Topic: Important to know: Difference Coin / Token and shady marketing practices - page 2. (Read 1173 times)

Although I agree with your points but I'd like to add that the main way of scamming people in the altmarket is not disguising a token as a coin, most people already don't understand the difference or care

it is by telling them the garbage they are buying is "useful" has "potential" or sometimes weird things like "it is replacing bitcoin".

These are not exactly coins either. The technical term used for ether is "smart contract fuel".

This here 👆👆 seems like a major characteristic of altcoins!!!

Another thing I should learn is: Can a token be decentralized in any way? The developers of those tokens have all control over their tokens, and it's fully centralized. So, I assume every token is centralized, and developers can control users' money by increasing the supply. Isn't it like that?

Although I agree with your points but I'd like to add that the main way of scamming people in the altmarket is not disguising a token as a coin, most people already don't understand the difference or care, it is by telling them the garbage they are buying is "useful" has "potential" or sometimes weird things like "it is replacing bitcoin".

These are not exactly coins either. The technical term used for ether is "smart contract fuel".

They claim to be decentralized and ground breaking in their whitepaper but turn out to be none of these things.

Although I agree with your points but I'd like to add that the main way of scamming people in the altmarket is not disguising a token as a coin, most people already don't understand the difference or care, it is by telling them the garbage they are buying is "useful" has "potential" or sometimes weird things like "it is replacing bitcoin".

Another thing I should learn is: Can a token be decentralized in any way? The developers of those tokens have all control over their tokens, and it's fully centralized. So, I assume every token is centralized, and developers can control users' money by increasing the supply. Isn't it like that?

Examples of coins are: ~  Ethereum, Ethereum Classic,~

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False marketing is deceiving buyers

In reading through this thread, some similar kinds of ideas passed through my head in terms of considering how much value comes from making some of the subcategorizations of the various kinds of shitcoins and the various kinds of ways to scam people in various kinds of ways that largely amount to various kinds of affinity scams on bitcoin that either make comparisons or contrasts to bitcoin, whereby bitcoin is adding most of the value - while at the same time, the various shitcoins sometimes can end up serving as real world laboratories in order that if they do happen to come up with something that might work in bitcoin and provide value in bitcoin, then it could be added into bitcoin at the base layer or at a second or third layer.

False marketing is deceiving buyers

While the term "Coin" evokes more valuable properties, "Token" sounds rather of low quality. As a result, many projects are advertising their product as a "Coin" while in reality, it is (still) a "Token". One should not be deceived by this because projects are frequently doing this to shill their useless crap project.

It is important to note that being a coin and running on a blockchain does not give any extra legitimacy to the project. The developing team can put in a little effort to creating a crap blockchain and investing loads on marketing. This is not false advertising cause it is actually a coin but a shitty one.
In your example it will be tokens and not alttokens, cause there is no top token the way we have Bitcoin and it is not an alternate version.
I am okay lumping them all as shitcoins or altcoins, cause making a distinction makes some look more valuable than the others.
- Jay -

Every day I keep seeing reasons why sticking to Bitcoin is the best option. I am not moved by any project that is not Bitcoin. It doesn't matter what these new projects offer, I already know it's not better than Bitcoin and the juicier the offer, the tricker the trap.

There are good altcoins but it's just not worth it. Knowing which one to bank on and which to avoid is a risk I feel isn't worth it.

Bitcoin is having a big advantage over Shitcoins: you know it’s a quality coin. Bitcoin doesn’t need excessive marketing (Bitcoin doesn’t even has a pre-mined stash to fund marketing from because Bitcoin doesn’t need it), Bitcoin is a quality coin itself.
Bitcoin doesn’t require research if it’s a coin or a token.
So, it’s very important to understand the difference between a coin and a token.  

Due to new projects being launched on existing platforms, people started confusing terms how to call a cryptocurrency properly. In this topic we are going to debunk marketing buzzwords, which are used frequently to boost shit cryptocurrencies in a fraudulent way.

So far, various new projects keep "enriching" us from the Shitcoin industry but a very big problem arose around it, that different terms like "Coin" or "Token" caused confusion for everyone. For this purpose, it is very important to have a look at what a "Coin" and a "Token" really is and why it is important to research if a cryptocurrency is a coin or a token.

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Coin

A coin is an original cryptocurrency based on an independent blockchain, whose blockchain is operated independently from other blockchains.
It does not matter whether this blockchain has been launched right away, copied or forked.
A coin serves as a medium for transaction fees on that original blockchain.
Examples of coins are: Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ethereum Classic, Cardano, Avalanche, Waves, Tezos and Dogecoin, etc.

