FUD (fear, uncertainty and doubt) is defined as a strategy used to influence perception by disseminating negative misinformation. But why do some crypto projects attract so much FUD, while others are ignored and left alone?

It’s because only the projects that pose a threat are worth fudding. Nobody bothers to fud inconsequential projects — because what would be the point?

If you’ve been involved in the crypto space for a while, you’ll have noticed that two of the most heavily fudded projects are XRP and Skycoin. XRP is a well-known platform, and the degree to which it might threaten other crypto projects and non-crypto establishments has already been widely covered.

So this article focuses on the comparatively unknown Skycoin platform. First we’ll review the barrage of FUD endured by Skycoin, and then we’ll discuss the reasons why Skycoin is considered such a threat.

Skycoin FUD

This is a brief summary of the FUD targeted at Skycoin, all of which has been thoroughly debunked at SkyFUD.com. Click the relevant link for more detail about each of these accusations.

Who feels threatened by Skycoin?

Most crypto projects focus on one thing. They’re a privacy coin. Or they’re a DApp/ICO platform. Or an exchange token. Or a transactional currency. Or a store of value. Or a decentralized Internet solution.

But Skycoin is all these things and more. Skycoin is not just a cryptocurrency. It’s a comprehensive blockchain ecosystem that incorporates a multitude of carefully designed and integrated components.

1. The Skycoin currency itself is a store of value. It has a maximum supply of 100 million coins (no new coins can be created). This means the currency will rise in value over time as the growing user base competes for the limited supply. There aren’t even enough coins for every adult in the USA to hold half a Skycoin each. This means Skycoin is a threat to other store-of-value cryptos like Bitcoin, and even to traditional stores of value like gold and silver.

2. But Skycoin also incorporates an inflationary parallel currency designed to be spent rather than hoarded. Skycoin Coin Hours are constantly generated at a rate of one per hour for every Skycoin held. So a wallet holding ten $SKY will accumulate 240 $CH per day. These Coin Hours can be spent on bandwidth or storage on the Skywire meshnet, or they can be used for in-app purchases within Skycoin Fiber games and applications, or they can be traded for fiat or other cryptocurrencies. This encourages spending and creates a real crypto-based economy. It also means Skycoin poses a threat to transactional cryptos like Bitcoin Cash, and even to traditional fiat currencies.

3. The Skycoin currency is lightning fast, with free transactions that complete in roughly three seconds. Transactions can be conducted from a range of Skycoin wallets, including desktop wallets (Windows, Mac and Linux), mobile wallets (iOS and Android), and even the Skycoin hardware wallet. This threatens other fast low-fee coins like XRP, XLM and APL (none of which have their own dedicated hardware wallets).

4. Skycoin incorporates privacy and anonymity via the CoinJoin protocol. This poses a threat to privacy coins like Monero and Dash. It makes little sense to purchase a coin created solely for privacy when the Skycoin platform seamlessly includes privacy as just another one of its many features.

5. Skycoin has a full programming language (Skycoin CX) for creating games, apps and smart contracts. It also has a platform for launching ICOs (Skycoin Fiber). Many games have already been released on CX, and multiple ICOs have already launched on Fiber (MDL and Solar Bankers are two examples). This threatens other DApp/ICO projects like Ethereum, EOS and Cardano.

6. Skycoin includes a decentralized meshnet service called Skywire. This threatens other decentralized Internet projects like Substratum and Holochain. It also threatens legacy ISPs such as Comcast.

Click here for a detailed analysis of Skywire versus its competitors

7. Skycoin’s revolutionary consensus algorithm, Obelisk, makes Proof of Work and Proof of Stake consensus algorithms obsolete. Most other crypto platforms use either PoW or PoS, meaning Skycoin poses a threat to many of these projects. A comprehensive comparison of Obelisk versus PoW and POS can be found here.

8. Skycoin will soon incorporate a Decentralized Exchange (DEX) into its various wallets. This will enable Skycoin holders to trade $SKY and $CH for a wide array of other cryptocurrencies including Bitcoin, Ethereum, and ERC20 tokens, without leaving the SKY wallet and without storing their coins on risky traditional exchanges. This poses a threat to dedicated exchange tokens like BNB and KCS.

Conclusion

Considering the breadth and magnitude of the project, it’s easy to see why Skycoin is the target of relentless fud from nervous competitors. So the next time you read something negative about the Skycoin project, ask yourself this question… “Who is writing it, and what is their motive?”.

Because it’s likely the fudder is working for (or has invested in) a competing project, and therefore feels threatened by Skycoin. Remember — nobody wastes their time fudding inconsequential projects. If something is being heavily fudded, that means it must pose a serious threat.

It’s impossible to know which of Skycoin’s competitors are generating the bulk of the fud at any time, however the Substratum community was recently exposed as being behind many of these attacks. The articles and videos below cover these revelations in more detail.

1. Anti-Skycoin Paid FUD Group Exposed

2. Defamation and Coordination: Substratums Ugly Secret