LEOcoin Claims to be the Second Largest Digital Currency, after Bitcoin. Bullshit.

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free moneyLEOcoin is a good example of what a pump & dump coin looks like, user beware.

LEOcoin was ‘launched’ on the 25th of March (2015) and comes forward with bold claims of being the world’s second largest digital currency. This claim seems based on the users, LEOcoin claims to have 100,000 entrepreneurs already using the currency though it only launched on the 25th of March.

Despite only just being launched some 100,000 entrepreneurs are already actively using the currency in anticipation of its trading debut, making it second only to Bitcoin.

We are currently in pump stage.

Contrary to the information provided by LEOcoin, and their recent CNBC article promoting it, as citing it as a rival to bitcoin. And contrasting initial videos from the LEOcoin CEO (Dan Anderson) from summer of 2014 stating that LEOcoin will be widely accepted within six months, there is to date;

  • No merchants accepting it, online or otherwise.
  • Undisclosed pre-mining (unless you count this article).
  • A copy/paste of Bitcoin, no additional features.

The company therefore claims it has 131,176 registered businesses ready to use LEOCoinCNBC.

I was unable to find one merchant that currently accepts LEOcoin, claims that make it identical to bitcoin with no notable additional features, no statement of pre-mining. And a seemingly misunderstanding of what constitutes a deflationary digital currency.

This claim indicates that all other digital currencies (bar bitcoin) have less than 100,000 users. You can view coin market cap to have an idea of the market cap and available supply of the leading Cryptocurrencies. Out of the 500+ coins listed here, LEOcoin is not yet listed.

Apparently committed to producing 28,800 LEOcoins per day, for a period of 99 years. The total amount of LEOcoins produced in this period will be just over one billion. LEOcoin states itself as a deflationary currency.

A difference here from bitcoin is that bitcoin slowly halves its issuance rate towards a steady decline of issuance until there are no more bitcoins issued. A common bitcoin theory is that this steady decline in bitcoins will coincide with increased value.

However, LEOcoin will produce the same 28,800 per day until it suddenly stops issuance. Until this point, same as bitcoin, it will still have monetary supply inflation.

The LEOxChange is planned to be launched on April the 2nd, and will be located in Hong Kong. The LEOxChange headquarters are located in Oxfordshire, which would place their governance under UK jurisdiction. Temporarily this means that they would not be required to be an MSB (Money Services Business), but may soon be required to be registered.

Also read: U.K. Treasury To Regulate Digital Currency & Bitcoin

Amazing usability and accessibility?

LEOcoin (2)LEOcoin claims to offer greater usability and accessibility when compared to other digital currencies; it will provide emerging start-ups and enterprises no intermediary charging commissions. Citing YouGov statistics that state how small to medium sized enterprises are often charged high fees for international trade.

Included in the claims that LEOcoin is expected to have greater usability and accessibility,

“LEOcoin is truly an anonymous digital currency, in contrast to others which are anonymous only on a superficial level.”

It offers security in that;

“Once the payments are made, you need not worry about chargeback. And that it is user-friendly and does not require specialized knowledge.”

A possible confusion with their statements about ‘commission’, is that they possibly might mean that their exchange (LEOxChange) will not take commission, mostly.

Conflicting itself, LEOcoin states that the exchange has;

Zero Commission: no commission or transaction fees on purchases. A small commission on sales.

Commission on sales is still commission. What they are referring to is a maker-taker style of commission.

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Bitcoin itself does not charge commission, and it already addresses the international high fees as charged by traditional financial services. And the steady decrease of supply inflation of bitcoin lends itself to a steady adoption rate, a continued inflation of 28,800 per day, ending with a sudden drop off, could make some bitcoiners flinch.

A digital currency does not become deflationary (in regards to its supply) until it stops producing, or is producing so little that more will be lost than is produced in a given period.

Potentials interested in LEOcoin should also be aware that it has in fact been in existence for quite some time already, that at the time of writing, it’s most recent block processed was number 406694.

Though there is nothing essentially wrong with pre-mining. It is considered good form that a ‘newly launched’ coin should state whether it has been pre-mined or not. Quite a few people would probably not check thoroughly. The LEOcoin mining pool has been up and running since the 6th of August, 2014.

Mining statistics and more detailed information can be found at the LEOmine site. There is no stated notable difference between bitcoin or LEOmine, and no evidence of the 100,000 entrepreneurs that apparently are using it already.

About LEOcoin

LEOcoin is a brand new digital currency that allows individuals to make fast and secure transactions through a decentralised peer-to-peer network. It’s digital cash, so any and all transactions are completely anonymous without the need for bank or transfer fees. Support by a large community of established and aspiring entrepreneurs, LEOcoin has great potential for rapid growth and expansion. Accessible to everyone, it’s easy to use and available today.

More information on LEOcoin can be read via the LEOcoin news feed, from the LEOcoin site, from LEOmine, or from the Buy LEOcoin site. There is even, hashtalk, and a bitcointalk thread started by ‘leocoin2015’ who starts the thread asking if others have heard of this new coin and indicating that he would like more information about it.

hey guys..i know its bitcoin forum but did you hear for new coin called leocoin ? any news are welcome. i see official site is www.leocoin.org
thanks for info ~ leocoin2015

For the technical minded among you, here is the Github link for LEOcoin, https://github.com/Leocoin-project/LEOcoin. We can see from here that the company behind it have 50 million LEOcoin in stock. There is no halving of the block reward (as previously stated), and the block award is 20 coins (which can be confirmed via the LEOmine statistics).

Every money needs to be spent. You can spend your LEOcoins on many online or even or retail shops. You can also trade your coins for some other crypted valute.

You should thoroughly do your research if you plan to invest in this coin, it smells rather strongly of a pump & dump.

Disclaimer: Any views or opinions are that of the author and should not be construed as from CCN.

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Joel loves Bitcoin and Digital Currency. He holds a BSc (hons) in Criminology with Criminal Justice Studies and Sociology, contributes for Bitcoin Magazine, is an Ambassador for Coloured Coins, Software tester and Advises for GreenCoinX and MultiSigX, and is Director of IBWT ("In Bitcoin We Trust"), a Digital Currency Exchange.