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Token

A token is based on a blockchain that already existed before the token was created. This token needs to follow all characteristics of this blockchain on which it is based on, you need some coins of the original platform to send tokens and all transactions of this token are also recorded in this existing blockchain.
The best-known platform for tokens is Ethereum [ETH]. Ethereum tokens can be created on it, whose transactions are recorded on the Ethereum blockchain. Fees are paid in Ethereum Coins.
Other examples of tokens include Waves tokens, which are based on Waves [WAVES]. Fees are paid in Waves Coins.
Binance tokens, which are based on Binance [BNB]. Fees are paid in Binance Coins.
So, if you want to move a token, you always need some original platform coins.

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All other coins except Bitcoin are therefore called "Altcoins." This dates back at a time when new projects always had their own blockchain. The term "Altcoin" was therefore justified. Now, especially from the introduction of Ethereum, many projects have emerged, that will either stay for their entire existence on the Ethereum blockchain or later eventually switch to their own blockchain. Until then, they are on the Ethereum blockchain.
So, for the sake of accuracy, these products are called "Alttokens" instead of "Altcoins" as long as they are still a token. The popular term for such products would then be "Shittoken" instead of "Shitcoin" accordingly.

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False marketing is deceiving buyers

While the term "Coin" evokes more valuable properties, "Token" sounds rather of low quality. As a result, many projects are advertising their product as a "Coin" while in reality, it is (still) a "Token". One should not be deceived by this because projects are frequently doing this to shill their useless crap project.

Projects doing this, should be avoided as it’s a big red flag.  

In addition, there’s a new strategy from competing projects to trash competing projects. In a misguided effort, the competing coin is labelled as a token, but in reality, it’s a coin because it’s based on its own Blockchain. But competing projects are labelling it as a token to trash it and provide an effort to scare and discourage potential buyers from buying the competing coin.
It might even happen for competing projects to hire "agents" and place such agents in marketing departments of competitors, where in marketing material, these agents are wrongfully changing the term "Coin" into "Token" to make the competitor coin look bad by calling it "Token".  

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ICO, ITO, Shitcoin and Shittoken

The often-used term "token sale" is derived from a time, when many ICOs were using Ethereum and are as a result, assets have been tokens during its sale. For a better accuracy, it should be called ITO (Initial Token Offering) instead of ICO (Initial Coin Offering), since tokens are offered at this point in the majority of all cases. These only become coins eventually later.

While it can be argued, that an ICO, where tokens are offered will also mean, that these tokens will definitely become coins later and their state as a token is just temporarily and the sale just serves as an event to have the earliest recording of the cryptocurrency, it can’t be argued that a token is a coin, when there’s no unique Blockchain, where it’s based on.

So, it’s important to get our facts right and look into a cryptocurrency if it’s a coin or a token and if it’s shit (which it is for most cases), call it Shitcoin or Shittoken, respectively.
We need to address all technical details properly.

Perhaps you forgot your own topic about altcoins which, in my opinion, is surely helpful if you add it as should-read documents.

Won't the term alttoken imply that there is an original token, much as Bitcoin, a legitimate first one that somehow is fundamentally different than the rest?

It is important to note that being a coin and running on a blockchain does not give any extra legitimacy to the project. The developing team can put in a little effort to creating a crap blockchain and investing loads on marketing.

This is not false advertising cause it is actually a coin but a shitty one.

In your example it will be tokens and not alttokens, cause there is no top token the way we have Bitcoin and it is not an alternate version.
I am okay lumping them all as shitcoins or altcoins, cause making a distinction makes some look more valuable than the others.
- Jay -

Scammers find it easy to launch a campaign because its easy to create a token and the supply is already created and easily distributed on ICO, for a project being hosted in a chain to prove that they have a use case needs to have a solid roadmap and skilled developers to back up the project, to set them apart from a developer who just created a token to make money.

I think newbies are aware of the dangers of shitcoins and tokens, but the problem is that they tend to think that they are investing in "good project".

So, for the sake of accuracy, these products are called "Alttokens" instead of "Altcoins" as long as they are still a token. The popular term for such products would then be "Shittoken" instead of "Shitcoin" accordingly.

TBH I am not a very big fan of investing in tokens because now I understand the risk involved in crypto so currently I am sticking only to BTC.

So, a coin has just more potential. If it's indeed better, needs to be judged from case to case by evaluating the tech of each coin.
While we can't judge for every single project, the average is very clearly in favor of coin, like we can see on CoinMarketCap.

So, for the sake of accuracy, these products are called "Alttokens" instead of "Altcoins" as long as they are still a token. The popular term for such products would then be "Shittoken" instead of "Shitcoin" accordingly.