Dogecoiners Shibes will be all-too-familiar with Wolong, the Fontas of Doge, whose pump and dump machinations are credited with inflating Dogecoin’s value from 30 Satoshi to a (relatively) stratospheric 280 Satoshi.
Shibes made money following Wolong and others lost out, making Wolong a very controversial figure in the cryptosphere. And today, Valentine’s Day, Wolong is behind the launch of a new cryptocoin, with the following inflammatory features:
1) the same name as an existing cryptocurrency; Pandacoin (PAND), released January 4th of 2014.
2) a 3% pre-mine, of which 2 billion coins have already been sold off (in a non-public IPO) for about 250 BTC.
3) a somewhat competitive relationship with the Vertcoin community; Vertcoin being the scrypt adaptive-N altcoin from which Pandacoin 2’s algorithm is cloned.
4) an assurance from Wolong that “There may be steps, procedures in the future which we might implement to prevent money laundering, drugs or terrorist trade in order to let government know that as a cryptocurrency we play our part.”
5) 4Chan vowing to release Pandacoin 3, shortly after Pandacoin 2, to further muddy the waters and confuse prospective miners and traders. Their aim is apparently to punish Wolong for behaviour they consider scammy and / or to protect their beloved Dogecoin.
Suffice it to say, Pandacoin 2.0 (PANDA) will do nothing to lessen the controversy swirling about Wolong.
In spite of all the drama – or perhaps because of it – there’s a chance that Pandacoin 2 may succeed. It has at least as many favourable features:
1) It’s rumoured, albeit mostly by the team pushing it, that it’ll be big in China. Pandas are popular creatures over there, plus the coin’s logo features some Chinese characters. I guess we’ll see pretty soon if this support is real or hype.
2) Wolong will employ a share of the pre-mine – likely a minimum of hundreds of millions of PANDA – to stabilise the coin against pump and dumpers, at least in its early days. Leaving aside the tangled irony of a former market manipulator now manipulating a market to discourage other market manipulators… This could work to stabilise the coin’s value intially. The larger of the original IPO investors will hold their coins for at least 6 months.
3) Pandacoin 2 seems to be set for a smooth launch, with a bunch of pools, exchanges and services ready from the get-go.
4) The coin’s code, thanks to the efforts of the Unobtanium team, seems solid. Scrypt with adaptive N-factor is resistant to ASICs, at least for now, and Kimoto Gravity Well serves to counter pool hopping.
5) All this controversy… They say there’s no such thing as bad publicity, right?
PANDA Team Interview
I caught up with sevoque, PANDA’s marketing and PR leader, to get their side of the story.
<GG> Can you explain the decision to go with the name Pandacoin, given such a coin existed?
<sevoque> So the coin existed but it existed in a very hollow way – I dont mean any offence to the previous team behind the ‘first’ Pandacoin but for us its more symbolic and has a deeper meaning behind it and a philosophy 🙂
<GG> So I saw in the announcement thread that PANDA will have the same reward structure as Doge. Does this mean infinite rewards?
<sevoque> It means that there are enough coins that even the most basic of mining set ups and newst of us to crypto can get a good slice of the action 🙂
<GG> OK, but the block rewards will continue forever?
<sevoque> Well, in the sense that there is a lot of coins, absolutely and a lot will be created, billions =) So I guess you could say yes? lol
<GG> So 3 billion have already been mined?
<sevoque> I dont know if its been done as this second but I would expect given that we are 2 hours away almost at this point then we are likely to have that done soon. 😀
<GG> Right, but I mean the 3% pre-mine – is it true that 2% have been given to those who bought into the IPO?
<sevoque> Correct. 250btc total has been raised for the IPO.
<GG> Can you talk about how Wolong will use the other 1% to keep the price stable?
<sevoque> Ah ok, just to clarify; that 2% is inclusive of what wolong will receive (this is my understanding). The other 1% of the 3% total will be split amongst devs and services that are being created: bounties, gaming, etc.
