May looks like a big month for altcoin launches. One of the first is for Guncoin, which will have a trading symbol of GUN. Guncoin is a good old-fashioned Scrypt PoW with a total coin count of 500,000,000. According their ANN thread, 10% of the coin will be pre-mined for giveaways.
What Problem Does Guncoin Solve?
GunCoin says in their thread that its hard to purchase guns using cryptocurrency. They plan on changing that with their alternative cryptocurrency.
What Problems Does Guncoin Have?
GunCoin is looking at an uphill battle for relevance for several reasons which I’ll briefly outline here.
- The coin is a Scrypt PoW coin. This type of coin has fallen out of favor with miners in the past month. Miners and speculators are now embracing PoW/PoS X11 hybrids, many of which barely function. Although Scrypt works great, it’s boring to many people right now. Many high quality Scrypt clones are having trouble achieving any value so a new altcoin will likely face the same fate.
- The coin’s marketing information does not explain how the existence of Guncoin will improve gun commerce. A brief review of the official website shows scant details that indicate this is a long-term project with any worthwhile goals.
- The team already attempted to crowd fund the project to the tune of $130,000 and fell WAY SHORT.
- GunCoin also engaged in an IPCO, which has since ended. IPOs or ICOs or IPCOs are always controversial.
- The project also makes liberal use of the term ‘Foundation,’ yet their status as such an organization cannot be verified. The dev team consists of one BCT profile created for the ANN thread where all activity for that account has occurred. When dealing with unknown entities, there’s always a risk for miners and investors.
Can Guncoin Succeed?
Certainly Guncoin has as much chance any altcoin. They will need to build strong support from a community. They will need to develop compelling use cases. They will need to attract the attention of the markets. If they can do all these things, they will be able to accomplish their goals of helping to put guns in the hands of even more people.
Time will tell. We’ll keep an eye out for further developments.