CoinJanitor is a community funded project that sweeps up inactive coins and pays users to trade them in.
Blockchain is the new buzz word. Everyone seems to want one these days, but most of the blockchain projects out there fail. When these projects fail, what happens with them? How about all the people who put money, effort, commuting power or other resources into them?
A new project called CoinJanitor is the first to look at these issues and offer a user-friendly solution that will recycle the value trapped in these failed blockchain projects. CoinJanitor refers to these failed projects as dead coins, and it has a clever system to deal with them.
Failed Blockchains and Dead Coins
Yet defining how a blockchain project looks like and what a dead coin is are not easy tasks. There is no consensus out there around these definitions. Therefore, CoinJanitor took on the issue and came up with its own definitions.
These failed projects or dead coins were basically abandoned by developers and community members, they were either delisted or they were never listed on an exchange, they have blockchains that do not comply with their own operational specifications, they did not achieve their goals, and can no longer be used to transfer value.
CoinJanitor suggests buying out these dead coin projects because they still hold value. The buy outs will allow CoinJanitor to integrate all these dead coin holders into a single project, creating network effect.
The buy out process will also allow CoinJanitor to study the code and the data within the blockchains and recycle what is useful from them. CoinJanitor will also control other assets after the buy out, like the dead coin’s marketing assets.
User Friendly Buy Outs
CoinJanitor will implement its buy outs in a user-friendly manner, reaching out to dead coin holders to swap their dead coins for JAN tokens – CoinJanitor’s indigenous cryptocurrency. After each buy out, CoinJanitor will burn the coins it bought to decommission those projects that are trapping value.
This allows the project to complete the cycle of dealing with a failed blockchain project, getting thousands of users, valuable data and other assets in return, as well as support from the community.
How Many Dead Coins Are There?
That might sound neat, but many people ask themselves if dead blockchain projects are that much of an issue to justify the existence of CoinJanitor. The short answer is that most blockchain projects fail, therefore there is a clear case for cleaning them up. The problem is quite deep, because there are more than 4,500 coins in circulation. In the words of Marc Kenigsberg, the CEO at CoinJanitor “Right now there are 4,500 coins in the market, only 1,500 of them have enough trading volume to be labeled active. This is a lot of trapped value that we can and will release with CoinJanitor to create a clean, functional and prosperous crypto market for everyone.”
More Details About CoinJanitor
These are some of the details about the coins that CoinJanitor will be targeting. The project will buy dead coins that comply with 4 basic features:
They are not listed on an exchange
They are PoW-based.
Their market cap is below $50,000 USD altogether.
They have been in the market for 2 years or more.
Benefits of the CoinJanitor platform
Many people can benefit from CoinJanitor’s work to clean up these failed blockchain projects:
The holders of dead coins are the most obvious winners because they will get a valuable token that can be traded, in exchange for their dead coins.
Supporters will benefit from the network effect that bringing all those thousands of dead coin holders under a single umbrella, will generate.
Everyone involved with the CoinJanitor community will benefit from the tools that the team will build using the code and data from these dead coins.