What is Mindsync (MAI)?
Artificial Intelligence (AI) has been one of the fastest growing industries over the past decade. Cryptocurrency has also been one of the fastest growing industries, so it was only a matter of time before a company that combined the two was launched.
Mindsync was a cryptocurrency project that was supposed to combine all the benefits of AI with cryptocurrency, but things didn't really pan out the way in the end. This article will cover everything you need to know about the failed cryptocurrency project called Mindsync.
What is Mindsync?
First of all Mindsync is a failed project, so this article will discuss what Mindsync was purported to do. We will cover how things turned out in practice in a later section.
Anyway, Mindsync was supposed to give owners of GPU computers the ability to rent out their unused GPU processing power. The renters of this processing power were supposed to be those running AI projects that needed extra processing power.
The project stretched beyond the simple supply and demand of GPU power – there is Amazon Web Services along with countless other cloud computing solutions for anyone looking to rent processing power.
Mindsync planned on building an entire community in the AI space that included experts on machine learning (ML) alongside lowering the cost of renting computing power. The project billed itself as an AI as a service (AIaaS) and expert as a service (EaaS) company.
The plan was to motivate experts to participate in the ecosystem by rewarding them native tokens (called MAI) on the Mindsync blockchain.
Of course, the project did not launch immediately on its own blockchain. All the talk in the whitepaper was simply the plan for the future. The project launched with an ICO on the Ethereum blockchain in June of 2021.
Things sort of fell apart almost immediately after the token launched when the founders did not add any liquidity to the DEX pools. To make matters worse, the founders blocked anyone that asked any questions about the lack of liquidity in the Telegram channel.
The next section will focus on some of the issues that Mindsync had and why we consider this to be a dead project.
The Problems with Mindsync
Mindsync has a lot of problems. Some of these problems were problems before the token even launched while other problems did not arise until after the launch of the token. This section will detail all the problems we have with this project.
The first problem we have with Mindsync is that it has anonymous founders. For us, a project that has anonymous founders is an almost immediate pass.
The fact of the matter is that it is far too easy to scam when you remain anonymous. Investors have no recourse against in cryptocurrency (ie. no chargeback) and they have even less recourse when the founders are anonymous and cannot be sued when they fail to deliver on their promises.
We only trust cryptocurrency projects from doxxed founders. We prefer founders that have some reputation in the cryptocurrency industry or the gaming industry if they are launching a play to earn game.
The only exception to this rule is privacy centric tokens like Monero and Bitcoin. Bitcoin was the first cryptocurrency project and Satoshi Nakamoto has proven that he probably is not going to rug pull the project.
To summarize, a cryptocurrency project launching in the current era with anonymous founders is an almost certain scam.
Weird Token Distribution
Another problem we have with Mindsync is that it has a rather strange token distribution. And by strange we mean that it’s not a particularly fair token distribution. Here is the token distribution:
- 50% of the tokens were sold to the public.
- 20% of the tokens used to fund the reward pool.
- 15% of tokens distributed to the team.
- 5% of tokens distributed to advisors.
- 8% of tokens distributed to the “Mindsync Foundation.”
- We can find no evidence of this foundation hence the quotes
- 2% of tokens for the bounty program.
The problem we have with this is not enough of the tokens were available to the public and too many were allocated to the developers or entities they control. 28% of the tokens were distributed to the founders, advisors, and the “Mindsync Foundation.”
That’s way too big of a distribution.
Now, this distribution did vest over a period of time. However, it’s important to note that the tokens were distributed to founders in October 2020 according to the smart contract, which means they had already vested by the time the project launched.
This is all a huge red flag and a sure sign to not invest in the project.
Delayed Launch… Twice
Another red flag, and at this point people had already become suspicious of the project, is that the founders kept delaying the launch of the actual project.
For those that do not know, when founders start delaying the launch of the project that almost always means that the project is a scam, which turned out to be the case with Mindsync.
Failure to Add Liquidity to The DEX Pool
Finally, the Mindsync team never got around to adding liquidity to the DEX pool. DEX pools operate by having a certain amount of Ethereum (in this case) alongside a certain amount of the token. The price reflects the amount of Ethereum in the liquidity pool.
Projects typically put some Ethereum in the liquidity pool. A normal amount is $30,000 to $50,000, but the more Ethereum a project puts in the pool the better.
The Mindsync founders did not fund the DEX pool with any Ethereum, so the price of the token did not change that much. People also really do not want to invest in a project that has no funds in the liquidity pool.
Anyway, this is a red flag because it means the founders either don’t have the money to fund the liquidity pool or they simply plan on building up the liquidity organically so they can drain it later by selling their tokens.
Mindsync Had a Good Idea
Mindsync turned out to be a complete scam, which is the sad reality of the cryptocurrency industry – most projects are scams. The thing with Mindsync is that the project was a really well done scam and the idea of the project was actually somewhat reasonable and practical.
The whitepaper for the project is 39 pages and is one of the better whitepapers that we have seen. It describes how their blockchain would work, the roadmap for the project, and has proper grammar, which is something that most scam projects never do.
It seemed like a promising project, but it was nothing more than a scam.
That said, it would not surprise us if someone took the Mindsync idea and actually made it work. Sure, it would require more effort than simply scamming people, but the Mindsync team has already laid the groundwork for how this project could work.
Is Mindsync a Good Investment?
No, Mindsync is not a good investment. This is essentially a dead cryptocurrency project. Do not be fooled if you see the price of the token increase by an absurdly large percentage in a very short period of time.
The token has almost no liquidity nor trading volume, so a single purchase order can cause the price of the token to increase by 1,000%.
To wrap things up, MindSync had a good idea, but the founders likely had no intention of turning Mindsync into a real project. It appears that the project was a scam from the beginning, which is a shame because the vision Mindsync had was actually pretty decent.