Is Verge a scam?

in #verge6 years ago

please explain to me if VERGE is a legit project or a scam.

things i especially care about not found on their website:

  • how is concensus secured and decentralized
  • how have coins been distributed. how are coins decentralized/distributed among users
  • who are big holders/parties and has there been any scammy ways of enriching founders etc.

looking forward to your insights

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Verge is basically a fork from DOGE, previously called DOGECOINDARK - Since it was a fork from DOGE, its exactly the same in almost every aspect except for the privacy protocols.

Consensus is supposed to be achieved by Proof of Work just like DOGE (who is also a BTC Fork)

As far as I know VERGE was distributed or has been distributed Fairly. No premine, and the developers that took over the project bought their stakes on the market. (this is the claim at least)

As far as I know there has been no scammers in the dev team, but there have been hacks and those numbers are numbers are up in the millions and this has happened more than once, which makes one wonder what is really happening.

The dev team overpromised and under delivered a few times. The wraith protocol was delayed over and over and it made a lot of people lose faith.

As far as I can tell, the project is not a scam, but its not managed properly. At least in my opinion. I would not be a long term holder of the token as the only use case (paying for porno) is pretty silly imo.

Ok but doge is not private, so can u explain the difference? I understand doge pretty well as well as bitcoin.

Check out this report: https://intelligenttrading.org/guides/research-report-deeponion/. It is on DeepOnion but it gives a good overview of the different ways that coins seek to achieve privacy. Taken with some of the comments regarding Verge, you may conclude that what Verge is doing is not that effective, comparatively speaking.

According to the report, IF DeepOnion is successful at doing what they are setting out to do, they would be one of if not the most comprehensively private coins out there. BTW the website has only produced one other coin-specific report that I have seen, and it was on Cardano.

Back to Verge, here is the second in a series of articles in response to the two 51% attacks earlier this year (link to the first one available there): https://blog.theabacus.io/lets-do-the-time-warp-again-the-verge-hack-part-deux-c6396ab36ecb.

I cannot speak to the accuracy, but what is described is certainly concerning. It seems more like incompetence than scam.

Having said all that, I have successfully speculated on Verge price and continue to do so. In fact, I just posted a Verge price analysis (short term) if anyone is interested.

can u please post a top level comment so I can give u part of the bounty

Sure, will do, thanks!

Oh yes, important little detail...

When a transaction is done it uses anonymity centric networks like TOR (the dark web). So that the addresses, the IPs are obfuscated and that makes it of course untraceable.

So their trick is to run parallel on the Dark Web network... I think they also use I2P as well.

However, some claim that's not good enough, hence why the wraith protocol was to be the "big difference" however... as I've said they under delivered.

Verge has a transparent ledger that allows anyoneto view all of its transactions, but protects user identities and locations by integrating both Tor and I2P to not expose IP addresses. As for the specifics of how Verge offers that anonymity, it’s an open source project that leverages Tor, which hides your IP address by encrypting your traffic and bouncing it through a chain of computers around the world, and I2P, which differs in practice but offers the same broad strokes peer-to-peer routing. And using the so-called Wraith Protocol, Verge users can make either public or private blockchain transactions.

Hi @knircky Verge is not a scam, it was not premined, so no one got ripped off in an ICO
I do not recommend investing in Verge. It started as Dogecoin dark and the original developer did it as a hobby, it was rebranded into Verge and focuses on privacy.
Verge uses Proof of Work consenses, you can mine it with the following 5 algorithms: Scrypt, X17, Lyra2rev2, myr-groestl and blake2s. It probably isn't economical unless you have a lot of cheap electricity and powerful GPUs or you join a pool. The information is in their forum here https://vergecurrency.com/community/mining/

Verge is an open sourced project, see here https://github.com/vergecurrency they are funded through donations (not scammy) since it is a privacy coins it is very difficult to know who holds Verge. There will be 16.5B Verge and now there are 15B, a couple years ago there were 9B so they should be all mined in the next year or so.

