An altcoin true backing by something valuable- be safe from pump and dumps

[zolace]

So I have an idea and was thinking of making an alt coin backed by something of value.  If a alt coin was backed by oil or something that is heavily traded will you invest in it, mine it, and dump it?

Will the coin be more valuable having backing by a product

Edit I dont wanna announce the product or coin but Im interested in getting support for the coin, I have acres of lands here in Europe and going to make a coin that is backed by valuable crops I produce, I dont wanna say yet what it is, cause the coin has not been created yet for this purpose but I wanted to know if I can get supporters first and it wont be a pump and dump coin either.  I wont allow it to be.

[Nullu]

I think it's been done before, albeit unsuccessfully. How, logistically, would a small dev team manage something like that? You could only really trust a public company to offer a commodity-backed crypto.

INNcoin is a gold-backed cryptocurrency. Quite recent coin to the market.

Theoretically you could back crypto by anything. Something small, valuable and non-perishable makes more sense, so rare metals are an easy choice, and historically gold is well known as a currency backer.

Right now all cryptos are backed by Bitcoin.

[fluffypony]

I think it's been done before, albeit unsuccessfully. How, logistically, would a small dev team manage something like that? You could only really trust a public company to offer a commodity-backed crypto.

It also turns a decentralised, trustless cryptocurrency into something that is centralised and requires you to trust the entity that holds the underlying goods.

Historically, this has never worked out for anyone.

[Nullu]

I think it's been done before, albeit unsuccessfully. How, logistically, would a small dev team manage something like that? You could only really trust a public company to offer a commodity-backed crypto.

It also turns a decentralised, trustless cryptocurrency into something that is centralised and requires you to trust the entity that holds the underlying goods.

Historically, this has never worked out for anyone.

Except when banks did it in the early 20th century, but yes, it does centralise the currency.

You could do it by offering an exchange service that allows you to trade the coins in for x amount of commodity. This would work. provided you offered the right amount of commodity, i.e. not so high that it all gets dumped.

You could use the premine to buy the commodity, then divide it amongst the remaining coins that will ever exist. It would set the coin's floor, at least.

[zolace]

I was thinking of making a coin and back it by land own and what is gown on it, I mean like valuable items  the value of the coin will get better as the more product is backing it. 

[Nullu]

I was thinking of making a coin and back it by land own and what is gown on it, I mean like valuable items  the value of the coin will get better as the more product is backing it.  

You're talking about asset/profit sharing, which is a legal minefield. I'm not saying it's a bad idea, but this would be difficult for a single person to implement.

[zolace]

I was thinking of making a coin and back it by land own and what is gown on it, I mean like valuable items  the value of the coin will get better as the more product is backing it.  

You're talking about asset/profit sharing, which is a legal minefield. I'm not saying it's a bad idea, but this would be difficult for a single person to implement.

yeah something like that I have lots of land and was thinking growing some valuable product, dont wanna say what it is cause is my idea, but I will invest my money into these crops then I was going to release the coin and have it backed by it,  worth will start small because of the value will go by years and how popular the coin gets of course.  I will keep growing more crops and more since I have acres of land.

[Rigon]

I was thinking of making a coin and back it by land own and what is gown on it, I mean like valuable items  the value of the coin will get better as the more product is backing it.  

You're talking about asset/profit sharing, which is a legal minefield. I'm not saying it's a bad idea, but this would be difficult for a single person to implement.

yeah something like that I have lots of land and was thinking growing some valuable product, dont wanna say what it is cause is my idea, but I will invest my money into these crops then I was going to release the coin and have it backed by it,  worth will start small because of the value will go by years and how popular the coin gets of course.  I will keep growing more crops and more since I have acres of land.

It could work if you have a company or registered market,  pictures and website for it as well.  Also list of the product you are growing and nothing illegal of course

[zolace]

I was thinking of making a coin and back it by land own and what is gown on it, I mean like valuable items  the value of the coin will get better as the more product is backing it.  

You're talking about asset/profit sharing, which is a legal minefield. I'm not saying it's a bad idea, but this would be difficult for a single person to implement.

yeah something like that I have lots of land and was thinking growing some valuable product, dont wanna say what it is cause is my idea, but I will invest my money into these crops then I was going to release the coin and have it backed by it,  worth will start small because of the value will go by years and how popular the coin gets of course.  I will keep growing more crops and more since I have acres of land.

