The Truth about Bytecoin

in #bitcoin5 years ago

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I have been wondering for a while now if Bytecoin was a project I could trust, but since I never invested more than a few dollars I never spent much time trying to figure this out. Dozens of articles on the internet are now claiming that Bytecoin is indeed a scam or at least that the developers have abandoned the project. Bytecoin has been called a centralized project for a very long time.

Most people would say that Bytecoin is a fork of Bitcoin, but really it is a privacy focused decentralized project built from scratch upon the Cryptonote protocol. What we know about Bytecoin is that it was launched in July 2012 to try to improve some things about Bitcoin. And we also know that the developers intentionally made Bytecoin easier to mine because it only requires GPUs.

However, Bytecoin is a little more sketchy than this. Bytecoin has a supply of 184 billion which is borderline ridiculous, but the darkest secret that Bytecoin hides is that Bytecoin conducted an 82% pre-mining of BCN before launching to the public. This means that the developers still have full control over the price of the coin because they hold such a large supply of the coin. And the developers or the holders of the 82% will basically be able to pump or dump the coin at will even at the expense of investors.

According to Richard Spagni, a lead developer for Monero with the username FluffyPony, he also said that, “BCN mining code was purposely crippled for slow mining. Recalculating a static value in every iteration of a loop instead of just once at the beginning is not a mistake, especially when viewed in light of the claimed 2 year history.”

If you still think Bytecoin isn’t doing anything shady then look back to May and the pump and dump of Bytecoin on Binance. Within hours of being listed on Binance the price of Bytecoin jumped significantly, and the trading volume reached 600 million dollars. The withdrawls and deposits on Binance and Poloniex were somewhat conveniently disabled. 10 days later Cryptonote-based coins ran into an infinite inflation bug—which allows an unlimited number of coins to be created that are not able to be seen by the users unless you do some deep digging.

Richard Spagni posted on Twitter that “anyone trading Bytecoin is about to get bitten, the infinite inflation bug still hasn’t been patched.”

The next day Richard Spagni posted again about how 693 billion BCN or about $1 million was artificially created within a few hours. Further, the Bytecoin team has their pictures on the website but does that mean that they are being open and transparent? No, not really. When you look at the pictures of the team members of their website—listed under the community section—you can’t really find any details about these developers or members and after everything you know it’s probably fair to assume that some of these pictures are not related to the names.

Even further someone tracked down one of the developers on the team through GitHub and he denied that he was a part of the team. As a result of this suspected pump and dump scheme by the team Bytecoin has been delisted from Binance. To be clear I’m not calling Bytecoin a scam, it might not be. But clearly there is a bigger risk of losing your entire investment in Bytecoin than some of the larger cap coins such as Bitcoin, Ethereum, Stellar, etc.

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I think your information is very important. I also have some byte coins. Actually these are very great and very fast transition A coin I think, its future can be a lot better. Thank you for giving you an important information.

Bytecoin dead

Thanks a lot as binance delisted this coin the price is dropped so I am thinking to invest in it but this information helps me a lot

ya cryptopia too delisted it yesterday

It is better to stay away from it after reading your article!

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There's been a bunch of pump and dump events with Bytecoin in the past.

When you look at the pictures of the team members of their website

Several of the pictures of Bytecoin and related project 'team members' were recently identified as identity theft here. Also see following messages and linked thread with more reveals.

Stay far away from this fraud, unless you feel like gambling on greater-fool type trading. People do make money that way, but know what you are getting into.

The greater-fool theory is real, but better to stay away here--too much bad news on this coin. Plenty of other projects with promise.

Well those who took the free ones from steemit may as well liquidate

Yes it was, made an error there that said Byteball also had prefork issues so mixed the two up in my head.

I've been in crypto for years now and I've always seen Bytecoin as pretty much a scam. Definitely a shitcoin. It has a long history of pump and dumps.

Thanks for the detailed article! Excellent post!

For the developers to have about 82% stake holding in Bytecoin truly shows that the blockchain is a centralized crypto coins, because they control and detect the price of the coin for their own interest. I once bought some Bytecoin sometime ago but I sold them all after hodl them for just some weeks because the price was plugging down steadily at that time @the4musketeer

Yeah, better to invest in a truly decentralized coin. crypto is supposed to be trustless, but several new projects come up promising that we can trust them or that we will get our money back, better to avoid these schemes as well.

Better STAY with the steem blockchain. It is more liquid, and had alot of use cases, and we have true/living community.

All other coins/token should be exchanged now into steem/sbd for a more stable crypto. Dont waste time to all those shitcoins.

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