Is CounterParty (XCP) severely undervalued?

[DurbanPoison]

Glad you posted this thread. I have been curious about XCP.

Same here, I've been curious about Counterparty for a while now. This thread stoked my interest, I will have to look into it some more. It does seem rather undervalued right now.

[Luckybit]

To answer my own question, I say yes it is:

I'll make the case below:

It's not a clone coin, not a gimmick coin, not an IPO coin designed to enrich the founders by any stretch. It has strong merit, great long term potential
Real Value is derived from the CounterParty protocol, the underlying token allows you 'shares' in the protocol (just like Bitcoin)

The project has been independently audited by respected Bitcoin Experts, Peter Todd and Sergio Demian Lerner. To my knowledge, it is the only major Bitcoin 2.0 project to have had multiple formal, comprensive, expert security audits of its codebase.

https://www.counterparty.co/sergio-lerner-peter-todd/
https://www.counterparty.co/sergio-lerner-completes-security-audit/
https://github.com/CounterpartyXCP/counterpartyd/labels/Peter%20Todd%20Audit

Sergio Demian Lerner's words:

Keeping the counterparty source code small and independent of the network client is a great design decision, from the point of view of security. Because of this Counterparty client is the smallest, readable and yet completely usable “alt-coin” I’ve ever seen.

Innovative, transparent and fair distribution model
Source: https://www.counterparty.co/why-proof-of-burn/

Limited supply, non inflationary (2,648,755 XCP MAX)
Source: http://blockscan.com/
(coins are deflationary due to being burned in situations like asset issuance- In short the total monetary supply will never be increased, as their is no need for PoW or PoS)

Extensive bug bounty program
Source: https://www.counterparty.co/resources/bug-bounty-program/

Full time, self sufficient core development team.
Community relations manager
3 x Full time coders
Marketing lead

Ability to issue any smart property and pay Dividends directly with BTC as well as any other counterparty asset. (NXT, Bitshares etc, cannot do this natively)

Backup any XCP smart property onto Paper wallets You could purchase a token using BTC that represents an OZ of gold, store it into a paper wallet offline, then import it at any time onto the network, you could then choose to receive ownership of that physical gold, or sell it in it's digital form on the decentralised exchange. Since XCP is natively compatible with BTC, you can do this with any counterparty asset.



Innovative projects built on top of the counterparty protocol

• SWARM Kickstarter on steroids. Decentralized crowdfunding with due-diligence, voting & benefits for all SWARMCOIN holders.
  
• BETXCP Decentralised sports betting (without ever giving anyone control of your coins)
  
• XBET World's first P2P, trustless & decentralized betting platform.
  
• STORJ P2P dropbox and MAID competitor - Decentralized cloud-storage.
  
• VENND Exchange gateway & Vending machine for XCP, BTC, assets. (Cross-blockchain support possible.)
  
• Digital Tangible Trust Escape BTC volatility! -  Trade Gold and silver via the Blockchain. Backed by physical holdings
  

Latest News

26 August 2014 - Multi-sig addresses are now supported on testnet. (Useful for two-factor authorization, escrow, and decentralized organizations.) Read more: http://www.coindesk.com/crypto-2-0-roundup-counterparty-debuts-multisig-ethereums-crowdsale-comedians-go-crypto/
2 August, 2014 The man who would undo Wall Street by offering Overstock.com 'crytposecurities' http://upstart.bizjournals.com/entrepreneurs/hot-shots/2014/08/01/the-man-who-would-undo-wall-street-by-offering.html?page=all

The honest truth is it most definitely is and so is Mastercoin.
But Counterparty has almost no marketing budget, and may not be able to find their niche.

Ripple and Stellar can most things better than Counterparty right now so Counterparty needs a niche.

[Anotheranonlol]

The honest truth is it most definitely is and so is Mastercoin.
But Counterparty has almost no marketing budget, and may not be able to find their niche.

Ripple and Stellar can most things better than Counterparty right now so Counterparty needs a niche.

In what sense? Ripple and stellar seem to be vastly different.

