Embercoin. One of the most interesting crypto coin out there because it has click-bait like features that draws in the people and makes people wait sleepless nights in staking.
What is up with Embercoin?
The First feature that draws people in is the ridiculous interest rate. The Return on investment, ROI, is around 7200%, which is insane for any coin or finance in general. People would be so happy if their investment doubled over the year but who would have expect is to multiply Seventy Two fold? Anyways, it is what it is. Without a doubt, it can be an amazing short-term investment if you can get the interest rate going. However, their system of interest is not the easiest to obtain.
You can mine Embercoin through a method called Proof of Stake. POS as short, it allows people to mine Embercoin without having expensive set-up with ASIC and GPU's and instead, require your virtual wallet to be open on your computer 24/7. There might be a little more electricty bill coming in but it's a lot better than trying to mine with 1200V worth of GPU's, getting a ridiculous amount of electricity bill.
From my understanding, POS works like this: there is an average stake weight and the closer you are to the weight, the more likely you are picked earlier that other people's stake. It's like a stick in a bundle. If you have only a little bit of Embercoin, you put in one stick in the bundle. If you have around 16 million embercoin, which is the average stake weight right now, you put a 1000 stick in the bundle, more likely to be picked. So currently, people have a lot of embercoin invested to get the stake reward faster instead of having to wait 2+ weeks.
Now for the Pros and Cons. I am going to simply list them and explain.
Pros:
- 7200% ROI through staking.
- Compound Interest. Exponentially increase your Stake amount.
- New Development Team. A nice change for the future.
- Starting to form a community. Fair amount of Discord Users and Helpers.
- Roadmap of New wallet + Burning inactive coins and changing the ROI to 720% by the end of October.
So these are some of the Pros. The Staking interest rate is great and with the compound interest, the amount can go up to a crazy number. There is a new development team so that is a good addition to the coin. There is a discord chat full of people and devs and helpers are there to guide the newcomers and the regulars. There is a roadmap for the future so that the coin does not die of hyper inflation because of the 7200% ROI.
Cons:
- 7200% ROI. Hyper Inflation will happen if not controlled.
- Whales. People who got in early have high amount of Embercoin. Possible Pump and Dump scheme.
- Compound Interest. The people on top have more and more stake compared to bottom. The difference between the rich and the poor gets farther and farther.
- Small Dev team. To my understanding, there are only 3 people in the Dev team.
- Staking Time. Unless you have a good amount of couple million of Embercoin, staking takes a long time. Discourages people with lower stake amount and many newcomers join only to drop out.
There are several cons out there and these are couple of them. The 7200% has to be controlled because if not, the seller to buyer ratio will be too high and coin price would drive low. As for the whales, there is always a possibility of Pump and Dump in coins with low volume and low market cap. Once the pump and dump happens, the sellers sell high and the buyers buy high. The community will be disparaged by the shock and might stay away. Compound interest makes the rich so much richer and it can make a big difference between the Top 10 holders and the rest. Small dev team is worrisome because that means that less progress within the time frame. Lastly, the staking time. There has been hundreds of people just complaining about the staking time because it does not happen fast. Sometimes people wait upto 2 weeks or more and sometimes people only wait a day. Only thing people can do is simply wait until a stake somehow shows up.
So what is my view on Embercoin? It stays at a neutral or below-neutral. It does a potential but it also is lacking in many areas. If this coin continues after the new ROI rate, I believe that this can go quite far in its journey. However, if whales pump and dump the coin during the changes, this coin can crumble. For now, this is a High Risk, High reward coin. Once we pass Oct 31st, I'll come back and see whether this coin survived or not.
Thanks for reading my review and hope you guys have a great day of crypto investing!
I am not a financial/crypto expert so please do your own research before making your decisions. I am not responsible for any actions that you take.
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