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SONM From Russia with Love Red Flags: Past ICO Review

  • Eric Eissler
    ⭐ Features

    Fog-computing platform is opaque when it comes to answering questions; cries of “scam” abound


SONM From Russia with Love Red Flags: Past ICO Review
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The race for supercomputers has been a paradigm that has run from the 1950s through the present day. The Soviets sent the first satellite and the first man into space, but the Americans sent the first man to the moon.

It has always been one trying to outdo the other. This time, in the race to create a cloud-based (or “fog” according to the website) supercomputer, the Russians have come up a bit short and with a few red flags.

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Got some spare change?

SONM’s one-day ICO on June 15, 2017, raised a surprising $26 mln and entered the token trading market one month later at $0.03 per token. At the time of writing, it has risen to $0.21 per token.

In the interim, if it had experienced a surge to a max of $0.70 in January 2018 as many other tokens did during the tumultuous times around the holidays.

A fistful of change will get you a few tokens, but it is uncertain how this token will fare because there are a few red flags that make the tepid investor stop and wonder.

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Waving red flags

When you speak the truth, there is no need to make up a story with holes in it. When you like you change details or terms, such as percentages. According to a story on Reddit, The dividend percentage, which is something that should be decided very carefully and shouldn't change at least after pre-ICO. That's what a reliable company would do. SONM did not.

Furthermore, they did not use escrow, but rather the team had multi-sign contracts that the team held themselves, this raises some suspicion, because a third, neutral party should be involved with kind of financial instrument due to the ease of committing fraud.

Moreover, the communications with the public, investors and potential investors  are filled with unanswered or vaguely answered questions which adds more to the bad public image the company already gave itself.

On a final red note, there were many accusations of scam floundering about, while, it seems some people might have gotten burned, SONM did not close up shop and run away with the money, it is still up and running and on the boards to trade.

But with a shaky start and foggy background, many would be leery about investing money in something that might just shut down overnight.

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What is it supposed to do anyway?

Glad you asked, SONM is akin to Golem, and a direct competitor too. According to the Somn website:

SONM Customers (consumers, clients, buyers) are people and companies, that have a demand of computing powers- hardware PCs, servers or virtual machines of different kind. Customers define what resources and capabilities are required and what price is acceptable for them on the global decentralized marketplace of SONM.

Tight-lipped and shadowy

After scouring the Reddit boards, there appear to be some angry people that seem to have gotten burned, or who feel ripped off in some way after investing.

Despite all this, the company continues on and so does the trade, albeit the price has not risen much since January 2018.

Flat activity could be some indication that there is a lack of interest and general wariness towards this company.

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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan
    ⭐ Features

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money


Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.


You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

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Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

Cover image via u.today
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