While there are many new crypto products being released into the market daily, there are also growing concerns in relation to the the security of such services. In the past couple of months, there have been cases of frauds that have been reported by people who claim that after investing a substantial sum, the project that they invested in disappeared and went off the web. Since the laws in relation to crypto services are still not strong, it is useful to have certain security checks in place to ensure maximum protection.
Bitbase has been described as a service that will “allow users to recover their coins in case a transaction that goes bad.” While this may sound like an extremely attractive proposition, there are many aspects of BitBase which seem to be a bit shady.
Some of the elements of this service which users can look into include:
(i) Sketchy Details Provided:
With any service the first thing that has to made clear to customers are the finer details of the product. However, the BitBase whitepaper is quite vague in its data and there are no strategies that have been outlined to help users understand the mechanics of BitBase.
(ii) Poor Token Value:
Bitbase makes use of its own personalized currency that is not highly valued in the crypto market. In addition to this, market experts have predicted that the overall token value will not be able to sustain as time goes on.
(iii) No Team Details Provided:
Unlike other high quality blockchain platforms which provide a complete list of their members, and their credentials, BitBase does not provide us with any links to the project team members, owners or developers. Since the ICO is starting soon, it is quite surprising that there are no details available in relation to the identities of the core members.
(iv) Hidden Domain Details:
While all web domains are conventionally registered onto a public network, thereby making id verification easy. In the case of Bitbase, even a ‘Whois’ search does not reveal the name (person or company), address, or phone details of the person behind this project.
Is There Anything Else I Should Be Vary About?
(i) Not Open Source:
One of the best ways to ensure product transparency is by putting up the development code on GitHub. This not only promotes customer-company relationships, but also helps foster a sense of democracy within the network. However, Bitbase is not open-source, and its code cannot be viewed by anyone
(ii) No affiliated Projects:
Due to the fact that many crypto products are still in their infancy, they usually combine with other similar services to help create well rounded projects that are free of any bugs and errors. Bitbase has not been backed by any companies or other projects, thereby reducing its overall market standing.
(iii) No Working Model Available:
There is no beta version of the service available for users to check out. This is not only suspicious, but makes testing and validation of this product extremely difficult.
(iv) Not Listed:
When we checked online, we could not find any listing of BitBase on any major ICO sites. BitBase is not even listed on Smith + Crown, a well known tracking site that even keeps count of the smallest ICO’s.
Is BitBase a Ponzi Scheme?
According to the official company statement provided on their website, the ROI on this service resembles that of all other ‘money making businesses’ that claim to make use of ‘high-yield investment program (HYIP)’. In addition to this, it is also interesting to see that the ROI details are quite sketchy.
For starters, when we look at the project details more closely, we can see that the company claims that it will distribute/ give away profits that are equal to nearly all of its profit margin. This tactic is quite commonly employed by fraudulent businesses wherein they use ‘future profits’ to recruit new members to sustain the pyramid.
Bitbase In Conclusion
In our estimate BitBase is a pyramid scheme that is bound to collapse after a certain period of time. Since it needs an exponential increase in its participant ratio to sustain itself, it can be tough to keep profit margins high as time goes on. When there is insufficient investments coming in from new recruits, the entire structure will collapse.