Would some Regulation in the Altcoin space be welcome?

[tactrad]

Due to the number of recent scam coins, the industry's trust problem has gotten much worse.

A possible solution IMHO is a Self Regulatory Organization (SRO), like stock exchanges have. People have faith in the stocks because they are on the exchanges. Exchanges have customers because they do their homework (due diligence) before listing a stock. They are not perfect, but the system works.

For an exchange, it is all about trading volume, and that means having the hottest coins. But paid listings are worrisome.
It begs the question, Who are an exchanges primary customers? Devs with coins to list? Or, the people that trust you with their coins (Read: Their Money)

The Mt.Gox collapse was the wake up call. Hey, this is real money! Then events like the Poloniex theft, and others exposed the need for exchanges to secure and validate themselves. Now, say what you want, but Poloniex recovered and made their customers whole. That alone deserves a measure of respect. The result of these terrible events is a growing faith in the surviving exchanges.

Now we have a torrent of new scam coins, which will drive the next evolutionary phase of development: Due Diligence. If exchanges continue allowing scam coins onto their exchanges, where funds are virtually stolen from exchange customers, exchanges will soon find their customers have no funds with which to trade.

To protect traders, speculators, and investors, a measure of due diligence, call it regulation if you like, must evolve. Without some sort of regulation, the scammers will run their scams until there are no funds left to be scammed. And that will be very, very bad for the exchanges.

You see, despite the desire for anonymity, transaction size and volume will likely remain in the 2 digit $ range forever. Large transaction and or investments require a system where where Someone or some entity can be held accountable.

A well defined 'industry standard' and or set of criteria needs to be (read: will eventually be) developed. (Yes, that would be considered a regulation.) Measuring the shouting on social media does not qualify. Something, anything that will deter evildoers must be put in place. For instance, if a dev can only be reached via IM, Chat, IRC, Forum post, or Email.... that is probably not a good thing.

The alt coin future is straight forward. Self Regulation of coin developers (meaning regulation) driven by the Exchanges is the best option. Government intervention probably won't work and no one wants it. If nothing is done, it will be a slow death due by a thousands of ever smaller scam coins yet to be released. Exchanges in it for the long haul have no choice. Exchanges must immediately begin scrutinizing the coins currently listed and begin developing new regulations for any coin they consider listing. If they don't, their customers lose money and the alt industry suffers. Bottom line, Integrity and Intent count. Oh yea, and the exchanges with the greatest integrity are the ones most likely to survive. 

You can make it happen,
You can watch it happen,  or
You can sit there and wonder WTF Just happened....  (Capt. Phil Harris)

I can't wait to see the response this.... or maybe it is already being discussed elsewhere

Good day!

[boxuser]

good question, not sure if it is possible, but CRD is working on a way to reduce scam https://bitcointalk.org/index.php?topic=634403.0

[GreenBacksTeam]

We think that regulation is already coming about, but it is through the community and investors. People are starting to buy into scams less, and people are starting to come up with changes already. Such as Coinssources Dev trust program, and Bittrex's bounty on finding scams in coin code. This is what crypto needs because this is how it is meant to be.

[anderl]

We already have regulation.  Here it is....

Operation Shitcoin Cleanout and Clean Up Has Begun- Join the Revolution- Updated

But I think they need more support.

[nutildah]

Due to the number of recent scam coins, the industry's trust problem has gotten much worse.

 Exchanges have customers because they do their homework (due diligence) before listing a stock. They are not perfect, but the system works.

The system does not work. The system is shit and completely fucked. The system is currently unsustainable and requires thousands, millions, probably even billions of people to suffer so it can function the way that it currently does. The system will lead to the collapse of modern society if people don't wake up and see how they are being brainwashed and used by the extremely wealthy.

For an exchange, it is all about trading volume, and that means having the hottest coins. But paid listings are worrisome.
It begs the question, Who are an exchanges primary customers? Devs with coins to list? Or, the people that trust you with their coins (Read: Their Money)

Here we are in agreement. I say "both." The exchange values both crapcoin dev and customer alike. However, in the case of Bittrex, they clearly have no desire to look after their customer's wellbeing as evidenced by the neverending flurry of shitcoins they are constantly promoting.

Now we have a torrent of new scam coins, which will drive the next evolutionary phase of development: Due Diligence. If exchanges continue allowing scam coins onto their exchanges, where funds are virtually stolen from exchange customers, exchanges will soon find their customers have no funds with which to trade.

