Why Embercoin is a bad investment!
Embercoin is the latest coin to be promoted by Travon James and some other youtubers. I don't want to get into whether or not he is conducting an intentional pump and dump because I don't know him personally and don't know what is going through his mind. I can say, however, that there are people out there who are pumping this coin and it is bound to come crashing down when they dump.
But here is the thing, this isn't even the biggest problem I see with Embercoin! There is a glaring problem that people (possibly less experienced people) seem to either be intentionally ignoring or are not aware of. Embercoin is said to give up to 10% staking rewards per day! Sounds great, right? WRONG! The reason for this will be glaringly obvious to people who have been around the cryptospace for a while. Imagine even just a 5% daily inflation to a coin's supply. Buying in now is a recipe for disaster because the inflation rate will rapidly force the price down.
Now, inflation is not always a problem. It is only a problem if the demand does not increase at the same rate or faster than the inflation rate, however the demand for Embercoin is very low even in the current pump state. Increasing the circulating supply without increasing the market cap much is a major issue.
The issue here is that we are not insulated from the rest of the market. Sure, you buy 10 million embercoin and in a couple of weeks you have 20 million Embercoin thanks to the staking rewards, but a huge amount of people are going to be doing the same thing and now you are having to sell them at rock bottom price. Even though you have twice as many coins you are still having to sell them at a loss.
Now I already know that somebody is going to point out that there are plans to burn a huge amount of coins and this will increase the value of the coin. Well this is nonsense. Burning coins does not in any way guarantee a price increase. The major contributing factor to price is demand. I stopped reading about the coin when I learned about the ludicrous staking rewards so I don't know if the coin itself has value long term or if the technology itself holds any promise. It could very well be the case that the coin is worth investing in after the coin has been dumped, but for now, I recommend staying away.
Please let me know in the comments what you think about Embercoin and why. Do you agree/ Disagree? Have you purchased any or plan to?
Happy Investing
Cryptoviking
Hey mate, I forget to say that this was a great article!! Thanks for the good advice.
Keep it coming.
I was just researching Embercoin after hearing about it on a few different Youtube channels. I wasn't aware it was an old coin. Thanks for posting this. You saved me a lot of time.
My pleasure :)
Just want to be 100% clear as there IS some confusion in some people's eyes. There is Embercoin (EMB), the subject of this article. Then there is Embermine's token, Embers (MBRS) which is a completely different and unrelated token released by us.
The reason for the confusion is because during initial development, we had established the token contract using EMB as the symbol, before we realized that it was already used and of course by flame image coin. At the time (Late Spring) it already looked to be a dead coin, with very little volume, and appeared abandoned.
Then we launched and conducted our marketing and suddenly, Embercoin has come back to life. We had our symbol on EtherDelta changed for a short while to MBRS, but an update wiped that out and it reverted to the Token Contract default, EMB. This, right before going to Cryptopia, where Embercoin has made a very strong move the past week since we have been there. Some of it is, no doubt, there renewed marketing efforts. Some of it is, no doubt, due to concept that any coin/token can be pumped with enough effort. But the bottom line is that we know we are at least somewhat responsible for people discovering this coin, because if you look at their volume spikes, they are all right around major events/promotions we have conducted. We have even had a few people approach me asking me about the coin. It is terribly confusing, and I apologize, but at the time 6 months ago, it did not seem like it would ever present itself as a problem to anyone.
Except now it is. So again, we want to be 100% clear. Embercoin (EMB) is in no way, shape, or form related to, similar in functionality, developed by, or otherwise connected to Embermine, Inc., Embers (MBRS), TokenVerse (TOV), IDEAToken (IDEA), or DomainToken (DOM).
We want to make this distinction not only to remove any confusion on those looking for Embermine's tokens, but also because we are, in about every single way possible, the OPPOSITE of Embercoin. We do not approve of, nor agree with the heavy-handed, boiler-room purpose of this coin. Shameless plug after shameless plug touting 300% returns and yet, they have a higher rating that tokens with far more legitimate of an offering to buyers than Cryptopia.
In short, we do not want anyone to mistaken Embercoin (EMB) for Embers (MBRS) either in acquisition, or in reading a post like this. I thank you for posting this information and I hope that you do not mind me taking a moment to make this distinction here.
Anyone interested in learning about Embermine, visit our website: https://embermine.com or join us on our Telegram channel: https://t.me/embermine
It looks like an interesting project that deserves better differentiation. MBERS are not members the Ember coin.
Thanks for the information.
