Nxt News – June 2017 (II): Vision Without Execution is Just Hallucination

June 2017 (II)

 

Welcome back, fellow Nxters!
Here’s the latest news about Nxt and Ardor over the second week of June:

NXT COMMUNITY

NXT AE

DEVELOPMENT

NXT IN THE MEDIA

PRICE EVOLUTION

 

Below are more details about each topic.

This week’s newsletter is put together by apenzl, jose, and is proofread by Travin Keith.

NXT


NXT COMMUNITY

Wolffang, a Nxt community member, announced the opportunity for community members to create a logo for IGNIS and called creative souls in nxtforum.org to action:

Please let your creativity flow and give input or upload cool designs.

Maybe this can be useful information to start with:

IGNIS meaning:
fire| brightness; passion| glow of passion

One important thing to notice is that Jelurida and the Nxt Foundation have the final say.

We have 2 weeks before this “contest” closes! So let us say we’ll have until the 20th of June.

IGNIS will be the first child chain on the Ardor blockchain platform. It will be a chain that will have all the well-known features (built-in smart transactions like shuffling, voting, messaging, data cloud, asset exchange, monetary system, aliases, digital goods store, multi-phased transactions, etc) of the Nxt blockchain platform. Assets issued on IGNIS will be tradeable across all new child chains as well, with the trading fee in the child chain the user is in. Another upside to holding a stake in this chain has recently been announced by Jelurida, with their proposal of the “JPL license“.

All IGNIS will be created in the Ardor Genesis Block, and 50% of them (5.000.000.000) IGNIS will be given to holders of NXT on a 1:0,5 basis, with the other half of IGNIS sold by Jelurida in an ICO, to enable them to do future development and pay bounties.

You can upload your IGNIS logo proposal or comment on the ones already posted at:

https://nxtforum.org/general-discussion/ignis-logo-lets-create-one-together!

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  • Nxt Foundation Will Be At Money2020 Expo 

On June 2017, Copenhagen will once again take center stage as companies and individuals disrupting how consumers and businesses manage, spend, and borrow money come together for this event. Hyperledger will have a large 10’ x 20’ booth space, staffed by IntellectEU, the Nxt Foundation, and Norbloc.

Travin Keith will be going for Nxt Foundation. Go get’em, Travin!!! 🙂

If any of you readers want to attend the biggest blockchain event in Europe and help him out but you don’t have a ticket yet, do use the promo code HYPER200 for a 200 EUR discount off Money20/20 registration.

Source: https://www.hyperledger.org/event/money-2020-europe

Nxt Foundation: https://www.nxtfoundation.io

Money 20/20 Copenhagen Website: https://www.money2020europe.com/

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  • NXT BustaBit Gaming is Coming…

Here an update from Bjorn and the Janus team:

bjorn_bb [6:54 PM]

Just a quick developer update

1. Final ETCbets.com additions and fixes

2. Conversion of BetterBets.io to the new code (NXT will have Parabolic (Bustabit) game!!)

3. Hiring developers, and starting them on the work and businesses coming the next 6 months.

4. Much more TBA
This is over the next month

90% of NXT profits from BetterBets.io are shared among all Janus token holders.

(Back to the Index)

 

  • Stocks.Exchange

Stocks.exchange is a new startup which is a centralized exchange that had a soft launch a few months ago with BTC <> NXT / ARDR / JNS / ETH / ADL pairs, as well as NXT < > Nxt assets: JNS / LNK / STEX.

Launched by Vadym Kurylovych (@vk in nxtxhat.slack.com) with the vision of building a “worldwide stock exchange market where anybody from anywhere can invest in any business worldwide using cryptocurrencies (BTC, ETH, NXT, others) or fiat money” as well as a place where “businesses can issue their stocks (assets, tokens) on major established crypto platforms (NXT, ARDOR, ETH, etc), sell them, do business, and pay dividends to each stock holder in one click”.

Stocks.exchange is currently in development but the exchange is working and said to be is safe and secure to use already. It also pays out dividends from asset issuers to asset holders without the holders having to withdraw to a Nxt account of their own. So, we can infer that “in development” means that Vadym Kurylovych aims for stocks.exchange to become something much larger than just an exchange.

Stocks.exchange has issued its own asset as well, STEX (asset ID 4110498475301476439).

Stocks.Exchange could become that supplement to the Nxt Asset Exchange that will push it back into the ICO game and open the eyes of investors and new entrepreneurs to its advantages over successors such as Ethereum. The Nxt ecosystem hasn’t had a good dedicated BTC < > Nxt AE online exchange since the SAE (Secure Asset Exchange), a popular front-end for the Nxt Asset Exchange, which drove high volume to the AE with its seamless Shapeshift integration.

The current ICO hype isn’t the first in crypto, but the second. We see a broader crowd of investors now than the Nxt AE experienced in the first wave and the Nxt AE has only been improved with more stable features since its launch in 2014. The community marketing budget though has been small to non-existent, and something new is needed to help people see through the mist.

Technology and security-focused startups currently choose Nxt and Ardor, with its scalability and asset trading across all child chains in their own token, as well as startup-friendly exchanges, like stocks.exchange, which see the necessity of allowing asset issuers to pay dividends and may draw attention back to the AE. Nxter.org will, of course, follow (and push) the development with interest, and we welcome to the ecosystem, Vadym! 🙂

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  • Easter Eggs Are Eaten

Last week we told you about NxtBridge OFFLINE, an easy way to create cold storage accounts and sign any Nxt transaction OFFLINE. In the end of the section we wrote:

OOOPS: Did I really expose the passphrase to the demo account in that video? Oh boy. The first who logs in to the account can have the NXT and ARDR in it. There’s also a clue to follow if you log in, which leads to another asset Easter egg!

Few hours later a user had not just emptied the account for NXT and ARDR, but also found that the encrypted Charles Bukowski quote which had been received by the EasterEggs account could be used to open a password-protected file which had recently been uploaded to the Nxt Data Cloud. This revealed 12 random words, the passphrase to an account that held 100 NXTP assets.

Those are long gone now. Congrats to the Nxter that won and who, by the way, surprised us by using the Eastereggs account to cast a vote in Nxter Magazine’s newsletter-poll. – Nice one! 🙂

A new transaction has been sent to the alias EasterEggs. Here’s a clue: Twitter handle @OPeasterEggs.

NxtBridge OFFLINE video tutorials are available at https://www.nxter.org/nxtbridge-offline.

You can use the NxtBridge plugins on any WordPress site to get a Nxt TIP Button, show account ledger, broadcast transactions to the Nxt Blockchain, and show live Nxt AE information, like https://nxter.org/assethub.

(Back to the Index)

 

  • Nxter Newsletter will Continue in its Current Form

I issued a poll about this very newsletter last week.

Nxter Newsletter Poll (ID 15893442631575921861).
No minimum balance was required to vote. 1 vote per account.

The result:

  1. We have more readers than voters.
  2. Voters want more of what we give them already.

Thanks to all participants!

If you’d like to help Nxt, Ardor and the Nxter team by writing about Nxt, Ardor, use cases, the AE market, your price analysis, or share other ideas, as well as help us code and spread the word on social media, please let us know. DM apenzl on nxtforum.org, in nxtchat.slack.com, or write us using this contact form.

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  • Get Out There and Shout

Here’s an important reminder, posted in Slack by Snooke, the author of steemit posts like “Why You Should Invest In Ardor And NXT Before It’s Too Late“, and “How I Doubled My Investment in 4 months and now have a Passive Income (…)“.

Snooke states:

I see so many people complaining or asking why NXT and ARDOR don’t reach those highs other cryptos reach. Well, I can tell you: Marketcap mostly has nothing to do with the tech alone. It’s about people knowing and recognizing a project.

You have to get out there! All of you! No matter how small or big in the social world you are. Do something for your investment! Spread the word and people will come. NXT/ARDR has an INCREDIBLE tech and AMAZING platform. I love it since 2013 and tried many more. But still come back to NXT. And when Ardor comes out, I will for sure use it for one of my businesses. (…)

You want NXT/ARDR to reach marketcaps like NEM, Stratis and co? Well, then do your community work and get the word out! Every single one of you! You have Twitter? You have Facebook? You have friends? You have Youtube? Do your part! (…)

Read the full article here:  https://nxtchat.slack.com/files/snoooke/F5N6VD93L/You_want_NXT_ARDR_price_to_rise__Then_read_this_

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NXT AE

  • Janus – Alphonso Morris Jr. Q & A

Three weeks ago, we welcomed Mr. Alphonso Morris Jr. to the Janus Team. The Q & A session with Janus’ new power tool and brand manager on Slack has now been killed by the 10K message limit. For those who couldn’t attend the event, missed it, or want to read it again, we have published this version:

https://nxter.org/alphonso-morris-joins-janus-project-team/

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  • Community Janus XT Token Share Program

In April, the Janus Team introduced the JanusXT token for holders of over 2 million Janus tokens. Those possessing JanusXT are eligible for special privileges and additional dividend payouts from other income streams. The profit distribution from ETCBets.com factors in both JNS as well as JanusXT token holders, and 20% of all IGNIS that Janus receives when Ardor is launched will be paid out to XT holders. The token also entitles holders to 40% of BetterBets.io casino income starting on March 2018. As more Janus business sites launch, more revenue from them will be added to the dividend stream.

Non-whales in the Janus community, known as dolphins and tunas, could only dream of getting a piece of this XT pie. However, this ended in the 1st of June, where an emergency plan for dolphins saw the light of day as a community initiative, with the Janus Team’s blessing, was initiated where a new token was issued on the Asset Exchange:

The fund manager, Merk, wrote in the Janus’ Slack:

6 spots remain for the Community Janus XT Share Program. If the 2,000,000 requirement is not reached by Friday June 16th, 2017, any current member already enrolled can purchase additional spots in 100,000 Janus increments to purchase the remaining spots.

The Community Janus XT Token Share program will tie up your Janus tokens until July 2nd, 2018 and they will not be accessible by anyone enrolled UNTIL that date.

Source and more information: #janusproject (Join Nxtchat on Slack)

News compilation about Janus

(Back to the Index)

 

  • Adel – Validate Your Nxt Account Now

The Adel community vote has come to an end, and the result is overwhelmingly in favor of moving forward:

Dusil:

Our community has voted and we have a majority “Yes” (by count and by weighted BTCs contributed) to activate the ADEL Ecosystem. Our next big step is to distribute ADL coins to all of you.

Investors: Validate Your Nxt Account

All stakeholders must verify that they have a valid passphrase by generating a token using their Nxt account (https://nxt.org/download/). Once a token is generated in the Nxt account, the stakeholder must copy this token into the appropriate field on the Adel Dashboard. Then, Adel will validate this token and activate the transfer of ADL coins to the stakeholder’s Nxt address.

These steps ensure that:

  1. The stakeholder’s Nxt Address is correct
  2. Their secret passphrase works (because tokens can only be generated with the correct passphrase)
  3. By clicking “Confirm” in the Dashboard the stakeholder confirms they have safely stored their secret passphrase.
  4. They have full access to their Nxt wallet.

