The War On Shitcoins Episode 11: Bitcoiin (B2G). The war on shitcoins is a Crypto.IQ series that targets and shoots down cryptocurrencies that are not worth investing in either due to their being scams, having serious design flaws, being centralized, or in general just being worthless copies of other cryptocurrencies. There are thousands of shitcoins that are ruining the markets, and Crypto.IQ intends to expose all of them. The crypto space needs an exorcism, and we are happy to provide it.
Bitcoiin (B2G) is one of the most obvious Bitcoin (BTC) copycats in the crypto space. This cryptocurrency has almost the exact same spelling as Bitcoin (BTC). This is dishonest since investors may get confused and accidentally buy Bitcoiin (B2G) instead of actual Bitcoin (BTC).
It only gets worse from there. Bitcoiin (B2G) claims to be superior to Bitcoin (BTC) as well as being the world’s first self-sufficient cryptocurrency ecosystem. The reality is Bitcoiin (B2G) is simply an ERC-20 token and has no redeeming qualities. Anyone could make an ERC-20 token within a few minutes with a free script.
Also, ironically, Bitcoiin (B2G) is dependent on the Ethereum (ETH) blockchain and does not have its own blockchain. This means Bitcoiin (B2G) is certainly not self-sufficient. It is true that Bitcoiin (B2G) can be mined, but this is a common option for ERC-20 tokens, and the mining actually serves no purpose for securing the network.
A total of 100 million Bitcoiin (B2G) were created and 15 million were sold in the ICO for $75 million, a price of $5 per Bitcoiin (B2G). It is mind boggling that this ICO raised so much money considering that Bitcoiin’s (B2G) whitepaper is a powerpoint presentation full of misleading statements.
Steven Seagal endorsed the ICO, which partially explains why it raised so much money despite being an unredeeming copycat. Further, the ICO used a multi-level marketing (MLM) scheme, where users got bonuses of up to 15 percent for recruiting other people to buy Bitcoiin (B2G). This is quite similar to a ponzi scheme.
Further, the ICO gave discounts of up to 50 percent if investors purchased $100,000 of Bitcoiin (B2G) at once. This makes it obvious that the ICO price of $5 was a farce.
Indeed, the highest market price of Bitcoiin (B2G) was just over $1 during a pump and dump this month, well below the $5 ICO price. Currently, Bitcoiin (B2G) is near $0.30, meaning ICO investors who purchased at $5 lost 94 percent of their investment if they HODLed.
It is known that at least 15 million Bitcoiin (B2G) were sold in the ICO, but it is unclear what happened to the other 35 million Bitcoiin (B2G) that would have been sold if the $250 million hard cap was reached.
It is quite possible that the developers of Bitcoiin (B2G) are dumping these 35 million coins onto the market. Indeed, the price of Bitcoiin (B2G) crashed hard after the rally earlier this month, and any attempts at rallies after the initial pump are being smashed down quickly.
Ultimately the developers of Bitcoiin (B2G) raised $75 million for a poorly built Bitcoin (BTC) copycat, using MLM tactics and celebrity endorsement. Supposedly, this ICO money was needed to fund development, but this does not make any sense since ERC-20 tokens do not cost anything to develop. Ultimately, everyone besides the people who launched Bitcoiin (B2G) took heavy losses. ICOs like Bitcoiin (B2G) are the exact reason that the Securities and Exchange Commission (SEC) is cracking down on ICOs.