You had me at Trevon James, consider yourself a cryptocurrency investing hero today my friend... for helping out a lost soul from making a big mistake. 😉
All kidding aside, when something is too good to be true... it is!
Haha yeah. Sometimes it pays to do a bit of due diligence. :)
Especially in this market!
praying for one more pump
Should I sell mine now???
I cannot tell you what to do. It has to be your decision, however, if you are currently in profit I personally would sell. I just cannot see a good future for a coin with such a high inflation rate. If you are at a loss, however, it would be a tough decision for you. Do you sell now and cut potential losses or do you hold and cross your fingers. I cannot advise you on that because it's a very personal decision.
It's sad that so many have been taken in by the hype :(
Thank you for important information.
My pleasure
Its gonna be entertaining watching it crash down when everyone is rushing to sell off lol.. I actually came across this coin a few weeks ago and was gonna stake it but I only own mac so no wallet.. Still made some money on it but didn't get greedy. Great post.
It might be entertaining but I can't help but feel sorry for the people who blindly follow without thinking or researching first. I know it's their own fault but it still doesn't sit right with me. I'm glad you managed to get out and make a bit of profit but I suspect your situation will be the exception more than the rule. A lot of people are going to lose a lot of money. Thanks for reading :)
Its the wild wild west of crypto investing where one can gain a fortune or lose their portfolio in one trade if they're not careful or doing their research. Greed can often make people make reckless decisions with their money.. Some get lucky and many lose it all. Having patience while being able to strategize and minimize risk while knowing when to make aggressive trades is definitely the key. From the looks of the trade patterns it looks like the few winners that were staking are getting ready to start selling off. Should get interesting soon.
Sometimes those people get a lot of money for following so don't feel to bad for them
upvoted
New follower. Thank you for this. I was buying MBRS and almost bought some EMB. I realized these exact points by a simple glance at the charts and the website.. the wallet had tons of problems too. The volume of EMB is because of undeserved marketing. I'm glad I hodl MBRS. Good luck to the team of people investing in EMB, and thanks again for the post @cryptoviking got my resteem.
Thanks for your support :)
Good to read some basic understanding about pump and dunp.
As embermine-drake wrote, it should not be blamed on the company. It is more about understanding the FOMO and FUD of the masses.
Funny sidenote, looked up FOMO in wikipedia. FOMO is no medicinal recognized illness. LOL ?
Thanks man, I was debating about investing and now I see it for what it is.
While this article makes great points, you are suggesting that you know the future price of the coin and future demand (which you are implying is lower than now). You have no way of knowing this as a fact. You should be presenting your info as a potential issue and not an absolute. Your title is also very over-dramatic... perhaps: "Somethings to consider before investing in Ember" would be a more rational and logical title.
Absolutely! You don't know where Litecoin nor Bitcoin is going. Just as you didn't know that NEO (the Chinese Ether) would be pumped up in a matter of a coupla days and then begin its descent and stabilization. You had not a clue that XRP would be where it is right now with its huge amount of coin supply. And you definitely couldn't predict what happened with Bitcoin Cash, right? So let us be FAIR in the industry. We already have MANY bloggers looking for eyeballs by sensationalizing headlines and making 'absolutes' as if they know something the rest of us don't.
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Embercoin is an investment that offers a high rate of return in a short period of time, in other words it is a risky investment. I am personally willing to take the risk. I think the key is to know when to buy and when to sell.
I bought a couple of million at 5 satoshi about a week ago. The price reached 16 satoshi 3 days after I bought. Now it is back to 7 satoshi.
I will hold until October for sure. That being said, I anticipate a huge dump in the second half of October as the staking reward gets reduced considerably by the 1st of November.
