It sounds like a cool idea, and has a great intention, but I don't see this ending well personally, though maybe I missed something. Please correct me if this is the case.
It seems to fly in the face of the concept of open markets, which is a major reason for bitcoin's success; and are investors really the right people to be deciding what is and isn't a shit coin?? This sounds like something that would be turned into a tool for pump+dumpers to me; Imagine - you make a shit coin, pump the hell out of it, dump it, buy back in, the shieldcoin community notices and finally gets around to voting this coin as a "shitcoin"
- at this point, the dumper is ready to move to shieldcoin, so not only do they get all their profit from pumping and dumping their "shit coin" (which is really subjective, at this point, bitcoin is a shit coin compared to many coins not taken seriously or valued, and joke coins like doge become legit successes. Who are we as investors, not devs, to make that decision?? many traders don't have the first idea why any of the coins work) Just imagine, for a moment, a bunch of greedy people with no technological knowledge voting on coins based on their innovations.
So basically what I'm saying is, this coin looks like something that would make shitcoins more profitable to churn out and pump, since it adds an extra layer of profit for the pumpers far more than it would for any bagholder. I believe mainstream adoption of decently developed coins will kill the real shitcoins, not making another coin and devoting it to hostility towards open markets. People make stupid choices in every market, it's not really up to anyone but yourself to stop that from happening. Trust me, I know it sucks to lose money on a trade, but this..??
...With a coin like this, I would finally have a reason to mine shitcoins!!! I didn't before. Should I be buying doge again? It does nothing, and is deemed the shittiest coin, yet it's been to nascar and saved starving childrens' lives. I really don't see how we could possibly play crypto-god in the way shield intends to, it is not our place to do such a thing. Is this some kind of crypto-government??
The Coinshield System is based on the voice of the entire community (not just investors). The goal is to get it to a point where shitcoin devs make NO profit from creating these coins - this will reduce future scams/clones. Once established, Coinshield will devalue the shitcoin's value before it has any shot at succeeding. Any pumpers / dumpers who attempt to pump that coin's price will have to do a lot more then simply raise its value to get more CSD. Our trade algorithm will look at several factors, a few of which have not been disclosed.
Now if someone chooses to pump the coin via community backing, then the shitcoin would never appear on our shitcoin list, and it will not get a trade channel opened (How could it if the community is pumping it and not voting against it?). If they do decide to try the impossible, it will take time, this would ensure with high probability that their "death filled bubble" will burst.
If someone attempts to pump the coin by themselves, they will be fighting the entire community who is dumping on their buy orders. This in turn will help the community by increasing Coinshields value. This will also cost the pumper a significant amount of BTC. If they manage to raise the price however so slightly, our trade algorithm will still not allow them to profit heavily. They will also be fighting the community who is exchanging the shitcoin for CSD (With each trade the next offer is lower then the previous).
This is not playing "Crypto God" because we do not have the choice of what lives or dies, it is everybody else that does. We are just here to protect and amplify the community's voice as it grows.
What if someone makes an altcoin with lots of promises of new innovations, %1 premine and IPO.
He can just disappear before releasing the said promises and the community would realise that they got scammed.
It would be listed as a shitcoin.
When trading channels to CSD opens he will dump the coins along with everyone he scammed and get profit.