Bitcoin’s recent brutal tumble below $10,000 sharpened many minds on crypto valuations. Lending platform Bitconnect slammed the shutters down hard on 17 January citing “continuous bad press”.
Ethereum founder Vitalik Buterin openly accused Bitconnect of running a Ponzi scheme. “BitConnect,” he said on Twitter, “really seems like a scam…an old school ponzi...bad actors hurt the community. period.”
Elsewhere fake news is hitting some valuations. Fraudsters are targeting apps, Twitter accounts and other social media to attack or feed valuation hysteria.
“Every day there’s a terrifying amount of scams and out-and-out fraudulent schemes,” one source told Capital. “I could raise money as a window cleaner and have a window cleaning token. Forget about them.”
Call to God
One newbie is BiblePay (BBP). It claims it’s the crypto currency for Christians and that it sponsors orphans (location uncertain). It has a website biblepay.org: “Clear your concience (sic) and help a community dedicated to supporting essential causes while maintaining the highest efficiency…extend the Jesus kingdom”.
Capital emailed BiblePay for more info. BiblePay replied. “The CEO/Founder,” the email read, "is Rob Andrija. Employees: 0. Developers: 1 full time, a few part time, seeking blockchain devs now. Based Out Of: Anonymous Location. God Bless You, Rob.”
No staff biographical information. A badly written website. A suggestion to pray for each other in ‘wallet prayers’. No address details.
Lock-down on privacy
To be fair, the value of many privacy coins is their anonymity. Well-known privacy coins like Monero and Verge make a point of it. It’s part of the bigger collaborative picture of crypto assets, sticking two fingers to big banks and the established monetary control system. Other privacy coins, such as PinkstarCoin, appear to bend that way too.
Camden Dore, token economics advisor at Crowd Machine, a decentralised peer-to-peer network player, thinks there will be growing demand for privacy coins as global authorities become more adept at tracking crypto assets.
“I’m bullish long term on these types of coins. As security features of cryptos are essentially their original value proposition this becomes central to their desirability as medium of exchange and stores of value.”