Six reasons why you should get started and download PandaBank to start earning 2.5% annual interest.
- Easy to Use
- Easy to Obtain
- Easy to Understand
- Earn 2.5% Annual Interest
- Low Inflation
- Global Mass Appeal
What is Pandacoin?
Pandacoin has launched a bitcoin derived coin on six USPs (see tag line). Primarily it’s marketing on simplicity, which could be a powerful message in a market that’s still predominantly technical.
So do the USPs stack up?
Panda coins Unique Selling Points
Pandacoin has spent some effort on user interface design, which is always appreciated in tools that are to be widely used. The UI follows established design rules around financial services, again a plus point.
However, Pandacoin appears to have done little to reduce the number of tasks a user is expected to undertake. Mining, for example. Although this is a stalwart of many cryptocurrencies, mining is not necessary to follow distributed patterns. It’s also a common source of confusion and often needs explained. In a coin aimed at mass market, it would have been simpler still to leave it out.
Accessing Pandacoin has been made smooth by the use of Paypal, lowering the barrier for those who want to use it as a currency rather than as an asset.
The other USPS are less convincing.
As the main argument behind their ‘easy to understand’ bullet, Pandacoin has provided extensive FAQs – a large manual. By implying that there significant topics to learn before use they’re actually making the altcoin appear more complex, not less. Are there really 35 comprehensive articles worth of must-know information before a new user can use the coin?
Financial Sleight of Hand
Likewise, the annual interest and low inflation features, although on the face of it sounding good for the user, don’t amount to much. Interest is the flip side if inflation. 2.5% on the value (from interest) and 2.5% off the value (paid to others in mining and transaction fees), nets out to close to zero. (Not quite zero as one is the reciprocal of the other, and you may not have you wallet open and online for the whole year to gain the full interest.)
They are right in saying that other coins suffer higher interest – they do. But that’s an argument for more transparency to the end user, rather than one for sleight of hand.
And high interest isn’t necessarily a problem. If the altcoin accumulates value, then it’s not noticed. If it doesn’t, then the inflation rate just needs to be clear and predictable to be accounted for. It is, however, an old-financial-world concern, which is presumably why Pandacoin are marketing it to it.
So in all an altcoin with an excellent aim, which it partly delivers and partly fails to live up to. Perhaps a marketing rethink would be helpful.