The Chaincoin Revolution?
If you're in the Cryptocurrency space, and follow any of the well subscribed commentators on Youtube, you may well have heard about Chaincoin. The discussion around Chaincoin is not so much about the coin itself, but about the movement behind it.
The brainchild behind the movement is Max Lee, who runs a Youtube channel called High On Coins. Interestingly, Max is also a cousin of Charlie Lee, the creator of Litecoin.
The HODL movement (or HOLD _ Hold On for Dear Life), is something that goes against the grain for most people in the Cryptosphere. The whole space is dominated and plagued by "pump & dump" scams, which artificially raise the price of coins through manipulation by people with a lot of money. These manipulators/large investors are termed Whales.
The Crypto markets are still relatively tiny compared to major markets like the stock exchange. The relatively small market caps, or volume of money invested in the asset, creates substantial volatility, when relatively large sums of money enter, and then leave the market.
Enter the HODL movement. The HODL philosophy is about acquiring, accumulating and holding, rather than trading and speculation. It is a long term strategy, not a get rich quick scheme.
The truth is that the Cryptocurrency markets are like the early Gold rush days. There are expectations that there are fortunes to be made, and indeed there are. Short term gains can be made, as there are often wild swings that you just don't see in other markets.
Gains of 50% to 1500% in a day are not uncommon, particularly on new offerings. But these wild swings also go both ways, and can happen very quicky, as in minutes. These kinds of market movements are not natural growth, but created by market manipulation, speculation and FOMO (Fear Of Missing Out).
History shows that the greatest gains to be made in Crytocurrency are generally made by holding for a relatively longer term. We've all heard the stories about the early investors in Bitcoin who are now multi-millionaires. Even if you bought Bitcoin or Ethereum earlier this year, you would have made handsome profits.
The HODL movement is about not playing the speculation game, but participating in an investment strategy. It's about a collective movement for growth, rather than a fight for scraps.
Why this works for Chaincoin is because it is a masternode coin. If you purchase a masternode, which costs 1000 coins, you can run a masternode. This is similar to Dash and PIVX, but at a substantially lower entry cost. As the owner of an activated Masternode, you receive a dividend of approximately 2 coins per day on average.
This means that you generate a passive income, simply from hosting a node. As the coin price increases, the dividend for each masternode holder increases. The coins are created in a similar fashion to Bitcoin, in that you are paid in coins for performing work on the network i.e processing transactions.
Over time, the coins generated can be withdrawn and sold to collect some passive income, or they can be accumulated towards purchasing more masternodes. At 2 coins per day, you would have enough coins for a second masternode in 500 days. With a second masternode, you would be creating 4 coins per day, and would have another masternode in another 250 days, and so on.
What is surprising, is the reaction by many to this collective movement, particularly on Youtube. Everyday there seems to be another video by a self proclaimed expert with 18 subscribers telling the world how Chaincoin is a scam, and telling everyone to get out before it's too late.
I wonder what motivates these people to suddenly care so much for their fellow man that they would setup a Youtube channel to tell the world of how they are being duped? I don't really get it. It's one thing to have an opinion, but from my own experience in reading the comments posted on some of Max's videos, there is almost an underlying hatred which defies belief.
Max has been subjected to racial slurs, to having his Slack channel hacked, as well as people trying to hack into his Exchange accounts. Why is there such vehemence? Not believing in something is one thing, and that's everyones right, but to maliciously attack someone you've never met, based on your own opinion is unbalanced and uncalled for.
The Cryptosphere is indeed the wild, wild, west. There are scammers and hackers, and market manipulators, and it's understandable that many people who are expecting quick profits are getting burned, and getting angry.
It seems to me that Max and the Chaincoin Hodler paradigm, has become the focus for all this frustration. It's almost a catalyst for people to vent their anger on something that represents their failed expectations so far. Max has become the whipping boy for all the frustrated investors, who need someone to blame.
The real issue for many is one of trust. Investing in this movement requires a certain level of trust, both in Max himself, and the other participants. It's about having a belief that there are good natured human beings who aren't out to steal from you.
For many, this is too much to ask. The doubters believe that as soon as the price reaches a certain level, investors will dump their coins for quick profit. Some will for sure, that's human nature. The question is do enough people believe in a collective strategy, rather than a dog eat dog philosophy. I believe many hateful commentators say so much more about themselves than the object of their derision.
At present, there are now over 2000 masternodes and climbing every day. This is a grand experiment, which goes against the tide, and against the herd. It's early days, and time will tell if the movement gains traction or stalls against the fear and anger promoted by unbelievers.
To believe, or not to believe, is your choice.
If you'd like to learn more about Chaincoin and the Hodler movement, check out http://chaincoinhodlers.com
Peace