CoinJanitor is a unique project in the blockchain space that aims to clean up the bottom of the cryptocurrency market and unlock the value currently trapped there. It uses a methodology built on economic principles to restore lost value to the markets, benefitting contributors, top-ranked cryptocurrency holders, creators of dead coins and dead coin holders – those coins which have low market caps, low or zero hash rate, and aren’t tradeable.
What is CoinJanitor?
As is the case in the traditional business world, the vast majority of blockchain startups ultimately fail. And so – among the rubble of scam projects and get-rich-quick schemes – there are hundreds of well-intentioned but unsuccessful cryptocurrency projects that now appear futureless. While there are many lessons to be learned from failure, there is also a lot of value trapped in those dormant blockchains. CoinJanitor is a community-driven project that intends to unlock that trapped value so that it can be put towards more active and promising projects in the cryptocurrency space.
For those cryptocurrency investors who are passionate about key tenets of the industry such as censorship resistance and transparency, CoinJanitor represents an exciting new opportunity. It is the first project of its kind whose sole focus is to strengthen the cryptocurrency community at large. That is accomplished primarily by reducing resource dilution in the market, but there is also immeasurable value to be captured in the comprehensive datasets that CoinJanitor can collect while decommissioning various projects.
How it Works
The first tool in the CoinJanitor toolkit is the JAN token. It is an ERC-20 token traded on the Ethereum public blockchain, with a total capped supply of 100 million coins. Holders of failed coins will be able to swap their dead coins out for JAN, which they can then hold or trade on one of the exchanges that lists it. The project’s efforts will be focused on micro-cap coins (below $50k) that have been inactive for 2 years or more, of which there are many.
The CoinJanitor team doesn’t plan to conduct any hostile takeovers or otherwise unwanted services for ‘deadcoin’ projects. Instead, they will contact the creators of target currencies and work with any that are receptive.
Once a plan has been agreed upon for a specific project, CoinJanitor will take over it and communicate their plan for buyouts to the coin holder community. After collecting blockchain data snapshots, they will then initiate token swaps in which coin holders receive JAN tokens in exchange for their untradeable coins, which CoinJanitor will burn. As a result, coin holders who would otherwise be at a complete loss will be able to regain some value or perhaps even turn a profit by holding or trading their JAN tokens.
Crucially, each buyout will add to the amalgamation of cryptocurrency communities into the CoinJanitor community. That will create a powerful network effect that increases demand for JAN tokens, making it increasingly more affordable to buy out other projects in the future. It will be as if each dead project that gets cleaned up will add a new janitor to the CoinJanitor staff until eventually, the project team is capable of cleaning hundreds of dead coin projects and making a truly transformative impact on the entire cryptocurrency market.
JAN ICO Details
The JAN ICO will start on May 1st and end on May 31st or once the $7.5 million hard cap is hit.
50% of the total JAN supply will be sold to the public during the ICO. Of the remaining half, 30% will be held by the project to buy out dead coins, 5% will be reserved for project’s partners, 5% will go towards a bounty program, and the final 10% will be distributed to founders, team members, and future employees. Team members will not be able to sell their JAN tokens until 2019.
Being a janitor is a difficult and often thankless job, but it is necessary work to maintain a healthy ecosystem. The CoinJanitor team and community are ready to fill that need in the cryptocurrency ecosystem, and perhaps even turn a profit in the process. To join them in cleaning up the cryptocurrency market, visit the project website, join the community on Facebook, Twitter, and YouTube, or follow the live discussions held on Telegram.