* You can't issue smart property on ripple or steller ( I know there's codius for contracts)
* You cant pay, or receive dividends in BTC or native assets on ripple or stellar
* it's not compatible with bitcoin blockchain, IE it can't natively interface, transfer assets to paper or otherwise 'offline' wallets. Everything remains in the ripple ecossytem
* Ripple/stellar system is some weird clunky network of trust gateways working with debts and IOUs
* Ripple labs, stellar partners own the vast majority of the tokens, making that token unsuitable as an investment, (riiple just released huge amount yesterday * after hearing BTSX pushed them out the way on coinmarkercap, inflating all existing holders stakes) - counterparty is deflationary by nature
No hedging, feeds, CFD's betting with ripple/stellar

etc

CounterParty is perfect for fundraising & trading, you don't need to trust any guys like Mark karpeles that the exchange platform is secure. Nobody can get goxxed with counterparty as your bitcoins are under your own possesion. You don't need to worry about SEC shutdowns for trading bitcoin assets, like with what happened to BTCTC and BitFunder. The counterparty protocol automatically escrows many trades on the DeX.- With the addition of multisig now some interesting new opportunities emerge.

[Canaanite]

This thread is great
I am happy to learn about counterparty

I'll play a bit with the wallet and see how it goes

Looking into the forum I see the community is not that big compared to the other crypto2.0 (Like Nxt, bitshares & Ethereum, its more of the size of NEM that didnt do nothing actually)

[profitofthegods]

Ripple and Stellar can most things better than Counterparty right now so Counterparty needs a niche.

Lol, Stellar can't do anything right now, its a clone of Ripple except with all of the functionality apart from holding STR removed.

Ripple has some useful functions, but it isn't really comparable as its designed for totally different purposes; for example ripple has no dividend payment features, no trustless betting etc.

[deliciousowl]

I think the main issue here is that people do not see the potential of XCP feed based betting, and XCP trustless betting. They focus too much on the 'coin' and 'asset' aspects of it, that the ability to create and place your own bets with only a line of text goes unnoticed.

This functionality alone is mind-boggling.

[SkullCoin]

CounterParty does a lot of things right. They are my preferred platform right now because they allow BTC transactions and easy simple interfaces that everyone can use.

I think if they perfect the DEx and make BTC transactions go through 100% of the time, it could take off like bitsharesX at any moment.

I hope they keep development going strong.


SkullCoin: https://bitcointalk.org/index.php?topic=733916.0

[Zer0Sum]

The problem of some top20 coins is that their characteristics are too advanced for the average buyer.

Buyer wants a coin he can understand what it does.

Litecoin he can understand. It's BTC but faster.
Darkcoin he can understand. It's BTC but faster+"darker" (private)
DOGEcoin he can understand. It's BTC + faster + "funny" + billions of coins for the lulz
Namecoin... wtf is this, yeah well we already have DNS
Protoshares...  
Ripple...  
Mastercoin...
NXT...  
Maidsafe  
Counterparty  

So how is someone to buy if there is no understanding what it does. And those who do understand thinking "oh that's great, has vast potential" etc etc, well, they are waiting for the "simple money" to jump onboard so that they can get appreciation on their early buying. But the simple money doesn't follow the large money / early investors because they don't understand what these coins do.

Cryptomarket is weird. You can sell a simple concept but not a complex one. The more complex the coin is, the better chances it has to get itself buried.

If this post has widened your understanding* of the "complex-coin market" psychology and why some coins tank when "...they shouldn't", tip freely

* This is an expensive lesson that one will figure out only if they've burned their money in "complex coins".

This is a great post.

There are 3 main problems with Gen 2.0 platforms starting with Ripple, NXT, and the rest.

(1)  Complexity on a tech hobbyist level.

(2)  Very high counterparty risk.

(3)  Decentralization results in poor liquidity.

Bitcoin is about the absolute ceiling for acceptable complexity in mainstream crypto.

Most people are used to banks, brokers, real estate = insured and zero counterparty risk...
All of these Crypto Asset platforms are EXTREMELY dodgy relative to the Developed World...
For example, the #10 asset on NXT is a bunch of guys in Iran taking money to build an small ASIC farm...
You have precisely ZERO protection against these guys stealing your money.

And the last one liquidity...
XCP seems to have doubled transactions to about 300-400/day in the last 3 months (very nice!)...
And the NXT AE does about 200 tx/day (I would bet a LOT of that is faked by NXT whales)...
But this is microscopic and results in very poor liquidity... and MUST GROW FAST.

