Metronome: Innovative Cryptocurrency, Or Questionable Founders?
Previously, we wrote about an interesting blockchain project called Metronome back in October. This time, however, we wanted to dig a little bit deeper into what Metronome is really offering, and especially, who claims to be offering it.
You might be surprised when you find out who is behind this project...
Metronome – the basics
Metronome, as a cryptocurrency is quite unusual, or perhaps unique. It aims to be a solution for nearly all of the woes faced by current incumbent blockchains, especially bitcoin. Specifically, it aims to address issues such as supply limitations, self governance, and others.
The supply of the token is unlimited, and instead it offers a linear growth model of about 2% per year. This is similar to other linear growth tokens such as PIVX. After an initial supply of 10 million units is created, with 20% of that held for the developers, the supply will continue to grow slowly and indefinitely.
The project aims to hold a sale starting on February 5 (though this is listed only as a goal and not a hard and fast date). The sale will be held in what is essentially a reverse auction. The bidding will start at $500 per lot, though how many units are contained in each lot is unclear.
It may only be one metronome unit per lot. In any case, the sale will go to whoever has the highest bid. Supposedly, this method of sale will prevent whales from buying up massive portions of the token.
The official site states that all Ether (the only accepted currency for the sale) collected from the sale will go directly into Metronome smart contracts and not to the developers.
A cross chain cryptocurrency
What's also interesting about metronome is that it is not an independent cryptocurrency. Instead, it relies on other blockchains in order to function properly. The official site outlines the targets for where metronome will operate.
It states that first it will run on Ethereum, and later additions will be made so that it can run on Ethereum Classic, rootstock (RSK) over bitcoin, and Quantum (QTUM) to name a few. The project claims that if one of these blockchains becomes difficult to use or too expensive, that Metronome can rely on other networks instead.
What is especially interesting is the usage of Ethereum Classic. While Ethereum Classic has been growing in attention and price since the Ethereum Classic Summit in Hong Kong, not many real-life use cases have appeared for it yet.
So, it's possible that hardcore Ethereum Classic fans could come out in droves to support Metronome as a use case for the nascent chain. That is, if they are willing to look beyond who is behind it.
A less than reputable team
Who is behind the Metronome? While one could argue that the people behind it are "seasoned experts", others would say that some of them are infamous scoundrels of the blockchain world. The most notable of which is Peter Vessenes.
If you don't know who Peter Vessenes is, allow us to give you a brief history lesson. Vessenes is someone who is attempting to extract 158 million+ dollars from the Mt Gox fortune. Peter Vessenes was the CEO of Coin Lab, which was a Mt Gox partner.
Vessenes later claimed that Mt Gox broke its contract and consequently has been attempting to extract as much cash as possible from the remaining Mt Gox funds. Doing so directly hurts those who hope to eventually reclaim some of their lost money that was stored in Mt Gox.
Lawyer Daniel Kelman has been on the case against Peter Vessenes and is trying to stop him from making this outrageous claim which Kelman claims is fraudulent.
Vessenes' alleged involvement in other shady tactics
According to posts to the r/bitcoin sub Reddit, Vessenes also lied about being licensed, thinks the government should get more involved in bitcoin, that he made a power grab through the bitcoin foundation, and that he "destroys anything and everything he touches".
While Reddit may not be the most accurate source of information, it is fairly clear that Peter Vessenes has gotten himself involved in some questionable ventures, and that he is acting purely in his own self interest when trying to extract money from the Mt Gox fortune.
So how is he involved in Metronome? According to the official metronome website, Vessenes is the lead cryptographer.
Aside from Peter Vessenes, Matthew Roszak, who is the chairman and co-founder of metronome has also fallen under fire for his shady tactics. Specifically, the US securities and exchange commission or SEC filed an injunction against him back in 2006.
Along with four other individuals, the group was ordered to pay a settlement of over $432,000 based on a complaint filed in 2004. This all relates to Blue Rhino stock and a merger that was set to occur. While there were no criminal penalties, the SEC did file a civil case against him.
What does this mean for Metronome?
Various members of the cryptocurrency community online quickly spotted Peter Vessenes name, which led to the later investigation of other team members that led to the discovery of the SEC charges against the co-founder.
While the Metronome site does not make any attempts to hide who is on the team, a small amount of research will quickly yield waves of information, especially about Peter Vessenes and his alleged misdeeds.
Given his relatively negative public relations condition, it is very surprising that Metronome would decide to involve Peter Vessenes in their project. With this in mind, those interested in investing in Metronome may want to at the very least consider this before getting involved.
Disclaimer: These are writer opinions and should not be considered investment advice
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.