They seem to be a very well-funded project with some big crypto names (Jackson Palmer, Brock Pierce) on their team as “strategic advisors”. I find it almost impossible to believe they haven’t heard of the Nu project by this point, but perhaps they haven’t.
The bigger problem is that their strategy is nonsense. They’re using a tried-and-true start-up approach of using lots of trendy words like “Freemium”, “Micropayments”, “Cloud Consumer Mining”, etc, as well as dropping big names all over their website.
This doesn’t change the reality that their economic model will never gain widespread adoption. Here are two statements which are completely at odds with each other:
- Unlike most other digital currencies, purchasing NeuCoin is not simply speculating that one will be able to sell later to another speculator at a higher price. It is participating in a thoughtfully designed plan to create real utility in a digital currency, starting with a solution for micropayments on a broad scale.
- NeuCoin’s economic model uses very high PoS awards, starting at 100% per year in year one and gradually declining to 6% by year ten. The total coin supply begins with a 3 billion pre-mine and will grow to an estimated 100 billion over ten years.
In short, they are using the same “wait and pray” method of solving volatility that Bitcoin employs. Neucoins are indeed “simply about speculating that one will be able to sell later to another speculator at a higher price”. With each new project (pun intended) introduced to the world I’m amazed how few seem to realize that the critical flaw of Bitcoin is not that it is too complicated to use, it’s that BTC cannot and will never hold a stable value.
Stability leads to utility in currencies; utility doesn’t lead to stability.
