ETN is a proof-of-work crypto currency based on the CryptoNight hash algorithm. It was forked from Monero and aims for mass adoption as an “enablement currency” through mobile applications and instant payment technology, particularly in the developing world.
Typically, cryptocurrencies are mined with specialist equipment. However, Electroneum allows users to “mine” the currency with the mobile app, which should lead to increased adoption and use of ETN. The app allows your phone’s CPU to engage in simulated mining, which won’t overheat your phone or drain your battery. The mobile mining won’t actually help confirm new blocks on the blockchain – it’s more clever marketing by Electroneum to promote interaction with Electroneum and get people involved. Even though you’re not really mining, you’ll still receive rewards. One more thing worth noting is that the mining will also use a negligible amount of your internet data.
Announcement made by Electroneum that they will be raising the payout threshold from 10 ETN to 100 ETN was met with disappointment and discontent of their community. A barrage of negative comments on the decision can be seen on their subreddit (expect it to be removed as soon as one of their mods sees it as they are notorious for censorship of their communities):
“First loaded the app and it said payout will happen after mining 10 ETN.
So I mined 10 ETN and checked the payout amount again: “sorry you must mine 100 ETN”.
What kinda bullshit is this?”
“How does paying out less streamline anything? What’s the real reason?”
“How is that helps with streamlining user onboarding? How is this helping with mass adoption? Are these just fancy words to make us think you know what you are doing? Invest in ETN they said, it will be great they said.”
All these comments indicate that ETN holders are finally coming to their senses and seeing Electroneum to what it actually is: a vaporware project led by non-technical team that is good in selling ice to penguins. The mining rewards are already peanuts, averaging at less than 5 ETN per day (a whopping 3 cents per day), with some users doing far less than that (0.5 ETN).
The trading volume for ETN is almost non existent – $250k in the last 24 hours.
The team behind the project is working only on one thing: creating an illusion of progress and activity, throwing around fancy words and heavy jargon (that they don’t even understand) to confound their holders and mislead them into believing they are working on something revolutionary.
We already covered the bleak future of Electroneum in the eyes of respectable crypto analysts with one of them saying:
“Like most ICOs, it’s a priori nonsense, but it did enjoy a brief moment in the sun as the development team (whose main expertise is online marketing) managed to drum up substantial hype, leading the asset to peak at a $900m market cap. In fact, one of my abiding memories of the late 2017 mania was sitting on a plane next to an earnest young fellow who informed me that his favorite cryptocurrency was Electroneum because you could mine it on your phone. Of course, this wasn’t actually mining, but rather an empty proof of time concept whereby you were allocated units of ETN just for having the app open.
It doesn’t take much to realize that ETN is hollow. It’s a generic ICOed fork of Monero with no distinguishing features by a team with no technical expertise. Some minimal development is ongoing, albeit at a very slow pace.
Notable event: The highlight of 2018 was the ETN team forcing every ICO investor into a KYC process.
Verdict: Electroneum is in a purgatory where it’s obviously a failed project but still piddling along until the SEC makes their way down the list and makes the team give all the money back.”
In our other article, we dug deeper to find out more about the initial “success” ETN had and what caused it (hint: clever but misleading marketing). Here is an excerpt from that article of ours, you can read full piece here:
Here is a nice introduction to ETN:
“Its because they are all paid shills getting people to swarm to any reddit thread that puts them in negative light… Go look at their subreddit. Thats how a shill infested subreddit look like. No scepticism, no debates, no substantial information, just braindead praising.
Electroneum is a project made by a marketing company. They know shit about coding. They just fork whatever code is out there. The team was forced several times to get outsiders to code for them because they didnt know how to fix their own mess. They tried to implement ASIC resistance in their code, they didnt have enough miners that supported the project with GPUs, so the team were forced to pay for cloud mining to finish the fork lol, and then suddenly flip flopped 180 and said, ASIC is the future and gave a big FU to the remaining GPU miners that supported this shitcoin.
Electroneum is a headless chicken, trying to do what countless of other projects have already accomplished, with an army of paid shills, and a blockchain thats way way slower than many other projects that does the same, only much better.”
Ok, so a project run by very skilled marketers that used one of the most revolutionary marketing techniques that was introduced with the rise of the internet: affiliate marketing. Affiliate marketing refers to an advertising model where advertisers pay a commission to third-party publishers and content providers for traffic or sales generated by the latter.
The concept has been around for a long time, but is only now gaining prominence as the internet becomes more widely available and its ecosystem is better understood. Electroneum guys ran this perfectly.
Marketers rarely know code. Electroneum apparently had no competent developer on their team but promised to hire “the best developers, they know the best developers”. Check this out:
“Electroneum’s methodology is “fork and forget.” A classic example of how moronic that is can be found right here.
They basically didn’t even look at the codebase they forked, and as a hilarious result, they included an unnecessary patch for an early attack on Monero. This patch would have broken Electroneum completely if it had actually gotten to that point (block 202612.)