Bitcoin Forum

A lot of altcoiners are always excited about the release of a new crypto currency that they rush into promoting and mining these altcoins which at the end of the day turn out to dip exponentially when they are listed on various exchanges or when they are lunched on their mainnets.
Of course mining these coins isn't a bad thing but unfortunately most of these coins are  scam projects. A lot of these developers create these coins as a profit only scheme for themselves and the earliest adopters. so in order to make profit they carry out the famous pump and dump.
During the pump period of the coin the developers and creators of these coins give the coin a high value which would look very promising and therefore draw more people into the adoption circle. Alot of These people fail to understand that since these coins are on a testnet, they are some what of no value.

Now how do they trick these so called miners?

During this pump period people who troop into mining these coins per say are willing to do anything possible so they could acquire as much  of the coin as possible. Therefore these developers introduce a referral and KYC scheme.
Here is the catch ;
these miners refer as much people as they can so they can increase their mining rate and their coins, which on the other hand brings more profit to the developers. Now the more people troop in to accumulate the coins the more KYC Data the developers can accumulate. These creators can later sell these data for their profit in the future.

And then comes the dump period here the coin is eventually launched and listed on  few exchanges and boom a coin which during mining was said to have a value of over $10- $20  drops to just a couple of cents making the average adopters accumulated coins to be nearly useless.

To further trick people to buying these coins after the launch, the devs and creators make up articles and stock charts insinuating that Bitcoin was just a few cents during its launch but it now has a value of over $43k so people should endeavor to buy much of these coins and hold them for a long while hoping that it would eventually rise like Bitcoin over time which is a lie.

Why waste  your time and risk your KYC data on the shitcoins?  when you can actually easily understand and hodl Bitcoin which is safer and decentralized. Don't be deceived that such coins in the future will turn out to be like Bitcoin.
There are many scam projects out there so make sure to research and most importantly avoid KYC.
Remember don't forget to keep your keys safe!!

Launch, not lunch.

It looks like you are using the wrong terminology here, or are shitcoiners actually calling it "mining" these days? I don't really follow that drama!

Mining is the process of performing real work using your real hardware with your real hashrate which means how much coin the miner mines is fixed and can not go up based on how many additional "victims" they've referred :P

In any case your other points are valid. These scammers rely on the greed of people to get their shitcoin pumped and dumped so that THEY can make a lot of profit as the rest of the participants are only gambling with their hard earned money.
The KYC scam that became popular during 2017 ICO craze is their way of maximizing their profit by selling "gamblers" personal information on darknet.

The truth is that no body can receive you if you didn't choose to get deceived by them with what they offer, people are so tuned to the pattern of going by everything that they see online and by the virtue of the packaging made on them, we tend to believe everything to be true as they have presented it on us without us taking extra steps ensuring that we are going for the right thing and not being tricked, when we are out there in look for possible means to earn money doesn't mean we shouldn't play safe as well and just accept anything that comes out way.

I don't get it how these developers make a profit by referring people to mine their own developed coins?

You may be trying to say that developers mine some coins first before they publish it that's pretty common those coins are mostly churned and burn once the coins gain value on the market developers who mine lots of coins will sell all mined coins and eventually die.

Also, if it asks for KYC that's not a good project better avoid them because most of them are just collecting KYC data from people that can be used later not only for selling the data but also can be used for scamming purposes.

They are potential new method where shit coins can be mined using mobile devices. It's more like airdrop not mining. From what I know about this, the developers designs the mining apps to airdrop free tokens every certain period.
 


Mining new coins on a testnet, has no negative outcomes, as you potentially have nothing to loose. When the coins are finally launched and listed on an exchange, their values at that point might be extremely high or low depending on it's speculation on the market. And so many early miners would rush to sell off their holdings making profits off them. I see nothing been lost here.


The only thing I guess would put many peoples security at risk is the idea of kyc, which I've seen so many of these new coins airdrop apps  force on users before they are able to sell of the coins. At this point, you are exposing your personal information to risks of unknown consequences. These developers just as op said may sell of your data and make profits of them. Again, you are exposing you information out on the internet for coins that it's value might not even be worth the stress. We should all be cautious in thing like this. No om eis saying that you shouldn't mine free coins but we should avoid anything that would endanger us directly or indirectly.



when it comes to the pump and dump schemes, the developers pay of people to help hype or promote this project. This way, they are able to drive in new investors looking for potential new coins that they can make profits from. If you eventually end up investing in such project which later turned out to be a scam, you will be left with a bag of worthless tokens at the end of the day. Before investing in a new coin, we should make sure to do our research properly to avoid such situations that might affect us financially.