I wish I could agree with you on this but there seems to be an as-of-yet unspent cache of noobs who keep fueling the crapcoin craze. Perhaps this will die out before too long as word gets out that 95% of altcoins are actually worthless.

To protect traders, speculators, and investors, a measure of due diligence, call it regulation if you like, must evolve. Without some sort of regulation, the scammers will run their scams until there are no funds left to be scammed. And that will be very, very bad for the exchanges.

Did you know that Bernie Madoff used to be the chair of NASDAQ? Regulation won't help if the regulators only care about themselves, which is the attitude of pretty much everybody who deals with money directly for a living.

The alt coin future is straight forward. Self Regulation of coin developers (meaning regulation) driven by the Exchanges is the best option. Government intervention probably won't work and no one wants it. If nothing is done, it will be a slow death due by a thousands of ever smaller scam coins yet to be released. Exchanges in it for the long haul have no choice. Exchanges must immediately begin scrutinizing the coins currently listed and begin developing new regulations for any coin they consider listing. If they don't, their customers lose money and the alt industry suffers. Bottom line, Integrity and Intent count. Oh yea, and the exchanges with the greatest integrity are the ones most likely to survive.  

Bravo. Well said and bumped.

[open82buy]

Bravo. Well said and bumped.

They should have regulations against one of the largest TROLL on the forum.
 

I guess you don't mind it if I post the private messages you've been sending me then and then all can see what a troll you are.

[nutildah]

You just parroted back to me what I said to you, in 12 different threads!

I guess you don't mind it if I post the private messages you've been sending me then.

You physically threatened me over a coin that didn't even budge in price, despite your assertions that I was "costing you money." Anything someone says after you threaten them, you had it coming.

These people don't care about our squabble btw, stop spreading your psychological affliction on the innocents.

[Spoetnik]

We think that regulation is already coming about, but it is through the community and investors. People are starting to buy into scams less, and people are starting to come up with changes already. Such as Coinssources Dev trust program, and Bittrex's bounty on finding scams in coin code. This is what crypto needs because this is how it is meant to be.

that guys trust program is bullshit he is a lying weazle fucking scumbag.
and

that..

my crypto-friends is the problem you guys are all dumb period.
waaaaaaaaaaaaaaay to fucking dumb.

me and 10 guys laughed our ass off at the NOOB "trust rating"  guy waaay back for a super ultra dumb stunt and he made it 100x worse from there
only to wait a while until someone forgot to worm himself into a position of trust.. for financial gain (to push HIS shit clone coins)
A fucking stupid noob caught red handed pulling scams and then lying and fighting to cover it up should not be involved in anything
sure as hell not a trust system.. he has no cred and no skills at handling people and knows fuck all about this scene because he got here in January 2014
and that is why i say your all dumb out there.. you eat up any noob's shit that pops up saying anything with out question.

would take me 5 minutes to cook up a scheme make an account and get you all on your knees blowing me lol
guuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuulible

all this scene contains is corrupt people and the idiots they feed on.
how do you fix stupid ? self-regulation ? good luck with that LOL

@OP
Poloniex didn't do fuck all.. they exposed one scam coin for example then backed down like cowards and mimic what teh others say..
the usually collection of excuses..
"user demand"
and
"the market will decide"
they have no spine and if you think they do you have been fooled.
all the top exchanges are a corrupt load of bullshit pulling stunt after stunt.. they just rarely get caught and exposed publicly bad enough.

and yeah Mark from GOX made sure all pro investors sold out and left for good !
so no there won't be a second wave like NOV 2013 as i have said all along and as i was argued with all along..
and regulation is not coming.. it's too much of a mess for regulators to deal with.. if anything they will try and ban it all NOT regulate Altcoins.
the only saving grace is Bitcoin regulation implemented in the works right now that might spill over into our scene.
but how far reaching and meaningful will that be ? i think almost nill.

i have called for regulation all along and the Free Market chanting scammers rallied their war cry at me.. and now they ware waking up.. far too late.

