WhiteCoin sure has made a lot of noise since its announcement. In that time the coin (a clone of another clone) started beef with BlackCoin and generally spammed the BitCoinTalk forum nearly to death. If you don’t know the basics behind WhiteCoin, here’s a brief recap. The coin was launched to cash in on the current PoW/PoS pump’n’dump model which has been popularized in recent weeks.
The coin devs make their copy coin, bribed a few exchanges, and ‘voila‘ a market was immediately created for their coin. A veritable feeding frenzy of pumping occurred, pushing this untested and unproven coin to heights barely imaginable by many altcoins.
The exciting part (to some) of PoS coins is their ‘staking.’ Those who hold coins in their open wallet get ‘interest’ in the form of new coins. Unfortunately, the original development team of WhiteCoin botched the job of implementing the correct PoS code.
The Trouble With Being Pumped To Huge Heights
The trouble with a huge price is that there’s generally only direction to go and that is down. In the stock market a company with a very high price is generally said to be ‘priced to perfection.’ That means any mis-step can cause panic selling and push the price down rapidly. The same holds true for altcoins. When ‘investors‘ have purchased at a very high price they tend to be nervous and concerned about recouping their money. If bad news comes out, they want to dump.
In the case of WhiteCoin they had plenty of mistakes and bad news to contend with. The big problem has been the lack of working wallets. Despite any other requirement to be a popular or successful altcoin - having a working wallet is key.
Finding Accurate Information About WhiteCoin Is Nearly Impossible
Even worse for potential coin holders is how hard it is to find any information about WhiteCoin. The ANN thread on BitCoinTalk is an ugly, unduly lengthy pissing contest full of more accusations than a Jackson family re-union.
We know there was some sort of transition from one group to another.
ANNOUNCEMENT FROM THE WHITECOIN FOUNDATION TRANSITION TEAM
I couldn’t be happier to deliver this news to you: Our team and the creators of WhiteCoin have reached an agreement in principal to turn control over to a community driven foundation.
To transition us into this process, I have been grated temporary control as acting lead on The WhiteCoin Project. Our team will issue a followup statement tonight with a proposed initial roadmap as to how the community can accomplish this.
The ‘Foundation‘ - (sounds really fancy doesn’t it?) then posted their plans in their own thread. The Foundation plans on relying heavily on the ‘community’ of WhiteCoin holders to help make a huge success out of the coin. It’s easy to wonder how strong of a community is actually here. Considering that an early stage of a coin like this the main participants are miners, pool operators, exchanges, forum trolls, perennial bagholders, and incoherent newbies, it’s hard to imagine that a community will spring up.
Think of all those who have already lost substantial amounts of money on this coin. They’re more likely to leave then they are to stick around and do the painstaking work it takes to build a cryptocurrency brand from the ground up.
Can The New Team Pull Off A Recovery?
The new team can recover from their rough start, but it’s going to take some effort. The ‘community‘ of WhiteCoin lovers have really created a war with BlackCoin enthusiasts. This has spilled over to their thread and social media.
The animosity created does not bode well for the future. The initial WhiteCoin team showed clear incompetence and spammy tendencies. The new team has shown no real ability to calm the angry mobs. It’s possible that the ugly mess known as WhiteCoin could continue to get much uglier. It’s also possible that the team and hardcore WhiteCoin enthusiasts will turn things around and live up to the undeserved hype they’ve so far received. Considering that there are many more established and better working coins with real communities out there, this could take serious work.
Time will tell.