As I start to write this article, Storeum (STO) is trading at just over $2, an 800% daily increase in price (see end of article for where it goes after just 20 minutes).
Even Yahoo Finance via Coin Rivet covered the story, claiming that this astronomical jump in price smells awfully fishy.
So what’s prompting this huge movement? Are we looking at a new promising technology or just a pump and dump?
Well to answer this question let’s pivot for a moment to Chris Burniske’s and Jack Tatar’s book, Cryptoassets. On page 159, they list two key vetting strategies in determining the likelihood of a scam. They write,
- “First do a Google search for “Is ______ a scam”
2. Then check to see if the project’s code is open source by searching for the coin + GitHub.
So let’s conduct their test.
Well plenty coming up in Google, not to mention the Yahoo/Coin Rivet article presents several red flags.
OK, onto the open source test, an indictor of whether the open source is made freely available. Hmmm, one repository available. Don’t like the signs of that. Just to give you some comparison, Ethereum has 216 repositories available.
I suppose I could break down the technology and we could discuss whether their version of a decentralized peer-to-peer marketplace holds merit. Then again, by the time I finished this article (20 minutes later), the coin dropped in price by $1.
Best to avoid it all together.