Bitcoin Forum

Last week DeepOnion changed the rules of their super restrict "airdrop".

With over 4k people in their forum only a fraction of it (around 300) would be allowed to participate in the free airdrop that would run for 40 weeks while others got inexplicably rejections and were blacklisted from the airdrop for "unknown reasons".

This went trough over 16 weeks and now the so called "earlier adopters" of the premined coin, with huge holdings, changed the airdrop rules to "the more you hold the more you get" and new participants must buy 100 tokens to be allowed in the 250k tokens weekly airdrop.

This new rules obviously favored and created a huge gap between the top holders aka earlier adopters to the recently joined participants. Not happy with the huge amount they already get in the airdrop weekly participation they also reward themselves with a support group factor of x2 x3 and x5. This means on top of their huge holdings, they will get a multiplier factor that can get them something like like 100k tokens weight in the airdrop participation.

With this model some Top holders aka earlier adopters got 7000 tokens in the last airdrop while a small fish got 7 coins in the same airdrop with this new distribution model.

Why this resembles a ponzi scheme?

If you go in their forum you will see this earlier adopters, which many are moderators, telling people to work their asses off in bounties to get about 25 tokens or invest their money to increase their airdrop participation and get more "free coins", while they ripping 7000 tokens per airdrop just by "being the earlier adopters" that had the opportunity to accumulate their tokens in a super restrict airdrop in the first 16 weeks.

What is presented as a "free" opportunity of entering in a magical airdrop is in fact a vassalage and constant praise of the "earlier adopters" and how awesome they are and how nobody would be there if it wasn't this first people to start it all while they keep ripping thousands of tokens per airdrop that is currently being sold for over a little $0.50 per token.

To top it all, they run a small side airdrop of 25k tokens that rewards users contributions in their forum. Those "earlier adopters" also participate in it because they are not happy with those 7k they already got in the main airdrop. Instead of leaving this opportunity to the small fish they keep contributing to a higher centralization of the tokens and they get offended if you ask them not to participate in this side airdrop and give a chance to small fish.


Did I said high centralization of the tokens?

2 millions from the 18 millions premined tokens belong to 4 founders, 500k Tokens for each founder (they call it founders reward).

3 Millions is for their development fund.

3 Millions for the bounties.

10 millions is for the "Airdrop" that as you can see 60% is ending up in the same persons pockets those with higher participations shares.

Numbers don't lie. Straight of the bat they old 8 Million tokens and at the end of the "free airdrop" ripping around 6k to 7k per week/team member/moderators people connected to the project will get half of the "free airdrop".

So in total this project team and mods will have in their possession somewhere near 10 to 13 Millions of the all the tokens.

Seems fair right? Ah, and don't bother and try to explain them how this centralization will ruin what could be a good project because they will tell you to go do bounties to increase 25 Onions to your weight.

You covered it quite well.

Thank you. Feel like others need to understand this "free" model as well. To bad many wont read it because its a long text.

Damn. didn't see it in this perspective

Another example of good hyped project is POS Token. They had free airdrops too. Now their Token cost 1$+-. I think that only devs win in such situations with similiar coins  :)

In my opinion the level of transparency of PoSToken in unquestionable. They showed since first moment the contracts of the dev team for development and the first move they made they told in atecipation the community they would do it.

The only movement they did on their funds was 15k tokens that they sold out of the exchanges to not drive the price down and the funds were for a Coinexchange listing. All the other funds from the dev team are intact and they shared 800k tokens out of 1 million. That is 80% and nothing near what we see in the this DeepOnion in question.

In this project a number of questions. Regarding the fact that we don't know who exactly is a developer? Or why not on their github open source? why hide it? and we've seen a huge thread on the ONION where it is shown that the project is Scam. A lot of people who were almost at the base of this airdrop now gone.
but even so developers like to try. go according to the roadmap. But I hope that even so rules will revise airdrop

good luck with the project..

yet again i am forced to give this one detail that everyone is either not willing to say or forget.

YOU DO NOT HAVE TO BUY 100 COINS TO BE A PART OF THE AIRDROP.
 you simply have to have a minimum of 100 coins in your airdrop wallet. you can get these a number of free ways. free giveaways,competitions, bounties, and of course the new sunday airdrop where your deeppoints from the form get converted to deeponions. the more active you are the more you get. i got 415 deeponions last sunday for my forum activity which had nothing to do with my wallet holdings. so to sum up, you do NOT have to invest ANY money into this so how the fuck can it be a ponzi????????

