Topic: Poll result: NXT is a proper cryptocurrency - page 13. (Read 24859 times)

NMF you can't RTFA, and are so stupid you think BitFury, KnC, and Eligius are tiny and Chinese.

WARNING: NXT is an insta-mined closed-source scam-coin for issuing scam-assets!

Do you think ^that is good enough to be my new sig?

first, wipe the foam from your mouth, take a deep breath ( or take a look here, maybe this helps: https://www.youtube.com/watch?v=qnJJ2fojawE )
and do whatever you want. i don't care as i said before and if you can't take the heat, get out of the kitchen.

yes, as i already said, the tiny group of chinese miners aka your 'socioeconomic majority', who cared more about expected orphan rates than consensus.

and no, nxt is open source and was, for all with a basic code understanding, right from beginning. a simple google search would make this clear, even for you.

No, I mean the socioeconomic majority.

Maybe try to RTFA?

https://bitcoinmagazine.com/21699/major-mining-pools-make-stand-bitcoin-xt-fork-support-bip-100-grows/


NXT is closed source?  Wow, this scamcoin/scamplatform get more scammy the more I look at it!

... the people who matter ...

the tiny group of chinese miners you mean?

if it’s crucial for you – the potential investor – to be involved in a platform where all development happens in the open, from start to finish, NXT may not be the ecosystem for you.

Just like mining farms, NXT will consolidate into large stake pools. The difference between them and Proof of Work is that PoW doesn't permanently consolidate stake. Anyone at anytime can start hashing. NXT technology is only good as a legal tender and not a store of value unless you trust your local government.

Ah, I do confuse. I withdraw Monero part but keep Bitcoin one.

http://www.glassboxinvestments.com/report-1-nxt/

there are a number of areas where a lack of transparency and asset-issuing best practices has raised red flags.
***cut loads***
tl;dr NXT is a scam

Says the dumbass who uploaded his private key to dropbox unencrypted.

Anyone at anytime can start hashing.

Can you prove your accusations?

I think you are confusing Monero with Darkcoin/Dash.

Pedophiles Launch Dash (“Darkcoin”) Mining Crowdfunding Platform
https://bitcointalksearch.org/topic/pedophiles-launch-dash-darkcoin-mining-crowdfunding-platform-1126032

DASH is crowdfunding child abuse
https://bitcointalksearch.org/topic/dash-is-crowdfunding-child-abuse-1126835

My question was if you could prove that NXT is scam

there are a number of areas where a lack of transparency and asset-issuing best practices has raised red flags.
With respect to James and his assets, the following facts give us pause:

1.) “James” is anonymous; he has zero accountability, and could liquidate his holdings and vanish without a trace.  Even attempts by an exchange – Poloniex – who wanted to list one of his assets failed to produce verification of identification. As the exchange stated, “…one of our ICO (Initial Coin Offering) requirements is identity verification; this requirement exists to protect investors and to lend credibility to the ICO. Despite several attempts to convince James the importance of revealing his identity, we were ultimately unable to reach an agreement that satisfied both parties.” 49

2.) The majority of his projects are not live, functioning services bringing in actual profits.

3.) James sets up most of his projects, from their inception, to disproportionately benefit his own financial interests . For example, SuperNET is set up specifically to deliver 10% of profits to himself, as well as “performance bonuses” based on the cryptoequity’s market cap.

4.) Similarly, ownership of the James assets is dramatically skewed in his favor. This stems from the fact that when he creates an asset, he gives himself a large chunk of the outstanding shares. The following summary of jl777 assets – courtesy of nxtreporting.com – shows just how skewed this ownership is:

The distribution of jl777 shares in NXT

In other words, the full amount of all jl777 assets is roughly $22.5 million. Subtract the value of the “issuer account,” and there is only $7.3 million left. Thus, James appears to own 2/3rd’s of all his assets’ shares. With ownership so heavily concentrated in the hands of James, there is the possibility that he could leverage his disproportionate influence to quietly manipulate the market to his advantage.