Yes mining requires some hard ware and electricity to run but unfortunately these scammers use the term mining to refer to their shitcoins. It blinds the eyes of crypto newbies into thinking it's something big like Bitcoin but unfortunately it isn't.


 Sale of KYC data on the dark net is something that happens on a somewhat regular basis. It is so unfortunate that a lot of persons are so careless with their KYC information that they easily give them out to scam projects.  Just like BitMaxz mentioned some of these KYC information that are not sold are eventually used as details to aid the scamming of these careless users.

It is always common, because almost every coin drops when launched. There is a higher probability that people who mined it will sell off in other not for the value to drop while holding. Just like when core dao (https://www.coincarp.com/currencies/core-dao/) launched at about $5 but now it is less than a dollar because the mimniers keep selling an selling in bulk untill dey sold all to new investors untill the investors loose the liquidity in that coin. They will be left with no choice to hold a coin without liquidity. But if the coin rises beyond imagination I think those that held it will have a smiling face.

I won't actually say much. I'm still running on that thought, is like the referrals whose also the miners are selling their personal information for profit. 🤷

lol that's easy most people believe that shit coin investment one of the quickest way to make millions of dollars $ like during shiba inu time alot of individual lives changed due to the percentage its use to surge.🚀

Exactly I think you missed out this point from your post, most of these KYC data’s are not sold but used by the scammers that actually create those fake tokens to get back at people that mine those coins or tokens, ever wonder how scammers send you email messages saying something about you upgrading your custodial wallet like Trustwallet, this is exactly where they get the images. They some how ask those miners to submit wallet address and emails and they make trustwallet the preferred option so once everyone submits now they know you have a trustwallet and the corresponding email is for you. Sometimes this scammers take extra step to even allow you to withdraw some part of the funds before they request for some deposit from you.

Another scammer from this new ICO tokens are the ones that request you to connect your wallet to some DApps and they use that to phish your wallet. This scam has been here for long and they still uses it to get naive people.


What some of these project developers do to avoid this coin dumping is by introducing the proof of burning to make sure less coins are in circulation or they introduce staking on their project so that you stake some coins and become validators, this way people don’t get to dump the coin because they feel that the stake coins will bring in more money. There are currently many coins using this proof of stake just to create value to their coin

Exactly staking of coin is another way of creating scarcity. If you had your eyes on that project I stated above, you will notice that all participants where told to stake and earn because that was the only way to make it scares for the coin to have value. Because you cant have billions of coin in circulation and expect it to be expensive. If Bitcoin were yo be more in supply like 1 billion it wouldn't have been so expensive. So staking is another way of creating scarcity and using the profits earn from high APY of the staking.

I am seeing a lot of them but I have never been jealous. If they make money from those, that's nice but if they get scammed, I don't celebrate that but they'll have to learn from that experience.

While the people that are into it, don't see and understand that when it's about the PR. These developers can easily do and pay for it. While them the active airdrop people, they call it "grind" but I can't blame them because some of these airdrops in the past really made them a lot of money and that's why the hope of them is still there.

Can we really blame the devs here? there are hundreds of such projects which are advertised and people are aware of the outcomes but it's the utter greed of people which gets them involved in these airdrops and they have changed the meaning of the word mining. We need to understand that nothing comes free of cost and yeah there are some airdrops where users have made good amount of money but there are on in hundred coins and rest end up being an free advertisement tool in the hand of scammers. If something is free then you are the product that's all.

To some point, I believe these shit coin scammers work with all these coin shillers and pump and dump groups where they gather those who are in search of get-rich quick coins and announce the pump of a particular coin, which will be one of their paraded shit coins, and when the people start pumping in their money to buy from the coin (demand increase), the price of the coin will then have the opportunity to skyrocket, which now gives this scammer a perfect time for them to rugpull all the liquidity provided by the victims, leaving them with nothing, and at the end of the day, the project will be left to suffer the faith of failure.