Full instructions:
https://adelphoi.io/content/pdf/walkthrough-nxt-validation.pdf

SERVICE ANNOUNCEMENT:

If your Adel ICO account is a new account, you must log in to the Nxt Client using your passphrase and not your account ID to generate the token. A new account is not registered in the blockchain until its public key is announced to the network by an outgoing transaction which is executed from the account OR when another Nxt account announces the account’s public key to the network.

It is always advised to send a transaction from the account or announce the public key to increase security. If you don’t have NXT, you can buy it from the following exchanges: https://nxter.org/exchanges/

Once you receive your ADLs, you will be able to trade them on the NXT Asset Exchange.

 

 

You can buy / sell ADL for BTC on https://stocks.exchange/trade/ADL/BTC

By accumulating over 62,962 ADLs, equivalent to about 2 BTC, you will be able to upgrade your wallet to gain “membership status”. As a voting member, you can participate in the direction of Adel while also getting employment opportunities. If you have questions, you can join the Adel public slack channel (https://adelchatinvite.herokuapp.com/). Also, Adel will try their best to quickly respond to email inquiries sent to adel@adelphoi.io

More information: www.adelphoi.io

Twitter    LinkedIn    Facebook     Reddit

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DEVELOPMENT

  • Nxt Voting System – Theoretical Use Case

Learn more about the Nxt Voting Feature with this theoretical use case of an election in the small town of Serenity:

The production of the video has been sponsored and coordinated by the Nxt Foundation.

(Back to the Index)

 

  • Jelurida Speeds Up the Blockchain

Last week Nxter Magazine reported that Jelurida has reached 100 TPS (Transactions Per Second) with Nxt. This week, IBS Intelligence covered this achievement and wrote:

Jelurida has announced the results of a blockchain workshop ran on 15th May. It claims a dramatic difference in Nxt software performance compared to its competitors, in this case, processing more than ten times the number of transactions that could be currently handled by Bitcoin in the same time frame.

The test workshop, which used a modified version of a Nxt 1.11.5 private blockchain instance, saw three million transactions submitted to the blockchain by a load testing tool, while the nodes behaviour and performance were carefully inspected and profiled.

Jelurida plans to run further tests to ensure that all users can benefit from these optimisations on the public blockchain in addition to private versions.

Source: https://ibsintelligence.com/ibs-journal/jelurida-shows-off-nxt-platform/

(Back to the Index)

 

NXT IN THE MEDIA

  • Nxt Explained by KRUT

KRUT a Russian blogger has created a playlist of short and exact videos on YouTube where he explains Nxt, the project and the blockchain features, the Nxt Client, and how to buy NXT.

(Back to the Index)

 

  • Tommy World Power: My Top 10

“A list of the top 10 cryptocurrencies I have my eye on.” Ardor is mentioned around 18:38.

(Back to the Index)

 

PRICE EVOLUTION

  • Weekly NXT/ARDR Price Evolution

The following graphic shows the NXT / Bitcoin exchange price at Poloniex over this past week:

The following graphic shows the ARDR / Bitcoin exchange price at Poloniex over this past week:

(Back to the Index)

Alphonso Morris Q & A

Source: nxtchat.slack #qu_answers

Thursday May 18th starting 1pm – 2:30 pm eastern standard time


ascendus
On behalf of Janus Team, thank you for showing up.
Moderation will be performed by @marenkar !

marenkar
Welcome everyone to the QA with the newest member of the Janus team, Mr. Alphonso Morris Jr @almo3ree23! I have personally verified his information to be accurate based on several techniques to prove identity. Without further ado let’s get to the questions. Please remember, we need to screen questions first so please post your questions to #janusproject. If they are approved, I’ll ask them here with a tag to you.

I have some questions to get started but will be checking #janusproject regularly. To start things off, here’s the first question:

Who are you and what is your career experience?

almo3ree23
My full name is Alphonso Morris Jr.
I’m 51 yrs old. I was born in Philadelphia PA and currently live here.

http://linkedin.com/in/alphonso-morris-jr-b8a21170

marenkar
Philly sounds like a great place!

almo3ree23
It’s a great city.

I have several years of experience in various fields not as much in the Crypto / Blockchain world more so in the fields of Photography, Event Planning & Promotions. Public Relations Director, Artist Management, Personal Assistant, Music & Television for over 20 yrs.

marenkar
A lot of people on #janusproject are asking, how did you meet the Janus team?

almo3ree23
It’s a funny story….. I met Bjorn’s wife at an event, I was working in Bethlehem PA, there’s a Casino built on the site of the famous Bethlehem Steel Co. I met her a few years earlier. She wanted me to meet her husband for years.

She happens to drag him out of his cave for a little R&R. After the show, we met for drinks and hit it off. It didn’t take long for us to connect and discuss life, family, work etc. Louis & Robert [also from the Janus team] I met later.

marenkar
That’s awesome! Nice to know that there’s a good personal relationship as well.

almo3ree23
They’re a great team to work with.

marenkar
@crowne asks: Is Nate Morris from Boyz II Men your brother by blood relation?

almo3ree23
Yes he is
Yes he is my little brother, we’re five years apart, and I can still beat him lol

marenkar
Haha good to know! 🙂

Alright, another common question on #janusproject is – “What ways will you help the Janus team expand grow as both a team and future company”?

almo3ree23
Explaining how good something can be to others is easy when you have a team & product as good as this. We’re all driven to succeed focused on producing quality, I believe creative minds tend to work well together. My interactions with members of the team has been very good. I believe my 30 plus years of public relations, world travel, and personal contacts will benefit the team as we grow.

I’m anxious to get into the creative process.

marenkar
Sounds great! Looking forward to seeing what you can do with Janus.

We have another question as well from @merk: given your association with Boyz II Men – “Who is the most influential person you have ever had the privilege of meeting”?

almo3ree23
Niece, 1998, The World Music Awards, Royal Yacht Club. Its me Ant, Stevie Wonder, his assistant and Prince Albert Of Monaco. Having a conversation about being royal. Needless to say, we were all bent…. out of our faces…

marenkar
That’s pretty awesome!

almo3ree23
Oh and Salt&Peppa were there as well!

marenkar
Question from @qiwoman – “What advice do you have for potential investors looking at JANUS”?

almo3ree23
I joined the team two months ago and my observation of Janus is that it’s a solid company. They have good direction, good products, dedicated to their investors and their brand. Janus is also growing exponentially.

marenkar
Another question that is being asked regularly on #janusproject is “To what degree can you utilize your ‘special’ industry contacts to help your team gain an advantage with online business sites and other Janus activities?”

almo3ree23
From my personal experience, we are only as good as our word on any level. Information is power in the right hands coming from the right people.

I’ve earned mutual respect from some influential people in the entertainment industry who I’ve worked for or with over the years. People like ( Ken Ehrlich ) Tv Producer Grammys, AMA’s Etc.
( Usher Raymond ) Music Producer / Entertainer I consider close contacts. There’s always the possibility of an outright endorsement of a product, company, idea or the like based on how Bjorn wants to proceed.

marenkar
Whoa, that’s quite a list of contacts to bring. Nice!

@wolffang asks – “Since you are the Brother of a boys2men member, do you know Beyonce through him? ”

almo3ree23
She was on The Evolution tour with Destiny’s Child and Boyz II Men in 1997.
I was their personal photographer during the tour.

marenkar
Whoa, that’s awesome. There’s a group trying to parody her name as blockchain. 🙂

Speaking of blockchain, another question that’s asked on #janusproject is “Had you heard of Bitcoin or Blockchain before joining the Janus team”?

almo3ree23
Yes in my travels abroad I noticed it being used but that was the extent of my Bitcoin or Blockchain knowledge. It didn’t take long for me to start asking questions.
I’m not a religious person per say but I can say I’ve seen the LIGHT!

marenkar
Welcome into the blockchain community 🙂

A good question that @qiwoman brought up is “With marketing JANUS mainstream sites, do you feel you will be able to attract outside mainstream investors into JANUS blockchain token shares?”

almo3ree23
Yes with my contacts in music and television it wouldn’t be a problem for me to explain Janus to as many influential people and companies as possible.

marenkar
@cryptoracer asks: What areas of marketing and promo (and to what demographic) do you think will benefit Janus the most, re. exposure?

bjorn_bb [marketing director of Janus]
The primary marketing angle will vary based on the business type, for example, our Forex/Crypto mainstream site from this year will be tackled literally by the main stars of that site, chiefly the wave callers (professional traders). Money and personal fame is the driver.

In terms of year 2 adoption, we will be using creative methods to introduce general mainstream users to our token(s). This is something our team excels at and keeping the tech out of the equation will be always primary to reduce barrier of adoption.

ropes
What will be the main marketing angle for Janus project, what is the plan of delivery and what are the ballpark estimates for year 2 adoption in mainstream?

almo3ree23
I’m very visible in the entertainment world, I travel regularly so I can tap into the international markets, I’m experienced in promoting products, and have a respected following.

marenkar
Awesome. More exposure would be great. More in Janus would mean more for Nxt and Ardor too, so we certainly welcome that 🙂

A great question by @martis (and earlier by @wolffang), speaking of Nxt – did you try to play with Nxt features? And if yes, what is your first impression?

almo3ree23
Yes, I have it installed and have looked at it. It’s a very powerful platform!

I’m still wrapping my head around some of the features, but I’m still learning.

marenkar
A casual question from @wolffang – What is your favorite place to spend the holidays?

almo3ree23
Sidney Australia or Tokyo Japan are my two favorite cities

qiwoman
What is your projection of JANUS 12 months from now?

almo3ree23
I can project that it will be the number one token in the market! Just my personal opinion based on my observations and markets.

bjorn_bb
This is obviously highly speculative, but we believe that our tokens can appreciate in value almost by sheer force of work and business success. A store of value backed by our team can only stay at one value so long if we keep our roadmap and vision strong without becoming complacent. I’ll be the first to tell you that my goal is empire level, and you don’t get to that point without drive and ruthless ambition.

marenkar
A great question from @merk -“With the upcoming formation of FL3X (the Janus parent company), what role will you play in the formation and what position will you hold (if that has been discussed)”?

almo3ree23
Company brand ambassador to start, we’re still forming positions but eventually partner.

merk
Cool. Thanks.

marenkar
Awesome! @martis is also asking how you will be promoting crypto tokens to people who aren’t familiar with the technology and the community?

almo3ree23
I’ll be promoting thru my contacts in mainstream the business sites we develop. Those business sites will be using our tokens in both direct and indirect ways. I’ll be facilitating the communication with these people in order to partake in the use of the site or promote the site itself.

marenkar
Awesome. Having a person these contacts can trust is a great way for them to get connected to it. Let them know they’re welcome here as well! 🙂

Ok, we’re at an hour now, so I’ll close it off with this question – How long will you be staying with the company and team? Do you plan to become partner and see it develop into what the Janus team has described?

almo3ree23
I’m here for the long haul. I never run away from a challenge. We have great things planned for the greater community. We want to make Janus a household name. And yes I will be a full partner in this endeavor.

marenkar
Awesome. Thanks to everyone who participated in this Q&A and thanks especially to @almo3ree23 for coming on here and answering all these questions. Thanks again to Janus for choosing Nxt!

almo3ree23
Thank You all for your time and attention.

bjorn_bb
Thank you all for coming out to meet Alphonso today, as always thank you to the community for the strength you help give our project and team. Press releases will follow shortly and a giant thank you to the NXT foundation for helping with everything today, including the ID verification of Mr. Morris.


