Ark cryptocurrency is being suggested as the new golden boy in this Medium post by Colby Mort. The author is a cryptocurrency investor (wink) and he goes on to tell us how basically Ark is the next big thing (wink wink).
What is Ark?
It’s a cryptocurrency with a wallet that lets you work with other blockchains and even clone them (coming feature). What Ark does through its’ wallets is connect to other blockchains (Bitcoin, Ethereum, Lisk etc.) with the help of “Smartbridges” and helps run transactions in other blockchains through Ark.
This is a very simple explanation that’s enough to get the main idea: at this point Ark does nothing that would help cryptocurrencies.
Why is Ark bad for crypto space?
By “something that would help cryptocurrencies” we mean not the technology, which is there already, but two more important things: trust and adoption. Is Ark going to help with those? Maybe at some point, but right now it looks like the opposite: another pump and dump coin.
Investors partner up with developers, secure larger chunks of a certain cryptocurrency, and start a PR avalanche praising their hot new coin pumping its’ price. Then they cash out; the coin crashes. After the crash techies and fans keep saying “price is irrelevant, it’s going back up when everyone realizes how technologically advanced it is”. Investors move on.
Why are pump & dumps bad?
Sure, Ark might become a real technological breakthrough at some point. But the main problem with even innovative and truly technologically inspiring cryptocurrencies is that they all go through several stages of the good old “pump and dump”. Bitcoin did, Ethereum did, Komodo did just recently with their anticlimactic presentation. Ark is going through the “pump” phase right now.
Why would that matter? It does not matter for the technology and innovation itself, however it matters for the inexperienced people involved in it. Every pump and dump we go through and every “to the moon” show leave a lot of disillusioned people behind them. Moreover, they leave more reasons for regulators to …regulate.
Again, that Medium post is a pure and 100% currency pump post. I mean the author of the blog is explaining how he is “making monies online” with his cryptocurrency investment fund in one post, and then in another post he just Naturally Praises a certain barely known cryptocurrency …that also happens to be rising these days:
If these are not red flags for you then I don’t know what is.
Check this Reddit thread and you’ll see people can’t really be fooled:
Coin Vigilance resolution: jump on it if you’re an experienced pump and dump party animal. Otherwise just add some to your coin collection.