Disclaimer: This post is NOT mainly about MineralsCoin (but rather its concept), but I had to mention it heavily because it is the catalyst for this whole reaction.
This post is about how some pool owners, together with big exchanges and probably big farmers monopolize the market on the expense of small miners and possible investors.
I wanna apologize of the lengthy post, so bear with me it, but let’s start:
About a week ago (June 12th) a new coin came to life – MineralsCoin (
https://bitcointalk.org/index.php?topic=641057.0).
This coin came with the idea to challenge the unfair distribution that most, if not all coins before it had.
And by unfair I am talking about farms taking over a coins network, mining the majority of it, while being the minority (in sheer number) and then dumping it, leaving small miners (the majority) with nothing but leftovers, if they’re lucky.
The developers of MineralsCoin decided that in order to allow a fair distribution of the coin, they would have to limit the hashrate that each individual could use, and the only way to do so is by controlling all the pools of the coin during its PoW phase (a stage that lasted about 7 days) and limiting each account to 1 worker with a limit of 50MH/s (it’s using x11).
Also, wallet wasn't released until after PoW phase ended to prevent farmers from solo mining it.
Sure, you could work your way around it, but it would be a lot of trouble and as evident from the network hashrate, not to many farmers bothered with the coin.
Now, some of you might say it’s a scam because the dev of the coin could just relocate the hash somewhere else for his own benefits, but a quick look at the miner showed difficulty that matched the coins, block explorer of the coin worked perfectly fine and no other coin that uses x11 has had a jump in network hashrate proportionate to the size MineralsCoin.
Also, there was no ghost account mining the coin heavily as could have been seen by adding the total hashrate of the 6 pools.
During its PoW stage the developer worked hard on giving the miners an alternative to where to store their coins outside the pool, this alternative came in the form of exchanges. One exchange service was happy to add MineralsCoin and it’s C-Cex, however, most miners wanted (and still want), the bigger exchanges to accept MineralsCoins in order to see its value go up.
However, one of the biggest exchanges to date – Bittrex, has remained vague with its intention of adding MineralsCoin for reasons that made me make this thread:
Here are some quotes from pool owners/admins/whatever that for "unknown" reasons decided to group up in MineralsCoin thread:
Admin in DedicatedPools
You think these pools have DDOS protection? Think again.
We charge 2% because we are a premium pool where shit just works.
We'll see on launch :p
Subtle threat?
Sorry, not supporting privatization of crypto coins. Crypto is supposed to be open source.
I'd be astonished if any exchange actually hosts this for you. Nobody is going to encourage private sources and pools, no wallets, etc.
This is not crypto at this point, you will be no better than Microsoft or Paypal.
Didn't you think this was going to cause some backlash? People don't want privatization, they want public sources and open source. You are going backwards, not forwards.
Ryan, dedicatedpool.com support/admin
Quoted for the irony that is about to come.
I am here for the goodness of Crypto. I have been here much longer than anyone and have tried to form a society that is good to move forward. Privatization of crypto will not been tolerated. You may or may not know there is a society of over 150 people, pool owners, exchanges, leaders in crypto that all VETO'd your coin - it is just not me. People will not stand for stuff like this - the scams are already too bad and developers are trying to gain more and more control. It won't happen.
You seem like a nice guy and for that I feel bad that it worked out like this for you. Your idea was probably good on paper but you probably never considered the backlash from the engineering community that created these walelts and crypto in general. Sure miners will mine anything under the sun - they have no idea of the implications. But the people who created crypto are looking out for them. Private sources are not accepted, under any circumstance - that is not crypto anymore.. it is paypal or whatever. We don't want paypals. People want to be able to control their wallets and review source codes. We want public ledgers and pools and exchanges, not backroom bargins and developer 100% control.
“Sorry, not supporting privatization of crypto coins” right into "You may or may not know there is a society of over 150 people, pool owners, exchanges, leaders in crypto that all VETO'd your coin - it is just not me”.
Probably the most disconcerting post of them all.
So the new scam of the week is private sources and pools so devs can control, not just 1% of the coins, but 100% of the coins. Nice.
Sorry, not going to work. Already contacted exchanges and gave them the heads up.
Nobody is going to host this coin on a major exchange.
If you mine this coin you are killing crypto. And in fact, since you won't be able to trade it, you're just wasting electricity.
Purposefully blocking a coin that might create a wave of coins that will eat into his future pool profits.
it won't be worth anything. Exchanges aren't hosting it.
You'll be mining air.
Coin is dead before it started.
Well, now it’s an obvious threat.
Admin in TradeMyBit:
No source? Fail coin.
Another pool showing its hate.
Admin in Suprnova and various other pools (yet another pool owner…)
Much luck to you guys, if any other coin would only mineable by one pool (operator) everyone would scream "scam!, scam!, scam!" as there is no way to prove that the pool is legit and you get what you deserve, but if you like being controlled by one single instance here..
Go ahead and support the idea of socialism ;-)
Quoted for irony
I Can just shake my head when i Read the last few pages here, i cannot understand that people like being Controlled, throttled and manipulated in every possible way.
This concept is total bullshit, even Ripple is better.
Trying to control, throttle and manipulate the entire thread with the rest of the pool owners, does make what he just wrote to qualify as ironic.
Admin in Suchpool.sw (another pool owner…)
This look like a big scam, stay away.
There were lots of other pools in that thread (to many pages to go through) in addition to shill accounts trying to spread FUD and quotes from Bittrex IRC which I did not bother to post.
For the record, MineP was actually the only pool that participated in the thread and did not seem to bash the coin but rather took interest in it.
As a side note, how many coins out there have you seen that have been controlled by a single pool? Don’t know about you, but I have seen a lot. Pools that owned 80%, 90% and even 100% of the network of the coins and those coins were added without an issue to the big exchanges only to allow pool owners to dump the coin to make an extra… God knows how much.
As far as Bittrex goes (and the other big exchanges), to this date, they have added a lot of other shitcoins, that are semi closed source, 100% pre-mined, 70% premined (Country coins anyone?), etc.
The only common thing here I can see between those coins that were listed on big exchanges is that they could have been mined on the big pools.
So my question to this forum is this: is the market that heavily monopolized? That only a select few people decide which coin is gonna go where, where it’s going to be mined, where it’s gonna exchange? Which coin is going to be lunched?
Was crypto not made in order to decentralize us from the control of a few powerful entities? How bad is what Binaryclock talking about? How serious is that group?
And as a last note, MineralsCoin is now in its PoS stage and became open source. Nothing malicious was found in the code and so far everything seems legit with the coin.
P.S. I wanna remind you again that this thread isn't about MineralsCoin, but rather the concept it brought to the table and the very sharp reaction from a group of people that got scared of its ramification if it succeeds.
*I wanna apologize if my English was not spot on, it isn’t my native language after all.
Additional links to read:
http://www.cryptoarticles.com/crypto-news/minerals-x11-powpos-with-no-wallet-download-before-end-of-powhttp://www.cryptoarticles.com/crypto-news/minerals-altcoin-with-100-fair-launch-upsets-big-miners-and-pool-operatorshttp://altcoinspeculation.com/new-coins-new-wealth-any-future/http://altcoinspeculation.com/are-new-altcoins-being-monopolised/