STOP LISTENING TO THE FUDDERS AND MAKE YOUR OWN MINDS UP .YOU ARE ALL MISSING OUT OF THIS BY JUST TAKING THE WORD OF A FEW . LOOK AT HOW MANY ARE FOLLOWING THIS

That's right, the "second airdrop" where you get free coins for the official forum activity looks good and allows anybody to get quite a few coins (tens to hudreds) easily just for forum activity. Nobody is forced to buy any coins to get in the airdrop.

thankjyou, it's nice to see someone who is not in the main airdrop agreeing. you can get thousands of these over the course of the airdrop and not pay one penny for them

Nobody is forced to buy anything. But the people who do buy, buy in on the hype made by all the people who are getting the coin for free.
And they are not hyping it for the coin but for their own profit. It's just a nasty little vicious circle.

I think the new distribution model is favourable to bagholders but ou too can join them by buying more on exchange, I don't have anything against this project because it is airdropped and anyone can join

The investment (if you elect not to pay for 100 coins) is time and effort. To get 100 coins through non-investment means requires dozens of hours participating on the forums and advertising DO to the masses. This plays the role of broadcasting DeepOnion to new investors to participate in the scheme. Not to mention 7% weekly returns is only marginally above current rate of inflation (which is above 6%). So while you may receive 7 onions/100 your real earnings are less than 1.

That's like saying Bitcoin is unfair b/c early members were able to mine it in seconds for a fraction of a penny in electricity.  Or that NEM is unfair b/c the early signup members got their stake for free and now you have to pay half a million to acquire the same stake. 

I can tell you that I got in on the first DO airdrop and I am no insider.  I dont know dev and had no special conditions.  In fact almost everyone who met the initial requirements were instantly accepted.  Yes there was a period that was hard to get accepted into airdrop but that was b/c it was found out that people were buying and hacking BCT accounts and accuring alot of coins to dump.  After Devs found that out they went through everyting with a fine toothed comb.  Granted it became very slow to get approved, but let's be realisitic.  The team was only like 4 people with 0 ICO funds and sorting through hundreds of application as day.

Heard a lot about this coin in recent times and I do not agree with the op in many ways. Firstly, I am not a DeepOnion airdrop participant which is why I am not advertising in any way. Couple of my friends signed up for this airdrop when it was initially launched and received a great stack of onions which they sold for a high profit and earned some good money. Its all about being in the right place at the right time. The early adopters were simply lucky, but that does not make them guilty.

I remember when deeponion was first starting up, it seemed obvious to me that it had a pyramid/ponzi scheme structure.
Now with the reward structure how can people not see this as strange?

The first thing you need to ask yourself, in any situation not just crypto, is why would someone give you something for free?
if the answer to that is some storybook fairytale answer (because they want to give back, help out others, build communities, believe in unicorns) than you are just being ignorant and naive and deserve to be scammed.

The "don't have to buy 100" argument is a powerful deflector in that it makes it seem like you have nothing to lose.  This is a common tactic in ponzi schemes.
But look at the big picture, who is actually benefitting the most?
You can rationalize that it's ok because you technically "don't lose anything" but enabling others to benefit greatly over this is you giving away power to others to do what they want with you.

Here's an idea, stay away from these projects even if they dangle "free" in front of you.

Thank you for creating this thread. Although I'm an advanced user, I learned a lot of interesting things I did not know about. Good luck and thank you again.

I do not know about you, but I'm sure of a 90 percent coin. The developers have already shown that they know how to work as a team. the news is coming out, the guys are working and the idea is very promising. I see no reason to worry so much.

this  ;)

all the onions are held by the few and the whole project is now manipulated by the few - if you sign up today and get into this - guess what? YOU ARE TOO LATE TO THE PARTY!!!

Just move on already and find some new opportunities - there will be many i'm sure.

There were 288 people in the airdrop for most of it, and they rejected almost everyone that applied. That completely centralized the coin, and they're doing it even more now.

Lol

The "devs" haven't done anything other than run an airdrop on a clonecoin. There's zero reason to believe they are even capable of developing anything.

everyone checkout the deeponion official ann thread here - just dive through the last few pages - full of people going 'yeah screw you fudders our community is so strong we can beat you guys'

- absolute rolling on floor laughing

'all the haters you will regret not buying deeponion'

I mean who the fuck goes on like that at all in any walk of life?

Scammers and sock puppets.

lol m8 - some storybook fairytale answer - i lol'd

wtf is a 90 percent coin?

you trust them so much that your signature has nothing to do with deeponion - am i right?

never trust to rules changers while game is continuning.  and looks like they have a dictator and he does whatever he wants. i wouldnt trust them.

this

Well, I think this will be enough to recognize that the chances of success for the project in the future are very small, and it's better not to wrap yourself up and find another project and forget about everything. From the side and from what I found on the Internet, everything looks sad.

I don't believe in DeepOnion and to me is as scammy as it gets so not taking it ...even for free.  I've seen the Onion puppets behave like a wolf pack and attacks anyone against them too.  Can't be part of a group with that mentality.

