Bytecoin (BCN) Developers Allegedly Pulled Off a Phantom Crypto Theft in Exit Scam
There have been a number of times when we, and other organizations that have covered some of the misery involved with Bytecoin. After being ousted from the likes of Binance and a number of other major coin exchanges, there are a number of team members (probably some coming from its community management team) still emerging occasionally to promise a ‘new roadmap' before disappearing into the opaque mist of the Bytecoin landscape.
One of the long suffering BCN users came forward with a relatively plausible explanation of what happened with Bytecoin, and where the developers and core of the team have run off to.
“The devs left the ship, did not you notice? the last move they made was, list in binance, send their bcn there, disable all bytecoin portfolios with a DDOS (the Bytecoin wallet allows a DDOS attack that leaves the network dead, if almost no hashpower) and while everyone was trying resuscitate the portfolios they culminated one of the biggest scams of cyptomundo, they sold all their coins and now they do not need to say anything, they have achieved their goal, do not you see?”
As some would likely recall, the top exchanges listing caused the price of the coin to spike, sending its market cap to exceed $3 billion, which results in an individual coin jumping to $0.018, all before the mishaps and misery were to begin.
The otherwise allegedly ‘private and untraceable' Bytecoin apparently wasn't equipped to handle this much in the way of investor interested, culminating a crash of its network, with no explanation being immediately available for the community or its investors after the spike happened.
In this time, no one was able to withdraw or transfer their BCN tokens, and from there: panic snuck in and kicked off.
During this period of time, Bytecoin's official Twitter page sported the following message:
“The network is experiencing unusual high load. Transaction can be delayed, node synchronization can lag far behind. The team is working hard to solve this issue. It’s strongly recommended to avoid any transferring of BCN until the situation is resolved.”
Shortly thereafter, the price began to undergo a significant drop, with people starting to speculatively panic. A number of accusations began to fly that the Bytecoin team is performing a classic pump and dump scheme, and these only flew in a number of directions.
The price was indeed stuck around 50 sats before the Binance listing, and then it skyrocketed to 200 sats before the funds got frozen, which is a typical pattern that a PnD coin tends to follow.
So, it's because of this network issue, it was later confirmed by Binance and CoinMarketCap, the initial fears that BCN developers actually performed a pump and dump on its investors aren'y baseless after all.
Currently, as the lay of the land is right now, the coin never recovered from that initial panic. Since then, the price plummed to around 40 Satoshi, and has pretty much been in a state of flatline there before the recent market movements which allegedly moved it into the green again.
The underlying fears of manipulation still ring true as the coin has plummeted quite considerably even after its latest run. So, for the moment, the few holders of Bytecoin still blindly believe that it's still “the father of Monero” do not and probably will not, in the future, have much reason to be happy about being investors in this coin.
Bytecoin – Wolf in Sheeps Skin, A Scam all Along
Monero's lead developer, Riccardo Spagni had some comments to make over this week:
“The reality is that 82% of the coins were already mined before its ’public’ release. Even if the premined coins weren’t done so maliciously, it still means 82% of the coins in the hands of persons unknown and invisible. It basically centralizes a decentralized currency.”
Out of the cryptocurrency world, 82% is a vast amount of coins to have been pre-mined, and it gives the respective developers and stakeholders the potential to influence the price of BCN solely with what they hold. Along with this, this means the possibility of a ‘pump and dump', meaning that the premined Bytecoins can easily be dumped on . the market, which, as a result, can cause the price to drop significantly.
“Even if you take the fact that Monero is clearly leading the innovation race, I would think it dangerous to touch a coin where 82% of it is held by unknown actors who were not publicly observed during the period where they supposedly mined the coin. Having a shady history does not set a good precedent.” –Spagni also says.
It makes for a further concerning fact regarding Bytecoin that it has been on the market for so long and yet, there's very little information about the development team and its individual members. Even in the official website of the currency, you can only find a series of pictures and first names, but apart from them, there's nothing in the way of concrete information
TL;DR – If you are stuck with a large amount of this new type of shit-coin, sorry to hear about your misfortune. your best bet right now is to sell it as soon as you can and take it as a valuable lesson in making wiser investment decisions.