5.) He actively promotes the “past performance increases the odds of future results” fallacy: “my track record of having tripled a small 1500 BTC sharkfund0 in 3 months and that 8 of my 9 assets have on average gained 2.5x and 125 million NXT and the BTCD went from 100K marketcap to $8 million marketcap in month and a half.” 50

6.) He makes forward-looking projections, with certainty, about future results: “Most people here are probably attracted to the ROI profile where the downside is probably -20% in any sort of realistic worst case…the early birds can get a 25% gain over 4 weeks in this minimal case.” 51

7.) He applies different rules about risk and reward to crypto-assets – seemingly obviating the need for due diligence.

8.) He arbitrarily abandoned multigateway without notifying investors, indicating that he doesn’t care about long-term success of his projects. 52

9.) The lack of White Papers and prospectuses. Potential investors lack a clear source of information about assets and their business model; oftentimes it’s all presented on a forum thread. The typical announcement thread for his assets features a dearth of solid information about the service, mixed in with flashy financial terms and difficult-to-understand lingo. Furthermore, the assets don’t have a prospectus, and the funds do not make it clear what their holdings are. Instead of having all this information in one place, investors have to spend hours looking through forum posts and other sources to get the information they need to make a better-informed decision.

10.) His modus operandi  is to issue an asset, then start the project. He subsequently oversees the project and has other members of the NXT community do the coding. As outlined above, he often eventually steps away from – our outright abandons – the project. This lack of commitment and focus presents a sizable red flag.

11.) The use of “dividends” – commonly understood as a form of profit-sharing – for projects that are not yet actually profitable (or in many cases, even functional). While it appears James has never claimed to issue dividends in the profit-sharing sense, potential investors unfamiliar with this distinction could easily be misled. The fact of the matter is that the only “dividends” he issues are new assets being given to those who hold nxtventure or SuperNET.

James has a history of creating assets, giving himself a large chunk of those assets, and then releasing the asset for public trading. After seeing the price increase, he then moves on to other projects before finishing the project he sold assets for. As all of his assets are driven by speculation and not actual, profit-generating services, it’s possible that James is trying to unload as many assets as he can before the scheme hits its inevitable limit.

Conclusion:

From the fact that James hides his identity, to the lack of services that are up and running, to the fact that his assets combined have a higher market cap than NXT itself, to the general lack of transparency and clarity, there is no shortage of reasons for investors to proceed with caution. Caveat Emptor is the watchword here.

My question was if you could prove that NXT is scam

The Complex World of jl777

Out of the 35 NXT assets listed on coinmarketcap.com/assets, 14 of those assets were started by James 1. Of these assets, seven of them are in the top ten NXT assets listed in terms of market cap.

NXTventure: NXTventure is currently valued at almost $1,375,000.. This asset is a venture capitalist fund of sorts run by James. Investors who originally bought the NXTventure assets were providing the funding that he could then use to back projects. When a project is started under NXTventure it is customary that a fixed percentage of the equity created is dispersed to holders of NXTventure. James refers to the distribution of equity for projects started under NXTventure as “dividends,” even though it is only newly created assets being distributed – not actual profits 2. In fact, none of the projects started under NXTventure have had any profits at this point.

The description listed for NXTventure on the NXT Asset Exchange states that “NXTventure makes private investments in promising enterprises and adds value to each investment by proactively integrating it into NXTservices to add a valuable new service for the NXTcommunity. NXTventure will pay monthly dividends in the assets it acquires, net of trading activities during the launch period. This means NXTventure asset will generate a stream of new assets as it launches them.” 3

Upon closer inspection, however, it appears that some of those words aRE misleading at best – and could be considered outright lies depending on how you view it. On multiple occasions NXTventure has failed to pay out dividends during the month.

Multigateway has been in service for several months. 34 Overall it appears that the service works and people use it. MGW’s relatively low market cap is curious, given the fact that it’s just one of the two services created by James that is currently operational.