First things first, I will not be interest to mine a coin that is just launched and yet to hit the big exchanges and most of the crypto users has the same idealogy too that is why shitcoins always prefer the PoS mechanism so they can run the project even without any real work from the community. Asking KYC for the miners seems a new thing and KYC data isn't that expensive so someone can make profits by selling them on darknet, it's just a tip while the actual salary is the profits made from manipulating and dumping the coin by the developers.

 
You are right. Sometimes people get convinced by what they see online just because they see someone who has made it online too. They don’t think and observe what other people did before getting what they got. However, some scammers are very smart to the extent that you won’t think they will scam you. So most of the people that are getting scammed online are due to ignorance, which is a lack of knowledge. They don’t research what they want to do before putting their money into it. Although some of them cannot be blamed sometimes because they aren’t convinced to do it by others they trust,


This is the only sentence he uses to convince people to invest in it, but what those people who invested in this coin need to understand is how bitcoin works, and they should observe how many millions of people invested in bitcoin today to get the value of it now. And bitcoin has solved many financial problems worldwide, which this coin cannot do 1% of. When bitcoin was created, many people embraced it and started using it without wasting much time, unlike this coin that I haven’t seen listed in the crypto market.

So people should understand that we need to be very smart with these scammers developing coins around the world and comparing them with bitcoin. You need to know that even the coins that have been existing for a long period of time now cannot be compared with bitcoin, so I wonder why someone will come from nowhere and pretend to say something like this to people, and they will believe them, and then the next thing is to start investing their money there.

It's up to them if they let those developers deceive them. They can create new crypto where they make people fall for it with their promises of earning money when you are investing in their project early on and also explaining that the price will go up since bitcoin's price is also going up but it's not going up when BTC price goes up. I would say that they are only doing it to get money from their investors and there's nothing they can do about it since they did it on their own will and not being forced by the developers of the shitcoins.

If not for the fact that I am no longer investing in altcoin for now, the best way I feel safe dealing with altcoin is to just buy after it has gotten listed on an exchange. Then I will just buy, hold for a little time, and when the price shuts up a bit, I will sell and go off the market with my little profit. I have trained myself not to be too moved by altcoins or any form of FOMO around new altcoins. In 2022, many Defi projects scammed investors with the promise of rebait or auto-compounding profit, which, at the end of the day, was not really beneficial to investors. I fell victim to a few Defi projects, and I learned my lesson too.

They use these tactics to cater traffic or attention for their scheme.  The bigger the number of people who are into mining/staking their coins to earn more coins, the higher their chance to attract whales into their schemes which means the bigger the money they can get if they do their scamming stunt.


Most new cryptocurrency projects undergo crowdfunding by selling the pre-mined coins done by the developer.  The developer sets and initial value for their pre-mined coins and sells them to the public.  Since some countries do not approve of this kind of process, the scam developers make this a reason to ask for KYC for participants.  To further collect personal data from people, they then offer an airdrop with KYC requirements.  The reason for KYC on airdrop is to prevent the exploits of multiple claims.

Many people fall for this trick and undergo the KYC process for worthless free coins.

Most of the reasons why investors fall victim to these shitcoins is as a result of hypes maybe on social media platforms or YouTube channels so when they notice these hypes, they're always inquisitive to be the first to mine such shitcoins without having the knowledge that they're just mare pump and dump as the developers of this shitcoins are only interested in the profit they're gonna make from investors who are also desperate when a pump begins rather than monitor the activities of such coin whether it can be sustainable at the long run or not.
The reason why some investors are not interested in Bitcoin is because they feel that it's price has gotten to a point where they can't afford it hence their interest in investing on shitcoins with the hopes that they are gonna make some quick profit but in the end they mostly incur losses.

Those projects can have failures at launch and some days after that or they will get good pumps after their project launches. Calling pumps after launches and listings on exchanges or better Tier-1 exchanges, as successes or not, each person defines.

My reminder is, those projects will fail after some months and they mostly turn to dead blockchains and dead projects after about 2 to 3 years. So if you are very good at speculation, join and exit with good discipline to get profit, you will not be affected by those projects.

However, if you fall into their traps, promises and hold those coins, you will lose very big.

