences between exchanges). Combined with the problems with flash crashes and completely shutting down (coinbase whenever ETH is low).

I think for a start altcoin developers should start focussing on making a whole product instead of a plan for which they still need a big load of luck to attract
potential investors/companies who want to work with them.

[Haladay]

Get rid of market scammers, trying to get audited by overnment institutions. These are two fundamental keys to be be adopted.

[clardalan]

we need less coins, more functioning practical applications - things the consumer can use.

[Savik]

we need less coins, more functioning practical applications - things the consumer can use.

^^^This

And maybe some sort of trusted ICO ratings agency who does the deep dive into whitepapers, contacts devs, and gives a thumbs up/down for those who truly care about quality ICO projects. The scammers and pump/dump will continue, but be limited to those who are reckless with their investments.

[Lomberjack]

I think the altcoin market is shooting itself in it's leg with all the new ICO's and coins with a small marketcap. The big amount of small coins make up for a high volatile market. Because of this 50% + spikes aren's something strange. I think this is what slows down the attraction of new serious investers and only attracts more gamblers and other people only interested in a quick buck without any care about what the projects are really about. Attracting players like this will make the market even more volatile and less trustworthy (vicious circle) like we see lately.

What should happen to make people regain their faith and attract serious investors to increase the marketcap in a sustainable way?

Some (probably impossible and maybe bad) ideas:
-Stop the exchange of a coin temporarily when a coin hits a given increase/decrease  in a predetermined time (say random 30% in 1 hour);
-Give a minimal required marketcap before coins are added to the big trusted exchanges (say random 40 million);

I'm curious for your insights.

You are right that altcoin market must regain the trust of the players in its vicinity. But for it to be able to regain the trust of its possible investors, it must raise its marketcap that will surely attract a mass number of nvestors and lessen the number of gamblers that are widely distributed in the altcoin that make those potential investors think that altcoin has been already capitalized by gamblers and not by real players. It have to make certain changes to sustain sufficient funds and regain potential investors.

[findingthemoon]

Some (probably impossible and maybe bad) ideas:
-Stop the exchange of a coin temporarily when a coin hits a given increase/decrease  in a predetermined time (say random 30% in 1 hour);
-Give a minimal required marketcap before coins are added to the big trusted exchanges (say random 40 million);

I'm curious for your insights.

Since there are decentralized exchanges your first point isn't possible. As for a minimal requirement on big exchanges, they already do that to an extent either through listing fees or by wide community requests. A minimum marketcap doesn't make sense though as it tells nothing of the volume and it can be much too easily manipulated.

I don't have a better solution though, there will always be shitcoins around.