Cambodia is proving to be an attractive target for crypto-currencies, with one of the most recently established operators of virtual money declaring their intention to roll out terminals in Phnom Penh this year.

Officials of the foundation that founded Blackcoin, a digital-currency formed in February by a Russian developer named rat4, say they have secured the purchase of two terminals; one to facilitate exchange between US dollars and Blackcoin, and the other to make retail payments, the Phnom Penh based co-founder of the Blackcoin foundation Josh Bouw told the Post.

The terminals, developed by Canadian firm Coinkite, accept a range of different crypto-currencies including Blackcoin and Bitcoin.

The terminals allow Blackcoin holders to make purchases at places such as clothing stores and coffee shops that choose to participate

As at 5pm yesterday, there were more than 74 million Blackcoins in circulation, with a total market value of more than $9 million, or $0.12 per coin. – Eddie Morton



It’s difficult just to find 10 altcoins that aren’t blatant premine /instamine/ fastmine pump and dump scams, never mind 10 coins that genuinely improve on bitcoin.

That’s pretty amazing to say, considering these coins have a chance to experiment with the most groundbreaking technology in the fastest growing industry in the world.

Looking at the price charts on we can see a familiar pattern for most altcoins – A quick pump at launch by a few preminers / instaminers whose massive stake in the currency allows them to easily manipulate the price up, create an impressive market cap and percentage return which sucks in greedy investors through marketing hype, then dump it on them to send the coin crashing by 90% or more. PoW / PoS hybrids are particular notorious for this problem.

Launch: Scam distributions leading to short life of the coin because instaminers look to cash out early after an initial pump

Distribution of a new currency is a huge and underrated problem for competing coins. Bitcoin remarkably solved this by taking a patient and meticulous approach to issuing coins in a steady, consistent supply over a long period of time. Satoshi didn’t give himself higher block rewards than the other early miners.

Bitcoin took 10 months to obtain any value at all. Most founders of altcoins reward themselves with a massive percentage of the money supply within the first few days and have a coin worth millions within 10 days.

The problem of a “fair” distribution where the coin isn’t susceptible to early investors purposefully cashing out is a huge problem.

Current large coins that are particularly bad offenders of this are:

Peercoin 3rd biggest in the world

Blackcoin, 10th biggest in the world

Megacoin 21st biggest in the world

Lee Banfield


Tuesday 27th May 2014

“Don’t let speculative experiments at the margin distract from the most mind-blowingly awesome monetary system mankind has ever seen – Bitcoin proper” – Erik Voorhees

The altcoin market is a shambles. “Speculative experiments” is an overly generous description of almost all altcoins.

What is claimed to be “experimentation” or “next generation” is mostly a lying fraudulent mess of  worthless get rich quick schemes. This is unfortunate, as the stakes for creating a genuinely successful digital currency couldn’t be higher. Bitcoin is currently the market leader, but hasn’t won yet so you would think it would be all to play for.

This is not the case. Founders who have a decent name, brand, logo (blackcoin) or a seemingly decent feature (darkcoin) could not resist the temptation to cash in on a quick instamine pump and dump over a couple of months, rather than build a coin up that aims for real merchant adoption over a period of many years.

Bitcoin is a remarkable experiment. Despite having 5 years to create a better model, most competitors have failed to balance the tough problem of allocating a coin in a sustainable way.

Even after 5 years, nothing comes close to bitcoin in integrity and utility. – Lee Banfield


Saturday 2nd July 2016

In May 2014 I wrote a report looking to find a few coins that were potentially useful and not scams. I couldn’t find many because of the premined, instamined problem.

Most coins follow a predictable pattern. A quick pump launched by a few preminers, big hype, big market cap, scam people to get on board. Dumped. Crash by 90% or more. Often a dead cat bounce, doubling or tripling from those 90/95% losses, then a steady fall towards zero.


Here’s how the coins I analyzed on May 27th 2014 have performed since:


Category 1: Disqualified From My “Ethical / Useful List”


May 27th 2014: Market Cap = $11.3mill

July 1st 2016: Market Cap = $2.6mill


Lee Banfield, July 2016 Report: The Most Legitimate Altcoins


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