Topic: [SKY] Skycoin Launch Announcement - page 54. (Read 381579 times)

I would also like to know, wtf is this nigga doing with all that skycoin. One person should not own more than 90% of a currency. This is the biggest premine that i know of. SOMEONE PLEASE REBUT ME!!!!!

Also whens round 2 funding? And what will the cost per coin be, higher or lower than the current price?

Can provide details of the information？

Is the original plan to distribute Skycoin as subsidies for mesh nodes still in the works?

Just checking in, did this coin ended up solving its distribution problem (devs having 95% of coins)? If so, how? I want to invest, but only if this problem is resolved. Thanks!

Sock5y

Good things are coming.  

P.S. Meshnet, vpn, socks5 proxy.

You can not complain that someone else will be marketing cheat money, which is your weakness, you should all learn. You advocate the set of political say that the right to monopoly, I think you are the same, you now hold 94% of the skycoin, the market value of nearly 100 million dollars, you are a person's currency, no community, you are the owner.

My attitude is becoming
- "Markets are a game"

But we can set the rules of the game and control certain things. Different rules will benefit different sets of people.

- I am confident that we can alway choose to do distribution in a way that will not lower the price.
- I also think dumping is part of the game and benefits the long term people

- Coins have a "real value" and "perceived value".
- People have different opinions about where a coin's price will be in a year
- The developers are like managers and provide vision, marketing, community and then the investors speculate on the managers (sort of like horse racing). And some investors also bring resources (marketing, connections, developers, reputation, social validation etc and are not just passively choosing).

When people dump
- the people with more information can buy up coins for cheap (etc, over 10x discount)
- then when coin approaches "truth value", then they make a lot of money
- the people with the best information, best reasoning ability, best understanding of human psychology make money and the people who are driven by emotions or short term events, lose money (they sell at the bottom and they buy at the top).

So
- a temporary decline in price is acceptable
- a long term decline in price is not acceptable

So we should ignore the short term fluctuations and focus on longer term horizon (what do we have to do to increase the future value of the coin, what do we need to do to create capital inflows and what do we need to do to ensure liquidity).

The four things we can do are
- improve communication (marketing, materials, description of what Skycoin is and what we have built and what are building)
- grow and build up the user community
- build applications and acquire users
- create a set of rules and distribution strategy that will benefit all the early investors and new investors (etc, avoid driving the price down, design the rules to build up liquidity)

It will be very important to describe
- how is Skycoin different or better from the other offerings
- how is Skycoin used
- future plans and roadmap for the ecosystem
- what we are trying to accomplish

I think right now, we should focus on communicating Skycoin's strength as a cryptocurrency and improvements we made in the design of the blockchain, consensus algorithm, security, networking and usability. The question of "Why it is better than Bitcoin".

Then we should focus on the applications and bringing in users that have never used crypto-currencies before. We should focus on usefulness and utility.

And otherwise, we just have to sit here and wait, because the number of cryto-coin users and capital inflows are going to explode by themselves for various external reasons.  So we just want to have a solid offering and good reputation to attract the new money flooding in.

We are going to see a mixture of crowd funding money for speculative projects or new ideas and the market for speculation and "fantasy football coin" will increase, but we will also see more pragmatic or utilitarian money coming in as people realize what Bitcoin/Skycoin can be used for.

There are only three real coins (actually three and a half).

The rest are just marketing scams, or they are doing tokens or something else.

I think smart contracts are interesting, but they are still just widgets a solution looking for a problem. Almost none of the existing coins are focused on what Satoshi originally intended Bitcoin for or have any concern with improving Bitcoin.

It is a fundamental question of values and purpose. The altcoin market right now, is like real money fantasy football. People are putting money into things that they know are non-viable (and everyone else knows that), but as long as it trades and the marketing is good, then they can make money.

Markets are just a game.

> The best coin ever developed is still barely traded while scams of all sorts are highly demanded... Mad mad world

It is our fault. We do not have any information on the website and we are not communicating anything effectively at all. We need to communicate "What is Skycoin?".

When it is very difficult to communicate people "What is Bitcoin?". Bitcoin itself was a new category and there was nothing to compare it to. It was completely new. Now that people are getting familiar with coins, there is something to compare Skycoin to, so it is easier to describe.

However, we also need to describe it to people who have never heard of Bitcoin. Who are completely new to the crypto space.

People will complain over the distribution strategy, that is a given fact.

But when you participate in the stock markets, this is completely routine and nothing unusual. Usually, the founders would have a considerable amount of share. You would want them to have a considerable amount of skin in the game because it is in their interest to have the stock price go up.

