What's wrong with Altoins

[Invento]

Hey guys,

I have been in crypto for about 3-4 years, a few years before the "big one". I started in LTC mining, then a bit of bitcoin, then several altcoins, did the FPGA (and still do a bit) thing with altcoins, made some monitoring software, worked with people to build mining farms, built other management and trading programs and finally a coin. So I've been around the block a bit, but not a huge amount on the blockchain dev side. So here are the things that I see wrong with coins and tokens at this point, I would love to get your input on this from your experience too.

[stepping up to the soap box]
Most of the coins developed (including mine were) as test of how the coin works, so that we can look under the hood and see how this technology can be used, broken, hacked, maintained and operated. The goal was learning so that I can help the community, learn a skill, and be valuable in some way, but I had MASSIVE rejection from peer developers as being unworthy or being untrustworthy. I knew why, as I've seen it a bunch, here are the reasons people stick with Bitcoin or major altcoins vs newbie coins.

1. It is undeveloped idea, that isn't new and doesn't add value. A coin to make the developer rich, so he is looking to get adoption and pump and dump it.
2. The developers have no skill to develop this into what they want, neither does their team
3. They have no plan to get this to be used outside their basic pipe dream whitepaper
4. IT IS A CLONE, doesn't do ANYTHING new and has no value other than to the dev, kinda like #1
5. To create value it needs to do a few things
     footnote- Have value - it needs to be traded for goods or services easily and actively, and inexpensively
     a. Needs to be useful - we have fiat, if the gov is strong, we need motivation to use this risky payment system
     b. It needs to be as easy as cash, but better.
     c. It needs a large user base of people USING it as money, not just for trading
     d. Cash is nearly free to use, free locally and nationally, but has fees internationally. We are winning in crypto internationally but what about your local grocery store? Nope. I lived on Bitcoin the biggest cryptocoin for only a few days because it was so hard to use. It was very expensive to use also, huge fees. Many altcoins has solved this problem.
6. We need to adopt more coins that are PoS vs PoW, mining is too hard on the environment, this energy could be used better. PoW is not on my list of "good" things we need in this world.
7. Our coins aren't doing anything for society. It is just a different type of money, what if it could be more?

What could we do to make crypto used, that in using it we could help people? I brought this here, because I wanted the community to just be open about whats wrong with the way we are doing things?

As I stated we made a coin, it was #2,3 and #4. This coin is DEAD btw, so I am not selling anything here, but I loved the "idea". The idea was a coin to help people and nonprofits do good in the world. The idea was a fork of PIVX that had 50% of the PoS stake go to a foundation account where members using the coin would vote for their favorite nonprofit or person who needed money. The fund would send them money and help them get a masternode going to help them make money every month to help more people. The more people use the coin, the more votes they get based on transactions and balance. I ran a nonprofit for 23 years and funding was our primary problem. We were great at helping people but terrible about asking money, most do-gooders are. I was hoping we could build a coin that would allow people to just do their normal life, buy and sell things and the transactions/staking would automatically help the people they couldn't normally help AUTOMATICALLY. We built a prototype and it worked, but after a few issues we realized we couldn't support it or be confident in it's security because we didn't know how it worked completely. We felt it would be dishonest to encourage people to use it (take their money) and then either close the coin, or lose their money unintentionally, both essentially stealing so we closed it due to our lack of technical ability.

Anyway -- that was our idea, what about you? What do you think are the problems? What idea do you have that you think would help real people?

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[cytpoway121]

I do not do mining, so i know nothing about it.

But if it is to discuss the core problems of altcoins, then i will highlight lack of credibility, and use case.
Why do i say so ? Altcoins project atleast 85% of them copy existing products that were not fulfilled; make money from crowdfunding then also refuse to produce a product.

It is a common occurrence, and it isn't stopping soon. Just stick to the basics of investment which is making profit then always do your own research.

[Invento]

It's true, that is what I've seen also. There is a ton of coins just being duplicated and people trying to make a quick buck. So sad for such a cool technology that could really help people out.

[Jating]

It's true, that is what I've seen also. There is a ton of coins just being duplicated and people trying to make a quick buck. So sad for such a cool technology that could really help people out.

I agree, we have seen fork coins and then we have duplicate useless coins, they just used another name for it but if you are going to look closely, they have the same use cases, so obviously it is just a copy cat. But still people buy the hype and think that it is the next best 'coin' in the market. And then it is going to be pump hard, and drop like a hot potato and then became worthless, die of natural death. And then the people behind will do the same, create another copy cat coin/token, rinse and repeat.

[bittick]

It's true, that is what I've seen also. There is a ton of coins just being duplicated and people trying to make a quick buck. So sad for such a cool technology that could really help people out.

The majority of coins have only copied the idea from the existing platforms and they were only adding more features. It's not only fork coin who did it but most of the major coins like ADA, TRON or even EOS were also doing it by copying the smartcontract idea from ethereum. These are not so innovative.