Like many other projects James has started, in his initial announcement there was no indication that James eventually planned to hand the project off to others and take an advisory role. Recently, however, it appeared that James was “tired” of dealing with MGW; he stated that he was going to stop hosting its servers, regardless of whether or not the people who were going to take over running the servers were ready. 35

Why the lack of focus? James appears to be more worried about his newest project – SuperNET – to bother finishing the previous projects he’s started. Investors, however, bought the asset expecting James to always be involved with the asset and treat it as a top priority. While this particular issue was eventually resolved with the production servers going back into service, it raises the question of how much James cares about his older projects as compared to his new ones.

My question was if you could prove that NXT is scam

James’s influence over NXT cannot be overstated; his involvement and influence over the platform is tremendous. As the issuer of 17 assets and the self-proclaimed lead developer on no less than eight projects, his name has become synonymous with the platform itself.

Yet it isn’t development work that’s earned James his reputation; it’s his ability to create and promote cryptoassets that quickly appreciate in value. Leveraging NXT’s Asset Exchange, James has created a veritable menagerie of tradable tokens which are hungrily gobbled up by buyers. Having made many NXT fans money in 2014, the anonymous ringmaster has legions of devoted followers.

The combined market cap of all these assets? Nearly $23 million.

James’s typical approach appears to be as follows:

1.    Create a cryptoasset on the NXT platform
2.    Tie that asset to a NXT service that has yet to be developed
3.    Announce the asset and/or service on a thread at NXTforum
4.    Release the new asset to: himself, key members of the project (if applicable), and holders of NXTventure, SuperNET, or possibly another asset. This asset distribution is not an IPO, but a “dividend.” In fact, there is no initial offering to the public.
5.   Profit (at least on paper) from the rising price of the asset as interested investors – specifically, those who did not receive “dividends” as part of the initial distribution – buy the asset and move the price upward. On the sell-side of this trade are the people who got in at the early stages, without having to pay anything: James, and those who got paid out in “dividends.”
6.    Place the project in someone else’s hands, then move on to create his next asset.

By itself this approach is not necessarily cause for concern. However, upon deeper analysis, many red flags emerge.

Of all the assets that James has released that represent ownership or profit-sharing rights in a service, only one of them – multigateway – is backed by a working service. In other words, there is a great deal of investor money supporting projects that are not bringing in revenue, or even functioning.

The anonymity is cause for concern as well. While the prolific asset-issuer claims his real name is James Lee, there is no way of knowing if this is true; the person controlling the “jl777” account has chosen completely obscure his true identity. While individuals with known identities can certainly act maliciously as well, complete anonymity makes it easy to simply disappear after dumping shares of a worthless crypto-business.

My question was if you could prove that NXT is scam

What are the potential downsides of NXT?

One of the most concerning aspects of NXT is the way in which the original 1 billion NXT coins were distributed. Rather than gradually being minted into existence via proof-of-work (POW) mining (as with Bitcoin) or being backed by a large crowdfunding effort (as with Swarm and Ethereum), these tokens were simply coded into being.

Without wide participation and actual wealth backing this creation – with the exception of a limited “IPO” of 21 BTC that resulted in the NXT tokens being placed in just 73 accounts – these initial tokens appeared to have have been distributed to a relatively small number of holders. This high concentration of wealth would make it easier to manipulate both the price of NXT, and its underlying assets.

Another potential downside is the lack of known developers. In contrast to the development teams of projects such Bitcoin, Bitshares, and Ethereum, NXT’s developers are anonymous. This removes personal accountability and raises the possibility that developers may act in their own best interests, rather than those of the community and overall NXT ecosystem. Similarly, since NXT’s code is not completely open-source, it is possible that some sort of malicious or unfair backdoor code could be implemented by the unknown developers.

The ability to easily create and trade cryptoassets – by itself, a powerful evolution from “1.0” technologies – also presents inherent threats for investors. “Pump and dumps” are certainly not unique to NXT. They occur, however, with alarming frequency. Anonymous actors can easily create and promote their own assets, then sell off the shares for a profit, leaving investors with worthless shares.