How many Bitcoin forks are there? (https://forkdrop.io/how-many-bitcoin-forks-are-there)
Two most famous Bitcoin forks are Bitcoin Cash and Bitcoin SV and you can see how their chains work, how prices drop with time.

As the cherry on top, every now and then, there's an altcoin which shoots up in price ridiculously over a very short period of time. This is most likely manipulated and it motivates more people to store up as many shitcoins as possible, 'afterall, they are only a few cents each and could be worth thousands in the future'.

More of this would happen as the general cryptocurrency market begins to turn bullish and fomo sets in.

These are some of the tricks used to attract buyers to invest in the coins they launch, but this structure must be learned so as not to get trapped by launching a new coin that has no future. Generally it will be quite difficult to see the development of a newly launched coin because it requires analysis of the coin. Many people also have difficulty seeing the development of new coins because there are no things that can impact the coin in the progress process.

The importance of knowledge to see the development of coins and there are many people who are influenced by hype when they want to make a purchase, so that in the end they have to lose money trying to believe in such coins. In the past, I also tried to buy several coins that had just been launched even though the capital was not large, but I always failed to return the capital because the coins died. Avoid KYC if it is not needed, but there are many exchanges that require KYC, so the choice of KYC or not depends on each of us not because we are forced to do it.

Your example of mining isn't really mining at all, that's like Ponzi cloud mining, any Proof of Work project that ask for KYC is a shitty project, the sad part is many can't even tell the difference, to mine Bitcoin you need Asic miner, to mine Kaspa ( alternative alt ) you also need Kaspa miner, these are legit proof of work mining.

Knowledge is power like they say, if anyone falls to scam they will learn, if you don't seek for answers first you will make every mistakes possible, every legit Poof of work requires a hardware to mine, CPU, GPU, a special build miner for the PoW algorithm, miners are meant to contribute to the network of the project, it helps security wise, solve blocks and help transactions too.

Anything different from these ideas are scam or Ponzi scheme proof of work, this nonsense is why I don't give Pi Network face till date, that's no real proof of work, they give their fans a software/app and a dashboard with miner button, smartphones hardware isn't the one doing the job, it's complete cloud.

It’s quite a confident statement that the coin will grow, just like Bitcoin did. But we see a lot of people who believe in this, thinking that they were late in buying Bitcoin and counting on history repeating itself, only with a different coin. You noted correctly, and we all saw it already in the ICO season, when a lot of investors were deceived, believing beautiful advertising, and lost a lot of money on shitcoins at a time when there was an opportunity to invest in Bitcoin.

There is a rise in mining of coins recently and what contributed to this stupid idea is because of illiteracy and improper knowledge and that is because people don't care and don't want to read either. Why will anyone told you that you can mine a coin with your phone and they will give you coin in return and you must also make sure that you do KYC before you will have access to the coins, that's a false. I don't even know who tell them that a phone can mine a coin, wasting their battery life and electricity for shitcoins.  ???

As for people that love investing into altcoins, I think they know the risk because everyday we seen how loads of coins that get dump everytime but people buy them despite this collapsed. They want altcoins not because they really but for the fast profits. I think if some of them have a way to invest in bitcoin they will do that but they don't because I don't expect any serious person to buy less than $100 worry of bitcoin and expect to have something significant in the future, they will rather go with altcoins that can give them 10x with huge potential risk with their $20 worth of investments.

I don't get it either!
Yeah you could work a scam like this but it's really bad planning even for a scam.


This means there is no actual mining, and more of a referral game, so why would anyone actually spend hashrate on it when they can just bot their ref numbers, then we have this:


If that thing had a value at 10-20 then it simply means somebody as buying it for that value, if it hits the exchange and it gets dumped to 0 means the ones who accumulated coins know it's a trick and their are dumping it as fast as they can, so not really dev scam material!
Furthermore , who was buying that coin for $20 in the first place?

Sorry op but this above won't result to anything!

You premine a coin, or you implement in the distribution an already known advantage , for example 1000 coins reward in the first 1000 blocks per blocks then 10 coins only, you purposely lock the coins to not be spent a number of blocks away, and then once accepted on an exchange you don't rush to publish the news but buy some coins to rise the price form the start and allow it to form walls, then you slowly start damping coin to match the volume knowing that you're the only one able to do so for like 90% of the coins.