[aemma]

This is a good post and hopefully most people will see it and figure out that it is indeed an eye opener on the type of projects coming up every now and then. The truth still remains and that is, most projects today are not genuine, they are just a copy of what is already existing reason why they don't last long which is also another reason people today see them as a means to quick profit (pump and dump). About using crypto locally, I think the first thing is to educate people on what it is all about then coming up with a project which will not only be used internationally but locally as well.

[gaston castano]

in my opinion, there is nothing wrong with altcoin.natural thing when the BTC falls, then the alt will follow.
So, no matter how good ALTcoin does development, if BTC is weak, alt will not increase.

[minairia3]

It's true, that is what I've seen also. There is a ton of coins just being duplicated and people trying to make a quick buck. So sad for such a cool technology that could really help people out.

This is expected cause they just want to launch a project without even considering the redundancy of their platform. This is happening over few years ago when ethereum started their platform of smart contract and every next project that comes after that are all just a copy cat and duplicate coin. If you will check the context of their objective the sole purpose will be down to peer to peer goal where bitcoin already start it all. I cant wonder even non realistic use case is even introduced. I saw some that are not even necessary the use of blockchain but still there is a private sale. More like a private scam investment.

[KnightElite]

The main reason why people are losing money when they making investment with altcoins is because of how they pick and choose. They are not aware on what is a worth it altcoin or what is a shitcoin and that is the reason why they end up buying a shitcoin that can make them suffer to huge losses. There is nothing wrong with altcoins, the wrong is us and we can change it by investing in our knowledge that can makes more knowledgeable to protect our capital and manage to increase it.

[key4co.in]

To begin with, the major issue with altcoin projects is inexperience and greed from team. Nursing an idea to come up with a project isn't bad, but before then ensure there are capable team members who can achieve the project vision. Also, as OP mentioned, many new projects are just replica of existing projects with nothing new to add, same old story without plans for real life usage. Well, the good thing is that not all altcoins are in that category.

[shadowduck]

The main reason why people are losing money when they making investment with altcoins is because of how they pick and choose. They are not aware on what is a worth it altcoin or what is a shitcoin and that is the reason why they end up buying a shitcoin that can make them suffer to huge losses. There is nothing wrong with altcoins, the wrong is us and we can change it by investing in our knowledge that can makes more knowledgeable to protect our capital and manage to increase it.

the biggest mistake in choosing altcoins recommended by bloggers. when I first time entered the cryptocurrency market I found several popular bloggers on this subject and invested and these were the most terrible decisions

[beerlover]

Yeah, I could highlight credibility as well, what you do not understand is, there are so many altcoins that were basically purely a scam or just a failed project that, even the good ones are looked at suspiciously, plus it is given and correct that they should be because nowadays projects gets millions of dollars investments and when you give someone that much money its always suspicious. You know why back in the day altcoins were better and nowadays it is not?

When litecoin was started people mined it, and got it that way, today you get it for bounty hunting or investing or air drops, so basically mining is becoming obsolete every single day. Decentralization was very important, nowadays those teams that get millions of dollars centralize a lot of things.

[103deltafox]

Nice write up and good heads up,true the fact is that most coins are just repitition of a previous coin,no new use case,and aside that in a season where BTC is strong and on the move altcoins suffer no matter the use case ,also if BTC is dipping,altcoins also suffer it.

[tycsols]

Well alts are most probably suffering because they have not lived upto the expectations of the investors and other serious factors are many failed projects and even the exit scams so confidence is low and i think only parabolic growth in market volume can support altcoin price from here on and i see that it will take around a year for volume to pump in the market nicely.

[Invento]

I agree with all you are saying, I have been burnt with different coins. I have lived the ups and downs, but honestly I do believe the blockchain. One of our projects will grab hold in a real way. Even BTC the biggest badest and at nearly $25k as of this writing, it still has BIG issues.

1. It is purely speculation driven or HODL right now, a replacement for gold and silver at best.
2. It is SLOW
3. It is expensive to use/transaction fees

Because of these reasons IMHO it will never be the currency replacement we will use, which is why I believe in Alt coin. We have thousands of coins that have solved 2-3 really well. At this point I think Litecoin will beat BTC in near future for usability but we need adoption.

[jademaxxiss012]

For us, this is normal for we have witness different kinds of altcoins being dump and projects failed, bounty hunters did not get paid and some drama about it. Yet, nothing happen and you only have the forum to appeal but the forum had bo jurisdiction over the scam projects and that is the problem with altcoins compared to bitcoin. However, there are good altcoins like ETH which you can rely on when you want to invest.

[TofuDefi]

There is nothing wrong with altcoins. Many dot com boom companies died, but now we have Google, Amazon, Netflix and others.

[iTradeChips]

Well I find this post good and that people will be able to see it that it is indeed something that we can expect something good to happen.  It is unfortunate to think that most of these projects are just sham projects and others are just copies of existing technologies posing itself as new. These copy cats were the reason, I think why hardcore crypto enthusiasts and investors are shying away from altcoins. It is always Bitcoin first and nothing else. Or they go to the top alts only. Time will tell when some alt from the bottom list will go to the top and dominate.