On a regular inspection of the CoinMarketCap, ranking the coins by the biggest gainers of the last 24 hours, there is always a surprise or two popping out. This time it was Veritaseum, a coin that only diehard altcoin traders know something about.
What is Veritaseum and why has it gained so much in the last day?
On paper, the Veritaseum tries to achieve many things, but the essence boils down to enabling software-driven peer-to-peer capital markets. Most notably, this service is supposed to be provided without middlemen, brokers, or even banks. This “disruptive application of blockchain technology” offers its own smart contracts and distributed computing solutions to industries suffering from friction, inefficiencies, and high fees.
Veritaseum is full of disclaimers and offers you nothing in the future and has no credible team behind it.
So it is a typical mishmash project that does nothing of substance. (EDITED: we have falsely stated that their “whitepaper is mishmash” but it has been pointed out by avid community members that they don’t have a WP. We stand corrected, but this fact doesn’t change the gist of our message – the project is disputable).
The project itself is faced with scam allegations all the time and if you try to find out more about them, you quickly realize that those allegations actually have a strong foundation. The project has weak to non-existant social presence, no activity reports and almost no community.
This is a coin with allegedly 98% of the supply in its founder’s Reggie Middletown wallet. With less than 2% of the supply out in the wild, it’s not too hard to move the needle. Reggie is known to be a controversial figure in finance and insurance world.
All of this indicates that price jumps of this and similar coins are just whales trying to trick and catch naive noobs and drop their bags on them. Be careful of not entering their ploy and just stay away of these shady coins. This was a low volume pump and dump scam.
For the end, always bear in mind … if it talks like a scam, moves like a scam and acts like a scam then it must be.