Eigencoin is currently working on a new roadmap.
- OG lending platform from 2017
- Aims to be the most stable platform
- ERC20 token on ethereum blockchain
- Weak daily interest rate
- Marketing not able to create hype
- Victim of their own price manipulation
What Is Eigencoin?
Eigencoin is one of the OG lending platforms back from 2017 when cryptocurrency was in a massive bull market and everything was rainbows and unicorns. Many lending platforms have since then stopped with the lending or simply turned out to be massive scams, but Eigencoin is still around…barely. They are currently in the process of reinventing themselves due to some mistakes made by the dev team. It will be interesting to see if they change path completely or just a few teaks here and there.
How Does Eigencoin Make Money?
Eigencoin has taken a very different approach than other lending platforms since they don’t revolve around trading bots or trading for that matter. Instead they have a few different income streams and one of them is simply from ad revenue.
A small percentage of the of the funds will be invested into ICOs by their team. All gains will be distributed into the Eigencoin platform to help sustain the loans.
The team strongly believes in the blockchain and aim to make a premium content portal like Steemit, where users can earn additional Eigencoins by posting articles. This so far hasn’t happened, but it sounds like a really good idea.
All of this doesn’t sound very sexy compared to other lending platforms with their flashy trading bots making several percentage gains a day and that is also a reason why Eigencoin didn’t really take off. People want fast money and Eigencoin has a vision about long term investment and being in crypto for the long haul.
The Eigencoin Lending Platform
At the moment the lending platform is on hold and the team is working on some new ideas. For future reference I have their current loan model described below.
Eigencoin was sorta lost in the lending space since they did not provide amazing returns and they focussed on long term sustainability. This didn’t sit well with investors when comparing Eigencoin to the likes of Hextracoin and Davorcoin crushing it with high interest rates above 1%. Eigencoins’ interest rates was up to 1% and then a bonus multiplier would be added based on amount and lending time. But Eigencoin knew what was up and I’ll just quote their whitepaper here:
” Our return on investment (ROI) rates are realistic and sustainable unlike other programs that only reward the earliest participants and eventually collapse on themselves. We value all of our coin-holders and guarantee that all loans will receive daily payouts.”
At the time this didn’t really mean anything since the lending space was going nuts and new lending platforms were popping up each day, but Eigencoin surely did see the writing on the wall and they deserve props for that.
|$ 0 – $ 1,000||Daily Variation Rate +0.03%|
|$ 1,001 – $ 5,000||Daily Variation Rate +0.04%|
|$ 5,001 – $ 20,000||Daily Variation Rate +0.05%|
There are many options for lending with Eigencoin. You can choose the amount of time you want to lend your coins, and get higher bonus multipliers if you choose to lend your coins for longer. Lending with Eigencoin allows for the flexibility of being able to withdraw your coins at any time, with a small early withdrawal penalty on the principal amount.
|Length||Bonus Multiplier||Early Withdrawal Penalty|
The Eigencoin Staking Program
Eigencoin will be aiming to stake at 22% per year and you need to download and install their wallet on your computer. Once this is in place you can transfer your eigencoins to your wallet. For newly transported coins in wallets, staking will begin after one hour according to their whitepaper, but for me it tooks more than 4 hours. There is no max staking amount and the longer your eigencoins are in wallets, the more coins you will earn over time.
Eigencoin is currently in the process of moving to the ethereum network as an ERC20 token and it will be interesting to see how the staking program will be effected.
The Team Behind Eigencoin?
Once again the actual team behind the project is anonymous, though they did share something in their whitepaper. But to be honest it’s just pure fluff with no actual weight behind it. They claim to be passionate about blockchain technology and have ties to legal and financial domains. I remember from an interview on youtube that the dev team is from Holland, but sadly that video has been removed.
Like always lets see what information we can pull from their domain name. The dev team registered the domain name back in 2017 November 27th and I remember they took a lot of heat for it because their ICO started December 1st and that seemed a bit shady at the time. However it is registered for 4 years and will expire in 2021, so at least they show some intent to stick around.
On the server side Eigencoin shines where others fail since they have their site hosted on a dedicated server, which is what all investment sites should, so two thumbs up for that. And like always the domain contact is protected by WhoIsGuard so we have no information about the owner of the domain.
The Bottom Line
Like I have mentioned earlier, then Eigencoin was off to a rough start due to lack of hype mainly because they didn’t compete well with other lending platforms at the time. But here we are, in the aftermath of the lending space holocaust, and Eigencoin is still around and currently trying to change their platform in order to stay alive. Maybe its due the fact the planned for long term gains in their solid gamelan of realistic returns that saved their asses. Actually they could just have closed down the site and ran away with the investors money like many other platform, but Eigencoin is sticking to their guns and it’s refreshing to see.
I have always been rooting for Eigencoin since they have always been the underdog of the lending programs and the dev team seemed honest and true to their vision of staying in the crypto space for many years to come. Unlike many who were turned off by the lack of a trading bot, I found it refreshing at the time since it was a different business plan and it’s always good to diversify. So I joined their ICO back in December 2017 and limped in with a small investment and locked in a loan eventually after a short staking period. The loan is due for capital release soon and it has been a bag of mixed feelings. To make a long story short they fucked up their lending program by price manipulation of their coin. They set the price to $10 and people very happy to lock in a loan, I sure was, but it turned out this was not sustainable due the fact that the actual price of the Eigencoin didn’t follow to $10. This pretty much ment that, yes you would get dividends of your overpriced loan, but that inflated price would carry over in to converting your USD profit into Eigencoin. You then had the option to sell it on the exchange for cents or save enough up to lock in a new loan and wait for the price to catch up. This strategy was used by several other lending programs and they ALL FAILED, so the lesson is that organic growth is the way to go. And guess what, the price of Eigencoin never reached $10 and people were pissed, the solution was to lower the artificial price to $1, which of course didn’t solve the problem. All existing loans where cut by 10 and eventually they also had so reduce the daily percentage to almost 0 and right now they don’t have a lending program.
Eigencoin seems to mean really well but they are poor at executing their strategy, so far nothing from their whitepaper and roadmap has come to be. For instance their entire business model is advertising but they offer nothing on their site and the premium content portal is not online. This basically only leaves the ICO investing as their only source of income right now.
I hope they learn from previous mistakes moving forward, but also that they spent some more money on marketing. The entire crypto space is based on marketing and hype and Eigencoin are lacking in both. This is also a reason why I have to give this platform such a low rating, I hope that in the near future Eigencoin will climb up the ladder.
For the time being Eigencoin is reduced to a competition of who can buy the most Eigencoins on their exchange and the winners will get airdrops in BTC. This has in some way saved their platform and managed to pump some volume in to their exchange. Eigencoin have also started to buy back their own coins in order to raise the value of their coin. On top of that they just moved to the ethereum blockchain as an ERC20 token instead of using their own coding, which sadly caused some serious issues with their wallets. So they are basically doing whatever they can to keep this platform above water and I’m really excited to see how they will reinvent themselves.