How To Do An Altcoin Right: Coinye Vs Dogecoin

April 16, 2014 02:50 UTC
In terms of altcoins Dogecoin and Coinye are polar opposites. One is a community-driven success story, the other a scam.

I got into cryptocurrencies when I discovered Dogecoin. I had heard about Bitcoin prior to this but had never researched it in depth. Dogecoin was (and still is) very inexpensive, so I got some to see what cryptocurrencies was all about. This lead to me discovering Satoshi’s original whitepaper and seeing all the benefits cryptocurrencies offered to an individual seeking financial liberty. This seed planted by a lighthearted altcoin has lead me to becoming a Cryptocurrency advocate.

Coinye is an antithesis to Dogecoin. A pump and dump with the promise of bringing cryptocurrencies to a more mainstream stage through leeching off of Kanye’s brand, as opposed to building a legitimately founded technology and community on a non-owned entity. But of course the goal of moving cryptocurrencies into the public spotlight with heavy media coverage attracted many from the community. Today Coinye serves as an example to enthusiasts to be vigilant before they jump on an altcoin bandwagon.

Here is my analysis of what Dogecoin got right and what Coinye got wrong:

What Dogecoin Got Right

  • Community – From day one Dogecoin has had a consistent focus around community, Coinye had merely a bunch of fractured subreddits and a poorly run twitter account. Dogecoin built a community around its users while the Coinye developers obsessed with being featured on as many news outlets as possible.
  • Legitimate Use Of BrandingDoge is a meme owned by nobody, but adopted by the Dogecoin community to give the currency an accessible image allowing users to get excited about the cryptocurrency. Kanye’s likeness merely made Conye lawsuit bait to attract media attention.
  • AccessibilityMany people got into cryptocurrencies through experimenting with Dogecoin. This lead to huge success for the laid back currency. Coinye, as previously mentioned, had its notoriety peak long before the software was even out stopping any community that might have existed from benefiting and growing.

What Coinye Got Wrong

  • Lack of Integrity – Coinye developers announced extremely shortly before launch that a premine would take place (0.37% or 759 blocks). Reddit user drnkmorepowerade rightly said this “reneging on their word stands kill Coinye’s legitimacy entirely” and it did.
  • Lack of Transparency – Very little detail was given by developers concerning the reasons for the premine and the legal dealings with Kanye. Released information was show through a satirical filter. It seemed the developers had given up on the coin after dumping their premine and where just desperate to poke fun at Kanye when they could have been doing much better things with this currency while it still had people’s attention.
  • Media Obsession – The Coinye debacle was promptly picked up by many mainstream news outlets such as the BBC and Vice. The developers utilized this to stir up controversy to raise the value of the premine dump.

Dogecoin is a currency backed by community spirit and a long term game plan. Users have raised substantial amounts of money for charity and even managed to pool together to sponsor a Nascar. Dogecoin is a spontaneous group that goes above and beyond the cause of cryptocurrencies to do good in the world. Coinye on the other hand is dead, and a media shambles for the sake of a quick cash grab, hopefully it will serve as a reminder for those interested in young altcoins to tread cautiously so that schemes like Coinye do not tarnish the reputation of cryptocurrencies further and turn potential users away.

Last modified: November 11, 2019 11:39 UTC

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