CoinJanitor is a cryptocurrency-based project that aims to clean up the crypto market and eliminate dead coins. They will take over failed projects that meet a specified criteria and merge them into one project under CoinJanitor and then perform a token swap where holders of dead coins will get new tokens – JAN tokens in exchange for their dead coins. The dead coins which CoinJanitor has collected will then be burned. CoinJanitor only works with projects whose developers and community are willing. Although there is no generally accepted or clear-cut definition of a dead coin, CoinJanitor will only consider projects which are not trading on any exchange. The failed project must also be a POW coin and should be at least 2 years old. The coin should also have a market cap below $50,000 USD for CoinJanitor to work on it.
CoinJanitor aims to become one of the most significant sources of data, code and other IP assets in cryptocurrency markets. They will unlock the value trapped in dead coins while adding value through the merging of dead coin communities under CoinJanitor to create a massive network effect and allow people transfer value into other popular cryptocurrencies - coinjanitor.io
How Innovative is The CoinJanitor Project?
To fully understand just how innovative this project is, let's examine the magnitude of dead coins in the cryptography market. There are over 900 dead coins – projects that were abandoned, projects that never listed on an exchange, projects that could not handle regulations and restrictions among other reasons. Numerous sites that list over 5000 coins abound but there is no comprehensive list of all coins. Neither are there records that are updated with respect to the status of these projects. CoinJanitor carried out a detailed research using factors such as inception date, trade volume, exchange listing status, hashrate and social and forum activities. They discovered that 50% of coins are not even listed, coins with $1million+ daily trade volume only account for 5% of the market. About 28% of coins have a lesser trading volume and 17% of coins have been abandoned.
Some people bought most of these dead coins with their money and since most of them have been abandoned there is no way that they can recover their money especially because they are not listed on any exchange. That is why CoinJanitor is good news. Through CoinJanitor, people can get their money back and trade JAN tokens with other major cryptocurrencies while adding to market value at the same time. Creating JAN tokens and then allowing holders of dead coins to swap their coins with JAN tokens is the fastest and most effective method of restoring value to people.
JAN tokens are Erc-20 tokens using a Proof of Stake consensus algorithm but CoinJanitor targets Proof of Work coins. Does this make sense?
The major reason CoinJanitor targets POW coins is because it is easy to figure out when a POW coin is dead. The activity level of a POW coin can be detected through their mining activity and transaction volume. If these two are absent then the coin can be declared dead. JAN tokens are not built with POW because the CoinJanitor team are focusing on the main objective of their project instead of using resources to mine POW coins. Also, launching their token on ethereum allows CoinJanitor to move quickly. CoinJanitor might move to their own blockchain in the future but for now, they will remain on ethereum. It is important to note that CoinJanitor does not prefer any blockchain type to another.
Analyzing the criteria CoinJanitor uses to select dead coins to work on also shows how thoughtful the CoinJanitor team is. They do not work with coins that are listed on an exchange. This is a good move because they are literally buying back the coins they are working on and buying back tradeable tokens will spur an unwanted price action that may look like a deliberate pump but that is not what they want at all. Hence, selecting dead coins that are not listed is better as it would unlock the value trapped in those coins.
CoinJanitor also selects coins that have been around for at least 2 years. Considering that cryptocurrency is still very young, 2 years may not be enough to conclude that a project has failed. However, if the coin meets all other criteria that CoinJanitor uses, then they can be selected to be worked on.
CoinJanitor does not select projects without the consent of the developers and the community. The support of the community is highly needed to perform token swaps and token burn. To seek the approval of the project developers, CoinJanitor needs to contact them which means that the coin owners have to be contactable. When CoinJanitor successfully amalgamates projects,the JAN tokens will have larger community support.
CoinJanitor also selects coins whose market cap is below $50,000 USD because they have limited funds and it would be wise to clean up as many coins as possible.
The token burn process that CoinJanitor will embark on starts with gaining GitHub access from the coin developers. They will proceed to remove every other user from the GitHub server and then taking snapshots of the blockchain. CoinJanitor will then control the consensus mechanism so that no other person except CoinJanitor can mine coins. After doing that they will mint the remaining supply of the coin and start the token swap process by asking holders to send in their coins. The swap process will be manual instead of an automatic method. A manual swap process was chosen because an automated process will require much funds which is not exactly the best way to manage resources especially since most dead projects they will be working on would be old and outdated.
Conclusion
CoinJanitor is an innovative project with foresight. They carried out a detailed research and found that there is a large number of failed projects and abandoned coins with a lot of money trapped in them. They decided a way to retrieve the value trapped in these dead coins by swapping them to JAN tokens which have value. Merging the communities of different projects will form a bigger, stronger community for JAN tokens.
For more information on CoinJanitor, please visit the website or the following social handles:
Website: https://www.coinjanitor.io/
· Products & Services: https://www.coinjanitor.io/#how-it-works
· 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
· Facebook: https://www.facebook.com/CoinJanitor-201490483964845/
· Medium: https://medium.com/@CoinJanitor
· Twitter: https://twitter.com/CoinJanitor