I’ve been a HODL’er since the ICO, so I’m a fan of ETN and not trying to spread FUD. But I do have a concern about counterfeiting of ETN. I saw on a forum months ago that there was a rumor that ETN was being counterfeited and dumped on the exchanges. I dismissed it because I thought it was impossible to do something like that with cryptocurrency & blockchain. But I did come across this article, and it is a real thing: http://fortune.com/2019/02/05/zcash-vulnerability-cryptocurrency/
I know there is an outrageous circulating supply of ETN combined with ASIC mined ETN dumped to the exchanges which would affect the price. Just seems odd that this coin is not only trading below .005 USD, but the price drops every time there is good news or an increase in BTC price. Has the topic of counterfeiting ever come up? Has anyone on the ETN tech team ensured that this is not possible with ETN? Because according to the article, it was possible with Monero. And ETN is based on Monero. Thoughts?
There are so many differences to detail on a single post. But the Zcash vulnerability has nothing to do with Monero. Monero has had its’ own vulnerabilities but has never been compromised. Blockchain has a knack for catching inconsistencies and the monero devs themselves are among the best in the world.
As far as ETN is concerned, while it is based off monero it has been customized to a point of standing on its’ own. The biggest difference with ETN is it has a max supply where monero does not. It is simply not possible to counterfeit which is one of the main points of blockchain to begin with. As a proof of work algo, it CAN be 51% attacked, but that is easier said than done, especially on a coin that is at, or under, half a penny…there is no incentive for malicious actors to spend the money to even try.
As far as the price movement down on good news…that comes down to the current debate about supply and demand. Currently the emissions (the rate at which new coins are minted) greatly out weight the demand forcing a natural downward pressure on price. This will fix itself as that emission rate reduces over time (like Monero does). It took a number of years before the demand for monero outweighed the emissions rate…and they don’t have anything close to real world progress that ETN has…nor a limited supply.
At the current price most miners are mining in the red and holding for future price increases. Those that are still in the green (those with very low power costs) are selling. When good news comes out, price begins to rise and those miners that were waiting for a certain price point start to sell. Unfortunately that built up supply of pending sell orders is still larger than the demand from good news, thus a move back down ensues. It is a vicious cycle that will only be broken with massive demand…which will come…at some point…
HODL on!
15 Likes
That was an excellent reply. So many good points in your response. Thanks for the info. It’s good to hear from guys like yourself that have your expertise.
4 Likes
