Don't buy Embercoin!
Why Embercoin is a bad investment!
Embercoin is the latest coin to be promoted by Travon James and some other youtubers. I don't want to get into whether or not he is conducting an intentional pump and dump because I don't know him personally and don't know what is going through his mind. I can say, however, that there are people out there who are pumping this coin and it is bound to come crashing down when they dump.
But here is the thing, this isn't even the biggest problem I see with Embercoin! There is a glaring problem that people (possibly less experienced people) seem to either be intentionally ignoring or are not aware of. Embercoin is said to give up to 10% staking rewards per day! Sounds great, right? WRONG! The reason for this will be glaringly obvious to people who have been around the cryptospace for a while. Imagine even just a 5% daily inflation to a coin's supply. Buying in now is a recipe for disaster because the inflation rate will rapidly force the price down.
Now, inflation is not always a problem. It is only a problem if the demand does not increase at the same rate or faster than the inflation rate, however the demand for Embercoin is very low even in the current pump state. Increasing the circulating supply without increasing the market cap much is a major issue.
The issue here is that we are not insulated from the rest of the market. Sure, you buy 10 million embercoin and in a couple of weeks you have 20 million Embercoin thanks to the staking rewards, but a huge amount of people are going to be doing the same thing and now you are having to sell them at rock bottom price. Even though you have twice as many coins you are still having to sell them at a loss.
Now I already know that somebody is going to point out that there are plans to burn a huge amount of coins and this will increase the value of the coin. Well this is nonsense. Burning coins does not in any way guarantee a price increase. The major contributing factor to price is demand. I stopped reading about the coin when I learned about the ludicrous staking rewards so I don't know if the coin itself has value long term or if the technology itself holds any promise. It could very well be the case that the coin is worth investing in after the coin has been dumped, but for now, I recommend staying away.
Please let me know in the comments what you think about Embercoin and why. Do you agree/ Disagree? Have you purchased any or plan to?
Happy Investing
Cryptoviking
Hey mate, I forget to say that this was a great article!! Thanks for the good advice.
Keep it coming.
I was just researching Embercoin after hearing about it on a few different Youtube channels. I wasn't aware it was an old coin. Thanks for posting this. You saved me a lot of time.
My pleasure :)
Just want to be 100% clear as there IS some confusion in some people's eyes. There is Embercoin (EMB), the subject of this article. Then there is Embermine's token, Embers (MBRS) which is a completely different and unrelated token released by us.
The reason for the confusion is because during initial development, we had established the token contract using EMB as the symbol, before we realized that it was already used and of course by flame image coin. At the time (Late Spring) it already looked to be a dead coin, with very little volume, and appeared abandoned.
Then we launched and conducted our marketing and suddenly, Embercoin has come back to life. We had our symbol on EtherDelta changed for a short while to MBRS, but an update wiped that out and it reverted to the Token Contract default, EMB. This, right before going to Cryptopia, where Embercoin has made a very strong move the past week since we have been there. Some of it is, no doubt, there renewed marketing efforts. Some of it is, no doubt, due to concept that any coin/token can be pumped with enough effort. But the bottom line is that we know we are at least somewhat responsible for people discovering this coin, because if you look at their volume spikes, they are all right around major events/promotions we have conducted. We have even had a few people approach me asking me about the coin. It is terribly confusing, and I apologize, but at the time 6 months ago, it did not seem like it would ever present itself as a problem to anyone.
Except now it is. So again, we want to be 100% clear. Embercoin (EMB) is in no way, shape, or form related to, similar in functionality, developed by, or otherwise connected to Embermine, Inc., Embers (MBRS), TokenVerse (TOV), IDEAToken (IDEA), or DomainToken (DOM).
We want to make this distinction not only to remove any confusion on those looking for Embermine's tokens, but also because we are, in about every single way possible, the OPPOSITE of Embercoin. We do not approve of, nor agree with the heavy-handed, boiler-room purpose of this coin. Shameless plug after shameless plug touting 300% returns and yet, they have a higher rating that tokens with far more legitimate of an offering to buyers than Cryptopia.
In short, we do not want anyone to mistaken Embercoin (EMB) for Embers (MBRS) either in acquisition, or in reading a post like this. I thank you for posting this information and I hope that you do not mind me taking a moment to make this distinction here.
Anyone interested in learning about Embermine, visit our website: https://embermine.com or join us on our Telegram channel: https://t.me/embermine
It looks like an interesting project that deserves better differentiation. MBERS are not members the Ember coin.
Thanks for the information.
You had me at Trevon James, consider yourself a cryptocurrency investing hero today my friend... for helping out a lost soul from making a big mistake. 😉
All kidding aside, when something is too good to be true... it is!
Haha yeah. Sometimes it pays to do a bit of due diligence. :)
Especially in this market!
praying for one more pump
Should I sell mine now???
I cannot tell you what to do. It has to be your decision, however, if you are currently in profit I personally would sell. I just cannot see a good future for a coin with such a high inflation rate. If you are at a loss, however, it would be a tough decision for you. Do you sell now and cut potential losses or do you hold and cross your fingers. I cannot advise you on that because it's a very personal decision.
It's sad that so many have been taken in by the hype :(
Thank you for important information.
My pleasure
Its gonna be entertaining watching it crash down when everyone is rushing to sell off lol.. I actually came across this coin a few weeks ago and was gonna stake it but I only own mac so no wallet.. Still made some money on it but didn't get greedy. Great post.
It might be entertaining but I can't help but feel sorry for the people who blindly follow without thinking or researching first. I know it's their own fault but it still doesn't sit right with me. I'm glad you managed to get out and make a bit of profit but I suspect your situation will be the exception more than the rule. A lot of people are going to lose a lot of money. Thanks for reading :)
Its the wild wild west of crypto investing where one can gain a fortune or lose their portfolio in one trade if they're not careful or doing their research. Greed can often make people make reckless decisions with their money.. Some get lucky and many lose it all. Having patience while being able to strategize and minimize risk while knowing when to make aggressive trades is definitely the key. From the looks of the trade patterns it looks like the few winners that were staking are getting ready to start selling off. Should get interesting soon.
Sometimes those people get a lot of money for following so don't feel to bad for them
upvoted