With the sustained decline in the general valuation of cryptocurrencies over the past few months, the effects on several blockchain-based projects have been devastating. There is reduced community participation ranging from core team members, developers to the extended members of various blockchain projects. The decline in general market valuation has also led to the shortage of funds to carry out projects objectives according to their respective roadmaps.
Facts?
According to Money.cnn.com and Ethereumworldnews.com, Cryptocurrency Market Capitalization continually nosedives and have lost well over $43 Billion within the past 5 days, with at least $16 Billion of that loss occurring within the last 24 hours. Since January this year, the market has lost an estimated $450 Billion worth of value so far. On the chart, everything is in the red.
Should this continue, it is estimated that over 95% of blockchain projects and companies (especially POW blockchains) will fold up or simply become inactive. According to , Hundreds of good-intended blockchain-based projects have failed within the 12 months, This is because these projects will find it even more expensive and less rewarding to mine blockchain blocks. As the prices of cryptocurrencies plummet, more investors get "rekt" and exit the market. Hence, leading to a lower circulation of funds each time.
Everytime a project goes obsolete, it traps away valuable assets from the general crypto space, both monetary and utility-wise.
These issues have prompted some important questions that are yet to be explored and solved. These questions include:
- What happens to crypto assets that lose liquidity and exchange listing completely but still have significant value trapped inside of them?
- What happens to the investors' money?
- What happens to the communities?
- What happens to all of the data and information stored on these blockchains?
So far, even our best answers to these do not have a working solution model. Well, at least not until CoinJanitor.
What is CoinJanitor, and how do they intend to solve these problems?
CoinJanitor is a blockchain-based company that seeks to unlock the value that is trapped in failed or dying cryptocurrency projects.
CoinJanitor is a project that will benefit cryptocurrency markets in general and individual communities in particular. By working to restore value, to re-activate and amalgamate dwindled communities and inactive blockchains, Coinjanitor could build a much larger community under its umbrella and act as a feeder/strengthening community for top performing blockchain projects, especially projects that are similar to the failed ones.
The challenge is to set up a system to restore and transfer this trapped value in a user-friendly manner. The main tool at our disposal to address this challenge is fundamental economics. Through the creation of a token (JAN), the CoinJanitor project aims to provide a convertible asset for the users of those failed or dead coins to unlock the value they left on the blockchains of those coins.Src/ whitepaper
Coinjanitor will achieve this by buying out all of the assets from some of these relegated blockchain projects. Thus offering a means to free up funds and further utilize the information recovered from these redundant ecosystems and communities.
By setting up a trading pair on a customized exchange with their JAN tokens against these coins, holders of such assets will receive JAN in exchange for their devalued assets (at an agreed-upon rate). The assets received by CoinJanitor will be sent to the blockchain's burn address and will be eradicated completely.
Who will benefit from this?
We have identified 4 main groups of cryptocurrency users who will benefit from the project. Many users belong to 2 or more of these groups at the same time. Users who belong to more than one of these groups, will derive multiple benefits from all the groups they belong to.Src/ whitepaper
Stated below are the 4 main groups of identified benefactors, along with the benefits that each will derive from CoinJanitor
Users:
Users and token holders will regain the opportunity to get value back from the coins that cannot be sold in exchanges and to join a community that will grow exponentially. Through the amalgamation of blockchain projects by consensus, these users will enjoy the benefit of the network effect with other blockchains and communities. They will no longer be cut off from the market and will recover some money to reinvest in better blockchain assets.
Project Creators:
Pioneers and creators of failed cryptocurrency projects are not to be ostracized from blockchain communities, especially when the project had good intentions and the right momentum in the past.
Such creators will be invited to share their valuable knowledge and experiences and will be allowed to discuss and debate about what to do with failed coins henceforth. With the right innovation and guidance, these creators could go on to develop even more sophisticated tools and lead newer and advanced projects or communities in the future.
CoinJanitor:
With every failed project being amalgamated, CoinJanitor will grow into a more robust and highly sophisticated ecosystem that could serve as accelerators for several other innovative blockchain projects. Thus, creating economies that wouldn’t have existed otherwise.
Also, since the ecosystem is community-centred, CoinJanitor community members will actively participate in decision-making discussions about how to achieve market concentration and to offer better support for projects with trapped value.
The Market will recover value.
As CoinJanitor succeeds, it will play a major effect on the future structure of the market. The presence of failed and diluted projects will reduce, stronger and more-successful communities will be strengthened and the market values of their cryptocurrencies will appreciate because recovered value from these failed projects will be available once again to be reinvested in good projects.
Like what you read?
There is more information on the official website and whitepaper material in the links below if this project interests you. I have also included the official explainer video. Do not hesitate to take a look at them to get started.
Also, please visit the official links to Coinjanitor's social media handles to be updated with the latest news, events and press releases from the community. Thank you.
PS: The CEO of CoinJanitor, Marc Konigsberg, will be speaking at the upcoming Decentralized blockchain event organized by the University of Nicosia, which will be held in Athens, Greece by the 14th of November this year.
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
Next 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
The images used in this post were modified by
and are free to use for everyone. As a disclaimer, the information contained within this post should not be taken as a financial advice. Thank you