The cryptocurrency space is growing at an incredible rate right now. As of May 2018, there are more than 1,500 digital currencies, a vast majority of which have been inspired primarily by the first blockchain projects - Bitcoin and Ethereum. Many of these altcoins serve as the native currencies of their respective ecosystems, that is, they are essential to use the services offered by the platforms. Then there are coins which simply aim to serve as a digital currency with no governance and no other application, just like Bitcoin. In this article, we will take a look at one such coin - Firstcoin.
What is Firstcoin?
Firstcoin (FRST) is a digital currency just like its peers, except it is characterized by faster transactions. The Firstcoin Project also claims to support and coordinate with startups that show a great deal of promise and help them thrive in this competitive world. In addition to this, the website of Firstcoin Project also states that soon, it will be possible to purchase and share other digital currencies through ATMs.
The Firstcoin Project is also dedicated to making this planet greener through its Green Division through which, the project will plant trees in Malaysia and Romania. The project has also got a community known as Firstcoin Club. The project claims that members of this club can become a part of the coin’s success story, and for their efforts in popularising the club, members are rewarded.
While all of this appears to be fine, there are still a few traits that appear to be rather sketchy about this new cryptocurrency. First and foremost, the homepage of Firstcoin states that ‘it is inspired by the success of Bitcoin.’ It is worth noting that it isn’t inspired by Bitcoin, but by its success. Many cryptocurrencies are driven by the possibility of changing this world through blockchain, not by the idea of success.
One may argue that there is nothing wrong with chasing success, and that is absolutely fine. However, the Firstcoin Club community is another aspect of this token that is worth considering. The homepage states ‘the more club members help popularise the club, the more your Firstcoin will be worth.’ In simple terms, this means that you will become richer by having more people join this club. Sounds too good to be true, isn’t it?
As we dig deeper, we find that in order to become an active member of this community, you will have to purchase a ‘package.’ In other words, it is free to create an account on Firstcoin Club, but in order to activate your membership, you will have to buy Firstcoins. The packages vary across a broad spectrum, starting at ‘Starter’ for $100 and going up to ‘Pool’ and ‘VIP’ packages, costing $10,000 and $25,000 respectively. Depending on this deposit, you will be given your monthly mining rights and Eco Sharing rewards.
There is no doubt that we have seen numerous cryptocurrencies, a majority of which have similar features. However, Firstcoin is undoubtedly among the first cryptocurrency whose community has a ‘joining fee.’ After going through their business presentation, it appears that the entire system has been designed to get people to buy their tokens and join their community.
Lastly, as of May 2018, Firstcoin’s website has no mention of a whitepaper. Even though it is not mandatory, it is customary for such projects to release a technical whitepaper that highlights the technology used to create the currency among other things. It gives the investor a clear idea about the digital currency and its platform. Considering that Firstcoin hasn’t released a whitepaper at all, one can’t help but question its legitimacy. All these signs are clear indicators of the fact that this token may very well be a scam.
The coin’s total supply is capped at 110 million of which, 109.9 million are premined. FRST blocktime is 60 seconds and the block reward is 1 Satoshi. The system uses proof of work algorithm to achieve consensus.
Where to buy Firstcoin?
As of May 2018, Firstcoin tokens are available only on one exchange - YoBit. It was available on Sistemkoin, but it was recently delisted from the exchange.
FRST tokens can be stored in the wallets designed by the Firstcoin Project. These wallets are available for Windows, Android, and iOS, and can be downloaded from the official website.
It is possible to mine FRST tokens. To get started with it, you will have to download the wallet and may be required to join the community - Firstcoin Club.
Firstcoin Price Trends
At the start of August 2017, the price of 1 FRST token was worth approximately 3.45 USD. By mid-December, the same had gone up to $17 and was well on the path to cross the $18 mark. However, after the collapse of the cryptocurrency bubble in January 2018, the coin dropped all of its recently made gains. From $17, the coin plummeted to $2, losing more than 800% in the process. As of May 15, 2018, the price of 1 FRST token is worth 0.019 USD, while its market cap is a little over half a million dollars.
Risks Associated with Investing in Firstcoin
All the risks that come with investing in Firstcoin have been explained in the paragraphs above. If you are new to the cryptocurrency space, it is recommended that you stay away from this highly volatile token.
Instead, you should look into other traditional investment instruments like mutual funds. They are safe, legal, and if chosen wisely, can generate excellent returns in the long run.