The vast majority of alternative cryptocurrencies (also known as altcoins) are either pyramid schemes, scams, or both.<\/p>\n
That\u2019s not to say cryptocurrency itself is a con. Blockchain and decentralized cryptofinance technologies are, in my opinion, crucial for the future. They provide insurance against government and social tyranny in an ever-changing and dangerous world.<\/p>\n<\/p>\n
Unfortunately, most shitcoins (and shit-tokens) are marketing schemes meant to create value out of nothing and then divide that \u201cnothing\u201d up like stocks. Those \u201cnothing\u201d stocks are then distributed to a community of holders, with extreme prejudice towards a minority group of \u201cearly adopters.\u201d<\/p>\n
The mythos of Bitcoin and Ethereum has made it \u201ccommon knowledge\u201d (note: those are sarcastic air quotes) that cryptocurrency is safe and backed by proof in the form of mining.<\/p>\n
In fact, most altcoins are either \u201cpre-mined\u201d or simply\u00a0backed by their inherent value like Beanie Babies. A simple rule to remember is that coins are money and tokens are property.<\/p>\n
And that, dear readers, brings us to Maricoin<\/a>. A cryptocurrency token<\/em> that\u2019s recently entered a testing phase in the Chueca community in Madrid, Spain.<\/p>\n What\u2019s interesting about Maricoin is that its name is an apparent play on words. The word \u201cmaricon,\u201d in Spanish, is analogous to the English pejorative \u201cfaggot.\u201d It\u2019s meant to be derogatory and dismissive in a homophobic or anti-queer way. It\u2019s hate speech.<\/p>\n I will give a minor concession. It\u2019s possible that, somehow, the queer entrepreneurs behind Maricoin had a completely innocent reason for naming it \u2014 maybe the \u201cMari\u201d part is short for \u201cmarinero,\u201d which means \u201csailor\u201d \u2014 but it\u2019s hard to imagine them not understanding the significance.<\/p>\n And it\u2019s worth mentioning that many queer people use terms otherwise considered derogatory colloquially among themselves.<\/p>\n However, as queer man myself, I can assure you that not all of us find such usage appropriate.<\/p>\n Omg they really said “f*gcoin” with a straight face.<\/p>\n \u2014 fursed croughurt (@Ty_Sunshine_87) January 4, 2022<\/a><\/p>\n<\/blockquote>\n But let\u2019s move past the name.<\/p>\n Any time I evaluate a cryptocurrency, I start my research by looking at three things:<\/p>\n In Maricoin\u2019s case my work was very easy. There\u2019s no trace of a paper anywhere on the internet that I can find, and the founders appear to be first-time cryptocurrency developers.<\/p>\n They have a website<\/a>, but it\u2019s useless. There\u2019s no mention of who the \u201cMaricoin\u201d team is or any specifics on exactly what it is.<\/p>\n The only real source for information on Maricoin comes from a Reuters article<\/a> on Maricoin\u2019s launch that ironically begins with \u201cIt might sound like a marketing gimmick, but<\/a>.\u201d<\/p>\n The article\u2019s glowing coverage is as optimistic as it is empty: there isn\u2019t a sniff of due diligence in the author\u2019s reprinting of Maricoin\u2019s dubious claims.<\/p>\n Maricoin, for example, is definitely not the first<\/a> cryptocurrency project to claim it was made by LGBT community members for the LGBT community.<\/p>\n So what do we actually know about Maricoin, on the technical level? Poop emoji, that\u2019s what. But that doesn\u2019t mean I haven\u2019t gleaned a few insights.<\/p>\n A link on the Maricoin website<\/a> takes visitors to the goalseeker website where we can see that \u201cmcoin\u201d is an asset listed on the Algorand blockchain. We can clearly see that there\u2019s meant to be a total of 10 billion Maricoin units in circulation:<\/p>\n And we know that Maricoin is definitely not a coin. It\u2019s a token. Algorand, and by extension Maricoin, isn\u2019t a cryptocurrency backed by work (mining). It\u2019s a token, like the kind you get at Dave & Busters. It\u2019s backed by \u201cproof of stake,\u201d like a stock.<\/p>\n In other words: the more you own, the more value your holdings have. This is because your proof of stake can be used to win fabulous prizes!<\/p>\n Per the Algorand listing<\/a> on Coinbase:<\/p>\n Algorand network participants (or nodes) are able to stake some of their ALGO in exchange for the chance to be randomly selected to propose a new block of verified transaction. The winner is awarded new ALGO.<\/p>\n<\/blockquote>\n Let\u2019s be very clear here: I\u2019m not saying Algorand is a scam or a marketing scheme.<\/p>\n I\u2019m saying that Maricoin, which is allegedly being built on top of Algorand, is either a pyramid scheme, a marketing scam, or the most poorly-introduced legitimate financial commodity I\u2019ve seen in all my years covering technology.<\/p>\n The website listed in the Algorand assets page, Maricoin.coin, doesn\u2019t exist. 🤷♂️<\/p>\n Here\u2019s the thing: we have no idea how the Maricoin entrepreneurs actually intend to tokenize their Algorand holdings. Building a centralized token-based economy on top of an existing one involves more than just conducting a bunch of transactions.<\/p>\n We do know that initial holdings<\/a> will be distributed to a series of clubs, bars, restaurants, and other LGBT-friendly establishments in the Chueca area of Madrid. And, following that disbursal, the first 100 people who pre-register to purchase tokens will receive a two-to-one discount, after which the remaining tokens included in the initial drop will be distributed to a final 10,000 applicants at a discount of three-to-two.<\/p>\n So, whatever market value the people selling Maricoin choose<\/em> to establish for it, will be used to establish the discount at which second and third tier users can purchase and spend their coins at. It\u2019s done this way so that there\u2019s no possibility first-tier holders can lose money handing out said discounts.<\/p>\n And, because Maricoin is 100% centralized, the first-tier investors are all but guaranteed a return on their investments in the short term. And even if things go sour quickly, they still stand a decent chance at some long-term payout if second and third tier users bail enmasse<\/em>.<\/p>\n The second tier users who know how to pump and dump and\/or really juice social media and shitcoin journals will also probably make a little money.<\/p>\n After that, the only real value Maricoin will have is inside the local establishments whose owners hold a stake. They stand to make money off holders three times for every transaction.<\/p>\n\n
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