About one year ago I was looking at an altcoin called Gamecredits. It was trading at a little more than three cents.
I had picked that coin out of lineup because I thought the name was intriguing. The coin was intended to be used as currency for mobile games.
I checked out the website at decided at the time not to invest, there wasn’t a lot of information available on the development team and it just seemed too risky.
Guess what happened next:
In the summer of 2017 it traded as high at $4.86 before crashing down to $1.26. Then it soared to $6.40 before crashing down again to $95.
If you had bought the coin last May and slept through the craziness of the past 365 days, you would still be sitting on a return of 3000%.
That’s why people buy altcoins. You can pick 10 stinkers but lucky #11 makes up for all that and then some.
But Here is Why You Should Fear Altcoins
The Tezos coin was one of the biggest ICOs of 2017. After raising $250 million USD, the husband-and-wife team decamped to France and immediately ran into trouble. Lots of trouble.
It’s been nearly a year now and the Tezos foundation has been sued to high heaven, the development team is stuck in the mud and oh yes, there is still no Tezos coin.
Those who invested in the Tezos coin at a ICO price of 50 cents are sitting on 100% losses. Because, to repeat myself, they haven’t even issued a coin yet.
What is the Difference Between Gamecredits and Tezos?
Above all, remember what you are buying. It’s not a copper or zinc mine. You are not buying a manufacturing plant. You are buying code, or a bunch of software developers who are writing code.
Therefore, it’s good idea to ask if any code or software development actually exists.
I’m not kidding. Tezos held their ICO and had nothing more than a business plan, that’s how crazy it was. And to stop picking on Tezos for a minute, Filecoin (another humongous ICO in the summer of 2017) didn’t have a code base or many developers either.
Those ICOs were pure hype. And it’s not a case of hindsight either. Lots of people, not jut including myself, said Tezos was a bad idea
Let’s be honest, altcoin buying isn’t really investing, it’s more like buying lottery tickets.
Buying Gamecredits in May of 2017 was just like buying a lottery ticket, but it had a few things going for it.
First off, there was an actual coin. Gamecredits started in August of 2015 which means it stumbled around at the 10 cent level for about two years before taking off in the summer of 2017.
There is a saying in software development: If you hire nine programmers, that doesn’t mean you can make a baby in one month.
It’s now June 2018 and while Gamecredits Inc. has to grown to a staff of 100 people in four countries, the products that are support by Gamecredits are still very much a work in progress i.e. not launched yet.
However, you read their blog, you get the sense that “stuff” is going on, code is being written, and deals are being negotiated.
Gamecredits is also not trying to land a man on the moon. The Gamecredits is just going to be used as an universal game currency, especially for mobile platform. That’s a huge market. There is a need for it. But the technical requirements are not impossible.
Finally, the market cap of Gamecredits today is $67 million USD. in May of 2017 it was under $2 million. That’s a huge amount of leverage.
Conversely, Tezos had a market cap of $250 million right out of the gate. Filecoin raised more than $700 million in their ICO. Filecoin was valued at about $11.50 out of the gate but has dropped to $7.50.
It’s clear that hyped-up ICOs with large caps right out of the gate should be avoided like the plague.
Do I own Gamecredits? No. I had a chance to buy it at 3 cents and didn’t and now I can’t bear to buy at $1.00.
Instead I bought another token like Gamecredits that is now trading at 7 cents. I will tell you about it in my story.