Wednesday , 26 November 2014
Latest News

Warning about Auroracoin!

I check coinmarketcap.com almost every 20 minutes in the day so it surprised me when I saw a new cryptocurrency immediately overtake nxt and mastercoin at the time. As of writing this, it  has even reached a higher market cap than litecoin. In just a few days the marketcap of Auroracoin skyrocketed to over half a billion, which I found insane. I thought something isn’t right, but I didn’t look into at the time.

Prior to this I had very little knowledge about auroracoin. I’ve stumbled upon it in the bitcoin talk forums but never really gave it any attention. I decided to do a little bit of research and suddenly realized why the marketcap was so ridiculously overvalued.

So basically what I found out was this. 50% of the AURs have been premined, the developers claim they will distribute these coins to the citizens of Iceland. This distribution model, called the “Airdrop” will commence on the 25th of this month.  Coinmarketcap.com shows that there are just over 10.6 million AUR.  While it is true that 10.6 million AURs exist(or mined), most of these coins are not in circulation.  The amount that is actually in circulation is just over 100,000.  This means that the actual market cap is just over 6 million and once the airdrop commences, the small amount of coins in circulation will be heavily diluted.

To summarize:

  • 10.6 million coins have been mined.
  • Slightly under 10.5 million coins have been premined, which is 50% of all the coins that will ever exist.
  • Amount of coins in circulation is over 100,000.
  • The premined coins will be distributed on March 25th, 2014.
  • the REAL marketcap is the amount in circulation multiplied by the current price.(about 6 million at the time of this writing)
  • Expect the price to fall sharply near the 25th of March, or perhaps even before to catch everyone off guard.

I suggest if you have gotten in on this run to take your gains as it seems that many people are buying just because they are seeing the price rise so much.

For a little quick overview of auroracoin I suggest you read this article written by one of our contributors.

 

BTC: 1Dx7BJrpWf6zsyMaXm7z4MnRRPPG2HUz4u
LTC: LWhCHCiZFEBPfRzz8TpNdV6RLnKKcNUGzw

About Nhil8r

  • Jan Polednik

    Or rise sharply as a whole nation adopts it’s new currency ,-)

    • xfactor00

      haha

      • Jan Polednik

        I am sure thats what were people saying when btc was 0.001USD . Haha

    • Nick Danzinger

      You’re delusional if you think every citizen will claim their premine. It will be a few neckbeards and some young people… Maybe 1% of the population if they’re lucky.

      • Jan Polednik

        It is you who is delusional and talk about something he has little knowledge. Current price of AUR is 77USD. Every Icelander gets 33AUR. This means 2200USD for every Icelander. For free. How many people you know would pass on that? Tell me.

        • Nhil8r

          I see your point. However, If a large number of Icelanders claim their coin and decide to sell, there would be much more sellers than buyers and the lack of liquidity would drive the price down extremely fast.

        • Nick Danzinger

          Lmao. I’ve read the plans for the ‘airdrop’ and they are a mess. Look at bitcoin: even with the price as high as it is, tech geeks still own the majority of it.

          You are also assuming the price will be $77 at the time of the airdrop. It will crash into oblivion before then.

          Luckily we only have to wait a few weeks to see how misguided you are.

        • Matthew Ghilarducci

          How many of those icelanders are going to turn their 33 AUR coins they don’t understand into cash that they do? 99%. AUR is a ticking time bomb and only a fool won’t take profit well before the air drop.

      • MogadishuJones

        That’s why they are doing 3 airdrops over the course of a year to ensure that all of the premines get distributed to the population.

  • dg

    It might work if Icland is a nations of geeks/cryptographers

  • Jacek Rafał Tatko

    Think of it , Bitcoin is mostly stashed away , at least Auroracoin gets distributed among a lot of people .

    It will take many days & weeks to complete the procedure so it is not really such a problem , but takes its time .

    Now people are mining and creating new coin , the demand is high so the price rises fast , some people will buy more , some will sell , on exchanges or buy something , it is a market and currencies are created to exchange for resources and services . Or act as store of value . Some Icelanders will sell a handful and keep the rest or buy more , too . Trading .

    About 1000 people have most of all Bitcoins , that is artificial shortage at its worst .

    Auroracoin devs are real people , with names , and they have not been shy to show up .

    It is a great project to connect 300000 Icelanders to the rest of the world , and crypto .

    If you look into their project deep enough you will find that they don’t only have good intentions but are working proactively to make it happen , rather be constructive folks !

Vapetropolis - Accepts Bitcoins