CoinJanitor is a blockchain-based company that seeks to retrieve and recycle the value trapped in dead or failing cryptocurrency projects.
Blockchain technology presents a lot of opportunities and innovative ideas that are futuristic. cryptocurrencies, for example, are great examples of how digitization will drive commerce and industrial functions in the future.
However, the crypto space is still a new one, and we have seen many such cryptocurrencies come into existence and then immediately die off after a few months in the spotlight without really taking off. According to statistics from Trustnodes.com, there are over 3000 dead/dying cryptocurrency projects currently out of the 4500+ present, with well over 50% of these projects tokens/coins yet to be listed on exchanges or on any coin-monitoring website. This not only presents a lot of work for every cryptocurrency enthusiast or blockchain startup to wade through the noise to earn a place but also reduces capital and interests flowing into the crypto space.
The reason is simple and easy to understand: Redundant cryptocurrency projects get little or no liquidity at all and with time, they get delisted from exchanges, thus offering no means for unsuspecting investors to sell their assets. The monies trapped in such assets are disconnected from the rest of the market and written off as 'lost'.
CoinJanitor offers a one-stop solution to this problem: Retrieve the value trapped in such assets by buying the tokens with their own native token. A solution that is easily relatable and in my honest opinion, perhaps the most innovative blockchain solution yet!
In my last article on CoinJanitor, I looked at the project's methodology and the economic model behind the company as well as cleared up a very important question about the project's use case. Contrary to the perspectives critics take, CoinJanitor is a builder and strengthener of blockchain communities than anything else. By retrieving trapped profits from "dead" blockchain projects and then amalgamating communities to make an even stronger one, they help make the crypto space even more united and stronger and retrieves value into the market again.
Today, let us consider how redundant coins are determined, and the whole process employed by CoinJanitor to carry out its function.
How are Redundant/Dead Coins Determined?
Before carrying out the project's important task, the team must first define what coins should be termed or considered "dead", and which one should be considered for purchase. This is particularly tricky and trivial because the definition for what a dead blockchain project is, is rather subjective and has no widely-accepted definition. However, CoinJanitor states what it considers a redundant blockchain and welcomes the different views of the entire blockchain community.
Following a couple of analysis by the CoinJanitor team, coins that fulfil the following conditions will be considered for buy-out frameworks first:
- The market cap of the coin should be under $50,000 USD
- The coin should be a PoW coin.
- It must NOT be listed on any exchange.
- It should be at least 2 years old. (Buy-outs for projects lesser than 2 years may be considered later).
- The owners should be contactable.
- Most importantly, the owner and community must be willing to cooperate with CoinJanitor.
CoinJanitor chose POW coins first because it is easier to sort out a redundant POW blockchain than an ERC20 one. A reduced amount of mining activity, coupled with the unreasonable cost of mining itself is a tell-tale sign that a particular blockchain is being abandoned. Rest assured, POW coins are not targeted for any political reasons!
The Process Involved
The process that CoinJanitor will employ to clean up dead or failed coins relies solely on economic and market principles. The execution will be community-centric, taking into consideration that people are at the centre of the whole projectPg 11, Coinjanitor Whitepaper
CoinJanitor intends to achieve its plan of reaching out to as many redundant communities with devaluated cryptocurrencies as it can, and will solely depend on community consensus and economic value to do this. Hence, targeted communities will be contacted and terms will be relayed amicably in open communication channels for every community member to see. Once communities come to an agreement, the buy-out and amalgamation processes will be initiated in different stages. Outlined below is the overall steps to be taken by CoinJanitor.
- Contact the creators of the target currency to offer cooperation and open a channel of communication with them.
- Agree on a plan to cooperate with project owners.
- Once an agreement is reached, take over access to GitHub, all code repositories and all marketing assets.
- Communicate with the community members of the target currency using social media – Reddit, BitcoinTalk threads, etc– and update members on how to exchange their assets for JAN tokens.
- Set up trading pairs and set timeframes for the implementation of buyouts.
- Update blockchain snapshots to the latest records.
- Stop new coins being created on the blockchain.
- Initiate token swaps with users.
- Burn all acquired tokens.
- Communicate status of swaps to the market.
- Set up a process for future ad hoc token swaps
The communities targeted are then amalgamated with stronger, bigger communities that have similar products/services. The holders of the blockchain assets being swapped will be given JAN tokens in return, and will have to decide what they want to do with them. JAN tokens will be tradable with staple and recognized cryptocurrencies like Bitcoin and Ethereum. Hence, new holders can sell these tokens for BTC or ETH, ultimately leading to the transfer of value into the crypto market once more!
If this project interests you, I'd love to discuss it in the comment section below. Questions, contributions and general observations are welcome.
Do not hesitate to look-up the official links to Coinjanitor's social media handles and materials below. Also, see the explainer video for a quick overview of the project. Thank you.
Project Website: https://www.coinjanitor.io/
Coinjanitor Products & Services: https://www.coinjanitor.io/#how-it-works
Coinjanitor Link to a press release: https://www.trustnodes.com/2018/04/27/press-release-coinjanitor-project-charge-cleaning-cryptocurrency-markets-dead-coins
Recent event: https://www.decentralized.com
Coinjanitor Facebook: https://www.facebook.com/CoinJanitor-201490483964845/
Coinjanitor Medium: https://medium.com/@CoinJanitor
Coinjanitor Twitter: https://twitter.com/CoinJanitor
