Cryptonex (CNX) – Uses Scrypt & Proof-of-Stake
Cryptonex (CNX) is a cryptocurrency which originated in Switzerland and was founded by Pavel Kalinin in October 2017. It uses the Scrypt algorithm and is proof of stake (PoS), meaning users can earn CNX simply by holding it in their wallet and being connected to the internet. The network is maintained and secured by all wallets that are online, which is much more energy efficient than proof of work (PoW) cryptocurrencies like Bitcoin, which require an immense amount of mining equipment and energy consumption.
Users who stake CNX earn 12% interest annually plus commissions, which is a much higher interest rate than most other PoS coins, and leads to inflation that drives the price of the coin downwards. The transaction confirmation time for CNX is 1 minute, which is 10 times faster than Bitcoin. Thus, when using CNX, traders can move money much faster between exchanges, allowing them to profit off arbitrage opportunities and market changes.
Majority Of CNX Held By Developers
The coin was released via an initial coin offering (ICO) where users purchased CNX with Bitcoin, in addition to a bounty program where users were rewarded coins for advertising Cryptonex on social media and for development work. 15 million CNX were allocated for the bounty program, and 85 million for the ICO, but the ICO sold nowhere near that many coins.
Currently, there is a total supply of 106 million CNX with a maximum limit of 210 million that will be achieved after years of staking. Only 45 million coins are in circulation, however, meaning the developers are holding 61 million coins. Although Cryptonex is based on decentralized technology, the developers essentially have centralized control of the market since they own a lot more coins than everyone else combined, and they can suck money out of the market at will.
A Risky Investment
This, combined with the high inflation rate from staking, makes Cryptonex a risky investment choice. So, it is logical to think that the price will struggle to rise until all the coins the developers hold are put into the market. The value of CNX was $3 in October 2017. This was around the time it first hit the exchanges, and rose to a peak of $10 in January 2018 when the rest of the crypto market hit all-time highs due to a massive speculative bubble.
Since January, the price has steadily declined and now hovers near $5, yielding a market cap of $223 million. This makes the crypto-platform the 56th highest in terms of market cap, and combined with daily trading volume in excess of $1 million indicates Cryptonex is quite popular.
Easy & Anonymous Transactions
The primary purpose of Cryptonex is to provide an easy and anonymous way to convert money between all the various types of cryptocurrency and fiat. While it is true that it has achieved this goal via being listed on exchanges, it is nothing unique. Bitcoin has already served this purpose for years before this crypto-platform even existed.
The lack of anything new or remarkable about Cryptonex, combined with the developers holding most of the coins, likely indicates the entire project is simply meant to make the developers rich. So, if you are a wise crypto enthusiast or investor, you should not play into their scheme.