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Neucoin Scoops Up 2700 BTC in 2 Days – Best Coin Presale Since Ether Sale

neucoin-presale

Micropayments alternative currency Neucoin has raised more than 2700 bitcoins in a presale that began on 28 April. 2700 BTC is equivalent to more than US$632,016 at today’s price of US$234.08 per BTC.

That amount does not come close to the success of Ethereum’s July to September 2014 crowdsale, when it collected a total of 31,531 BTC or US$18,439,086 at the time of the sale, but it is the most successful coin or token sale since then.

The real-time results of the Neucoin offering in bitcoin amount is available on Blockchain.info here.

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The Neucoin crowdsale has sold over 91 million coins, with 100 million the target of its founders and when the sale will cease. The price started at 25,000 Neucoins per Bitcoin and is increasing 1 per day.

Neucoin’s founders say they will use the crowdsale money to fund further development and community marketing efforts.

Neucoin is a decentralized peer-to-peer cryptocurrency derived from Sunny King’s Peercoin, which itself is derived from bitcoin technology. Like Peercoin, Neucoin replaces the Proof-of-Work (PoW) method with Proof-of-Stake (PoS), which secures its network and achieves distributed consensus through requesting users to show ownership of a certain amount of currency. PoW requires the running of difficult hashing algorithms to validate electronic transactions. PoS attempts to avoid Bitcoin’s main flaws, namely high costs and increasing centralization.

Neucoin forked the original PoS design created by Peercoin and made sixe key modifications to increase security, according to the cryptocurrency’s White Paper. These are the changes:

  1. Mining reward rates: NeuCoin dramatically increased coinstake rewards for mining in order to maximize the percentage of coins being mined at all times, which is the bedrock of security in any PoS cryptocurrency. NeuCoin’s rewards start at a 100% annual interest rate and decline steadily over a 10-year period to a 6% rate – versus just 1% per year in Peercoin.
  2. Minimum stake age: NeuCoin’s design uses a 1.6 day minimum stake age versus 30 days in Peercoin. This increases mining participation by making a miner’s coin holdings eligible for awards after 1.6 days of acquiring them (or getting a reward) instead of having to wait 30 days.
  3. Role of coin age in the mining equation: NeuCoin does not utilize coin age (dayweight) in the mining equation as a factor for determining the probability of generating a block. This change increases mining participation because if miners are more likely to create a block only after mining days or weeks, they lose incentive to mine constantly and may instead only mine when their chances of a reward are higher.
  4. Block time: NeuCoin uses a block time of 1 minute, versus 10 minutes in Peercoin, which improves user experience and enhances security against some attack vectors.
  5. Stake modifier: NeuCoin chose to adapt BlackCoin’s stake modifier, which constantly changes over time, rather than Peercoin’s, which permanently fixes the stake modifier after the initial stake interval for a given set of UTXOs (staked coins). NeuCoin chose this path because it believes that Peercoin’s design is susceptible to preprogrammed attacks: having a static modifier allows you to predict outcomes far into the future. Modifier interval and selection interval were substantially adjusted relative to both BlackCoin and Peercoin in order to reduce the effectiveness of grinding through stake modifiers.
  6. Duplicate stake punishment: NeuCoin uses a client version developed by Michael Witrant, aka “sigmike” (core developer of Peercoin and Technical Advisor to NeuCoin), that not only detects duplicate stakes so that honest nodes can reject them, but also punishes nodes that broadcast duplicate stakes by rejecting all blocks broadcast by the dishonest miner. This revision completely addresses the concern that PoS designs cannot reach consensus due to miners mining on multiple forks.

Founded by Daniel Kaufman and Johan Sandstrom, Neucoin anounced a successful seed funding round of $2.25 million in February 2015 that including angels who included executives from Uber, Hotwire, and Facebook as well as a co-founder of Candy Crush, according to Brave New Coin.

Journalist, policy analyst, and evangelist of new, disruptive technologies including big data analytics, Internet of Things, and cryptocurrencies. Internet industry veteran with regional c-suite experience, and journalist credentials earned at internet.com, Internet World magazine, and Mecklermedia Corporation.
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