We have covered the misery around Bytecoin on several occasions. After getting canned from Binance and other big exchanges, there are couple of team members (probably some freelance community manager) still surfacing from time to time to promise the “new roadmap” before diving back to obscurity and opaqueness of the Bytecoin desert.
One of the BCN users had a pretty plausible explanation what happened with Bytecoin and where are the developers and core of the team:
“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?”
If you recall, the top exchanges listing caused the price of this coin to jump to $0.018 and its market cap to go over $3 billion before the issues began. The “private and untraceable” Bytecoin apparently wasn’t prepared to handle this much of an investor interest, as the network “crashed” with no explanation immediately after this massive price spike. No one was able to withdraw or transfer their BCN tokens and the panic kicked in.
Bytecoin’s official Twitter page said back then:
“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.”
Immediately the price started dropping and people started going wild. Accusations that Bytecoin team is performing a textbook pump and dump scheme started flying in from all 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.
The pump-and-dump pattern can be clearly spotted on the graph
Because this was a network issue, which was later confirmed by Binance and CoinMarketCap, the fears that BCN developers actually performed a pump and dump on its investors aren’t baseless.
As things stand, the coin never recovered from that event. The price fell down to around 40 satoshi and was pretty much flatlined there before the recent market movements seemingly moved it into green. The fears of manipulation still ring true as the coin has dropped quite considerably even after its latest run. So for now, the few holders of Bytecoin who still blindly believe in “the father of Monero” do not and probably will not in the future have much reason to be joyful about their bag.
Bytecoin was a scam all along
According to Monero`s lead developer Riccardo Spagni:
“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.”
82% is a huge number of coins to be premined and gives the developers and stakeholders the opportunity to influence the price of BCN solely with their holdings. What is more, this opens the possibility of a “pump and dump”, meaning that the premined Bytecoins can be dumped on the market which, in turn, would 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.
Another concerning fact about Bytecoin is that is has been on the market for so long and yet, very little is known about its developers. Even in the official website of the currency, you can only find pictures and first names with no detailed information.
To conclude: if you are stuck with bags of this shitcoin, sorry for your loss – sell it if you can and take it as a valuable lesson for the future investing decision.
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