Follow Janus: Twitter | Bitcointalk.org | Slack #janusproject

Latest Janus news and market data: https://nxter.org/ae-janus | Nxt Newsletters

Janus Dividend (2017-5)


June 1st

A total of 313996.0317951 NXT
distributed among 391 accounts
which own a total of 20,933,068.78634 shares

0.015 NXT per Janus token owned

9638088763182480941


Bjorn_bb:

ETC community was happy on their portion, I just got done speaking with their core groups. Cyclical relationships I spoke of this 6 months ago for those that remember - over time you will see how I keep them as a core methodology. Help others help you, in plain English.

Same goes with stocks.exchange and our community helping with volume, in turn he advertises Janus. It's a win/win, never underestimate it. ROI comes in many ways. 🙂

Expect some media push soon, big thank you again to the NXTer magazine team for their help. This will be a big press release possible several medium to large outlets.

We are about to refocus as a team on mainstream businesses​ again, shift is coming. If everything goes as we plan, there will be a series of delivered projects and biz around the same time. I'm handling several things for ETC and making some good things happen but our developers will be moving mainstream now.

We also have confirmation from marenkar (NXT Foundation) that the NXT/Ardor core team will be able to make all our lives easier with migration to Ardor Janus once ready.

This is all I have for now, thanks everyone

More info: Nxter.org/ae-janus

Last month's dividend

 

ae-Janus-4348103880042995903

AE LIVE DATA

CryptoCompare  |  Coinmarketcap

[NXTBridgeAssetInfo id=4348103880042995903]

[NXTBridgeAssetPrice id=4348103880042995903]

[NXTBridgeAssetCandlestick id=4348103880042995903]

About Janus

Janustoken on exchanges

Nxt Asset Exchange

Buy with NXT

1 NXT fee no matter the amount.
1 NXT for canceling a blockchain order.

Hold Janus in your Nxt Client to receive dividends the 1st of each month. The profit share is sent to your account so otherwise, you'll miss out on revenue.

CryptoDAO

Buy with BTC

0,15% trading fee.

Also has JNS < > LTC, USD, RUB, CNY.
Plus, MT4 Based PRO Webtrade Platform.

C-cex

Buy Janus with BTC

All trades have a 0.2% fee applied to them.

C-cex also has markets for trading Janus against Litecoin, DOGE and USD also, but currently with very low volume and liquidity.

Stocks.exchange

Buy Janus with BTC

Fees: 0.2% per order.
Assets not subjected to commission.

Stocks.exchange traders receive JNS dividends in their exchange account after the 1st of every month. The exchange passes them on to Janus asset holders.

"It rubs some the wrong way, but I'm sorry tech is useless without revenue, and speculative revenue isn't real, it's a flash in the pan. On the other hand I'm not saying it isn't fun to gamble either, take risks, make a profit but none of that is long term. Just my opinions, but when I work on Janus I’m working on a business empire that I wish to have outlive me. Appreciate advancement in technology, yes, but when I see financial institution reports estimating blockchain adoption 7-10 years from now... It means the tech is so far ahead we need to use it now, thus the Janus project".

~ Bjorn, marketing director and concept developer, Janus

Contact Janus Team

Nxt assets “Under the Knife”

To date, almost 800+ assets have been issued on the Nxt Asset Exchange (AE) since it was launched less than 3 years ago, as the first implementation of the coloured coin concept in crypto.

Some assets have gained magnificent market cap, in some periods even outperforming its reference currency, NXT. While others have been issued as experiments and some have, unfortunately, been scams.

The Nxt AE has been running secure and stable during all this time and continues to impress issuers and users with its advanced built-in features. In the Nxt Client, you can easily search for assets by their unique asset ID – but how can you find these IDs? You can trawl through asset threads on nxtforum.org or you can check an asset list on a Nxt Blockchain explorer.

That’s it. Because to this date, we have not had any service or central hub dedicated to rating, describing, or warning against fake assets.

How to find the good assets?

On the AE there’s no built-in hand holding. No regulation, no government protection, as it’s a 100% decentralised global asset market. There is no built-in KYC registration (such can be implemented on Ardor child chains), so investments and trades made on the AE are based on whether you trust the issuer / business or not.

Do your due diligence. Investigate. Ask questions to the issuer.

Experienced AE traders know this. Asset issuers should be aware of it too and go a long way to provide details and quality answers to their potential backers. But, let’s be honest, more than a few asset issuers got shocked by the community’s “guilty until proven trustworthy” approach, felt attacked, and ran off from NxtForum, after going in there full of energy and ideas, pitching their most promising project in an [ANN] thread, combined with a well-prepared business model (or not!), and possibly even a 100% working product to give ROI to their investors – if only they’ll back the startup.

While some campaigners may have only spent minutes on writing their pitch (and, thus, will be ignored), others have worked hard for months, or even years, on their business idea or software before finally seeking funds.

In both cases, the campaigners will be questioned, thoroughly, about their personal backstory as well as their business plan and product or service offering. If there are obvious holes in the issuers’ plans, it will show, and critical questions, and thus, judgement from the masses might not always come out politely in such cases. Wise asset issuers / campaigners thank the community for the free consultation and up their game and announce the necessary changes to the plan. Or, they defend their plan because it’s well thought through and fine. Campaigners would know if such a response was successful or not through the follow-up feedback from the community.

Either way, the process is tough on issuers. Some feel confident, others humiliated or trolled. Some give good answers while others can’t handle the stress and finally answer back aggressively. Unfortunately, then they lose out.

This is bad for investors. Not if the asset was a scam, of course, but unfortunately it isn’t always so.

So back to the question: how to pick the good assets – and avoid the bad?

[ANN] Nxt Assets “Under the Knife”

ae-knifed

In a new interview series hosted on Nxter.org, I will approach asset issuers with questions that are relevant to AE investors. I won’t be soft. Thus the title for the article series: “Under the Knife”.

Issuers will get an opportunity to read the article before it gets published. This is to give them a chance to make changes to their approach instead of having potential flaws revealed out in the open, on the oh-so-never-forgetting internet (who wants a “scam” post connected to their new great business name on Google search results?). Asset issuers can refuse to make an interview, but they can also ask for one to be made.

If an asset issuer decides to sponsor an article in the series, they won’t be guaranteed any recommendation. It can only be guaranteed that we’ll do our independent research and due diligence and publish it, which may turn out to their advantage – or their disadvantage. No asset sales are guaranteed.

Why?

Nxter.org works independently, yes, we’re a rare case. We’ve proven more than once that we can’t be bought. We exist to provide readers and investors with non-biased information. With this approach, we also give issuers a more seriously researched article, to which they can point both forum trolls and interested investors, instead of wasting time on answering the same more or less relevant questions over and over again in different chat rooms, private messages, and forums.

There are too many scam ICOs in the world of cryptocurrency but there are also too many hidden opportunities on the AE. The current situation is bad for investors and bad for crowdfunders as well, so let’s try to give both parties a helping hand. If you’re interested in helping, please contact us. In parallel with the interview series, we are building the nxter.org/assethub. More info about that will be available asap.

Who’ll get cut?

Time will tell. The first interview has been made with the Janus project. It felt natural, as they are currently hosting an ICO. Janus is a start-up business conglomerate that will be using the Nxt dividend feature to distribute BTC dividends, and may also implement their Nxt AE Janus token in some of their businesses…. or so they say. Check nxter.org tomorrow and read the first “Under the Knife” asset issuer interview.

Related posts:
Under the Knife #1: The Janustoken

You can subscribe to the Nxter News list, if you want the interview sent to your mailbox.

The ARDR token is trading!

Today, on October 13th, at block height 1000000, or 42 days before the Nxt blockchain’s 3rd birthday, the Nxt 1.0 -> Nxt 2.0 snapshot period came to an end, and 998.999.495 ARDR assets were automatically distributed to all accounts which had held any amount of NXT since the first snapshot was taken 3 months ago.

For every 1 NXT which has stayed in your account since the first snapshot, you’ve received 1 ARDR asset. If you’ve been a NXT hodler for half the period, you’ve received 0,5 ARDR per NXT. (For information about the distribution model read this)

This is the ONLY official Ardor asset:


Live feed from the Nxt AE

NXT and ARDR on exchanges

UPDATE

ARDR < > BTC markets:
https://hitbtc.com/exchange/ARDR-to-BTC
https://bittrex.com/Market/Index?MarketName=BTC-ARDR

Poloniex has distributed ARDR. We’re waiting for them to open a market.

ARDR Marketcap: http://coinmarketcap.com/currencies/ardor/

ARDR assets have been distributed to all NXT-holding accounts on participating centralised exchanges and now need to be distributed among the exchanges’ customers.

The Nxt team writes:

The distribution method used will depend on each respective exchange’s internal architecture, so the Nxt team and community can’t provide a universal solution for Ardor distribution within exchanges.

Poloniex, Bittrex, HitBTC, BTC38, etc., must be contacted directly by their customers for more information about their distribution method, if you haven’t yet received your ARDR.

HitBTC was the first centralised exchange to open a BTC < > ARDR market, but more exchanges are expected to follow soon. As most NXT-exchanges have active Nxt asset markets going too, it will be very easy for them to add ARDR.

Next snapshot – IGNIS

One snapshot remains – if you want to get full value for your NXT.

Ignis will be the first child chain, which is guaranteed to get launched on the Ardor platform. In Nxt 2.0, Ardor is the token used for creating consensus and Ignis will be the first transactional token. It will be created at the Ardor Genesis block. Free Ignis tokens will be distributed with a ratio of at least 1:0.5 to all NXT-holders at Genesis. A last snapshot of the Nxt blockchain will be taken just before that, so Ignis can launch together with Ardor.

Ignis will inherit all the current Nxt core features, but will be have others added and be further developed by the Nxt development team. The snapshot will be taken in Q3 2017.

And the unparalleled Nxt platform?

Nxt will continue, and be supported, by the Nxt core devs.

As the Nxt core developers wrote, in a Q&A session a few days ago:

riker
NXT promoted Jelurida and Jelurida will promote NXT.

jean-luc
There will be small businesses and end users who don’t need, or can’t afford, a private blockchain. Those will continue using Nxt, or start a child chain on Ardor.

riker
We can use the funds we receive from private chains to promote the development of the public chain which will in turn provide marketing and public relation for NXT/Ardor and bring us more private chain business.

ipsec [9:08 PM]
Now its very risky to invest NXT and ADROR…..because after 13 price of NXT will down

jean-luc [9:09 PM]
Everybody expecting a dump after 13th… then everybody would sell before 13th
my guess is, the dump has already happened, but then I am not a trader.
If you dump, what else would you buy that has better “incentive structure”?

