Having trading volume doesn't mean it has utility, it just means people are speculating in it. So that doesn't mean it's not a shitcoin. Also, having a whitepaper doesn't mean it's not a shitcoin either. Since it's a vague term without a universal definition, you'll probably get variations from person to person, but I would consider a coin with no utility or no problem to solve to be a shitcoin. I.e., it doesn't need to exist, or someone just created it to enrich themselves. That's 99% of all coins on coinmarket cap. There are only a handful that wouldn't fit this definition, and I'm not exactly sure FUN is one of them. Does it need to exist? No, not really. It's not currently doing anything bitcoin doesn't already do. Faster and cheaper aren't exactly breakthroughs anymore when there are other tons of other coins that do this too. Guess we'll see if FB can grow it into anything more than what it currently is.
I'm not sure yet how advantageous FUN investment could be, but it's not like 99% of altcoins in the market, because it actually offers some exclusive benefits to holders, such as free wheel daily spins and increasement in bitcoin interest income for FreeBitco.in's investors, depending on the amount you hold and on how long you are holding.
So it's not a token which relies in speculation to grow. The calculation someone should do is if extra free spins and bonus interest worth the investment in FUN coin.
It does have some utility because FB is using it, but still the question is why. What's it accomplish you can't do with bitcoin already? That's the crucial difference. It's like how JD used/uses CLAMS. (Dunno if they still do, haven't followed that site in a long time.) But that's another instance where CLAMS was a worthless coin, but it gained utility because it was the only coin JD would take for gambling. The use-case for the coin outside that site was virtually 0 though, and the overall question remained, why that coin specifically? It wasn't doing anything you couldn't do with bitcoin, so it was just useless differentiation.
And I've done the calculations on FUN and took a pass on it because I didn't deem it a worthwhile investment, based solely on the math. Everyone has to make their own determination about that though.
The calculation I did was:
500,000 FUN (to take maximum advantage of the investment) is about 15,000$ dollars if you buy for 0,03$ each.
15,000$ is proportional to 0,35 btc.
0,35 btc generates interest income of 0,014 btc yearly in the site (4,08%), approximately.
By investing in FUN coin your daily income will decrease, as you will be exchanging your bitcoins out. So you need to make sure the extra 25% interest from holding 500,000 FUN after 1 year on will generate at least more than 0,014 btc yearly. The 25% bonus interest must be more profitable than holding 0,35 btc.
Conclusion: it worths for people who 0,35 btc represents less than 25% of their total investment in the site. If you have more than 1,4 btc invested it could sound interesting after 1 year. And consider the 16 daily free wheel spins a bonus, as it's impossible to take its prizes in consideration as they are random.
Negative side:
- During the first year of FUN investment you won't receive the maximum bonus. You need to wait 1 year to start taking advantage of 25% extra interest and 16 free spins;
- By investing your btcs in FUN you would still lose potential bitcoin bull runs' profits.
Time to fill bags people?
