CzechCrownCoin was recently launched, “to empower Czech people and businesses in the Czech Republic.” It seeks to enable instant, anonymous and low cost transactions to anywhere in the world, decentralized from authority.
It is yet another regional or national crypto, of which many have been launched in the past. None appear to have experienced success in their stated missions. Some have lost over 99% from their peak valuations.
CzechCrownCoin shares similarities with its predecessors, though there are notable differences (other than the fact that the story was picked up by the Wall Street Journal, a rarity for such ventures).
– Scrypt (i.e. Litecoin)-based
– 2.5 minute block times
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– A portion (50%) will be distributed to Czech citizens. WSJ reports that according to one of its founders, the other 50% “will be owned by the entire world and mainly by people from countries where such systems are popular, such as the United States.” It is unclear how many will remain to be mined.
– There doesn’t seem to be major grievances with the Czech government, nor with how it runs the economy or how it manages its currency, the koruna- at least according to the coin’s site. This contrasts with the contemptuous mission statements made by Auroracoin and its ilk. Overall, not much information is offered as to the motivation for the coin, other than the aforementioned attributes relevant to all of cryptocurrency.
The koruna has switched between gains and losses vs USD over the past 5 years. It has actually appreciated vs USD during the previous 10 years, gaining roughly 30%. It is currently worth 0.049 USD.
The country dropped its plans to replace the koruna with the euro in 2012 after only 22% of the population supported the move.
– The coin’s proof-of-work algorithm is said to be “Scrypt-N adaptive”. Scrypt-N is employed by coins in an effort to resist ASIC mining. If true, this would be unique attribute not found with the other national cryptos.
– Finally, the founders aren’t so anonymous. According to WSJ, they have media and broadcasting backgrounds. They interviewed one, Ladislav Faith, who is a television cameraman in Prague by day.
While it seems a safe bet that the coin’s valuation will share a similar fate as the other national cryptos, one never knows how much traction it will make with Czechs in terms of usage as a currency. This is hard to predict. If they believe in it more than their Icelandic counterparts did in Auroracoin, they may set an example for all of cryptocurrency.