And that’s the case. If Nxt is not the platform to start coding your new Ardor Nxt 2.0 projects on, then which?

With the Nxt Foundation marketing it, with an educational book about Nxt 1.0 coming out soon, with businesses rushing in to get into the best blockchain tech before the technology itself disrupts them…. will it be wise to sell NXT?

Jean-Luc:

We have projects using the public Nxt blockchain which will need to be supported for at least the next 2 years and probably longer. We’re also in the process of bringing in more core devs for Nxt as well as for Ardor, with the aim of establishing 2 semi-independent core dev teams.

There has been lot of public FUD and confusion about all of this, so I hope this clears up any questions or doubts that you may have about the future plans for Nxt and Ardor.

In doubt? Get involved.

Join nxtforum.org or the Nxtchat Slack channel:

DeBuNe is currently looking for extra developers to join their distributed team. m19: “We are creating our own custom version of NXT/Ardor and some of the changes you make might even end up in the core, we are in no way competing with them but instead actively supporting it.

https://nxtchat.slack.com/messages/job-offers/mentions/

LQD asset CEO libertynow [2:37 AM]: “If NXT goes below the Oct 4 bottom at 1667 I’ll start getting worried. well, not really. i don’t care that much. I can just use the NXT for divs if I really need to”.

You might also want to read: The Nxt Asset Exchange Tutorial

Congrats with your ARDR assets. Exchanges are open. The future will not be centralised. It will be you.

Nxt 2.0 – should investors and asset issuers be afraid? [video]

Here’s some great listening for you – Nxt core developer Riker chatting about Nxt, other cryptos and investing with Marc De Mesel, an investor who has 35% of his investments in NXT.

Marc wants to learn about Nxt’s anonymous lead developer Jean Luc, about where Nxt is now, compared to Ethereum and other blockchain ‘competitors’, and also about the recently proposed changes to the Nxt protocol (the NXT 2.0 proposal).

Riker explains how Nxt 2.0 aims to solve the blockchain bloat problem and make Nxt the first ever globally scalable crypto platform.

Also: how Nxt, if version 2.0 were to proceed, would become a sidechain and how, with version 2.x, more sidechains could be added. Instead of implementing Some Asset < > Some Asset trading, Nxt 2.0 would make all Nxt AE assets tradeable across all sidechains, globally.

Having a sidechain pegged to a fiat value, and other sidechains pegged to crypto coins like Bitcoin, Nxt assets would become tradeable on several new markets thereby, in effect, creating a fully decentralised, multi currency, low fee, globally scalable asset market, powered by Nxt AE.

[youtube id=”tN4FjZ-31uk” width=”600″ autoplay=“no”]

Nothing is yet set in stone, but as the Nxt 2.0 design has been discussed and refined for at least 6 months already among the Nxt core developers, there is every indication that Nxt 2.0 in its essence will be programmed as proposed, with all the remaining details hammered out in cooperation with the users, the active Nxt Community.

Riker mentions how Nxt 2.x could also be of benefit to companies, a user category which has shown a lot of interest in the Nxt Monetary System (MS) but been reluctant to use it because of the current need for users to pay transaction fees in NXT.

Now, with Nxt 2.0, they would be able to launch fully secured sidechains with Nxt features but without the sidechain users having to buy NXT to use it. As an example, Nxt MS tokens could be used as concert tickets, and only the business running the sidechain would have to pay fees to the Nxt main chain forgers.

Another obvious use case, via the Nxt MS’s crowdfunding feature,  would be to run crowdfunding campaigns in the sidechain currencies, such as fiat or Bitcoin.

Some organisations would probably want their own private blockchains, and ask the Nxt core developers for their help. But would any such private work which the Nxt core devs might get paid to do ever benefit the Nxt investor? Should we be looking for companies which would be willing to pay for the core development of the open sourced Nxt? Or would such companies get too much power over development?

Also read: Jelurida Q&A; Nxt core devs mean business

Is there a risk that, if Nxt became a sidechain with Nxt 2.0, the value of NXT would CRASH bringing down with it all AE asset prices, as some people have been claiming in the ongoing discussion regarding the design proposal? If so, should AE asset issuers and asset investors run away from the Nxt blockchain asap?

You’ll have to decide for yourself, of course. The crypto market is volatile and unpredictable, so who can really tell.

Lots of noise on this video, lots of good information too.
Thanks to Marc and Riker for doing this interview in Amsterdam.

Discuss the Nxt 2.0 design proposal in Nxtforum

To follow Marc De Mesel on Youtube, you can subscribe to his channel.

arc-de-mesel-nxt-blockchain

SAE pulls the plug – what are the alternatives?

The Secure Asset Exchange (SAE) website has been a rabbit hole to the Nxt Asset Exchange for many people, as a secure web client which allowed you to trade on AE without downloading the full NRS Client. SAE has now decided to close its services.

If you are using SAE, you will now have to choose a different approach to AE trading.

SAE writes:

Due to recent increases in maintenance costs and the limited resources/time of any startup that needs to prioritize its initiatives, Secure Asset Exchange will no longer be available as of January 21st, 2016 (NXT block 621,000); please plan accordingly.

We are deeply grateful to all of our users and supporters up to this point and look forward to focusing our energy on making the next generation of great blockchain-based applications, which our now global society can truly benefit from.

Your ability to use your NXT or any of your assets will not be affected by our availability because your account and all of its assets can be accessed through the official NXT client.

To access your account using the password created on trade.secureae.com, simply combine your username with your secret phrase, with no spaces between the two; this will create the password to your NXT account for the official client.

For example, if your username is “joe” and your secret phrase is “joe likes coffee” then your account’s password for the official NXT client will be “joejoe likes coffee”. Please make sure to take capitalization and spacing into account, they do matter.

If you have any questions, contact SAE at support@secureae.com.

Here are a couple of alternatives to the Secure Asset Exchange service you can use after 21.01.2016:

NRS Client

nrs

The official Nxt Reference Software Client is your safest and most obvious partner through this – if you feel ready to download the Nxt blockchain. NRS has ALL the latest Nxt features, it is updated (and uploaded) by the Nxt Core developers themselves, it runs locally on your computer and it supports forging – turning your pc into a Nxt node which supports the Nxt network and earns you forging fees. Running the NRS is highly recommended.

Is it difficult?
Nope.

You don’t have to be a geek or an old timer to do this.
Just follow these instructions: http://test.nxter.org/nxt-nrs-installation-guide/

IF you’re not into forging or downloading a blockchain, the NRS is available as a light client too: http://test.nxter.org/nxtlite-client-get-started-with-nxt/

MyNxt Wallet

The MyNxt web wallet is a client-side trustless wallet, which is very similar to the leading Bitcoin online wallet Blockchain.info. The main objective is to make it dead-easy for new users to join Nxt without requiring downloads, java installs, or waiting for the download of the Nxt blockchain.

MyNxt.info was founded by long time Nxt supporter abuelau, but is now run by Tosch and officially owned by SuperNET. Registering a wallet is simple, go to https://wallet.mynxt.info.

MyNxt runs perfectly on iPhones, Android or desktop browsers.

The MyNxt plugin system offers a gateway to the Nxt Asset Exchange.

[vimeo id=”115059710″ width=”600″ autoplay=“no”]

SuperNET Lite Wallet

Accessing NRS online is easy. Check out http://mynxtportal.info/ui/supernet.html.

This is the web SuperNET multiwallet, if you want to access Nxt NRS through this, just sign in using your NXT account number or passphrase, hit the “burger” in the upper right corner and choose “Advanced” from the menu.

SN-lite-wallet

 

Doing this will bring you to an online version of the NRS.

Read more about the user interface of the NRS here:
http://test.nxter.org/nxt-client-interface-guide/

NXTER.ORG would like to thank the team behind SAE for maintaining a great service, which has helped so many ‘non-techie’ people become ‘Nxters’. May you rest in peace – and your legacy rise like a Phoenix.

Swap your EIX and MMNXT

As announced on 13.01.2015:

EIX and MMNXT has been merged into a new asset, NEXT.

NEXT dividends

  • NEXT dividends are paid in NXT.
  • NEXT will pay dividends on the 1st and 15th of every month.
  • NEXTBOND, which arbitrages on BTC/USD exchanges, will pay 2% of its profits to NEXT. This new revenue stream will be added to the EIX and MMNXT bots after the swap.

You can read more about NEXTBOND here.

How to swap your MMNXT/EIX for NEXT

to receive the new combined asset, NEXT:

Send your MMNXT/ EIX to NXT-ESXQ-5QFC-ARPP-HG2C7

2.3 EIX per NEXT = 247,043 NEXT assets swapped for EIX
29 MMNXT per NEXT = 298,212 NEXT assets swapped for MMNXT

You should expect to receive your NEXT within 24 hours.

No more dividends will be sent to EIX and MMNXT holders

Please swap your EIX and MMNXT to NEXT assets to receive further dividends.

MMBTCD dividend 13.01.2016

BTCD mutual fund and market-making asset

mmbtcd

MMBTCD, asset ID 8122396658538927693.
Total issued assets: 1000000, Assets distributed to: 400000.

Dividend from asset:
Distribution of 81 [superBTCD] assets to 107 assetholders
Based on ownership at timestamp 67384016 (Wed, 13 Jan 2016 09:46:56 GMT)

Cassius writes,

It’s a lower div this week, for a couple of reasons. One is that it’s an ‘off’ week, so no dividend income from our major revenue sources, CORE or EIX.

The second is that MMNXT has paused in paying dividends while the merger with EIX goes ahead. The dividend this week therefore comes mainly from bots.

Within a week or so, hopefully the merger will be complete and MMBTCD will own a decent chunk of NEXT, putting it in a good position going forwards. I would expect revenues to rise as a result of the combined fund, though please do not trade based on this because, as ever, there are no guarantees.

BTCD is very low at the moment, and NXT just got hit by a wall of Chinese money. If that continues it will help payouts too.

Source: SuperNET Slack / https://nxtforum.org/assets-board/btcd-mutual-fund-and-market-making-asset-mmbtcd/msg205913/#msg205913

[AE blog] EIX to merge with MMNXT; BOND to launch

Trading funds E9 (EIX) and MMNXT are merging under a single fund, NEXT. This will allow better use of combined funds, more clarity and no conflict of interest between the activities of the two funds. At the same time, a new bitcoin bond (BOND) will launch to generate further revenues for NEXT and directly for BOND holders through arbitrage on BTC/USD exchanges.

BOND

Arbitrage across bitcoin exchanges currently yields returns of up to 4% monthly. 1 BOND will represent 1 bitcoin (SuperBTC) on the Asset Exchange, with a guaranteed monthly payout of 2% in superBTC. The remaining income will go to NEXT assetholders. BOND may be redeemed for SuperBTC at any time by sending back to the issuing account. They can also be traded on the AE’s secondary market. BOND will pay monthly, on the first of the month.

