Place/Date: Cape Town, South Africa - March 13th, 2018 at 9:26 am UTC · 4 min read
Contact: 4KingMedia, Source: CoinJanitor
Step into any office building, school, government office or even residential buildings, and you will find a janitor. The janitor takes care of all the small things the building needs to run, keeping it clean and tidy. Most of us never notice the janitor; unless we have an issue, we don’t interact with them.
Nevertheless, once a pipe bursts, a window cracks or there is a huge spill on the hallway we call the only person we know who can take care of the mess. The janitor contributes to our efficiency even if we don’t notice. Cryptocurrency markets are a lot like these buildings, but they do not have a resident janitor that can help them, until now.
CoinJanitor is the project that will take care of all the pipe bursts, cracked windows and hallway spills in cryptocurrency markets.
So, what is the role of CoinJanitor in cryptocurrency markets, why is it relevant and how does it work? Let’s answer those questions in a succinct manner, one by one:
CoinJanitor’s role is to take care of failed or dead coins, cleaning them up in a manner that restores their value into wider cryptocurrency markets.
CoinJanitor is as relevant to cryptocurrency markets as a janitor is relevant to a building because by restoring value locked in failed or dead coins it will reduce market dilution, which favors top ranked cryptocurrencies.
CoinJanitor works by selecting specific coins that have failed or are functionally dead; contacting creators and community members; buying their coins out with the CoinJanitor token allowing them to transfer their value into the markets; burning the coins it bought from these community members and manually decommissioning the blockchains of those dead or failed coins afterwards.
Many people who do not hold any failed or dead coins, must be asking themselves “why should I care” after reading the short explanation above. The answer is rooted in fundamental economic principles:
Holders of top ranked coins benefit from this clean up because dead or failed coins have value locked in them, however small that value might be.
Holders of these coins cannot transfer that locked value into the markets, which takes away a source of growth from top ranked cryptocurrencies.
Once CoinJanitor unlocks the value of these coins through a swap into its token, it will be creating a large community of users with a network effect. These users will be able to sell their CoinJanitor tokens on an exchange and buy top ranked currencies with them.
This whole process will create positive externalities, or, in other words, a benefit for third parties – top ranked cryptocurrency holders – that are not directly involved in the dead-coin for CoinJanitor tokens transaction.
So, now that we established how running cleaner cryptocurrency markets is beneficial to everyone, it is important to explain why people should support CoinJanitor. After all, anyone who has a top ranked cryptocurrency should benefit from the positive externality without having to contribute. The answer lies, once again, in fundamental economic principles:
CoinJanitor contributors will become an integral part of a fast-growing community that amalgamates users from dead or failed coins throughout the market, creating a powerful network effect that adds value to the unlocked value coming from those dead or failed coins.
CoinJanitor will also produce troves of data regarding a deeply understudied segment of the market, which the staff in charge of the project will work diligently to organize for its members to use.
Other developments will follow as the CoinJanitor platform is rolled out, unlocking value from carefully selected dead or failed coins.
By opening the debate on dead and failed coins, the community will start benefiting even before the public sale of the CoinJanitor token begins on March 15th, 2018.
So, if you are interested, and you want to find out more about how we define dead or failed coins, how our selection process will work, and you want to gain a deeper understanding about the economic principles guiding this project or you want to contribute to CoinJanitor.
CoinJanitor will be doing all the dirty work and the heavy lifting for you, so you can enjoy a cleaner, more efficient cryptocurrency market with a better flow of value.