My friend Kevin Ting does wonderful videos on the technology side of coins. He decided he wanted to review Electroneum as a coin rather than as a business. So this is my Rebuttal to Kevin Ting’s video on the Cons of Electroneum ($ETN). Kevin is a friend of mine but at times you need to educate your friends or recommend that they stay in their comfortable lane until they are ready to venture out. LOL!
So Kevin! I love you man. You know I have no loyalty to any cryptocurrency or coin. I am not a “Fan Girl” or Company Lover. Now let’s get started.
I believe that there are both PROs and CONs to everything. Unfortunately you listed not one REAL CONs of the Electroneum Business Model or Team Structure, in my opinion. Below are your CONs against Electroneum.
Kevin, my friend, I highly recommend you read THIS Blog Article and Watch this Video I posted hours BEFORE you made me aware of your video. I understand where you are coming from, but your cons are either old news and / or were gleaned from discussion forums and social media… which of course, is pure speculation and hearsay. Let me share some facts with you. I am going to address everything but not in any particular order.
Let us start with the Monero “Broken Blockchain” issue and your assertion that Electroneum’s technical team is “…very inexperienced”.
I nor you can really conclude that Electroneum’s developers were not ABLE to fix the issue. That is all hearsay. We know that they did NOT fix the issue. Nonetheless, the code is open source and historically with Bitcoin, Litecoin and all other open source code, hundreds and thousands of developers in the open source community have submitted modifications from the simple to the complex all the way to the most severe. This isn’t abnormal at all to have a member of the open source community make code fixes as long as it is peer reviewed, unit tested, integration tested, and merged into the existing production branch.
There are a lot of material to read to get at the truth in terms of the Monero code bug. Guess what? Monero hard coded (terribly, I might add) a band-aid patch into their code because of what happened in 2014. When Electroneum picked up the code, they didn’t do a thorough code review. So they had more transactions in a few months than Monero had in all of 2017, thus Electroneum bumped into Monero’s developers patch and then crap went crazy rather quickly.
Being a software engineer myself, my response is this…. “CRAP HAPPENS” with software because human beings create it. Bugs exist in ALL software. You and I don’t know what the real truth is in terms of the qualifications of the Electroneum in-house developers. You say it is “common knowledge that their team is more focused on marketing than on tech”. I call you on that one. “Common knowledge” in this case, is a bunch of people outside of the company passing judgement in social media! LOL! Come on, my friend! That is pure speculation and hearsay. Nonetheless, the bottom line is that today the issue is FIXED! So where is “The Bad”? There is no negative ramifications lingering from that fiasco except for the guy who fixed it going on and on and on about not being “acknowledged” or given some type of badge of honor in a timely fashion.
There is what he says… what Electroneum says and then there is the TRUTH of which we can’t even purport to know of.
Again, read this blog article and watch BOTH videos. watch my video and you will also hear my references to the 15March Facebook Live that Richard Ells, CEO of Electroneum had. He talked about how difficult it is to get GREAT developers. I understand because that was my profession for almost 40 years. I was a senior level hiring manager and finding top notch developers was rather difficult. Imagine trying to find them in the blockchain space when only a few developers are expert level!
And when you get some great folks, they will not be available to leave their present assignments/jobs for 3-6 months. If a developer is available right now today, then one has to question why. Be patient … The great developers are coming to Electroneum! LOL!
Keep it moving … NEXT!
Let us talk about your statement that there is nothing unique about Electroneum’s coin while you proceeded to ‘prove it’ by pointing out that ETN is just a copy of Monero’s code-base. This one had me smiling .. okay.. I’ll be honest. It had me LAUGHING!
Monero is a software fork from Bytecoin (BCN)’s code base back in either 2012 or 2014. Bytecoin ($BCN) was the first implementation of CryptoNote technology. So Monero didn’t create their own blockchain from scratch neither. They simply modified BCN’s pre-existing codebase.
As a matter of fact ALMOST ALL cryptocurrencies are soft forked from the code base of another coin. DASH and Litecoin soft forked from Bitcoin’s source code. Zcash also used Bitcoin’s software and customized it to add privacy via zero-knowledge proof construction, zk-SNARK. Stellar was developed by the Ripple developer.
