Hype or Snipe: ELECTRONEUM ICO

Hello Steemians,

I am sharing my two-cent worth on the upcoming ICO, Electroneum. Just a brief introduction, Electroneum is an upcoming Alt-Coin joining the Crypto-market on the 1st of November. It is designed for the 2 billion smart phone users all around the world with an aim to allow anyone, regardless of technical literacy to access a cryptocurrency. They have developed a unique mining experience that any average Joe can get involved as long as he has a working smartphone. They also came up with two decimal placing rule that make transactions appear normal to a person (Eg, 400ETN for a can of coke instead of 0.00129 BTC).

The hype on the ICO has been overwhelming as its hard cap of US$40 million has been achieved with more than 120,000 contributors as of 21st October. The number of contributors is the highest in ICOs to date. I believe this was achieved quickly due to the social reward campaign that rewards coins for referring a person to purchase the coin As a result, founder of Electroneum, Richard Ells decided to close the token sale approximately 2 weeks before ICO launch date. Reviewing the technical white paper, the explanation of codes are rather straightforward. They explain how the block chain transactions work regarding signature and verification. Something that caught my eye in the papers was the ability to mine for Electroneum coins.

The white paper explains that the amount of coins is generated relative to the amount of CPU processing power that your phone possesses and the issuance of coins is adjusted based on the amount of app miners. It also claims that it will not take too much bandwidth so much so that it will overheat. However, it does not directly add blocks to the blockchain. So you may ask, how can you call this mining? The mobile mining app is designed to give phone users a realistic mining experience and create rapid user growth. Smart isnt it? Electroneum utilized viral marketing as one of their strategies to achieve higher market share, instead of going fully technical with the ICO. Essentially, you do not have to own Electroneum coins to mine it. It is to reward mobile miners with the bonus coins that is reserved for app mining.

Hype or Snipe?

Snipe. I really like the viral marketing strategy taken by the founder, Richard Ells. I believe this will gain market traction as soon as it hits the exchanges. As the hard cap of US$40 million was achieved before the token sale ended, we should see a spike in prices once it hits the exchanges. Pump and Dump is prevalent among ICOs, so it would be wise to price in after the dump happens and HODL some ETNs.

Best,
Coinprofessor