I own 80% of Embercoin and I'm selling at 2pm pacific time tomorrow. Good luck
I hope you guys have all retired from crypto and didn't notice the 1000%+ jump in Embercoins market eval.....ouch.....on the real though i feel you on the skepticism and disgust over these shit coins that get repeatedly pumped n dumped like clockwork. However i wanted to make a small point in favor of this shit coin concept. For the average investor trying to stake a claim in crypto the boat feels as if it has left long ago, with btc being many thousands of $ and even the likes of ripple now in the multi-dollar price range, the idea of truly striking it rich overnight in crypto feels impossible. But with these micro-value shitcoins people who have nothing can actually have a chance at finding real wealth overnight using the shitcoin cycle paired with the overall trend towards bull market as a mechanism to facilitate a jaillbreak from the all to normal confines known as economic poverty. IF i coin goes up 1000% and you put 10$ in at its low, you got 10K$ right? who doesn't love an idea like that. ITs like the super lotto but your odds of winning are 1-1300 since nearly everyday in this bull market atleast one crypto coin has a enormous growth win price, if not more. Keeping that in mind , if one where to want to hedge their bets on which coin would have the most "X's" added to its price eval in any one given day it stands to reason that the cheapest of the cheap cheap cheap shit coin that is on the markets has the most room for growth, or the most "X's" to gain. So when you think about it it not only makes sense to invest in a shit coin or two as if a hail mary and nothing else, but more so it is actually quite literally the safest bet you can make in most cases because when you have a coin that cheap the only way it has to go is up, (theoretically) and since new people get into crypto everyday at an increasing and exponentially growing rate you can be dammed sure that many of them are broke as fuck and looking for the golden ticket out of whatever socioeconomic prison they are coming from. Shit coins are the peoples coins and if i have learned one thing in over two years of crypto investing/trading it is that there is more then enough to go around. The idea that we can't all prosper is a fallacy and really I would hope that those of you who have made it this far to this community and into the cryptospace at all would be in support of the reshaping of the worlds finances and that the idea of a coin serving no purpose what so ever then to help more evenly distribute the 99% of the worlds wealth currently being hoarded by that special 1% of real true AssHoles known as the rich/elite. Ember coin to the moon guys! if not for ourselves then for the next guy/gal who has no other hope at all!!! #HODLWORKS #SICKHOP
Thanks for the advice, but I am too late... I allready bought 900k embercoin two weeks ago 😕😕😕
Pardon me if I am misinformed. Wasn't the embercoin project bought out by a new team with an actual vision since this was posted? I have been reading about the Embercoin - Chartis switchover and the idea they have is seems remarkable.
Can someone verify whether they were bought out or not and whether the team seems legit?
I only wish more people had read your article sooner. A lot of people got burned by these scammers! It's projects like Embercoin that give cryptocurrency a bad reputation.
"I stopped reading about the coin when I learned about the ludicrous staking rewards so I don't know if the coin itself has value long term or if the technology itself holds any promise."
And here you are going on about something you didn't even bother to research... It took one sentence to show just how pointless this post was. You should've just said from the beginning, "I don't know shit about Embercoin but I'm going to take the time to write a few paragraphs and pretend that I do so that a few of you idiots out there will up vote it and get me paid." Pathetic how so many people buy into these admittedly, ignorant FUD pieces.
Is the reason you chose to ignore the whole point of my post because you are holding Embercoin bags? It's been falling ever since this post.
My point in this post was that there is a fundamental economic flaw in giving this much interest. Especially in a coin that is unlikely to have higher demand as time goes on. Judging by the graphs it looks like I was right.
Those were you're own words, not mine. You admitted to not doing any research and yet you still came on here to talk shit about something you still don't know anything about.
Making assumptions about me doesn't validate you're own ignorance or your crystal ball predictions.
And you there you go again, ignoring my point. If you don't understand basic economics it's your own problem, not mine.
Your version of "basic economics" has no validity in an ill-prepared analysis. Again, by your own admission, you did not do a any kind of analysis prior to formulating your conclusion. Meaning, you had no valid point. If you don't understand the basics of the scientific process, than you're going to called out when you clearly admit your "point" is really nothing more than a mediocre opinion. AKA FUD. That's just what crypto needs more of, uneducated people spreading FUD. Absolutely no justification for such behavior.
If you spent less time directly attacking me and more time addressing my points, this would be a more productive conversation.
Almost all the posts I write are posts where I talk about projects I like, and when I write a post on something I see an issue in, people like you call FUD. Guess what, you can point out issues in specific projects without it being FUD.
I will explain it to you one more time... a daily staking reward of over 10% is not sustainable. You are essentially doubling the supply every few days and without having a large enough increase in demand to meet this increase, you will see more and more of a value drop as the sell volume increases.
This is enough of an issue to me that I consider it a bad investment.
If you understood the scientific process, you'd already understand the fallacies of your argument & that I already addressed your entire argument. If you understood business analysis, you'd know "basic economics" is only one of many different aspects that require analysis prior to formulating any conclusion of value.
Your argument on inflation is sensible but it's only one aspect of a larger evaluation which you admitted to not undertaking. You formulated an opinion without thorough analysis and you spread FUD based on that incomplete analysis. It's not that hard to understand if you understood the scientific process and did your research properly.
A simple search for "Business analysis" or "How to analyze an investment opportunity" will bring up all types of useful links on the process of of analysis for different kinds investments. Any of these will show that any proper analysis is based on many factors. Embercoin is no different. Without going through the full process, all you have is an uneducated opinion and crystal ball prediction.