Electra Coin (ECA) was a controversial cryptocurrency launched during the initial coin offering (ICO) frenzy of 2017. This article will cover exactly what happened to this cryptocurrency and where it currently stands.
What was Electra Coin?
Electra Coin was a cryptocurrency launched in 2017 with the goal of offering near instant transaction times anywhere in the world for a low fee.
That is a reasonable goal for a cryptocurrency project. Litecoin launched with a similar purpose.
Unfortunately, Electra had had so many red flags surrounding it that it was almost immediately deemed some sort of scam from the start and the popularity of it never really caught on in the cryptocurrency community.
The Problems With Electra Coin (ECA)
There are a few problems with Electra Coin, which we will explain in this section.
The first major red flag surrounding Electra Coin was that it launched without a whitepaper. For those that don’t know, a whitepaper is a paper that describes what problem a cryptocurrency solves, a roadmap to get there, and other basic technical information.
It is something that every serious cryptocurrency has at the time of launch. Even Bitcoin was launched with a whitepaper.
A cryptocurrency that lacks a whitepaper is almost always going to be some sort of scam. Even if it is not a scam, it will be viewed very suspiciously by the cryptocurrency community.
Of course, the peak of the ICO frenzy led to many not familiar with cryptocurrency to invest money in projects that more knowledgeable cryptocurrency investors would not touch.
The other problem with Electra Coin is that the founder(s) is anonymous. Now, this is not the biggest problem to have for a cryptocurrency.
Bitcoin, Monero, AEON, and other cryptocurrencies have anonymous founders.
However, those cryptocurrencies launched with a privacy focus, which almost necessitates an anonymous founder.
Electra Coin launched with the goal of increased transaction times – something that most developers would want to attach their face to in the event the project becomes popular (ie. Vitalik Buterin, Ethereum Founder).
95% of Coins Mined in First 24 Hours
The project launched with a proof of work (PoW) and proof of stake (PoS) split blockchain. But in a very suspicious maneuver, 95% of the coins were mined within the first 24 hours on the PoW segment of the blockchain.
Why is this bad?
It generally means that one party mines up most of the coins and dumps them on the market for a large sum of money. It’s not quite a pre-mine, but it’s close enough that many view it as extremely suspicious.
50% Staking Rewards
Finally, Electra Coin offered 50% staking rewards for the first year. This is an extremely high yield for staking rewards.
This does not necessarily mean it’s a scam, but the saying, “If it’s too good to be true, then it probably isn’t” certainly applies here. Especially when combined with all the previous points listed.
The Current Status of Electra Coin (ECA)
You might think that Electra Coin is a dead cryptocurrency.
That is almost true because it does not have any development team at the moment.
However, it still does have a very small trading volume on small, tier 3 cryptocurrency exchanges. This trading value is a couple hundred dollars per day, which can easily be classified as a mistake on the part of traders or the reporting protocol.
Overall, Electra Coin is a dead cryptocurrency. And one that most familiar with cryptocurrency knew would die just by looking at that many problems that existed with it.
That covers it for everything you need to know about Electra Coin – it’s a dead cryptocurrency. But you can still learn a lot about how these scamcoins operate by examining Electra Coin so you do not get caught up in the next big scamcoin.