There has been an interesting plough of events inward the instance of the alleged India-based Ponzi scheme known equally GainBitcoin. Recently, later a Change.org petition from an outraged GainBitcoin investor surfaced, the grouping behind the system launched an Ethereum ICO (initial money offering) inward an endeavor to maintain the in all probability scam going.
For those who haven’t heard of GainBitcoin, it purports to endure a Bitcoin cloud-mining operation; the operation, inward turn, is connected to Amit Bhardwaj, founder of Bitcoin mining puddle GBMiners. Some Bitcoin companies based inward India, such equally Zebpay, convey warned their customers most schemes similar GainBitcoin due to the unrealistic profits for potential investors that are included inward their marketing materials.
With the launch of a novel token on Ethereum, combined amongst a marketing crusade that includes back upward from major Indian newspapers in addition to Bollywood celebrities, it appears this dubious system has novel life.
According to Bitsonline, GAW Miners Founder Josh Garza used a similar method when inventing Paycoin to proceed making payments related to his Ponzi scheme.
The Launch of a New Token
The novel token launched past times Bhardwaj is known equally MCAP, in addition to it was officially launched past times the Bitcoin Growth Fund, which is around other 1 of Bhardwaj’s creations. According to the website, the MCAP ICO raised over $19 1000000 at a sale toll of $5 per token. The website too claims nearly 5 1000000 MCAP tokens were sold, around at a discounted rate.
A video posted on the Bitcoin Growth Fund website has similarities to videos associated amongst the notorious OneCoin scam. For example, the video projects that, according to “various estimates,” the MCAP toll could become equally high equally $100 past times May 2018. The video goes equally far equally to recommend purchasing the token equally the toll declines equally a fashion to generate fifty-fifty higher returns.
The MCAP token is said to derive its value from investments inward cryptocurrency mining, simply the connecter betwixt the token in addition to cryptocurrency mining profits is never explained.
Although CoinMarketCap indicates MCAP is ranked 35th out of all digital assets past times marketplace cap, the cryptocurrency toll site indicates a circulating render of over xxx 1000000 tokens. According to Ethplorer, 100 1000000 MCAP tokens exist, simply it’s unclear how many of them are inward circulation.
The token is currently trading at a picayune nether $4 on cryptocurrency telephone substitution C-CEX. Veteran cryptocurrency trader Jeremy Ross told Bitcoin Magazine that C-CEX is “one of those exchanges you lot become to to purchase the trash.”
At this time, C-CEX in addition to EtherDelta are the entirely 2 exchanges where MCAP is listed other than an telephone substitution on the Bitcoin Growth Fund website. It’s unclear how reliable the trading information on the Bitcoin Growth Fund website is since it is too connected to Bhardwaj. OneCoin too hosted an telephone substitution for their ain money at 1 time, simply the exchange, Xcoinx, is currently offline.
A Cryptocurrency Book for Beginners
Like many scams inward the Bitcoin space, MCAP is targeted at beginners who create non know the start affair most these sorts of digital assets. Indeed, Amit Bhardwaj has a novel majority out, titled “Cryptocurrency for Beginners.”
The majority is priced at 1,499 Indian rupees (around $23 USD), simply those who purchase the majority too have 1,200 Indian rupees’ worth of MCAP for free, equally a fashion to larn started amongst cryptocurrencies.
In improver to peddling his novel majority to Bitcoin-related word outlets, such equally The Cointelegraph in addition to NewsBTC, Bhardwaj was too able to larn full, front-page ads for the majority inward 2 of India’s largest newspapers: Times of India in addition to Hindustan Times.
Multiple Bollywood celebrities amongst millions of followers on Twitter convey too sent out supportive tweets most the majority over the past times distich of weeks.
So, amongst the creation of this novel token, GainBitcoin at in 1 lawsuit has the might to brand to a greater extent than payouts to their investors because they tin entirely have their payouts via MCAP. With the Ethereum ICO, GainBitcoin has effectively created to a greater extent than money out of sparse air to maintain the system going.
Read Article Full Dubious Bitcoin Scheme Uses Ethereum ICO to Keep the Game Going : http://ift.tt/2sRp7by