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It has become so easy to create your own digital coin due to the advancement in blockchain technology. This ease in the creation of new coins is good for the crypto space as we expect more great projects that will keep solving world problems!

It has to also be noted that there are many coins that do not succeed after their launch. The failure of a crypto coin to succeed is so frustrating to both the crypto project creators and community members.

In this June 2018 TechCrunch report, it estimated that over 1000 cryptocurrency coins were dead, that number must have risen by now!

You can check out this deadcoins website that recently partnered with CoinJanitor to know more about the real coins that have deceased!

CoinJanitor wants to recycle all these dead coins as long as they meet the criteria set by the CoinJanitor team. The aim of CoinJanitor is to restore value to the crypto space by unlocking the value trapped in dead projects so that it can be channeled to other successful crypto projects and also raise the reputation spoilt by these large number of unused coins!

The more dead or failed projects are in the crypto space the more the crypto critics will have a field day! It is great that another crypto project has come out to restore the reputation of crypto!

CoinJanitor's mission is clear as state below

To reduce cryptocurrency market dilution and restore lost value to the Crypto Economy, by providing holders, community members and creators of failed coins, a buy-out, a way to join a project that has the network effect that the projects they created or supported failed to achieve, and implementing a subsequent systematic burn of the coins bought out.

There is a criterion to be followed by CoinJanitor or a coin to be considered dead so that it can be recycled. We shall be looking at these criteria below and you can recommend any coin to CoinJanitor that falls in this category.

It has been researched by CoinJanitor that there is no universally accepted definition of a dead or failed coin! Since there is no universal definition of a dead coin by the crypto community, CoinJanitor could not just wait until this definition is out before implementing their project.

CoinJanitor came up with their own criteria of coins to be recycled as the general definition is still debated on!

There are 6 criterion that will be followed by CoinJanitor befoe any coin is recycled and that is

Market cap Under $50000
Must Be PoW Coin
Coin not Listed on any Exchange
Coin At least 2 years Old
Coin Owners Contact
Owners and Community Willing to work with CoinJanitor

It has to be noted that these criteria will keep changing as more research is being carried out and also more of the decisions in the later time will be carried out by the CoinJanitor token holders since this is a community driven project.

The CoinJanitor team supports these points above as quoted below from the White Paper Page 9

The rationale behind these conditions is quite simple and provides a broad enough scope to define what a failed or dead coin looks like while limiting the target coins to those that can be objectively considered to be value traps.

Let us now dig deeper into this individual criteria independently to understand how each is used by the CoinJanitor team.

1.Market cap Under $50000

This is one of just an arbitrary choice and not really planned or base on set reasons. The CoinJanitor team has their own personal reasoning why they chose this $50000 figure.

One of the reasons this figure was chosen is because CoinJanitor has limited resources at the moment and their hypothesis is that the more failed or dead coins that they clean using the CoinJanitor token, the more users they will be able to amalgamate and the better the network effect they will achieve!

The other reasoning is that the more dead coins or failed coins they clean, the less diluted space will be and the more value they will be able to add to the users of those dead coins and to the holders of top-ranked cryptocurrencies.

2.Must Be PoW Coin
The basic reason behind this choice of coin is that it is easy to detect that a PoW(Proof-of-Work) coin is dead like lack of mining activity.

It can be hard to know the activity of other blockchain mining protocols unlike PoW.

The other reason this type of coin was chosen is stated below

The ability to activate our own mining equipment on the blockchain to help users get rid of their coins in a final transaction, is also a tool we can deploy to get those users into the CoinJanitor economy while making sure we can effectively burn the coins we are given.

It has to be noted that CoinJanitor does not have any ulterior motives towards these PoW tokens, It is just because it is easier to find when a PoW coin is dead!

I will quote below from the CoinJanitor White Paper stating their stand on their choice of PoW coins.

We are NOT targeting PoW coins because we have a specific political agenda; we are doing it because it is easier to find out when a PoW coin is dead. There are exceptions to the PoW condition as well. We will target a few PoS coins that have trapped value and were created as a joke or to ridicule certain sectors of the community. A great example is the Useless Ethereum Token –UET– which was created to mock certain ICOs and/or ICO buyers. UET has fulfilled its educational purpose (if it ever had one) and it is trapping value, making it an excellent exceptional target for CoinJanitor.

3.Coin not Listed on any Exchange

The value of any coin is determined by the market(exchange) value, and since a coin is not on any exchange is means it has all its value trapped. CoinJanitor will release the value trapped in these non trade-bale coins which are not on any exchange!

The other reason CoinJanitor would not love to involve their operations with coins that are on exchanges is that they want to keep away from the pump and dump accusations that will arise from the market.

It is very easy to cause a market movement by buying significant amounts of low volume coins and this can be considered pump and dump!

4.Coin At least 2 years Old

I have read a handful of White Papers and most of them have a timeline/road-map of their work for at least 5 years! It is then logical for CoinJanitor to consider a project a failure if there has been no significant activity in a period of 2 years!

If a coin has been a round for more than 2 years and has not achieved its goals then it can be considered a failure!

5.Coin Owners Contact

There must be contact with the project owners so that CoinJanitor can have access to the codebase so that swaps run smoothly.

6.Owners and Community Willing to work with CoinJanitor

The project owners aand the community members must agree to have their coin recycled by CoinJanitor and this is really an important criteria.

In conclusion these above are the methods that have been set up by CoinJanitor as more steps will be taken in the future in regards to which coins join the CoinJanitor project.

Let me know in the comments if these criterion above are fair enough!

You can read more about this project by following the links below.

Project Website: https://www.coinjanitor.io/

Products & Services: https://www.coinjanitor.io/#how-it-works

Link to a press release: https://www.trustnodes.com/2018/04/27/press-release-coinjanitor-project-charge-cleaning-cryptocurrency-markets-dead-coins

Next event: https://www.decentralized.com

Facebook: https://www.facebook.com/CoinJanitor-201490483964845/

Medium: https://medium.com/@CoinJanitor

Twitter: https://twitter.com/CoinJanitor

“DISCLAIMER: The information contained within this post shall not be taken as financial advice. I am not a financial advisor and none of your investing should be carried out based on any information presented here. You can lose all of your money by investing. The following information is for educational and entertainment purposes only.”

Love

Jarau Moses

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