They need to have some form of equity in the company because unlike real businesses, the founders do not get paid a salary at all. They at least need some financial support to keep on going.

I believe the problem with the distribution is that the float of 5 million coins is quite small and the exchange that they use is unheard of in the American markets. Increasing the coin float and diversity of exchanges will solve this issue.

I think successive "private placements" over time, timed with major releases will be a good way to slowly grow the coin. After all, after each new round of investors, as long as the coin is doing well, we will slowly appreciate the price. There will be new bases of support from people who are new to Skycoin. People do not like to take losses, so each offering price would be a new level of support.

You can offer a slight discount to the current market price to attract buyers.

Dumping all 100,000,000 coins on the market at once just creates chaos and the share price will tank from all of this "dilution". There would not be enough demand to support all of coins on the market at once. There will be more sellers than buyers.

I think my approach would be to have milestone releases timed with successive coin offerings and gradually set levels of support.

It seems like what you are suggesting mirrors what currently happens in the stock markets today. Instead of being called a coin offering, it is a private placement, where the company wants to raise additional funds to develop their company. They set a target amount of money they need to raise and they set a price per share. Usually these are known as private placements because you need to be an accredited investor to participate in the offerings. This is the government's way of protecting the investor to ensure that you have enough financial savy to understand the risk that you are getting yourself into.

Usually, these offerings have a hold period where there has to be a certain time that has to elapse before the shares can be free trading again. The price of each private placement is usually higher than the previous ones based on the assumption that the company progresses as time progresses.

It does not make sense to price the offering as the same price as the initial offering. Since, the early adopters took the most risk while investing. Back in 2014, the coin did not have as much progress as it does today and thus it would not make sense to value the coin as the 2014 price. Instead, you have to look at the coin as a whole today and the technology it has.

Consider Facebook stock as an example. They IPO'd at $38 in 2012. So you want the next set of offerings to be the same price as it was back in 2012 at $38? Just so everyone will be in the same boat? The current stock is $150 per share. It would not be fair to the initial investors who took on the risk back in 2012. Also, Facebook is a different company today than it was back in 2012. You have more revenue streams, more assets. That has to be factored into the price.

If Skycoin were to offer a new offering at the IPO price of 0.10 per coin, then everyone will sell their current coins and buy in at the 0.10 price. This will create a total crash of the current price, which will leave everyone frustrated.

If they were to go this route, I would set the next IPO price at a slight discount compared to the current market price.  

Update:

Bug Fix:

We found a bug last night, where the node goes into infinite loop when trying to create a new block and transactions on network stopped.

The node was assembling 5 transactions into a block, then failing because two transaction tried to spend the same output. Then failing and waiting a few seconds and then trying again with same result.

The code is now enabled to take the list of pending transactions and add random transactions from the list, one at a time, discarding a transactions which if added to the block, would make the block unexecutable against the current unspent output set.

The bug is fixed now.

We could stop these bugs from stalling the network, by adding randomization or enabling a flag; but we are running network in mode where errors like this will completely stop the network and with strict validation, so that we can detect these edge cases and make sure they get fixed. Otherwise we would not notice that these edge cases were not handled properly.

I encourage you to submit a request to Poloniex

https://poloniex.com/coinRequest

If you haven't already. More exchanges, the better.

Let's continue the discussion to see what viable options are for the distribution of the coins. I think once the coin gets into the hands of people that want to grow the project and see it succeed, it will be a snowball effect where it will gain significant traction.

Thanks for the answer!

Also looking forward to this next distribution! Any timeframe?

 Please describe more details). Should I panic sell or panic buy now?

Yes. We do not allow blocks with zero transactions.

The consensus and whole backend is still a work in progress, so do not want to clutter blockchain with a million empty blocks right now.

The full consensus implementation requires CXO (the public broadcast channel) to be working and we are still testing the library and improving the API. Then will implement and test, then have to do consensus network explorer. Still a lot of work. We used a masternode so we could launch quickly, instead of doing another three years of work before the token could be traded.

So there are still a large number of changes to make.

I do not think it would be good to enable zero transaction blocks. I think it would just use up more bandwidth and storage requirements and slow down the blockchain download.

We had to write a cross platform application launcher and GUI thing, that uses OpenGL, but yes. It will work on windows.

There are three steps left
1. Get all the apps packaged
2. Get it compiled and on the website
3. Get coin metering (bandwidth measurement and payments) done

We are trying to get the first applications out.

Update:

We are getting complaints about the distribution.

We are consider a three tier plan for getting to 20% distribution.

