Hi there fellow crypto gents (and ladies too, all 3% of you if the stats are to be believed).
I have no official role in Zen but I am a small holder and I want to weigh in on the events over the last few days. First, I want to address the recent price crash and the reasons for it.
The Zencash launch was negatively affected by two things, one outside of the control of developers and one within the control of the developers. Let's start with the delay in the Bittrex launch - the developers can't really control that right. Also, they're a like $12 million cap coin. That means they're price takers when it comes to Bittrex - of course if they were eth devs they could ring up Bittrex and scream, "fix this now!!". But being a small coin, at the end of the day there is nothing the developers could have done about this. In retrospect, it probably would have made more sense to ask tradesatoshi to delay trading also, but who's to say whether they would have complied. Tradesatoshi is such a small exchange, the risk of default would be greater - now it seems the man behind tradesatoshi is an honourable fellow, but it's pretty risky to have your coin on such an illiquid exchange, given what I see as the higher default risk.
The developers could have avoided one of their now expelled former cadres - Joshua Yabut - from deliberately misusing his role coding Zencash to crash Zencash's price and facilitate a temporary pump in ZCL. This is for a couple of reasons. One, if you Google him, there are strands of information that would put one to question Joshua's suitability for the role. Joshua is a capable coder - much better than myself for instance - but he certainly seems to be a highly psychologically unstable person with a feeling of victimisation and a tendency to lash out. He did this by deliberately publically disclosing a security flaw through Twitter with a clearly deliberate intent to cause a Zencash dump. He succeeded and is probably feeling a degree of satisfaction. His real satisfaction will come if Zencash fails, because it's reasonable to assume he sold his holdings before he elicited the dump. If Zencash succeeds over the coming months and years, his satisfaction will probably fade back to the sense of victimisation I sense he carries with him. I have not met him personally, but to me Joshua Yabut appears to have a mild case of Borderline Personality Disorder.
However, people like this are not hard to identify. They will often react inappropriately in different social situations, display high levels of anxiety, and get angry at perceived acts of injustice upon them. So the other devs did have a lapse in judgment in perhaps focusing on his coding skills and overlooking his personal psychological weaknesses. My advice to them would be to freeze him out in totality to the extent possible.
Now going forward, Zencash has a few things going for it. There are three strengths of Zencash that I see. Firstly, having a treasury allows code development and marketing. With some proactive security reviews - to the extent fundable by treasury - we can be the ones getting transfer flows from people cashing out of other privacy coins when they have a security issue (as inevitably happens to most coins), instead of as most recently when we were the ones getting a kicking. The treasury also allows for payment for marketing. Chatter around Zencash outside of the "converted", ie. us, is essential. In particular YouTube videos by cryptomarket commentators are valuable - if this has to be paid for by treasury, so be it.
Secondly, the Master node system is the one advantage Zencash has over all other privacy coins. Except, it doesn't even exist at this point. In my opinion once the security flaw is fixed, and Bittrex wallet reopens, getting Masternodes up and running is essential. I would make a suggestion here to the developers that the number of coins necessary to run a node be increased. It was suggested 42 nodes be the amount needed. I would suggest that at least 200 coins should be required to run a node. The reason is this: At current prices you get the result that someone will get a node for only $300 worth of coin. The result will be so many nodes given the very low cost of VPS service - including free trial years in some cases - that the reward per node could well drop to very, very little. Far better in my view to require real commitment, eg. $1800 assuming 200 coins, and also offer real reward. The good thing here is that if Zencash prices rise - which the node system tends to support in the short term - the capital required to run a node increases exponentially, and therefore early adopters are rewarded.
The third strength I see in Zencash is committed, legitimate developers. Over the longer run, our developers are men who are honest, trustworthy - and over time, this will be of substantial benefit. Let's face it, the crypto space is filled with scams, and frauds - we've got a clean team, leading a coin that offers real value, and a proven method of passive income such as Master nodes. That's of value in this space, that is not everywhere. Over time, the value of the developers here will show.
Now if we all here today can work together, in a year's time, and perhaps five years' after that, and then who knows, we can all look back and feel a sense of satisfaction that we were early adopters in Zencash.
Great post. I agree with everything you said.
I would add that we shouldn't be too hard on the devs for teaming up with Joshua. Most of the skilled programmers in this space tend to be the anarchist, hacker, cypherpunk type, and often rather eccentric. In addition, it's tough to find a good, dedicated programmer who will work essentially for free.