All reasonable security precautions are taken and arbitrage is low-risk, but investor funds cannot be guaranteed against theft or exchange hack.

MMNXT/EIX asset swap for NEXT

MMNXT and EIX will be combined into a single asset, NEXT, which will pay out twice a month (1st and 15th) in NXT.

A total of 10% of active NEXT assets will be reserved for management payments. 25% of the total NEXT issue will be reinvested to grow the fund (similar to EIX’s current 29% reinvest and MMNXT’s 25% buyback). It makes sense for NEXT to hold 25% of NEXT’s assets to automate this.

A total of 1 million NEXT will be issued, with 15% being held back for future asset sales if required (there is no immediate intention to sell more assets). Of the 850,000 active assets, a total of 35% will be retained for management and reinvestment (85,000 + 212,500 = 297,500).

This leaves 552,500 NEXT assets for swap with existing MMNXT and EIX assets. No MMNXT or EIX assets are currently retained for management payments, only founder shares. (EIX currently reserves 15% of income for management payments as well as 29% for reinvestment.)

EIX price: 14.5. Assets issued: 568,200. MMNXT price: 1.15. Assets issued: 8,648,144. Total combined market cap of MMNXT and EIX is therefore estimated at around 18 million NXT; there is some daily variation. Thus 552,000 NEXT assets will be swapped in proportion to MMNXT and EIX market cap, at 32.6 NXT per NEXT, with each being worth around 21 NXT when considering all 850,000 active NEXT assets.

2.3 EIX per NEXT = 247,043 NEXT assets swapped for EIX
29 MMNXT per NEXT = 298,212 NEXT assets swapped for MMNXT
Total: 545,255. The remaining 6,745 assets will be retained by NEXT for reinvestment, bringing the fund’s total of its own assets to 25.8%.

The asset swap will begin on 16th January, after EIX’s next dividend. BOND will launch shortly.

Further details will be posted in due course.

Source: SuperNET Slack / https://nxtforum.org/assets-board/e9-multistrategy-nxt-hedge-fund-bots-fx-crypto-trading-and-asset-portfolio/msg205742/#msg205742

Bitscan.com: Farlaweb share issue: business on the blockchain

Bitscan.com writes:

Crypto offers massive benefits. It’s transparent, borderless, efficient and fast. I chatted to Peter Farla, a web designer who has recently used the crowdfunding potential of the blockchain.

1) So, who are you and what do you do?

My name is Peter Farla and I live with my girlfriend and our dog in the Netherlands. Since elementary school I’ve been interested in running a business. I started my own environment protection company at the age of 9 and collected money for non-profit organizations every month by doing tasks together with my ‘employees’. I like the magic of creating my own business and making that successful. After high school I studied Multimedia Design. We didn’t learn much about internet development, but about CD-ROM productions. In those days (late 90s) CD-ROMs were the future. Haha, they bet on the wrong horse…

2) What prompted you to issue a cryptostock for your business?

I’ve been into Nxt since late 2013. I was very impressed about the possibilities it has to offer. Nxt is becoming more and more a platform for business. I wanted to expand my business and needed a financial boost for that. I love the Nxt Asset Exchange and use it all the time, looking for business opportunities. I thought, Why don’t I try it for Farla Webmedia? …

Read the rest of this interview on: 
http://bitscan.com/articles/farlaweb-share-issue-business-on-the-blockchain

BTCOR Group: Revamped team and asset

Core
BTCOR was formed early in 2015 by House. A visionary who saw the potential of using Nxt as a basis for his projects. Under the BTCOR umbrella he set up multiple assets to provide funds for his trading activities. He was one of the first to put the Monetary System to good use, by setting up a monthly ticket system to invest in his trading activities.  Maintenance of the system and of the assets he has created has been no small task. The assets proved to be a success and House has become a known name in the Nxt and Supernet community.

As BTCOR was growing, help was needed and in May House announced the appointment of an Executive Board to help build the future of BTCOR. You can read more on this in the article about BTCOR published on nxter.org a few months ago.

A lot has changed since then, including some internal changes to the team following Gambleh’s departure for personal reasons.

“It is with sadness that we have seen the departure of Gambleh, but we separated on good terms and we will see him back in slack after a deserved break, while he focuses on his primary concerns in business and family life. – House”

But as Gambleh left, another renowned Nxter joined the team.

“BTCOR is welcoming new team member sigwo, http://sigwo.com/sigwonet.html. As a developer he is now an integral part of the BTCOR Development Team. sigwo together with shack4 as the Chief Systems Engineer and pnoch as Lead Developer will work together closely to achieve the goals the Board will set.    – House”

The biggest news came recently when it was announced that mxxxxxx was joining House as Co-director of BTCOR.

“I am more than happy and honoured to announce that I was propositioned today and agreed to be co-director of BTCOR.

I deeply believe that this will continue to be a great partnership built on hard work, trust, skills, and experience and that we can bring great success with all the brilliant minds involved together within our community.

We have a long and fruitful journey ahead of us with all things coming in the near future together with our personal plans, planned development, cooperations and with a very big possibility of injecting personal business into BTCOR in some safe form for everyone.

As of today I have been granted access to all BTCOR accounts.

Thank you all for the support!

All the best!”

Until recently there were assets for a variety of investments: GDCAR for gold, SVCAR for silver, BTCAR for bitcoin, FIATX for money and BTCOR as a parent asset that would benefit from all of the others.

In addition to the assets there was the option to invest in monthly tickets through the NXT Monetary System. While the assets were a relatively safe investment, the tickets were a high risk investment, with the possibility of losing your complete investment if trades went wrong.

But this is all in the past, as the BTCOR Group announced at the beginning of September that they will change the complete structure of their assets. All previous assets have been combined into 1 asset: CORE. After the announcement an asset swap was started for the investors where all the old assets (GDCAR, SVCAR, BTCAR, FIATX and BTCOR) were exchanged on a 1:1 basis. All the investors had to do was send their assets to NXT-T4BJ-M2B6-9LHP-8YG7 and they would receive CORE assets in exchange.

After 1 month we can say that the swap was a huge success with 99.71% of all the assets swapped.

If you still have any of the old assets send them as soon as possible to NXT-T4BJ-M2B6-9LHP-8YG7. The old assets do not receive dividends anymore. Only the new CORE asset receive dividends from now on.

Having everything combined in 1 asset has multiple benefits for both the investors and the team including a better overview and transparency of the operations. With the new CORE asset the investor profits from all the investments and operations the team makes.

The revenue generated by the BTCOR Group is coming from 2 major parts: trading operations and crypto investments. Operations include trading in gold, silver, bitcoin and fiat. Investments are made in Crypto projects with a promising future that fit the BTCOR profile. You can see their complete portfolio at NXT-NUEG-HFEQ-NU9Z-72KUS.

Breakdown of the monthly profits:

1. 70% from trading profit will go to dividends, 25% from trading profit will be added to the new trading budget for November, 5% to veteran league of heroes /development.

2. 75% from dividends of assets in treasury will go to dividends, 25% for treasury (investments, buy walls, Net Asset Value increase, etc).

3. 75% from new assets sales for treasury (investments, buy walls, Net Asset Value increase, etc), 25% from new assets sales will be added to the new trading budget for November.

In total 5.000.000 CORE assets were issued. 51% (2.550.000 assets) will remain in the hands of the group, 49% (2.450.000 assets) will be sold to the public over time. The sale of assets will happen monthly in small batches. The first batch sold out pretty quick in September at a price of 25 NXT/CORE. The October batch is selling at 30 NXT/CORE, and is moving quickly. This is a pretty popular asset on the market, and we think it’s still a good price to buy in. With the good news and dynamic team behind the BTCOR Group, this month’s batch should sell quickly, with higher prices likely to follow. At the moment there are 383579 CORE assets in circulation.

The core asset id is 18026565504333172181.

Business plans, activities and more information about the BTCOR Group and CORE asset can be found at https://www.btcor.co and on their nxt forum thread.

The first dividend of the new CORE asset was paid on the 1st of October at 0.533 nxt per asset. At 25nxt/asset this is a 2.13% ROI for the first month. Which is an incredible result as they were trading with a low budget in September. Now that the first batch is completely sold and the BTCOR Group can therefore work with a bigger budget over the coming months, the chances are that we will see an increase in dividends, provided they can keep the momentum going.

The BTCOR Group is constantly working on improving their business and strategies. I applaud their enterprise and work ethic which should hopefully result in a promising future for them as well as increasing prices and nice dividends for their investors.

—————————–

This article is for general information and news purposes only. It does not take into account readers’ personal circumstances or investment objectives. As with any investment, readers should carry out their own due diligence research before making (or refraining from making) any investment decision.

Cryptoasset.fund Launch: 12.00 GMT, 15 Sept.

cryptoasset

Coinomat (the instant cryptocurrency exchange, Nxt asset issuer, SuperNET service partner and Bitcoin Foundation Member) has just released its Cryptoasset.fund asset on the Nxt Asset Exchange. The asset is to be made available via a Dutch auction.

Cryptoasset.fund is the first “classical” venture fund to be launched on the Nxt platform. Inspired in part by innovative jl777’s SuperNET asset, which itself is a revolutionary asset both in the technology it represents and in helping to lead the way in launching investment funds on the Nxt platform, Cryptoasset.fund is focused on investing in projects which are close to the Coinomat.com team, and also any other promising cryptocurrency projects.

The launch of Ethereum is further evidence of segmentation taking place in the crypto economy. It’s now clear that in order to survive and prosper cryptocurrencies must focus on what they do best. In the case of Nxt, of course, this is decentralized crowdfunding on the asset exchange. One of the fund’s future projects will be the creation of a fully-compliant crowdfunding platform based on blockchain-issued assets which we hope will help make NXT platform the go-to place for decentralized crowdfunding.

At its launch cryptoasset.fund will hold shares in several assets in which the Coinomat team is involved, including Coinomat.com, MMNXT.com and EIX.fund, which will make the Net Asset Value of the fund around 3 million NXT. During the coming months several new projects will be launched with cryptoasset.fund participation, including:

forkpay.net – a merchant platform and plug-in for e-shops that wish to accept cryptocurrencies in addition to Bitcoin. Based on the Coinomat API it offers a way to accept all Coinomat supported e-currencies in one interface. The service will charge a transaction fee, from which it will derive its revenue.

bitnames.io – Blockchain-based domain names. We believe that blockchain technology should become the cornerstone of the DNS industry. Bitnames.io is going to provide an easy way to register and manage .bit, .nxt and other domains on various blockchains, and offer custom DNS servers and browser plugins to resolve them.

morze.us – secure communication for open channels. A messaging application with integrated value transfer, based on the Coinomat API. On top of the messaging app which enables encryption of any web-traffic (email, facebook, any other social networks) Morzeus software will allow the creation, transfer and redemption of BTC and fiat denominated vouchers.

cryptojoin.com – social network for cryptocommunity with integrated reputation system and escrow service.