Far simpler, far more effective, already seen in hundreds of shitcoins launches.
Your works better for a basic ICO premined token, but there are a ton of unneeded steps in it!


It also means far more holders than can outrace you in a pump and dump scheme, more coins on the market, fewer possibilities to controls volatility, so you have two choices here, you either sell infinite coins to buyers and you don't care about it anymore or you don't sell and wait for it to be listed but you control the majority of coins and dump it on the buyers, the two don't work together!

I am tired of hearing about many coins that will out perform bitcoin in the nearest future. When I hear these stories, I laugh at them. Even the king of Altcoins which is Ethereum does not have any ambition to compete with bitcoin, how come it is shitcoins that will out perform bitcoin.
Most times, I am persuaded by many people to start mining these coins and complete KYC. I see it as a complete waste of time and resources. If the coins are promising, I will wait for it on the exchange and buy.

I just recently encountered an application that is for mining a certain altcoin. The term "mining" is widely misused nowadays, mining is for real computation work and it cannot be run on a mobile phone even if the phone is closed. I believe Pi network is the one who first introduced it to mobile phone which is an absolute BS, now there are new projects that are doing the same thing but shockingly there aren't really any complaints about this mining thing on their application. Newbies can misunderstood what mining on cryptocurrency really is if this becomes normalized especially on altcoin scene.

These altcoins shoot up because of the steady manipulation that's been done on them by the owners of these projects so as to enrich themselves and I know this is just the beginning of such projects and lots more will fill up the market and I pity some crypto enthusiast that would actually buy or mine them because if you are careful you would be at the losing end when these projects starts dumping and you yourself fail to sell off because alot of persons will fall Because of the rate at which crypto lovers will be scavenging for different coins that could enrich their pockets.

This really happened to me when I started the crypto journey. It was later I observed I have lose alot on altcoin. If I have used this to invest in Bitcoin, I would be boast of having certain amount of Bitcoin even more than what I'm presently holding now. There is nothing like Bitcoin in this space, shitcoin coin is just an addictive.

Any altcoiners that are yet to understand that most created shitcoin especially the meme coin is created to enrich the team purse and also provide them the benefit they missed from Bitcoin since they join early. The sad thing is that the team involved in the project always sold their bag and held it in Bitcoin because they also understood is the only true cryptocurrency that's always the reason behind the exponential dip of most released altcoins.

This is so accurate. It’s extremely difficult or something I would term impossible for one to come into cryptos and not have this ideas of the possibility of just one altcoin going to the moon with its price. Having to buy 10,000 of a coin at $50 or less and after a short while, it becomes priced at $10 per coin or more.
Evidently, these are some hard to come by chances and in one out of a thousand, it never happens. So many failed triers and having to wait for a long time would make you break faith and eventually, you would see what potential Bitcoin truly offers.

I see it to be a part of the process in having a better understanding of what Bitcoin is about and that it doesn’t matter what the price of a Bitcoin costs but instead, you could always accumulate sats. Buy the volume you can, keep buying and have a strategy for increase. Either you trade them but, you’ve got to be very good at it or you just hold.

Newbie's still won't hear, they want to make money so quickly that they'll believe everything they see online, just because few lucky project were able to list on top exchanges and made those that farm their airdrops some project doesn't just make every project you see to be worth claiming either through mining or whatever name they what to call it. Buying and hodling Bitcoin would always be superior to investing in any altcoins no matter how the altcoins are gotten whether free or through the so called mining and don't forget you're not getting those altcoins for free as you're trading your time for their piece of shit.



The projects sell out their crowdfunding from the referrals buying the tokens in anticipation of making alot of profits when they get listed, at the end of the day it's the project that benefits more as they raise more fund and get to go away with millions of dollars without developing the project and they can do this continuously for as many projects as they want yet people keep falling for the same tricks.

That reminds me on the popular saying that " look before you leap". Those are greedy investors who do not care to check the project very well before investing in it but was interesting to make profit from the project. Many projects have come and gone with people's money. And upon all those scenarios that happened in 2022, people are still investing on shitcoins. Well the world is full with try your luck. If you win then you make it and if you lose then you're back to square one.

When a new project is launched make sure you cross check the project in the make and some exchange to see if the project will have value in the future and you can know that through the community support and other factors. If an investor consider those things before investing then to some extent he would have a protection in his investment career.