the scene is dead and the morons ruined it.
and that included greedy idiot pool op's fighting over each other to add shit coin #876 first
or exchanges to play out their agendas like adding every shit coin asap (Bittrex / Poloniex)
or fringe players who try and exploit random angles (BTER / CoinEX / Coins-E / mcxNOW)
or guys that sit back and play dumb trying to pretend to be better than others while they themselves make the shit coins (Cryptsy / Bittrex + Polo etc etc)
You think those guys want regulation ? SELF regulation ? sure they would LOVE "self" regulation LOL
govt regulation would be jail time though lol

hey get over it and watch the toilet flush ..there is no stopping it !
far too little far too late.. nothing is going to change.
greedy fuckers have made their choice looooooooong ago.

this topic will be on page 80 in a day or two.. your dreaming lol

[tactrad]

hey get over it and watch the toilet flush ..there is no stopping it !
far too little far too late.. nothing is going to change.
greedy fuckers have made their choice looooooooong ago.

this topic will be on page 80 in a day or two.. your dreaming lol

Unfortunately, I think you may be correct.

I would like to believe the people behind the exchanges are taking a long-term view. (long-term meaning decades)
If the focus remains narrow and short-term, you will be correct.

IF, and this is a big if, Two of the main exchanges, Cryptsy, Bittrex, Mintpal, and Polo, were to merge,  (best match IMHO is Cryptsy and Bittrex) and  then implemented a set of criteria for coin listing, that requires a measurable and ongoing commitment from the coin team, to ensure legitimacy and commitment, the industry could be saved. It is going to take a tremendous amount of work.

But hey, it always take a tremendous amount of work to make something lasting from nothing.

Any more thoughts?
Anyone like the idea of a Bittrex / Cryptsy merger ?

[nutildah]

I'm more just a bystander now so I don't care. The colluding devs and exchanges are the ones who should care, but they don't because easy money has obscured their long-term vision. So, I won't feel bad for them when they all start going to jail for securities fraud because they didn't have the political backing that real financial exchanges have. Except by fleeing the country their roundup and prosecution seems kind of like an unavoidable certainty by now.

[hellscabane]

Sure, legitimate regulation that leaves a trail for auditing would be a vast improvement, and the improvement that this scene needs. Unfortunately, it clashes with all of the "beliefs" that exist in this realm; and frankly, clashes with a lot of the "innovation" too.

Anything short of that, like "self-regulation," would just be a crock of crap hiding behind a thin veil of marketable "improvement."

Really though, it's whatever, this scene cannibalized itself, and all of the players deserve what they get (such as dwindling trading volumes and so forth).

[Spoetnik]

no.. i AM regulation 

[HzE]

the fact is that the whole scene needs regulation and transparency.
Those who try to argue, that regulation is against the "religion of cryptos" are just trying to protect their intrest (so they can continue scamming and play in the inner circle).

If someone at these times (after gox and many other horrible things) tries to sell "freedom" in the form of cryptos, hes bullshiting hard.

[idev]

Yea we need the regulators as they are doing such a great job at not being brought and paid for and facilitating scams themselves.
 

[HzE]

Yea we need the regulators as they are doing such a great job at not being brought and paid for and facilitating scams themselves.
 

It would still be lot easyer to bring the known regulatory branch or organ into justice when their scam would be noticed.
There is no way around this thing, internal or external regulation must be applied, since it benefits the whole community.

[r3wt]

the fact is that the whole scene needs regulation and transparency.
Those who try to argue, that regulation is against the "religion of cryptos" are just trying to protect their intrest (so they can continue scamming and play in the inner circle).

If someone at these times (after gox and many other horrible things) tries to sell "freedom" in the form of cryptos, hes bullshiting hard.

this. Bitcoin is freedom through regulatory consensus algorithm, but this doesn't mean it shouldn't be externally regulated to protect consumers.

[cassius69]

decentralized exchanges are the answer.

[Brewins]

If we don'tself-regulate, the state will have the perfect excuse to go ahead and make nonsense regulamentations, like they do with the financial world, but worse because we will have the informatic ignorance added to scenario.

So it must be done.

[raganius]

this. Bitcoin is freedom through regulatory consensus algorithm, but this doesn't mean it shouldn't be externally regulated to protect consumers.

If we don'tself-regulate, the state will have the perfect excuse to go ahead and make nonsense regulamentations, like they do with the financial world, but worse because we will have the informatic ignorance added to scenario.

So it must be done.

Both good points.

[r0ach]

Garbage thread.

First you want crypto regulation, then you'll want to do some regulation on free speech, guns, religion, wealth redistribution, then affirmative action, and the circle is complete.