The range of the projects is diverse: we will not simply be focusing on stand-alone applications of Blockchain technology, but instead aim to start projects which are in synergy with each other. For example, all payment transactions in all the fund’s projects will be realized using Coinomat’s API. Several other projects are currently being discussed; we plan to launch 6 to 7 projects within the next year.

The Cryptoasset.fund ICO is planned for 12.00 GMT, September 15, 2015. Currently it is possible to place bids to secure a share in cryptoassets.fund.

Asset ID at Asset Exchange: 5562590132594876791.

ICO minimum price is 10 NXT. If the total bid amount exceeds the number of available shares the sell price will increase.

The initial portfolio has been transferred to the issuing account and can be seen in the blockchain (Nxt acct ID NXT-Y8FL-UJCB-R25H-23BT2). It’s 240K Coinomat1, 90K MMBCD, 40K EIX ,700K MMNXT, upon which the Cryptoasset.fund will be built. It will provide the dividends for the shareholders right after the fund’s launch. Also more of the core fund assets will be bought from AE after launch.

UPDATE:

Coinomat writes,

New project in our portfolio is shylock.io! It is being launched together with Twinwinnerd who has extensive experience with p2p lending at Bitcointalk. This is going to be a fully automated crypto pawnshop, where you will be able to borrow funds providing crypto assets as collateral.

For example, you hold SuperNET asset and expect it to rise soon. You spot a promising new coin and want to invest in it, but have no BTC. You can get a collateralized loan, by depositing your SuperNET asset with shylock.io and receiving BTC in exchange. When, hopefully, you make profits with the coin you return the BTC with interest and get your SuperNET asset back. The monthly interest will be in the range of 3-5%, and that’s where the profits of the project will come from.

NXT is the best, we’ll do the rest!

This article is for general information and news purposes only. It does not take into account readers’ personal circumstances or investment objectives. As with any investment, readers should carry out their own due diligence research before making (or refraining from making) any investment decision.

Crunch! What can we expect next from Nxt?

We’re entering a new phase in Nxt’s business cycle – and it might be one we’ve never seen before. What happens next is uncertain, as ever, but we can at least be sure there are new challenges ahead.

credit-crunch

Back in May the NXT market turned a corner after a downward slide that lasted most of a year. Around that time I wrote an article about what had happened in that year. Basically, the decreasing value of NXT prompted people either to sell their coins or invest them in assets. The bear market had the same effect that central banks engineer with quantitative easing and interest rate cuts: increase inflation and make people spend the money they think will be worth less tomorrow.

Nxt is an odd system, economically. There are just a shade under 1 billion NXT coins, and there will never be any more. It’s a deflationary currency, as I explored in this article. No big deal, so are many others. But it’s not just a currency. It’s an entire economic platform, and that system crucially includes the Asset Exchange, our very own, very popular cryptostocks’ system. The best of those cryptostocks have been extremely well funded over the past year; in that respect, the bear market may have been the best thing that ever happened to Nxt. The cash they collected provides a solid foundation for growing businesses and pumping money back into the Nxt ecosystem in the form of future dividends. As a result, we can expect rising prices. And herein lies the next challenge: the Credit Crunch.

The credit crunch

Healthy business isn’t the only factor driving the price increase of recent weeks. In fact, it’s a very minor factor at this stage in Nxt’s development. Right now a wave of money from China is making a much greater difference, probably as a direct result of their stock market tanking. But the point remains the same: if inflation causes people to invest their NXT in revenue-generating businesses, what will rising prices (deflation) do?

It’s a little early to be a doom-monger. In fact, we’re barely out of the bear market – if at all, depending on what metrics you use to judge the exit point. But already the price action is impressive. At the time of writing, NXT’s price has roughly doubled in just six weeks.

It’s been a while since we’ve seen that kind of rise. Critically, we’ve not seen such a rise since the Asset Exchange has been up and running. NXT saw a spike up to its all-time high shortly after it was launched, at the beginning of 2014. Then another bull run in May saw a run up to $0.10 and a $100 million market cap – dubbed the ‘PayExpo pump’, but more likely mainly caused by Chinese speculators again. The Asset Exchange was just starting to become active at that point, but was certainly not the thriving hub of entrepreneurship it is now. The only other major rise in price happened at the end of last summer, when jl777 launched SuperNET. That time, though, the increase in NXT price was caused by the asset launch. As James had offered a 5% bonus for NXT and BTCD purchases, a huge number of people bought NXT to fund their SuperNET investment. The effect on what was a fairly thinly-traded market was substantial.

Now? For the first time ever, the Asset Exchange is at full steam contemporaneously with NXT possibly being in a bull phase.

China is a huge factor in that. As time goes on, the asset market itself will contribute more and more, since businesses will need to buy NXT to pay out as dividends to their asset holders. The irony is that the more successful those businesses are, and the more they push up the price, the less people will want to invest in new businesses. A rising NXT price equals a credit crunch.

However, it’s possible that those businesses grinding out the dividends will, by doing so, effectively solve the credit crunch problem themselves but only if existing investors see those dividends as ‘free money’ and use it to take a punt on the next big asset. Then again, maybe they’ll just decide to blow it all on a Lambo or a few rounds of very expensive drinks.

Beware fiat

And so to the bottom line. What does all this mean for Nxters?

For starters, not all assets are the same. Compare your average mining outfit (or rather, one that actually pays out instead of cutting and running…) with an arbitrage and market-making bot, like MMNXT. The former converts NXT to fiat after the ICO, uses it to buy mining rigs and then pays out in NXT that it buys with its mining proceeds. By contrast, the latter might convert some NXT to BTC, but generates revenues from low-risk trading activities, taking advantage of price differentials across different exchanges.

Assuming the mining asset is legit, it makes perfect sense to invest in a bear market: NXT is sold for fiat, which is used to buy mining equipment. So you’re not really investing NXT, you’re investing fiat and then the further NXT falls, the more you receive in dividends. In a bull market, by contrast, mining assets can be a disaster. Imagine, for example, buying an ASIC for 1 BTC when the price was $100, only to see it rise tenfold. Your returns diminish to 10 percent of what they were in BTC terms, without taking into account any other factors like increased ‘difficulty’ prompted by extra competition entering the mining race in the hope of easy returns.

The arbitrage asset, on the other hand, isn’t subject to the same risk. All things being equal, the NXT revenues stay the same – and in reality, rising prices bring more exchange activity and more opportunities for arbitrage.

For investors, then, there is a clear warning: make sure you know how the asset will generate income. If it involves conversion to fiat at any point, there’s a risk of exchange rate changes wiping out the benefits of any revenues, or worse.

For asset issuers, there’s the problem of attracting enough investment to launch. Simply, if investors think their NXT will be worth ten times more if they keep it in their wallet for another month, they’re unlikely to part with it to fund a speculative project. That ought not to be a problem if the business in question isn’t vulnerable to fiat/crypto volatility – but it might still be a problem anyway. Investors aren’t always rational, and if they are, they may take into account the fact that other investors aren’t rational. I know that an asset like MMNXT won’t lose NXT if the price rises – its accounts will still be just as well funded as they always were. But what happens if you suspect a significant number of existing investors are intending to sell their MMNXT and cash the NXT sale proceeds out to fiat? Then I’ll be reluctant to buy, knowing that MMNXT will likely drop in value. I might even sell it myself to anticipate the fall.

This is why it is rare for an asset to appreciate in NXT terms at the same time that NXT appreciates in BTC terms, at the same time that BTC appreciates in fiat terms. A rise in asset prices tends to correspond with a fall in NXT prices, and a rise in NXT prices tends to correspond with a fall in asset prices. The same with NXT/BTC.

Nxt has an odd counter-cyclical property built into it, whereby the seeds of the next bull market are sown during the crash of the previous bear market. It’s an interesting dynamic, and one that might be unique to Nxt. Over the next year, we’re likely to see whether it’s a problem. If it is, we’ll need to wait until the next bear market for businesses to attract major rounds of new capitalisation. That will be hard to stomach at the time. But it will be very good news for the next upturn.

NXT lazy portfolio – May & June

lazy-nxt-portfolio

The aim of this monthly report regarding my personal portfolio is to show potential investors how a selection of NXT assets can perform. Readers must of course carry out and rely on their own due diligence research before deciding whether to invest or refrain from investing. My trading strategy is explained here.

Apologies for doing my report so late. I’m reporting May and June here. Due to work commitments, I was not able to do a report earlier. Also, I was not able to do my monthly investment (300 euro) on time.

Portfolio allocation snapshot: 18/06/2015

mayjune asset allocation

Dividend april & may :

mayjune dividend

For “Usdbitfinex” dividend, I’m showing the corresponding NXT value, but the dividend was in the form of usdbitfinex asset. For “NXTinspect” it is similar. “Phoenix”, “Supernet”, and “Liquid” asset were delivered as dividend. I’m just showing the corresponding NXT value for accounting purposes. With today’s pair 1NXT = 0.0125 euro, I received the equivalent of 6.68 euro in April, and 12.68 euro in May. Dividends are growing monthly, I really appreciate that.

Asset performance 18/06:

mayjune asset profit

Most of the assets are performing well! Generally speaking, asset value is growing slowly.

Portfolio performance

mayjune portfolio performance

 

April showed again a negative return (-6%). However, the recent NXT increase in value has recovered the losses of the last couple of months (+26%). The favorable NXT/EUR pair now gives a positive return to my portfolio. I have a small gain of 60 euro for a total of 1200 euro invested.

Stay tuned:
As explained in my strategy, I will use the bitcoin exchange BitBoat (French & Italian market) to purchase 300 Euro worth of bitcoin for 1 more month, then 150 euro monthly. I stick to my strategy, and in a couple of years I should be able to say if NXT platform is a good opportunity for long term investment and steady return. In my opinion, NXT as a whole looks much more sustainable than bitcoin and 99% of the other crypto.

For my future investments, the “Bankroll” asset looks good but it’s currently difficult to buy them at a good price. “CoinoEUR” offers a 0.06% daily return, and “Jinn” should bring some great news in the coming days.

Full details regarding my portfolio, including its trading history, are available here (refresh the page if it doesn’t load correctly) and do of course remember to look out for my next monthly report!

Remember: Do your own due diligence research and take fully into account your own personal circumstances, objectives and attitudes to risk before making any investment decision and, of course, never invest more than you can afford to loose.

The Tipping Point

It’s been a long, long bear market. Nxt has slipped from a dizzy high of $0.10 – a market cap of $100 million – to a low of less than a cent and a market cap of only $8 million. But despite that and even because of it, I think we’ve finally hit a tipping point.

If I had to assign a moment to the tipping point, it would have to be 11 May at 07:35:54. That was the moment when the mgwBTC market on AE dropped to 3300 satoshis and a prescient bitcoin whale picked up a million NXT in one trade while, at the same time, another large SuperNET holder was taking the opportunity to cash out assets without slippage. Another 12.5 bitcoins were sold into the same 300 BTC wall over the next 40 minutes, but after that the price rebounded. A couple of weeks later some irrational exuberance led by China has pushed us back up to and over the 5k mark. (Whether this was caused by money leaving the overheated Chinese stock market and finding a handful of key alts, or whether it was BTC38 faking some volume to gain a reputation as the new exchange in town, we don’t know.) In any event, NXT has recovered around 50% since that low at 3300.