I can list many many more. So there is nothing wrong nor sinister about using an existing coin’s public open source code base.
You say the coin ‘lacks uniqueness’. Let me clear up one thing, Kevin. The coin’s technology is NOT Electroneum’s business model. Their goal is NOT to create a most awesome, highly technical blockchain like XEM, EOS, LISK, QTUM or ADA etc. Electroneum is TOTALLY DIFFERENT! They are not in the business of creating a HASHGRAPH, for example.
I believe your analysis is focused on strict blockchain technology coins/tokens because that is where you shine. Remember we had a conversation where I impressed upon you to start looking at the business case, too? Come on! Step up! … smile …
Great next generation technology is being developed by those companies who have that passion, expertise, vision, and mission, indeed. Other companies are good at that. Your coin choices in your videos are mostly technology related because that is your ‘coin spot’, INDEED! 🙂 But that is NOT Electroneum!
It is important for you to remember this: Electroneum is NOT a coin company. Their charge is NOT to create a better blockchain. Read the white paper and this time read the business case.
Now simply because a coin has no new ‘technology’ differentiators from another coin, does not mean the company’s BUSINESS MODEL has no barriers to entry or isn’t a game changer. Not only is there no mass adoption of cryptocurrency to-date, there is a lack of business savvy by many of the ‘participants’, ‘investors’ or ‘first movers’ in the Initial Coin Offering (ICO) space.. Many look at the coin as the entity when the BUSINESS should be the entity. Coins aren’t magic beans that create wonderful things and change the world. People can change the world using technology that businesses or people create! We MUST start understanding business dynamics. It is no different in the crypto-sphere as it is in traditional business.
Now on to the CyberAttacks you mentioned…
Not sure why that is in “The Bad” category. Probably the same reason the Blockchain code issues is in that category. BOTH of these were fixed well before you posted your video yesterday, my friend. Maybe you had a hard time finding a lot of “The Bad“. chuckle …
Now late 2017, their launch was not delayed due to “CyberAttacks” as you put it. Their systems were not compromised. These guys weren’t hackers. They simply used social engineering. So Bob, Diane, and John signed up online on other websites in the past using their email address. Not only that, they used the SAME password they use to access their email clients to sign up for these sites (other ICOs, money making online deals, etc).
So they basically used brute force methods to slam the servers with email addresses/passwords that they had harvested/stolen/bought. And of course, human beings being human beings didn’t know the ramifications for their terrible mistakes re: security online. LOL! And unfortunately, Electroneum didn’t think of this possibility. But guess what? That is old news. They have ironclad security. PIN, EMAIL VERIFICATION, PASSWORD. So your statement again, is old news. You are referencing too many things that happened in the past. Let us talk about the “The Bad” re: what they have TODAY … RIGHT NOW!
Now let us talk FORESIGHT, BUSINESS and MASS ADOPTION…
You mentioned that one of the problems is that they rushed to market. I disagree. Richard Ells was upfront in his latest Facebook Live session where he said he never expected 100000 people to immediately come on board. Shucks! He had a roaring success based on marketing. You can’t foresee everything in business. There are some ICOs who thought they’d raise $10million and raised $2000. Other startups did market analysis and concluded that they would have about 400 people in their store the first week. And truth of the matter, they had only 10. You see my point here? You nor I can predict the future and thus we can’t prepare for every contingency. If Electroneum had 10000 registrants rather than 100000 registrants, the judgemental social media would have something to say about that. Ya can’t win for losing with weekend quarterbacks. LOL!
He didn’t expect to have over 1 million web and mobile wallets at this early stage either. Would you have? LOL! We can all say in hindsight that he should have been prepared. Go back in history and review some of the most successful companies today. You will find that they ALL had terribly painful beginnings. That is just the nature of a start up. “CRAP HAPPENS!” I can truly say they’ve recovered quite well, don’t you agree?
It is truly unnecessary to build a blockchain using Quantum Physics (lol) or building something along the lines of Hashgraph, for example in order to provide a REAL business case. That is not their business.
