Over the course of a decade, the cryptocurrency sector evolved from “listing” only one asset, Bitcoin (CCC:BTC-USD) to listing thousands (CoinMarketCap tracks 5,504 and has 10,722 in its database). Much if not most of the altcoins or alternative cryptos out there in this crazy digital ecosystem are copycats of each other. But a few seek to evolve beyond Bitcoin’s peer-to-peer (P2P) money transferring capabilities. That’s where Long Coin (CCC:LONG-USD) comes into the picture.
Source: OSTILL is Franck Camhi / Shutterstock.com
If you’re looking for extensive analyses of LONG, you’re not going to get much, at least not right now.
And I’ll spare you some time if you’re one of those read-a-few-paragraphs-and-leave types: I’m skeptical about the future viability of Long Coin. I’ll get into the reasons why. For now, let’s talk about what the underlying blockchain protocol does.
From its website, the programming entity responsible for Long Coin describes it as a cryptocurrency and social blockchain network. Specifically, the platform facilitates the “ability to send a string of 256 characters to blockchain transactions.” Essentially, as the site states, it’s sort of a decentralized Twitter (NYSE:TWTR). As well, through LONG’s architecture, you can build “build more complex structures such as blockchain stores, social networks, lotteries, games, etc.”
Further, all “messages are also encrypted and the developer has no keys. You encrypt with your private key and the recipient’s public key, which is its address.” What might be the benefit of this technology, you might ask? Well, LONG’s developers provide a clue. “The entire blockchain is flooded with messages and it is not possible to track and decipher yours.”
Cynically, there is a massive demand for such untraceable social media network. For instance, I’m sure you’ve noticed that the internet can be a very angry place. Some of the banter is juvenile while other messages border on (or breach) illegality. Through decentralization, then, people have a platform for their most toxic takes.
Long Coin Tests Market Demand for Controversy
Now, I want to be 100% clear about something: I’m not suggesting that Long Coin is a cryptocurrency that supports bad behavior on the internet. For all I know, the platform could be built by Quakers to preach the good news to North Korea.
Still, I reserve my skepticism about decentralized social networks. Invariably, such privacy-driven and censorship-free platforms attract the ghouls of the internet. Again, don’t get me wrong — these platforms don’t exclusively attract bad actors. But you see, when you talk about decentralization and confidentiality, it’s absolutely inevitable that it becomes a platform for darker societal values — nationalism, xenophobia, religious intolerance and other too-hot-to-handle topics.
Granted, I believe that people should have the right to say what they want (within reason as defined by law). And big tech’s attempt to censor everything that’s offensive raises several criticisms: mainly, who’s watching the watchers? Still, I also understand that mainstream organizations don’t want certain content or material on their platforms. And that’s where the relevance of Long Coin comes in — the good, bad and ugly.
But the problem for decentralized social networks that flirt with anything-goes content facilitation is that there’s usually very little demand for such content. It’s why YouTube gets away with its content screening protocol. People would rather watch puppies doing silly things online then get radicalized over contentious political issues.
This dynamic is reflected in the Long Coin price. From Jan. 1 to March 30 of this year, LONG jumped approximately 725%. But following the crypto collapse, the speculative asset has shed most of this profit.
Use Your Common Sense
I don’t want to stymie creativity, especially in the blockchain space. But I can tell you right away that many have attempted to create an alternative to mainstream social media platforms. They simply don’t attract the volume that’s necessary for success.
Plus, the crypto market has exploded to nearly 11,000 assets. At time of writing, Long Coin ranks as the 3,222th coin by market capitalization at around $60,000, though both of those numbers will have likely changed in the time it took you to read this far. While LONG has generated chatter, it’s simply too risky for you to think about.
On the date of publication, Josh Enomoto held a LONG position in BTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.