The cryptocurrency world has seen many examples of scam projects and shit coins. However, Skycoin is one project that is not intentionally designed to scam people. However, due to its countless flaws, it is easy to understand that there are no use cases or any practical grounds that the project can use to stand on. The coin was first launched two years ago.
Interestingly, its native token, Skycoin, managed to get an evaluation of $50 per unit with marketing and advertisement efforts. Nevertheless, several technical analysis of the business model of the project reveals that there are many issues in it. The company that launched the Skycoin project claims to provide the users an internet replacement as well as a mining machine.
The COO of the project Skycoin, Bradford Stephens, was interviewed by a developer who breaks down the reality behind the project. The company asks users to invest in a mining machine. The cost of the mining machine is set at 1 Bitcoin. The users who assume that this machine will allow them to mine Skycoin are hugely mistaken.
In reality, the machine is used for subletting the ISP bandwidth that the user already has in their homes. The machines also allow users to earn coins for connecting their bandwidth and sharing the network with their neighbors. This internet stream is undetectable by most government surveillance radars. However, for the investors, it does not do anything. The company has also mentioned in its blog post that Skycoin is an inherently pre-mined token.
Skycoin’s Whitepaper is Bogus
The whitepaper for the Skycoin project has been penned down by several anonymous users. The technical analysis of these papers reveals that the project does not make any sense. The whitepaper cites an unnecessary protocol of the project called the block clock. It does not provide an actual use case for the project. The white paper also adds that the functions on the blockchain are performed by a separate algorithm.
Any further details on this so-called separate algorithm are non-existent. According to Stephens, writing a whitepaper takes time and effort. Therefore, the company is looking for better consultants to publish another version soon enough. According to IT experts, the best way to describe Skyminer is a hardware form of a VPN network. Nothing about this project seems to be solid from a business point of view, and many experts claimed that it is worse than the snake oil scam.