ICO: Coin Janitor
I always like ICO's which are doing something a bit different to the norm and CoinJanitor certainly fits that bill.
CoinJanitor is launching in order to buy out failed cryptoassets which no longer trade on exchanges and have an inactive development team. They will exchange JAN tokens for the tokens of the target project in return for all assets, such as code repositories and any marketing resources. Following this takeover, the CoinJanitor team will burn the purchased tokens and disable the blockchain. The team would follow this basic process:
- Get GitHub access from the Coin owner
- Remove other people's ability to commit (Remove all users except CoinJanitor developers from the GitHub committers)
- Check and update the ledger CoinJanitor holds, or otherwise collect snapshots of the blockchain from peers
- CoinJanitor gets control of the consensus mechanism to be the only one who is able to mine
- Point mining power if needed to allow transfers (in case of PoW), and in some cases also decrease the complexity of mining.
- Mint all remaining coins so no more coins can be mined, while updating the complexity and rewarding rules.
- Appeal to public for tokens
- Begin manual swaps
- Close first swap window
- Burn all tokens, i.e. transfer all tokens to 0x0 address
- Continue taking coins ad hoc verifying against snapshots
The end goal of CoinJanitor is to create an open source blockchain library which is available to the entire community to use for their own endeavours. I like the principle of this. Amalgamating the knowledge of tens if not hundreds of projects is a good idea and will provide future developers with a central library from which to build off. Furthermore, it may potentially lead to co-operation between people who would never have otherwise been brought together. Developers of one chain may suddenly realise that another projects ideas may work well in combination with their own ideas.
It may also bring to the public consciousness projects that have long since been consigned to history. CoinMarketCap, the go to list for all crypto projects, only lists c. 1,600 projects - a fraction of the total amount of DLT networks actually in existence. It is very hard to find projects which are not listed there and even many of the ones listed will attract precious little attention.
The issue with CoinJanitor is that I think it faces a number of issues and also is hard to rationalise as a decent investment.
Firstly, the takeover process itself is hard. No community is ever going to fully agree and there will always be holdouts, particularly on dead coins such as the ones CoinJanitor targets. These will have a large proportion of people who've probably forgotten they even hold them and the communities will be likely quite hard to engage in many cases, if it has been dead for some time.
Secondly, a lot of the deadcoins which are two years or more old (which is what CoinJanitor targets) will likely be BTC clones or offer very little new from a development perspective. The project will target PoW chains at a time when many are moving away from PoW due to its limitations. Furthermore, a lot of code is open source already.
Finally, I cannot envisage how the JAN token will appreciate in value for any fundamental reason. The code repositories it will acquire will be made open source and thus free to everyone, JAN holders or not. There will be continued downward pressure on the JAN price as new holders (those who acquire it in the swap from their deadcoin) will probably then sell out to other, more established, tokens. Beyond speculation, there is no real reason for anyone to buy JAN - the token itself is not needed other than to provide the funds/mechanism to buy dead assets.
From an investment perspective, it is hard to recommend in its current guise as I cannot see where the fundamental value creation will come from (not that that has stopped most other cryptoassets it has to be admitted). However, there is a lot to like about CoinJanitor's intent. The idea of assembling communities and code knowledge under one umbrella is a great thought and could lead to the development of fresh ideas out of a melting pot of failed aspirations.