Bitfinex is doing 100 times the volume of NXT... 10,000 vs 100 BTC/day (not counting swaps).

Liquidity is a very esoteric, hard-to-explain phenomenon...
It tends to spontaneously explode around well-designed, centralized hubs...
Whales play a huge role in this... and liquidity begets more liquidity...
It would be very hard to grow on klunky, decentralized platforms (with 3-4-5 protocol layers, what could go wrong?)...
And any perception of counterparty risk just totally KILLS liquidity.

5-10 years ago ECNs were able to drain massive liquidity from the NYSE/NASDAQ...
So anything is possible if you attract the whales.

[ebite]

I am holding my XCP forever. Vote XCP at btc38.com, one of Chinese biggest exchanges.

XCP is ranking top 2 currently, need 35 more votes.

http://www.btc38.com/trade/vote_for_trade_en.html

[AlexGR]

Bitcoin is about the absolute ceiling for acceptable complexity in mainstream crypto.

Exactly. Even the complexity of Bitcoin is what prevents it from having wider adoption. People ask "what is Bitcoin?" and you can't really explain it properly without a mini-briefing of sorts.

Bitcoin needs to launch a campaign in which it can adequately compress its principles and functionality in a few short sentences that can be easily grasped by average Joe. Something that everyone can use in order to explain it to others.

2.0 coins are all over the place.

At this point of time Bitshares seems to have been pumped regardless, but I haven't seen any of the "small" players buying into it... they are all wondering "what does this do and why should I buy?" Large pumpers play this game and they'll wait and wait for the small money to arrive and it will never happen.

[profitofthegods]

Bitcoin is about the absolute ceiling for acceptable complexity in mainstream crypto.

Exactly. Even the complexity of Bitcoin is what prevents it from having wider adoption. People ask "what is Bitcoin?" and you can't really explain it properly without a mini-briefing of sorts.

Bitcoin needs to launch a campaign in which it can adequately compress its principles and functionality in a few short sentences that can be easily grasped by average Joe. Something that everyone can use in order to explain it to others.

2.0 coins are all over the place.

At this point of time Bitshares seems to have been pumped regardless, but I haven't seen any of the "small" players buying into it... they are all wondering "what does this do and why should I buy?" Large pumpers play this game and they'll wait and wait for the small money to arrive and it will never happen.

Bitcoin very briefly: Money and online banking, but without banks.
Bitcoin fairly briefly: Like online banking, but controlled by the people so you don't need to trust a bank and so bad banking practices can't bring the economy to its knees and put us all in debt again. Also it includes a kind of money that isn't created based on debt and usary like our normal money.

Also these 2.0 platforms don't need to be used by the general public to be very successful. Very few of the people I know use the traditional stock market, for example, but that's doing pretty well.

[Anotheranonlol]

Just crossposting a useful blog outlining some common misconceptions about the Counterparty platform.

12 Myths about CounterpartyXCP

• http://www.scribd.com/doc/238520096/12-Myths-about-CounterpartyXCP
• http://coinedtalk.com/12-myths-about-counterpartyxcp/

Myth 1: Counterparty is just Bitcoin 2.0 marketing hype.

Myth 2: Counterparty’s internal currency, XCP, is just another alt-coin.

Myth 3: Counterparty is just another project where the developers want to get rich quick. They will just run away with the money.

Myth 4: Counterparty development is dead and nothing works yet.

Myth 5: Counterwallet stores your passphrase and private keys on their servers!

Myth 7: If Bitcoin can be used in Counterparty, then XCP doesn’t have value.

Myth 8: I want to create a poll on the Blockchain, but Counterparty doesn’t have a voting feature.

Myth 9: You can’t store XCP or assets in cold storage. There is no 2FA!

Myth 10: Counterparty is polluting the Bitcoin blockchain with useless data and weighing down the network. This is a “free ride” on top of Satoshis hard work!

Myth 11: Counterparty is missing multi-sig support.

Myth 12: Broadcast feed betting is centralized.

[Its About Sharing]

XCP really moving well, any ideas why?

[delulo]

Just crossposting a useful blog outlining some common misconceptions about the Counterparty platform.

