MinexCoin is a rebranding of MineCoin and it’s entering it’s second ICO stage. The users who already invested in MineCoin will have their accounts transferred to the new website automatically.
MinexCoin presents itself as a low-volatility cryptocurrency that would allow stores to accept it for merchandise, creating a global payments system. What they propose is a centralized mining algorithm that behaves like a central bank, by which they can contain volatility. In terms of trading, they would only employ margin trading “without damaging the coin’s ecosystem”.
“Minex platform combines the functionality of a simple and safe processing infrastructure for online shopping and cryptocurrency operations, an online digital assets exchange, and an investment platform.” They explain in their bitcointalk presentation.
So what is the problem in the cryptocurrency market Minex identifies? We are all waiting for that moment when we see cryptocurrencies used in stores. But how would that help bitcoin for example? Stores cannot simply display a bitcoin price for their products, since the market is volatile. Some can and will accept bitcoin, but many of them use it just as a way to allow another means of payment for their customers. None of them actually hold bitcoin. In turn, they will swap it for fiat instantly or at the end of the day to avoid volatility, thus creating more volatility on the market.
This doesn’t help bitcoin per se. It only helps popularize the coin, but aside for that there’s little advantage for the market.
With MinexCoin, stores should be able to actually display a cryptocurrency price, with the certainty that volatility is controlled remotely, making it a robust reserve cryptocurrency. This way, they expect MinexCoin to gain adoption on a global scale.
“Low volatility and stable growth are achieved via a smart algorithm we call MinexBank (because its actions resemble those of central banks as they maintain stability of national currencies). The entire ecosystem will be governed by this power algorithm based on predetermined formulas, written by professional economists.” The developers explain.
Their solution is using two main instruments to keep volatility in check – parking and interventions. Parking means allowing users to suspend some of the coins in their wallet, in order to receive interest. Interest reates will fluctuate according to the chosen period of parking and to the current supply and demand balance. This encourages investors to suspend their currency when the supply is greater than the demand. When the demand is lower than the supply, interest rates decrease and investors will be encouraged to sell.
The second solution, the intervention, means MinexBank will hold its own reserve of premined coins and sell or buy MinexCoin “to alleviate market pressure”. They use the MARS hash algorithm for mining blocks. MARS has a 128-bit block size and a variable key size between 128 and 448 bits, in 32-bit increments. It is one of the outdated and more deprecated ciphers, susceptible to different types of attacks like the meet-in-the-middle attack that can break 21 out of 32 rounds of MARS.
They have 2MB blocks, mined every 2 minutes and 45 seconds. Each block contains a 2.5MNC reward. The size of the block may raise questions about scaling and transactions per second, although we might expect changes in the protocol if and when MinexCoin garners adoption.
MinexCoin (MNX) has a total cap at 19 million coins. Two million coins were offered in the first ICO and 150 000 will be offered staring on the 15th of May. It is unclear how much they will premine in order to be able to manipulate the market and keep the price in check.
The development team is based in Kiev, Ukraine. The team comprises of four people, with IT and economy background.
Boris Shulyaev, the founder and CEO is a professional economist and blockchain enthusiast. He claims he is the owner of the biggest mining facility in Europe, although it is unclear where that is and what its name is.
Ruslan Babych is the CTO of the project. He has a bachelor’s degree in Computer Science and has a background in both finances and IT.
Vladislav Zaychuk is a lead developer. “Tech wizard fascinated by futuristic technologies”, Zaychuk created 3d models of human brains for international scientific research, according to the presentation.
Daniel Shulyaev is a PR advisor with no background in blockchain technologies or finances.
After the closing of the ICO, MinexCoin will be released, on the 15th of June 2017, along with the MinexBank platform, that will immediately start to supervise the price actions.
We can expect to have the full ecosystem, with a platform, exchange and market in 2018.
MinexPlatform – Q1 2018.
MinexExchange – Q2 2018
MinexMarket – Q4 2018
The first ICO stage for MineCoin was held from September to December 2015 and attracted 400 investors. This helped the team with the beta testing phase and allowed the team to discuss MineCoin’s implementation and some cryptocurrency solutions. According to Bitcoinist.com, this stage concluded ahaed of schedule after a blockchain society agreed to acquire all the remaining MNC tokens.
The second stage of the ICO starts May 15 2017. During this stage, they will sell 150 000 MNC.
“The purpose of Phase Two is to determine the market price of the coin immediately before entering the exchange. ” the developers explain.
The price will be calculated according to the volume of involved investors funds(x1), the volume of bonuses for early participants (x2) and the amount of coins available for the ICO (z). The market exchange rate = (x1+x2)/z.
The coins are locked in the wallet during the ICO stage, and can only be transferred among users after the ICO closes.
MinexCoin did not announce any escrow accounts as of yet. Will update when they announce it.