But this tipping point isn’t really about price. It’s been remarked before that market cap is largely meaningless and price does not equal value. As jl777 has said, ‘The market is technically a manic/depressive psychotic. That means it is delusional and says things that are, well, insane. Like LTC is 30x more valuable than NXT, or AUR is 10% of bitcoin, etc.’ Price and market cap should follow, but the market isn’t a good judge of value in these circumstances. The market sometimes overvalues things, like in the early stages where hype sucks in walls of money from excited speculators; it sometimes undervalues them, as when investors lose patience or get caught up in the mood of collective despair that swirls around a bear market. Price and value rarely coincide at all, and then only incidentally, like a stopped clock that is right twice a day.

Building the foundations

nrs

This is about the solid foundations Nxt has built over the last year, particularly its crypto-stock ecosystem hosted on the Asset Exchange. As I recently wrote in another article, it’s just possible that the horrendous bear market was the best thing that could have happened to Nxt, if not individual NXT holders, some of whom have seen their net worth slashed by 90%. It represented a massive injection of liquidity into key assets, a lot like quantitative easing or the boost to spending central banks try to engineer by cutting interest rates: if your money is going to be worth less tomorrow, you spend it today. Some people simply cashed out to bitcoin or fiat, but huge sums flowed into assets. The scale is simply remarkable. SuperNET’s ICO collected something like $4 million, most of it in NXT. Other assets have had no trouble collecting five- or six-figure sums. Some of it unfortunately ended up in mining assets which then mysteriously evaporated, but there was still a vast investment into some extremely promising projects.

Now, at last, some of those assets are starting to pay regular dividends. We’ll ignore the mining assets, but a quick survey shows there’s some respectable activity already.

Coinomat’s assets (coinomat and coinomat1) have been paying out regularly for months, of the order of 0.015 NXT per asset, or a current yield of 0.3% per week at a price of around 5 NXT per asset. Coinomat’s arbitrage asset, MMNXT, yields around 0.7% per week.

The newer arbitrage and trading asset Liquid looks set to yield around 2% for the month, and though it’s early days the wide-ranging trading company BTCOR has been posting stellar results. It paid 0.43 NXT per asset for April, and even at the current sell price of 15 NXT per asset that’s around 3% per month.

Audit company NXTinspect looks set to have a bright future, since its business model involves verifying the accounts, security and strategies of new assets – plus it’s got a new business incubator venture up its sleeve. It pays out in the assets it is paid by clients, as well as NXT, and dividends depend on the number and nature of clients in the last month or months (they’re not always monthly), but the last one was remarkably promising – something like 20%. Freebieservers has been paying out since April based on advertising revenues from its free servers, used by 100,000 gamers and growing fast. The last payout was 0.034 NXT per asset, or in the region of 1% per month if you buy at the current sell price, and they’re looking set to scale pretty well.

Then there are the gambling assets that are just coming online. NXTbubble, the Nxt version of a famous bitcoin game Bustabit, is recording huge volumes of play. The house edge is around 1%, but variance means the revenues probably won’t be regular each month; whilst the house always wins in the end, there are some high-rollers who are testing out the theory and they haven’t hit gamblers’ ruin just yet. After a long delay, neoDICE – based on the legendary bitcoin game SatoshiDICE – is being tested with a small bankroll on MainNet, and a fancy GUI is in the works. What will the effect be when it’s embedded in your SuperNET client, waiting for any spare moments to try your luck? And, of course, there’s SuperNET’s own suite of projects, including InstantDEX, which is now in testing.

The dividends are still a relative trickle given the overall size of the Nxt economy and its daily trade volume, but they are there and they are growing, along with the ever-increasing list of viable assets. It’s like a coiling spring.

What next?

nxt-crypto-tipping-point

It’s unclear to me quite what happens next, though I think the general direction of travel is obvious. Economics is an imprecise science, as any self-respecting economist should tell you. Broadly speaking, the money flowing out of NXT-the-currency has prompted investment in Nxt-the-platform. In the bear market, money hemhorraged out of NXT and into assets. Now, after several months of development, those well-capitalised businesses are firing up and generating a flow of value back to the assetholders in the form of dividends.

What investors then do with that NXT is up to them, but not all will sell it for fiat or other alts – especially if they believe the tide really has turned. Some will be held, some recirculated back into the Nxt economy, into new assets and new initiatives: a virtuous cycle.

Not all assets are equal – not just in their returns but in their approach. Some assets keep pace with NXT, others with fiat. Imagine a traditional ‘real-world’ business, or a mining asset: the NXT invested would be converted to fiat, so the capacity of the business to generate a return is broadly correlated with its initial fiat capitalisation. If a mining asset cashes out 1 million NXT to buy ASICs then its investment is fixed at the fiat value of its funds at that time. All other things being equal (which admittedly is unlikely in the fast-moving and murky world of mining, but that’s another story), if NXT rises in price against the mined coin, the NXT purchasing power of its revenues will decrease.

But other assets – like the arbitrage and gambling assets – mainly keep their funds as NXT. If NXT rises in price then they will keep pace. In fact, they’re likely to do even better, since rising prices lead to greater volumes traded.

The market will presumably judge these assets by their respective earning potentials – punishing some for being pinned to bitcoin or fiat, and rewarding others for keeping up with NXT. Against that, there is the complexity of what happens when a currency rises in price, and funds are sucked in from other areas – both assets and other crypto coins – as traders seek to get on board. And then there’s the issue of rising NXT prices (deflation) that encourages hoarding rather than spending, investment and economic activity. And the fact that the effects could all be dwarfed by the impact of the wall of Chinese money that seems to be pouring in anyway; this time around, the Chinese are wary of bitcoin but a number of alts have posted impressive rises in the last few weeks, up 50 to 100% already.

So it’s complicated, but there are certain incontestable facts: NXT has a fixed supply; the asset economy – now very nicely revving up and moving off the starting line – has no such cap. That means there is no cap on the revenues it can generate, and which it will need to pay out in NXT. Limited supply, unlimited demand. That seems to point in just one direction.

It’s a picture that will only become clear with hindsight. But hazy and fragmented though that picture may still currently be – even leaving aside the steady work being done in the background by the likes of DeBuNe and the NXT Foundation, bringing Nxt to PayExpo, conferences and dozens of businesses around the world – things are definitely looking up.

So don’t say it too loud just yet, but I’d argue it’s just possible we’ve turned the corner.

For more information about the assets referred to in this article, visit:

http://nxtreporting.com or http://www.secureae.com and click on ‘View Live Exchange’

————————————–

Disclaimer Notice

This article is for general information only. It does not take into account the reader’s personal circumstances, objectives or attitude towards risk. It is not (and is not intended to be) any form of advice, recommendation, or endorsement by the author or the web site owner and should not be relied upon when making (or refraining from making) any investment decision.

Remember: the market can remain irrational longer than you can remain solvent; investments can fall as well as rise in value and past performance is no indication of future performance.

Egyptianomics, or what the Joseph story has to teach Nxters

It’s a classic tale of sibling rivalry, betrayal and rags to riches, set in the 18th century BC to a rousing soundtrack of show tunes. But the best-known versions of the Joseph story gloss over his shrewd handling of the famine and some of the more dubious details of his management of the Egyptian economy. In fact, almost nothing here is what it seems at first glance – and believe it or not, it has enduring relevance for the health of the Nxt economy, too.

joe1

I’ve recently had cause to revisit the Joseph story, not least because my three-year-old son enjoys singing tunes from the musical. Most people have some grasp of the outlines of the narrative, which you can read in full in Genesis 37-47, but in brief, it goes something like this:

Joseph is his father’s favourite. He reminds his eleven brothers of this on a daily basis by showing off the amazing technicolour robe his father gives him to wear. He dreams that his parents and brothers will bow down to him, and makes the mistake of mentioning this to them. His brothers decide to kill him but relent at the last second. Being good capitalists operating within the light-touch regulatory framework of 18th century BC ancient near eastern shepherd culture, they instead sell him to a bunch of Ishmaelites and pretend he’s been eaten by a wild animal. Jacob, Joseph’s dad, is glum about this but what can you do?

Meanwhile Joseph is sold on to an Egyptian. It turns out he’s quite good at his job and is put in charge of his master Potiphar’s house. He also catches the eye of Potiphar’s wife, a strumpet who aims to lead him off the straight and narrow and who turns bunny-boiler when he spurns her advances. Joe ends up in jail along with two of Pharaoh’s servants, who are troubled by some odd dreams. If there’s one thing Joe knows it’s dreams, and through a neat blend of Jungian psychoanalysis and divine inspiration he correctly interprets them. Some time later when Pharaoh himself has a bit of a ‘mare about fat cows and thin cows, rumour travels and Joe is hauled out of the clink to do his thing.

Long story short, Joe predicts a nasty famine but the heads-up gives them time to prepare. Pharaoh is impressed and puts him in charge of the kingdom. An emergency 20 percent windfall tax on the harvest and seven years of plenty later, and Egypt has enough food to weather the storm. Joe’s the hero. Then his hungry family turn up looking to buy grain and, after messing with their heads a while, he forgives them for selling him into slavery and invites them to live in Egypt with him. Everyone’s happy.

What this popular version of the story misses is that Joseph was an incredibly astute economist who seized the opportunity posed by the crisis of the crop failure and leveraged it to raise himself and his new master Pharaoh to a position of absolute power. Joseph seems to have grasped the principles of Keynesian economics well before Keynes himself ever came up with them – but instead of using them to smooth out the ups and downs of the economic cycle, he employed his insights to exaggerate the downturn and devastate the Egyptian economy, reducing its entire population to the status of serfs. Hidden within this story are warnings for the cryptocurrency economy, which arguably bears more similarity to Pharaonic Egypt than it does to the fiat economy – especially in the case of Nxt.

joe2

Artificial scarcity and the economics of central planning

One of the chief features of cryptocurrency is its strictly-controlled money supply. Instead of leaving the question of monetary policy to an external party, as NXTer explored in a recent article, crypto coins hardwire the rate of currency creation into the protocol. They may be inflationary, like Dogecoin; include an inflationary period, like bitcoin, before reaching stability; or be designed to be static from the start, like NXT. A coin that has a static money supply is really deflationary, since coins can be burned intentionally or lost in unused accounts. One of the long-term questions about bitcoin is the effect that its limited supply will have on the ecosystem. Unlike the fiat economy, it lacks a central bank with the capacity to adjust monetary policy in reaction to economic events – such as the global financial crisis, which was addressed through interest rate cuts and massive quantitative easing (money creation). For Nxt, I’d argue that the question is even more acute, since supply is limited from the start whilst bitcoin is still in its inflationary stage. In fact, we may be about to experience the impacts of that right now.

Reading the account in Genesis, it becomes clear that Joseph did a bit more than tax-and-spend. He collected a fifth of the harvest from the Egyptians in the good years, and stored it in cities built for the purpose: ostensibly, an eminently sensible policy. Then came the economic shock of the crop failure (in an agrarian economy, a drought is an economic as well as a natural disaster).