12 Myths about CounterpartyXCP

• http://www.scribd.com/doc/238520096/12-Myths-about-CounterpartyXCP
• http://coinedtalk.com/12-myths-about-counterpartyxcp/

Myth 1: Counterparty is just Bitcoin 2.0 marketing hype.

Myth 2: Counterparty’s internal currency, XCP, is just another alt-coin.

Myth 3: Counterparty is just another project where the developers want to get rich quick. They will just run away with the money.

Myth 4: Counterparty development is dead and nothing works yet.

Myth 5: Counterwallet stores your passphrase and private keys on their servers!

Myth 7: If Bitcoin can be used in Counterparty, then XCP doesn’t have value.

Myth 8: I want to create a poll on the Blockchain, but Counterparty doesn’t have a voting feature.

Myth 9: You can’t store XCP or assets in cold storage. There is no 2FA!

Myth 10: Counterparty is polluting the Bitcoin blockchain with useless data and weighing down the network. This is a “free ride” on top of Satoshis hard work!

Myth 11: Counterparty is missing multi-sig support.

Myth 12: Broadcast feed betting is centralized.

+1
Counterparty has a great team and I am long term bullish!

[Anotheranonlol]

Added latest news update --

6 September 2014 Armory offline support now implemented in counterwallet main net Read more: http://www.cryptocoinsnews.com/counterparty-first-bitcoin-2-0-platform-offer-armory-offline-wallet-support/

[Anotheranonlol]

Added latest news update --

21 September 2014 Counterwallet 1.5.0 released

Counterwallet 1.5.0 released.

We're proud to announce the release of Counterwallet 1.5.0

This new release includes the following functionality:
* Added Quick Buy interface with Vennd Machine
* Added internationalization support
* New address generation system
* DEX design improvement
* Added order expiration and fees in advanced option
* Added quick url access with choosen password

**Fixes:**
* Numerous fixes: http://goo.gl/opzkoh
* Minor UI tweaks

Full list of changes are at: http://goo.gl/AICdol


Once language translations are done (at transifex.com/projects/p/counterwallet/), we will be adding these to the interface. Right now it's still English only.
Also, feel free to try the new Quick Buy (vending machine) feature for BTC->XCP.

[Anotheranonlol]

Added latest news update --

06 October 2014 -- Overstock.com Assembles Coders to Create a Bitcoin-Like Stock Market based on Counterparty
http://www.wired.com/2014/10/overstock-com-assembles-coders-build-bitcoin-like-stock-market/
http://www.reddit.com/r/Bitcoin/comments/2iho5p/counterparty_founder_robby_dermody_hired_by/

more news to come

[Nick70001]

Added latest news update --

06 October 2014 -- Overstock.com Assembles Coders to Create a Bitcoin-Like Stock Market based on Counterparty
http://www.wired.com/2014/10/overstock-com-assembles-coders-build-bitcoin-like-stock-market/
http://www.reddit.com/r/Bitcoin/comments/2iho5p/counterparty_founder_robby_dermody_hired_by/

more news to come

Price just went up 140%

This news is a game changer.

[TinEye]

Added latest news update --

06 October 2014 -- Overstock.com Assembles Coders to Create a Bitcoin-Like Stock Market based on Counterparty
http://www.wired.com/2014/10/overstock-com-assembles-coders-build-bitcoin-like-stock-market/
http://www.reddit.com/r/Bitcoin/comments/2iho5p/counterparty_founder_robby_dermody_hired_by/

more news to come

Great news, though this is going to be one slow exchange.

Price touched 0.015, massive jump.

[delulo]

Everybody, there is an enormous amount of misinformation going around in the press. We're working to fix that ASAP. In the meantime, please help us correct errors as you see them!

For the record:

1) Overstock.com and Counterparty are partnering to build a platform (Medici) for trading stocks on Counterparty and using Counterparty's decentralized exchange.

2) I, along with Ouziel (JahPowerBit), will continue working on the Counterparty protocol full-time. Robby and Evan will continue to work on Counterparty full-time because Medici is a front-end for Counterparty.

The Wired and Coindesk articles make it sound as though we are abandoning this project. Nothing could be further from the truth!

Thank you,
Adam