Electroneum has developed relationships with at least 6 large companies with huge customer bases in order to onboard over 130million new Electroneum users. Of course they won’t get 100% of that but tell me WHAT other cryptocurrency-based company has that?
And again, they are NOT a “gaming coin” or “online gambling coin”. Quite frankly, Electroneum company is NOT a ‘coin’. It is a business with a business model and business case. There’s a BIG difference. Gaming belongs to GameCredits/MobileGo and the other dozens out there. The ecosystem Electroneum is creating purpose is to positively affect socio-economic change. That has ALWAYS been the meat of the business model and mission. Everything else would feed the mission. Read the whitepaper for where the emphasis lies and what the vision truly is. Or once again, read my blog article and watch the videos.
If you view my video carefully, you will realize that the gaming/wagering approach is still on the roadmap BUT Electroneum felt that it would be easier to go to the TOP of the food chain. What do I mean by that? Well instead of targeting multiple gaming companies and entering into multiple agreements, they found that they will enter the market FASTER with more traction by partnering with TELECOMMUNICATIONS Companies. Why is this, you ask? Because telecom companies are the ones who have the gamers, the wagerers, the business folks, the consumers as THEIR customers ALREADY! You see my point?
Build the ecosystem. Go to the top and bring the customers. Provide gaming/wagering/commerce/value-added-services, etc and bring that into the ecosystem. Then you’ve got a thriving community of people all using ETNs. Then Electroneum will be able to build upon that foundation as well as first mover’s advantage. You say others are doing this. I say no they aren’t … YET. Oops! You meant ‘gaming’. I’ve clarified that already.
You talk about ETN not being a coin you will invest in. That’s okay. We all make our individual decisions. But that is not the emphasis of the company quite frankly…. and it NEVER was. When Bill Gates create Microsoft, his main consideration was to create awesome computers! Nowhere in his business plan did you see “our mission is to increase the price of our stock”. The price of the coin will increase based upon the success of the company in an organic, NORMAL way. Not like many of the empty coins on the market that get hyped up, go from 50cents to $25 over night and quickly fall to 90 cents based on air. I’m not selling anything, but Electroneum has something of substance here, Kevin.
You stated that Electroneum hid the fact that mining wasn’t actual mining. How did you put it? You said “…fine print”. No they did not put it in the technical whitepaper as “fine print” or a “footnote”. It is glaringly right in the face of anyone who actually read the whitepaper. 🙂 It is also written that the coins were pre-mined. If you missed that, I am rather disappointed, Kevin.
You say people were disappointed to find that they weren’t doing actual mining on their mobile phones. I counter that with a roaring “Hogwash”. The masses don’t give a squat about mining. They don’t even know what mining is. You do because you lean on the tech side.
Real miners don’t use mobile phones for mining. They know that is not doable with technology. chuckle. They are techies remember? They are using GPUs, etc. And the 50 people who are disappointed for whatever reason is such a small sample size when taking into consideration the population of Electroneum registrants. I’d say the same thing even if there were 500 people who run around social media screaming all day long about every ICO they’ve touched. Yes indeed! I’ve got a B.S. in Quantitative Methods/Statistics so you can’t tell me there is any statistical legitimacy to your blanket statement.
Finally you want Electroneum to provide a detailed long-term road map. The coins you review and have invested in, don’t have any detailed long-term road maps. LOL! That is quite unfair and biased, my friend. Shucks! Invest in Krispy Kreme and you ain’t getting a realistic long-term plan. This final one was just fluff, right? lol
We’re getting to the end and I am soooo disappointed Kevin, that you couldn’t find one CON about Electroneum. There are some of course. Just not what you’ve talked about.
Finally you stated that you think “they should have taken it slow and steady”. Any business today who takes it “slow and steady” will LOSE the race. That is old school. You have to run hard and fast; make mistakes; fix them quickly; learn; get up; speed up; jump hurdles; fall down; and on and on. That is where we are today!
You and I come from two different schools of thought. You believe “slow and steady” and I believe “run fast as heck, make mistakes, recover, and run”. Neither is the RIGHT WAY!
Keep educating the masses on technology coins. You do a bang up job there!
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