It’s getting so predictable, users on its fledgling reddit are already saying, “oh great, another SCAMcoin”. Like Auroracoin, Aphroditecoin burst onto the crypto scene with a high valuation, penetrating the top ranks of coinmarketcap.com and promising national deliverance from fiscal strain. Like Auroracoin, it has fallen really hard shortly thereafter, losing over 60% of its value today alone.
Aphroditecoin (APH) now has a market cap of $23.7 million, ranking it 10th right behind Namecoin. One APH is worth $1.05 based on its trading on Poloniex.
We focus now on this notion of national crypto coins specifically and altcoins in general, which have become one of the most easily manufacturable (and disposable) commodities in recent months. It is said that half of the several hundred coins in existence today came into being in the last couple of months.
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It should be clear to anyone who critically analyzes the crypto world that the vast majority of these coins serve no purpose and are not needed. Most of those ranking in the top 10 in market cap provide some unique attribute, whether it’s related to proof-of-work algorithm, proof of stake mine-ability, or usability with other protocols (or even crowdsourcing?). The diversified underlying technologies arguably contribute to at least part of the coins’ value today. The remainder are merely copies with some specialized purpose at best, and pump-dump schemes at worst.
With the latest “national cryptocurrencies”, we are perhaps witnessing the exhaustion of ideas by coin creators and the beginning of identifiable polarization between what’s legit and what’s not. Indeed, a recent post on Bitcointalk speculates that we are witnessing “the death of altcoins”:
“Seriously; takes a strong (or crazy) hand to hold onto the losses the altcoin market is providing. Buy a coin when it hits a site like CryptoRush, take a 99% loss. Wait a week or two, take a 99% loss. Buy on a smaller exchange, still take a 99% loss. Not saying everything I have is down that much, but man, I can see why everyone goes for getting their money in 24 hours now.”