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AsiaCoin Transitions to Proof Of Stake

AsiaCoin, trading as AC, is a recently released altcoin designed for the Asian market. It was launched on the 16th of April and is a hybrid Proof of Work / Proof of Stake coin. At the moment it operates under POW, but today it transitions to POS, joining the ranks of Peercoin, Reddcoin, and others. This makes today as good of a time as any to review this new coin.

Mining Stops As AsiaCoin Switches to POS

Scrypt ASICs are here, and thanks to GAW Miners, KNC Miners, and a handful of their competitors, the machines are flooding the Scrypt networks.  Like with Bitcoin cloud mining, Scrypt cloud mining is making it easier and easier to completely overwhelm small Scrypt cryptocurrency networks.

While other currencies are opting to go for multiple algorithms for ASIC resistance either running concurrently, as with Myriadcoin, or mixed together into one complex algorithm, such as Darkcoin and it’s X11 algorithm, AsiaCoin is going the opposite direction. Today’s switch is expected to deliver a price increase as multipools that have been mining AsiaCoin will no longer be able to do so and, therefore, we should see a reduction in dumping. The BlackCoin experiment has demonstrated how multipooling can be effective in absorbing the fluctuations of a pump and dump scenario, and AsiaCoin follows this lead.

Those looking at the coin today will be judging by more than just price. Many would-be-investors have caught on to the potential pitfalls of a pre-mined coin, but, with zero premine, AsiaCoin had no such problem. No IPO rigging, or jigging, here.

Proof of Stake is offered initially at an eye-catching rate of 100% for the first year.  After that, it drops to 2%, so there is a real benefit to early adopters. Even more amazing, it is currently available on about ten different exchanges, including Cryptsy, MintPal and Poloniex. This strong, initial endorsement by the exchanges might be considered very positive, especially given the age of the coin. We’ve watched many other altcoins lobbying long and hard to be included on exchanges, so the fact that some of the biggest exchanges are onboard is a sign of good support.

Can AsiaCoin Avoid Problems Seen in Bitcoin and Other Altcoins?

But what about past this first year? Whether or not AsiaCoin is more than just another opportunistic, region-specific variant will be reliant on it overcoming the problems faced by Bitcoin in the market. The banning/not banning, quantum flux state of Bitcoin in Asia has created volatility and AsiaCoin is only avoiding this at present by flying under the radar. With a trading volume of about 300 BTC per day across the exchanges, that might not be the case for much longer.

Additionally, while other new coins are innovating by addressing problems on a technical level, AsiaCoin is attempting to address a regional issue without offering anything that seems particularly new, or niche, to that market. While the developers may have put in place great safeguards against short-term price manipulation, the problems facing digital currencies in Asia remain as complex issues of politics and culture.

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