- people are trying to acquire large blocks of coins but no one is willing to sell them
- the people acquiring positions do not want to drive the price up while they are acquiring coins
- so there is no liquidity and market is frozen and there is a large spread
- we have people with heavy marketing and media resources who want to buy 200 BTC and 500 BTC blocks and we cannot accommodate them under the existing distribution plan

We need to figure out a solution.

Skycoin Market Making Bot:

We have a market making bot, that will sit on the bid/ask for skycoin for the following exchanges
- Poloniex
- C2CX
- Bittrex
- Cryptopia

The bot is in java and has three different trading strategies you can set. It was developed by a third party and will be released publicly.

You can set rules, like a spread and if the price between two exchanges goes more than 5% difference the bot will automatically arbitrage the spread and make you money.

Another strategy, adds depth to the order book by sitting on both the bid and ask around the moving average, so you can make money from volatility and the price doing a Yo-Yo.

C2CX Skycoin/Bitcoin Order Book

We are trying to get C2CX skycoin volume listed on coinmarket cap and get the APIs implemented.

We are also going to open up the SKY/BTC order book, so Skycoin will not only be pegged to the yuan.

Infographics

We are working on an infographics deck. We will have ~240 infographics and diagrams on various topics, explaining the internals of Skycoin and usage.

These are uncorrected examples with a lot of errors.







CoinJoin















Video and Marketing:

We have full time person working on video story boards now.

We will do a major cleanup and then start porting older content onto the blog.

We will start story board production for the videos. We will have eight videos on various topics.

Development:

We are trying to get the first two applications to release but dealing with bug back log.

New Wallet:

We are completely redoing the wallet
- support for multiple coins
- thin client scanning wallet
- new UI based upon the byteballs and electrum wallet
- fixed wallet size in pixels, so that layout can be controlled precisely to avoid cluttering

This wallet will
- force you to backup your wallet seed when you start it up
- will be able to run as a thin client if you do not want to download the whole blockchain

We are removing the full blockchain explorer from the wallet as it was a mistake and is too cluttered. And the blockchain explorer will be a separate application we will package with the node.

We will also start development of a "Consensus Explorer" to allow a user to subscribe to all nodes participating in consensus and to see the network status and global consensus state.

We also have to start development of a distributed logging system, that allows nodes to record and optionally publish publicly events such as
- consensus state updates
- time when block was received
- time when transaction was received
- node peer connection and disconnection events

This logging system will allow us to verify that the mathematical invariants for network consensus are satisfied (netsplit detection, early detection of non-propagating transactions, early detection of block flooding attacks, early detection of transaction flooding attacks).

The logging daemon will also implement a remote RPC (Skycoin Command and Control RPC) for allowing use controlled or chosen remote public keys to modify soft node settings (connection pool size, connection/disconnection from nodes, transaction rebroadcast) and will allow us to do cyber warfare drills on the live network.
- For instance if the network is flooded by 40,000 transaction backlog, we might use the command infrastructure to set transactions per block to 10,000 and clear the backlog.
- Or may increase the minimum coin hour fee for transaction prorogation to end the spam attack

We will have three sets of connections
- user defined hard coded connections (node your node must be connected to, that are chosen by the node operator)
- peer-to-peer nodes (random nodes chosen by peer-to-peer process)
- optional automatic recommended connections (command server suggestions for optimizing block/transaction/bandwidth availability)

Also in the next generation architecture
- block prorogation will be moved to CXO
- transaction prorogation will be moved to CXO
- transaction relay functionality will be something that can be disabled or enabled independent of other features in the node
- the key-value store for blockchain historical information and indices will be something that can be enabled or disabled independent of other functionality in the node
- the wallet functionality will be refactored out of the node and will be something that can be enabled or disabled
- there will be no difference at the API level between a thin client and a full node for wallet operations and no difference in API usage between a local node and a remote node operating over a network
- the blockchain history database will use range queries and user will be able to configure whether to index and store the full history since genesis or only the last few million blocks or whether to begin pruning the index after a certain range limit. The key value stores for each type of index data will eventually be independent programs exposing an RPC, that can be run on different nodes completely. With no difference between a locally running and remote node. This is part of the BlockDB architecture (however is a low priority and may take two years to get this done).

Naming:

We are probably going to rename the Skycoin transaction standard UXTO, to UXTX.

And we will call the old, Bitcoin way UTXO.

And we will call the way Ripple and Ethereum do it "The Accounts Model".

We have to standardize the naming conventions between different groups, because everyone is calling the same thing different names.

Applications:

We are trying to launch the first two applications.