Verge is not evenly distributed. Here are the stats https://verge-blockchain.info/richlist one wallet has 25%, the top 100 wallets have 96 percent.

Pornhub gave away a lot of Verge coin which doesn't help it's reputation.

I don't own any Verge and am not a fan of privacy coins. The lack of distribution is troublesome and there isn't a good way to reward Verge developers. I'd stay away from it not because it's a scam (it isn't) but because it is not a good investment.

I haven’t heard much good about it other than shills and hype. I know they did a deal with Pornhub but pretty sure that didn’t go well due to forcing action and not real market demand. I believe it’s purely a hype coin. I doubt it’s gonna make it long term. Based on my twitter feed I’m gonna avoid this coin. But I avoid most coins so this may not mean a lot. :-)

I am the same way, and I have not invested in it yet. But I want to understand.

Good question! However I can't answer it with certainty, I can say that it is among the list of my most hated coins. What does it offer which other coins don't - speed with low transaction cost, privacy or is there something more to it? With multiple attacks, huge hacks, missed deadlines and unjustified hype from its promoters I don't perceive it as ethical project. It's understandable if hypes are created by 3rd parties but if promoter themselves try hard to create a hype, I personally, would like to stay away from it.

If you are looking for some serious investment, there are plenty of great and interesting projects out there. Why invest time in researching a dubious project? I only bought XVG a few times only to transfer my funds from one exchange to another due to its low withdrawal cost but never thought of investing in it.

But if you are looking for a huge gain then I understand you must be willing to take a proportionate amount of risk too. Good luck to you for that!

I don't know if it's a scam, but it does seem to get hacked a lot. I hope they fix that for the sake of its holders.

To the question in your title, my Magic 8-Ball says:

My reply is no

Hi! I'm a bot, and this answer was posted automatically. Check this post out for more information.

Verge es una criptomoneda anónima resultante de una bifurcación de bitcoin. Su énfasis principal está dirigido a la privacidad, valiéndose del uso de redes centradas en el anonimato como TOR e i2P, de esta forma se aseguran que las direcciones IP de los usuarios se confundan y las transacciones sean imposibles de rastrear.
Esta criptomoneda nació en el año 2014 con el objetivo de brindar seguridad y privacidad a los usuarios. En sus inicios fue bautizada como DogeCoinDark y luego fue relanzada con el nuevo nombre de Verge en el 2016.
La criptomoneda Verge utiliza el método de consenso de prueba de trabajo (Proof of Work) al igual que Bitcoin, pero esta tiene la particularidad de que posee capacidad de minado en cinco algoritmos diferentes, los cuales son Scrypt, X17, Lyra2rev2, Myr-Groestl y Blake2s.

La ventaja de usar cinco algoritmos diferentes en su proceso de consenso, es otorgar la posibilidad de acceso a la criptomoneda al mayor número de personas posibles, indiferentemente de la configuración de minería que estas posean. Verge hace énfasis en la privacidad como su propósito principal, haciendo lo posible porque sea una verdadera alternativa segura y anónima en cuanto a las demás criptomonedas.
Verge no puede ser adquirida mediante moneda fiat, sino que debe comprarse otra criptomoneda como Bitcoin o Ethereum para luego poder realizar la compra de Verge.
Verge es un proyecto interesante con un enfoque que muchos usuarios de la comunidad valoran hoy en día, su accesibilidad en el aspecto de la minería también le añade puntos extras. Aunque tiene competencia significativa como Monero, Dash y Zcash, sus características de ser un proyecto totalmente descentralizado, de código abierto y con mantenimiento de sus propios colaboradores hacen que su comunidad le otorgue gran valor a su propósito. Además de esto, su precio la hace candidata a ser una de las criptomonedas más accesibles y con posibilidades de crecimiento.

It is very interesting, but how could we know if it is scam? @knircky

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Hi Knircky. I think this post + video from the always great @cryptovestor gives a good outlook. In his opinion it is probably not a straight out scam but there are reasons to be very skeptical about it.

https://steemit.com/verge/@cryptovestor/verge-the-big-announcement-trading-opportunities

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