The Altcoin Launching Pad Was Well Used In The Month Of May
The Altcoin Launching Pad Was Well Used In The Month Of MayWere you were worried that the Launching Pad in Altcoin City wasn’t getting enough usage in May? Don’t! If there’s one thing that shouldn’t keep you up nights it’s feeling anxious about whether enough new altcoins are going to be launched. This month at least 140 new alternative cryptocurrencies were shot into space! That number is pretty high, but all indications point to it going even higher. May not only saw fresh launches but there were also many re-brands, re-launches, and community takeovers. What’s driving this incredible explosion of launches and relaunches? Obviously the coin ‘Devs‘ have adopted a Gold Rush mentality. They’re also giving the market what it wants, even though it seems unlikely that any of this can sustain. X11 Pow/PoS Hybrids Ruled The RoostThe proliferation of X11 PoW/PoS hybrids is a shining example of the direction the altcoin market took this month. This hybrid allows for a short mining schedule followed by an exchange listing and a brief pump and dump. After that, most activity falls to zero. These altcoins follow a truncated life cycle that sees their value hit its zenith when the mining period ends and the total coin supply is dumped on the market. Traders and pumpers move volume into the cryptocoins and generally the price explodes. The last people in pay the highest price right before the fall. This action is not that different from what most people experience in all trading markets, but in Altcoin City the ‘shortness‘ of it is truly awe-inspiring. In no time a coin goes from zero to hero and back to zero again. So what’s going to make this trend change? Most likely a new hook will be released this month that makes this type of altcoin launch less appetizing. We’ve had country coins and color coins. We’ve seen the PoW/PoS hybrid done to death. The introduction of X13 means there will be many launches using that hashing algorithm in upcoming weeks. Cryptonotes based coins are also catching on in popularity. Expect to see more of what’s already working, with a few experiments to find the next big thing. New altcoin ‘Devs‘ (or old ones for that matter) aren’t going to go far out on a limb if they can follow a predictable pattern. Can The Market Handle So Many New Altcoins? If you believe in efficient market theory then you’re likely to figure that the current market will continue to efficiently deal with the glut of new coins. Most of the new altcoins hold little interest for anyone beyond the core group of speculators and miners who hang out on BitCoinTalk. Some may get some usage, but in reality most of the coins are created for quick pump and dumps. If a coin were to make it out of this current muck, it would need a very strong team and plenty of leadership to do it. It’s possible, but with 140 more coins coming in June (or more) it makes standing out get tougher and tougher. FlashCoins Are Not Going AnywhereThis month saw altcoin launches degenerate into ‘hey we just launched‘ announcements that signaled the era of FlashCoins. Since people were willing to play along, that tend will continue. Instamining with a select group of people is now accepted, as are most ‘small‘ pre-mines. People now accept that a coin will be dumped quickly be a ‘Dev‘ who rewards himself for his efforts. Since this is the new normal, I wouldn’t be very surprised to see the bar pushed even lower in June! We’ll be watching for all the trends and updating as often as possible. These are interesting times in Altcoin City and we’re happy to be around to see events unfold. Thanks for stopping by. Sound off below if you have any comments.
