Hey Gang,
For today's #DailyDiscussion I want to touch on quality of coins, blockchains and tokens.
As you may know, I am the fundamental analyst for the Crypto Traders Pro community. It's my job to be aware of blockchain efficacy, use-case viability, some understanding of open source code, micro and macro economics, and to be up on the "who's who" of business, finance and mining in the cryptocurrency space.
This has led me to advocate for what I believe are high quality longterm projects, low quality longterm projects and all the stuff in the middle that are good swing trades.
It's also led me to be particularly critical of the management, development and operation of a number of projects - most particularly Verge (XVG).
Today, the Verge blockchain, just over a month out from its last protocol-level hack, has had another successful 51% time-warp attack where the miners have found a weakness in the code and used it to create XVG out of thin air to award it to themselves.
I know of no other chain that has experienced 2 such attacks and survived. On top of the utter lack of privacy that Verge offers its users, the constant missed deadlines, the fact that there is a single centralized developer, and that the business practices of the hype and (maybe even bribe) cycle, I have to come down hard on Verge yet again.
This project is a danger to anyone who is holding it. I know it made amazing gains in 2017. I even traded some in 2017 for a hefty profit, but this coin/blockchain/team has every single red flag of toxicity. I have to recommend steering clear of it, because one day it is just going to lose its value completely and never gain it back.
And just to be clear about something: I don't "hate" Verge. I am analyzing it as a professional, and I have heavy criticisms of about 95% of the coins out there. In fact, I think 5 or 6 of today's top 10 coins will cease to have any appreciable value in 5 years, because they also have fundamental flaws in their economic incentives, governance structures, lack of truly distributed mining or just plain lack of quality.
That doesn't mean they aren't good short term trades, but during these times of slow trading action, it's important to brush up the fundamentals of what you are buying so that you do not get destroyed by holding bad coins.
Please be vigilant, Crypto Traders! ✌️🤞