It could work if you have a company or registered market,  pictures and website for it as well.  Also list of the product you are growing and nothing illegal of course

Yeah was thinking proof of stock, a registered farm or something like that, and permits might suffice to backing the coin with crops

[devphp]

It also turns a decentralised, trustless cryptocurrency into something that is centralised and requires you to trust the entity that holds the underlying goods.

Historically, this has never worked out for anyone.

this

[zolace]

ok just cause there was one company or person who messed this up, doesnt mean it wont work.   Im sure people would rather have a coin that is back with some type of commodity then a shit coin that will be pumped and dumped

[devphp]

ok just cause there was one company or person who messed this up, doesnt mean it wont work.   Im sure people would rather have a coin that is back with some type of commodity then a shit coin that will be pumped and dumped

There were more than one company or person, even more than one country that messed it up in the past. It doesn't work in the long run when it's centrally controlled.

[Benjig]

Well all the backed alts i have seen have been scams ans later have died so you will need to put alot of effort to success on that.. i remember "bitbars" and dev pretending to have one of his coin to be more valuable than btc.. and it ended at like .01 

[zolace]

Well all the backed alts i have seen have been scams ans later have died so you will need to put alot of effort to success on that.. i remember "bitbars" and dev pretending to have one of his coin to be more valuable than btc.. and it ended at like .01 

I agree with what you are saying here, my reason it failed because it was just another scam in the first place. Im willing to go far as registering a company under the name of the coin and investing my own funds and time and research into the product.  we own 4 seperate lands, lots of acres and can sure buy up more, and can start seeding, and will divide coins worth on that product.  They key to the coin is that it will be worth something in 2 to 3 years time.  I will explain all this later. 

[zolace]

so if anyone is interested in me creating a coin in the coming months, with the work in it let me know, Im willing to back the coin for 25 dollars of each coin and releasing coins depending on how many produce comes out of the ground, then those can be mined.

[Skoupi]

Actually bitcoin is already backed by something valuable.
By a decentralized payments network that works perfectly and seemlesly for 5 years already...

[devphp]

so if anyone is interested in me creating a coin in the coming months, with the work in it let me know, Im willing to back the coin for 25 dollars of each coin and releasing coins depending on how many produce comes out of the ground, then those can be mined.

You are obviously at a wrong forum. Crypto currencies are about decentralization. Without decentralization they are as good as toilet paper. Oh wait, toilet paper is better, you can actually use it

[freedomno1]

So I have an idea and was thinking of making an alt coin backed by something of value.  If a alt coin was backed by oil or something that is heavily traded will you invest in it, mine it, and dump it?

Will the coin be more valuable having backing by a product

Well there was a precedent but the company was not allowed to operate and got banned eventually.
That said Forbes wrote an article on it recently.
http://www.forbes.com/sites/edmundingham/2014/08/11/a-crypto-currency-backed-by-gold-how-retail-gold-investors-can-benefit-from-bitcoins-technology/

So how can Bitcoin, the technology, complement the gold bullion markets and help investor’s better utilize their assets? Jan Skoyles wrote her dissertation on the importance of precious metals to the monetary system, arguing that historically unbacked currencies have tended to last approximately 48 years, but always revert back to the precious metals markets, of which there is a finite supply, as the true determinant of value.

[zolace]

I read it and kinda didnt like the idea of using gold bullion for backing, hence why is because it cant be growned and owned.  If I was to give a share backing on the coin, it could work, the value could work off more of nature then people pumping and dumping the coin wont effect it much because say, if I put fences to protect the crops then we know im going to have lots of more coins to be mined.  its kinda following this kind of concept of course 1 item will probably be worth 1/25th of the coin so I can give it backing while be able to make money on the crops also but allow market share in it.  Also I will allow other growers of that product be able to sell there product for the coin, etc 

[zolace]

I had changed the the topic thread and was looking into getting support for creating a new coin that will have true backing, I will have to write out a business plan and ideas and concepts and a new kind of blockchain system so that you will be well protected.