<GG> Oh right, so did Wolong buy his own share?
<sevoque> Yes. The ledger will be released shortly.
Wolong as Plunge Protection Team
<GG> All right, great. Can you comment on how he will stabilise price in the early stages?
<sevoque> So, from the way that we intend to bring this coin into exchanges, Wolong will be personally overseeing the security of the value of the coin to keep the coin safe from pump and dumpers and/or manipulation from big players – especially since we have the Chinese market from the get go.
<GG> So he’ll act as a benevolent whale?
<sevoque> I guess you could say he will be the panda god amongst the mortal pandas making sure that we are able to continue to grow as we would like without interference from anything too malicious.
<GG> So he’ll start pumping if other players start dumping? Put a floor under the market sort of thing?
<sevoque> Well, he will do what he does best to ensure the price stability. =)
<GG> What if the guys from the IPO choose to sell out? Or is there an agreement to wait until the coin is mature?
<sevoque> The bigger investors – for example mollymachine, he has personally put over 50 BTC toward the IPO. He will be holding 50% of his funds for public viewing for 6 months. I am not fully aware of all the other names of the ledger so I cannot comment. But TL:DR, a lot of people, both wealthy and otherwise, have put a lot of trust and finances behind the coin so far. 🙂
<GG> And you mentioned the Chinese market. There’s a lot of interest there?
<sevoque> Huge. Wolong has pasted pictures of conversations (in Mandarin unfortunately) of people saying how they are going to switch to PANDA and the size of their farms. It’s fascinating. 😀
Steps and Procedures… Towards Regulatory Compliance?
<GG> All right, well in Wolong’s open letter he said “There may be steps, procedures in the future which we might implement to prevent money laundering, drugs or terrorist trade in order to let government know that as a cryptocurrency we play our part.” What specific measures do you have in mind?
<sevoque> I had n0 idea he had said that so I’m afraid I cannot comment, lol. 🙂 That’s quite a radical statement, haha!
<GG> Yeah, I thought so…
<GG> What is your plan for the 4channers looking to grief your launch?
<sevoque> Well, we do not have control over their actions and whilst we want to ensure a smooth and fair launch, we cannot be held accountable for any thing external trying to fuck it up, like those bunch of guys over at 4chan.. But all power to them 🙂 May the mightiest panda win. 😉
Dogecoin and PANDA’s Place in the Market
<GG> And is it fair to say you are looking to compete with Dogecoin? [referencing “Pandacoin AKA The Asian Doge Coin / Doge 2.0 / “..relax..we don’t eat pandas…just doge…” – Confucius]
<sevoque> Absolutely not, I think there is enough room in the cryptoscene for us to peacefully co-exist. We are providing what we deem to be an extension to a well-loved coin which is why we are really pushing ourselves as Doge 2.0. Whilst we have a similar reward structure, we also have protection from price manipulation, safegaurding against multipools and evil movements from external sources. I am sure down the line that Doge will also implement the N scrypt factor and Kimoto… I think all-round these features are facilitating a much-needed market correction.
<GG> OK well, it sounds promising to me despite the controversy.
<sevoque> It will be. I mean, let’s look at the facts: 25 pre-launch pools, 250 BTC pre-launch investment, a very experienced dev team and reach into Asia, 3 exchanges taking us on within 48 hours of launch… It’s pretty heavyweight stuff. =)
<GG> Yes, although I would ask what innovation you are bringing to cryptocurrency? And whether the current bearish market is favourable for a launch?
<sevoque> Well, I think the fact that 250 BTC has been invested from a wide number of people is testament in itself that we are doing something right and it’s something that people want. We feel that we have a winning formula in as much as we are fairly well connected, we are doing a huge amount of groundwork pre the communtiy properly being established and giving people a promising crypto. =)
<GG> Well, it’s certainly going to be an interesting one to follow!
Pandacoin will be launching in about an hour! Check their Reddit for further info, or join #pandacoin on the freenode server.
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