At this point, the traditional Keynesian solution would be to spend the money that had been saved in the good years, thereby stimulating the economy. (Grain is as fungible as money, even today, and even more so in Egypt. Moreover grain and money could happily be substituted.) Taking a fifth of the harvest dampens down the economic boom of the seven good years – in which grain must have experienced high inflation, since there was so much of it that its value can only have fallen. Then, in the seven bad years, grain increases in value through scarcity. Joseph could have returned the proceeds of his tax into the economy: an inflationary boost, very much like the effect of reducing interest rates or printing new money. Does he do this? Does he hell.

Centralise like an Egyptian

Joseph has already taxed the Egyptians, but he makes them pay for their grain with the silver that served as their regular currency. Ok, it’s opportunistic, particularly since they hadn’t been expecting the tax in the first place. And yes, technically it’s their own grain they’re buying, though possession is more than nine-tenths of the law when your boss is a dictator whom the rest of the country already worships as god. But it doesn’t stop there.

Joseph keeps the money. He stores it up in Pharaoh’s palace. Keynes, were he to have travelled back in time, would by now be screaming at him to recirculate the money into the economy – to splash out on a few new pyramids, roads, an extra sphinx, whatever vanity project or infrastructure initiative you want, just to get the economy going by pumping all that cash back into the pockets of ordinary people. And that’s exactly what Joseph doesn’t do.

Instead of providing an inflationary boost to the economy, Joseph contrives the opposite. By hoarding the Egyptians’ silver in Pharaoh’s vaults, he reduces the money supply and the velocity of money to near zero by locking it all away with the result that there’s no longer enough money to pay for the goods that are available – namely the grain he himself is selling.

The narrative is quite clear at this point. The Egyptians’ money has run out. They don’t seem to appreciate why, which is understandable since Joseph is millennia ahead of contemporary economic theory. So what do they do? They barter. First their livestock, then their land, and then themselves. They voluntarily enter servitude, working the land they used to own and paying a fifth of the resulting harvest to Pharaoh – not just for the seven years of famine, but forever. With a few cunning moves, Joseph has trapped the whole population of Egypt (barring the priesthood, who had their own allotment of grain) in debt servitude for all time. It’s a brilliant piece of economic manipulation – warfare, even, with the added bonus that the Egyptians don’t even know what he’s done to them.

The crypto bear market

bear

What is the relevance of all this for Nxt? It can hardly have escaped anyone’s notice that bitcoin has been in a long bear market that has lasted for 18 months and even now has not yet conclusively ended. At around $240, it’s roughly a fifth of its all-time high. Nxt, like all alts, is pegged to bitcoin, meaning that any movements on its own terms are superimposed onto bitcoin’s ups and downs. Since Nxt has also experienced its own bear market, going from 0.00014 BTC a year ago down to below 0.00004 today, that makes for painful total falls in value. NXT stands at less than 10% of its all-time high.

Bitcoin, of course, is solely a currency. Nxt is a complete economic system, with its own network of businesses represented within the Asset Exchange. Over the last year, that ecosystem has thrived. New businesses have set up, raised funds and generated dividends. On the surface of it, this is quite counter-intuitive in what has been a pretty brutal downtrend for Nxt overall.

A little further reflection suggests that perhaps the opposite is true. NXT’s supply is – like the Egyptians’ silver and unlike bitcoin or the fiat money supply – static. In normal times it would be a deflationary currency. Unlike bitcoin, there are no miners and no daily addition of 3,600 coins to be absorbed by the markets to pay electricity bills. Left to its own devices, all things being equal NXT will naturally rise in value. As that happens, people will naturally hoard NXT because they want to experience that increase. They will pull money out of assets and keep it as NXT. Something similar happens every time bitcoin spikes upwards: altcoins are sold for BTC to catch the lift.

In a recession, governments reduce interest rates to encourage savers to start spending. Inflation encourages economic activity (rather than saving) because people know their savings will be worth less tomorrow than they are today and prefer to spend them on something useful or tangible instead. Nxt’s long downtrend has effectively been badly inflationary: its value is less than it was in the past.

That falling value has arguably encouraged people to put their NXT into revenue-generating assets. It has kept the Asset Exchange alive and kicking. The bitcoin bear market has been tough on NXT holders. Stakeholders dumping their coins by the million has caused dismay. Loss of confidence by day traders has compounded the misery. What we may not have appreciated is that the lower and lower prices these have brought about may have been the salvation of Nxt. All of these factors – and especially stakeholders releasing millions of NXT – has acted like a massive injection of liquidity into the markets, Nxt’s own Quantitative Easing programme.

BitPay recently released their figures for last year. Transaction volumes have roughly doubled and average payment size roughly halved. The narrative has been that bitcoin is transitioning from a speculative instrument into a real currency, and that the reason for the bear market has been that people have been cashing out by spending coins rather than hoarding them in the hope of another rise. This is exactly wrong: people have spent coins because their value has decreased. The flow of money out of bitcoin was a natural result of an overheated market culminating in 2013’s huge speculative bubble. As the price of bitcoin fell, holders were encouraged to sell or spend them to lock in some of the remaining value. The bear market was a form of inflation for bitcoin, and it was good for the overall economy. The same can be argued for NXT’s downtrend. Without it, we could be in real trouble right now.

Nxt-crypto-charts

Nxt-crypto-asset-exchange

The warning

There’s a final warning for Nxt in the Joseph story. Hoarding is not productive. Nxt is already a deflationary currency. Joseph’s mistake, or stroke of genius, was to prevent money from circulating back into the economy, causing activity to grind to a halt.

Nxt has spent the last year building some solid foundations, both on the development side and in the businesses that have sprung up on the Asset Exchange. In all likelihood they have thrived not despite the downtrend, but because of it. At some point – possibly already – the downtrend will be over. The value of NXT against fiat and against BTC will rise. At that point, the temptation will be to hoard NXT: to lock it away in untouched accounts, choking off funds to the businesses that operate on the AE. This deflationary tendency paves the way for Nxt’s own credit crunch and the next downturn.

The good news is that Nxt is not a closed system. It’s a tiny $9 million economy with plenty of room for growth. Money will doubtless flow from outside into Nxt in order to invest in the assets that perform well due to their decentralised structure and low overheads. But we should bear in mind that the more NXT looks attractive as a currency and a speculative play, the greater impact that is likely to have on other elements of the system.

One last thing: it wasn’t a multicolour coat. That’s a mistranslation from the Septuagint, the Greek version of the Hebrew Bible. The Hebrew itself suggests a long-sleeved robe. That would have needled his brothers just as much because only those who didn’t have to do manual work wore long sleeves – everyone else had short sleeves to stop them getting tangled and caught. Jacob let Joseph off the hard work and so the robe was a reminder to his brothers that he was the favourite. Maybe the moral here is that no one likes a show off, and that hard work is the only way to get the job done. On the other hand, Joseph ended up being the second most powerful man in the world, so maybe looking good and being talented doesn’t hurt after all. Take your pick.

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Nxt crypto explained

Nxt explained in 20 minutes by Bas Wisselink (Nxt Foundation);
This Nxt presentation was made @ the Mind The Gap online conference, 10.04.2015.

Topics:

Shareholders Meeting via Blockchain

It seems we are witnessing a revolution in the corporate world caused by blockchain technologies. We’re moving quickly towards a new business ecosystem of virtual corporations, distributed autonomous corporations, smart contracts, new models of funding and so on. This article is about the exciting possibility of having distributed shareholders’ meetings where results are public and counted in a trustless way.

Since late April last year, I’ve been working on the NXT cryptocurrency as a core developer. NXT is a 100% proof-of-stake cryptocurrency aiming “to transform a cryptocurrency into a decentralised financial platform that supports a thriving and fast-growing digital economy” (unlike hybrid Ripple’s approach which isn’t fully decentralized).

Since 12 May, NXT has had the Asset Exchange (NXT AE) as a core feature. Anyone can now issue assets on this totally decentralized and uncontrolled exchange and trade them.

You can monitor your Nxt asset purchases either via your client or via a number of independent web sites: NextBlocks, NXTReporting and SecureAE  (where you can also purchase Nxt and issue assets).

Read the asset descriptions and you’ll quickly gain an appreciation of the wide range of different applications and services that have already been built on top of the Nxt platform and they’re just the beginning; the start of what is set to evolve into an entire financial and economic ecosystem.

The key feature of the NXT AE for businesspeople is that they can fund their business via asset issuance, getting money from anyone (not just angels/VCs, as with KickStarter), and they can do so from day one and for a low fee.

Imagine getting funding directly from a community needing your product. And, wouldn’t it also be awesome to get feedback and community-powered decisions?

With the voting system I have finished recently that will all be possible. The voting system will be introduced in NRS (NXT Reference Software) 1.5. The latest release version is 1.4.16, so voting API & GUI is already accessible. I can share some API details right now as they will likely remain unchanged.

Also see: Nxt Voting Teaser video (GUI and functionality)

Consider the example of an indy developer making a game. First, he got some funds via the asset exchange. Then he made a promising v.1 of the game. Both the concept and its implementation are still raw but the fans are excited! So he wants to ask the community whether he should polish v.1 or instead build v.2 on the basis of a better concept, or… Having decided on the different options, he starts the poll:

    val question = "Further directions in game development. "
    val description = "I got some great reviews. I have 10000 NXTs left. How should I spend them?"

    val finishBlockHeight = Nxt.getBlockchain.getHeight + 1440 // ~= 1 day
    val options = Array("Improve graphics and release it ASAP", "Start to work on v.2 to get funds for it's development", "Better ask experts, e.g. attend GameDev Conference", "Game is abortive. Stop working on it.")

    val optionModel = Poll.OPTION_MODEL_CHOICE
    val votingModel = Poll.VOTING_MODEL_ASSET

    val pb = new PollBuilder(question, desc, options, finishBlockHeight, optionModel, votingModel)
    val assetId: Long =  // assetId here
    pb.assetId(ai)
    pb.optionsNumRange(1, 1) // only 1 option to choose

    issueTxToGodId(new Attachment.MessagingPollCreation(pb), phrase1)

A vote could be sent with following code:

    val poll = Poll.getByName(question).head
    val vote = Array(0.toByte, 1.toByte, 0.toByte, 0.toByte)
    val attachment = new Attachment.MessagingVoteCasting(poll.getId, vote)
    issueTxToGodId(attachment, phrase2) 

1440 blocks after starting the poll we can get and print to console poll results (where 1 asset=1 vote):

    val pr = PollResults.get(poll.getId).get
    pr match {
        case cpr: nxt.PollResults#Choice =
            val m = cpr.getResults.toMap
            println(m)      
    }

So, we are soon going to have fair, cheap, public and distributed shareholders voting! Just imagine how that could change the world of business.

Notes:

1. This blog post (as revised) was first released by Kushti on 2. The minimum fee to issue an asset on the NXT AE is 1000 NXT. The transaction fee is currently 1 NXT.