Appcoins Are Fraudulent
Appcoins. What a great way to fund an open source project, right? The idea began with Mastercoin, but seems to have jumped from there to become its own meme. You just create an app, and then make it less convenient by creating a cryptocurrency (or “appcoin”) that is required to use it, some of which you sell to investors to pay for development of the app. There’s no way that couldn’t work! It’s just like selling stock in a company, right? Wrong. As will be shown, whereas the value of a stock is related to the value of the company that issued it, there is no such connection between an....
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A quick scan of any popular cryptocurrency forum will reveal numerous announcements for crowdfunding campaigns intended to support the launch of a new altcoin or decentralized application. In these crowd sales, digital tokens associated with the application (called “appcoins”) are sold to early adopters in an effort to raise capital for the new project. The hope of many who purchase appcoins in a crowd sale is that the price of the coin will go up significantly if the application becomes widely adopted. In response to these crowdfunding campaigns, some have warned that certain appcoins....
Initial coin offerings (ICOs) and appcoins are a hot topic in the blockchain community these days. Forward-thinking investors have thrown their support behind the movement, thought leaders have proclaimed that ICOs are turning the traditional venture capital model on its head, and bitcoin industry veterans have launched hedge funds to invest in blockchain tokens. I expect this discussion and activity to gain momentum in 2017, but I remain skeptical. As the most active investor in blockchain startups, we at Digital Currency Group are uniquely positioned to capitalize on the growth of ICOs.....
While many people believe there is a divide in the Bitcoin community when it comes to the early-adopting libertarians and the new breed of venture capitalists, it seems that the real battle in the world of cryptocurrency is between Bitcoin and appcoins. Around the same time that Chris Odom, the creator of Open Transactions, was dismissing the relevance of altcoins at InsideBitcoins London, Bitcoin core developer Jeff Garzik was tied up in a public spat with the NXT community. As someone who has been suspicious of projects that create their own cryptocoins for quite some time, I'm happy to....
The US Department of Justice (DOJ) announced the arrest of Alabama resident Eric Council Jr. in connection with the infamous hack of the US Securities and Exchange Commission’s (SEC) X account in January 2024, which resulted in a fraudulent post falsely claiming that the SEC had approved the listing of Bitcoin exchange-traded funds (ETFs). Fraudulent […]
A federal jury has convicted the founder of “My Big Coin” in a fraudulent scheme that swindled $6 million from cryptocurrency investors. The defendant made several false claims, including that the coins were backed by gold and that the company had a partnership with Mastercard. My Big Coin’s Founder Convicted The U.S. Department of Justice (DOJ) announced Thursday that the founder of My Big Coin Pay Inc. (aka My Big Coin), Randall Crater, has been convicted in a cryptocurrency fraud scheme. The 51-year-old from East Hampton, New York, defrauded investors of over $6....