Everyone wants to make money, but only a few out of the many projects plan their tokenomics well. That is just the root cause of most price drops. Some projects sell too much presale tokens, forgetting that once they list at their proposed price, these hungry investors will rush to sell off. Most time they sell off because they don’t believe in your project to hold it longer than the listing period.

It looks like you are referring to ICE Coin (https://Ice.io) that is the project currently Running a Mining app. and also increase mining power when you refer someone to their app.
I understand your reasons and they happen to be true most of the tiem. but some time there can be good projects. I don't know what will be the Future of ICE coin. but so far they'are looking quite good, they just got listed in OKex. and everyone is happy to receive some free Coins while installing their app on their phone.
but what they did wrong was implementing the KYC requirement.. it was KYC less few days ago. but now started asking it's users to do a Facial verification in order to continue earning.

People love altcoins, bitcoin is not discuss that's why people don't even know what mining is about. Hardly you see proof of work coin that is having much people as proof of stake, even Ethereum that was once proof of work is now proof of stake, it's hard to see mining is been discussed and this is making people naive and illiterate about what mining is really about.

The first time I learned about mining scams was the days of cloud mining, the way it works is that they will tell to buy a mining packages, this ranges from lower package to a higher package but these scammers have affordable price to fit everybody in their list from lower package to higher package but the bigger the package you buy the higher rate of bitcoin you will get in return, they will even attached a picture of the mining farm to convince you, buy the package and start mining bitcoin and get withdrawal at the end of the month.

If you are lucky to be among the first set, you get paid to draw attention of the public and as a son as they gatther enough money, they stop functioning and zoom off, if they want to give investors some suspense they will give you excuse about maintenance before they run with the accumulated bitcoin. This scam today has gave other scammers some courage to modified theres to scam people and it's all because people don't read.

The basic target for such projects and apps is people who are not well aware of the crypto space and how things work. They start their project by creating a mobile app that users can download and start mining tokens while they implement a referral program where users can invite other people to join the platform and those referring others will either get some tokens or have their mining speed increased, so those using the platform invite their friends and family and this chain continues until the project gets millions of users and most of these users are crypto illiterates.

When you tell a person that they can earn money by just downloading an app and opening it only once in 24 hours, they wouldn't refuse to do that because it's nothing, however, they don't know the fact that the coins or tokens they are getting might not even unlock and they might only be wasting their time referring people and doing all the required tasks, etc.

That’s the beauty of bitcoin held on to for a long term. The Altcoins I will say are very volatile and it’s the volatility that actually gives them this hype which people invest in without them thinking that the higher the profit potential same thing with the risk too. The best way to invest has always been in bitcoin for a long period of time and with an amount you feel you can afford to lose. As for Altcoins, avoid them mostly on long term basis, fall today to any of them that you might see as retracement might be the final fall. Take profit of Any comes by

First, I agree with your explanation about new alttcoins coming like pump prices. Developers create coins with huge hype, just to make a quick profit for themselves and the early miners/buyers. But behind it all, there are really developers or owners who want to survive and want the project to be successful. So it is not suitable to say that all "newcomer altcoins" are committing fraud by harming holders. Lastly, regarding KYC, avoid KYC as much as possible, because KYC data can be misused and sold by irresponsible parties.

It seems that you don't know the level of misinformation that is given newbies outside this forum  in this cryptocurrency industry. The level of misinformation is alarming. Most times the misinformers are not well informed and in some rare cases they misinform newbies deliberately in order to feast on their ignorance. Will it interest you that I met bitcoin when the price was at the range of $8k but someone who introduced me to bitcoin told me that bitcoin was already high in price that I should instead buy some random shitcoins that will give me alot of profits. Assuming I was privileged to receive a good advice, I would have accumulated upto .5 BTC which had worth more than $30k at a point and it's worth about $20k currently.

So, if newbies are not well schooled, they won't see it as a big deal to submit their data on random platforms with the promise to receive free coins in the name of airdrop. Information is power and whoever is not informed, would definitely be deformed and whoever that is deformed will of course not perform.

 Funny enough, the dream of becoming overnight millionaire is becoming stronger than becoming genuinely rich with a well known and thought out process. The in-built insatiable nature of man is leading him to a perpetual doom.