I did not read much into their model but I can't see how these free "airdrops" can be sustainable.  I'd rather invest on something else, there are much better coins out there.

DEEPONION is definitely one of those dodgy coins.

The airdrop kind of exposed them but i think the "early adopters" are waiting for the airdrops to finish so that they can dump their high accumulated amounts.

Anyone new STAY AWAY you're only filling the pockets of the "early adopters".

A few weeks ago i was advised to buy 100 onions, do the signature thingy and post on the DO forum more regularly. After a few weeks of doing this i got 7 onions. HAHAHAHAHA

Whilst others got thousands doing fork all.

Even the devs get greedy with the airdrops.

Many many people here on forums exposed deeponion greatly. It is going to be one of the biggest problems in crypto. I am sure early adopters are waiting to dump their coins and investors will lose loads of money. LOADS.

Now it sounds terrifying after reading your explanation, looks much like another type of ponzi scheme
But I guess it happens to the most of coins and tokenseven btc has the same fate, early adopter being the richest of of richest, an instant millionaires without the needs of having a real job ;D

the value crashed hard.

What's your point?  How many people do you think were mining bitcoin in the beginning vs now?  There are always a handful of people in the beginning and more later on.  As the majority holders sell off, the coin becomes more distributed.  I dont see this being different than any other project.  To be clear, any project in crypto with low marketcap has potential to be a scam, DO included.  You can literally apply these arguments to any project outside of the top 100.  Only time will tell. 

So you're saying that something is a scam b/c it doesn't cost money?  Then NEM, BTC, LTC and everything else that came before ETH were all scams then.  ETH was the first big ICO to raise capital.

You realize that the reward airdrop structure is not something new to Deeponion right?  Byteball has been doing a monthly airdrop that equates to 10% of your holdings for almost a year.  It's not perfect, but how else would you suggest giving away a free coin? 

May be it will become another biggest problem after the tether with its supply manipulation and bitconnect with its biggest ponzi scheme in the world. Monero has a better tech than this torcoin.
The similar coin just like tor coin already died. There is no people interested to buy such tor network coin. That claimed to be a better anonym coin rather than major privacy coin just like monero.

He's done a shitty job at explaining why DO is a scam. Let me help: Airdrop structure is designed to pay out the moderators. Why? Moderators decide the "effort" factor, up to 5x payments. This means the moderator reward themselves with 5x pay every week, resulting in the handful of moderators accumulating 1/3 of the weekly airdrop. For the average investor, the amount earned (7~) coincides with the weekly rate of inflation. You're not actually earning any value.

In the meantime, anon devs are staking with the majority supply so that they are essentially printing themselves money 24/7. Airdrop rules are put into place promoting people to keep coins off of exchanges and, more importantly, keep them from dumping.

DeepOnion is a very successful project. He continually drops air and accumulates a large number of community staff. He has a large number of community staff in a short period of time. They are also very efficient at work, even if the currency price is not satisfactory.

That's not called successful, unless you're a scammer.

This is not an indicator of success, success in my opinion is how the project shows itself in the long term, for example DASH, this is certainly a bad example, but all the same. The fact that the project has a lot of employees is not an indicator yet.

For now, this project is very promising. Its creators take care of the project and develop it. I think that in the future the coin can cost a lot of money. Now it's not too late to buy this coin for long-term storage

I agree, the prospect for the project so far seems good. Only here I would wait a little more for the price to go down a little in order to be re-purchased. I will buy a few coins for averaging. And it's better not to sell a coin at all and wait a few months

I think it's best to wait a few years. This coin develops slowly and this gives it stability. I think this is an excellent coin for long-term investment

I am no longer participating in the airdrop but I think it is a good project, the way it is being distributed, especially after the changes in the rules, will form some whales, but which currency has no whales?

There are less than 500 people who have all the coins. 

That's silly if you want to pretend it's a decentralized currency.  It's simply not.

И этo бyдeт пpeкpacнaя cтpaтeгия, тoлькo вoт пpoблeмa в тoм чтo бoльшинcтвo инвecтopoв нe yмeют ждaть cвoиx дeнeг cтoлькo вpeмeни и им лeгчe тopгoвaть или быcтpo пpoдaвaть тoкeны нa выxoдe нa биpжy и зaбывaть oб пpoeктe. B итoгe oни тepяют дeньги нa тopгoвлe или eщe кaк-тo.

Definitely nice to be an early adopter I suppose. In the long run I can see DeepOnion taking off, particularly for the anonymity it promises.

The OP makes some interesting points, but I don't see any problem in requiring to hold an amount of tokens before you qualify for an airdrop. Have you looked at the new tokens that appear in your MEW every so often based on the fact you hold ETH there? How is that any different?

XNN is a good eample of this I received 436 and it was worth about $4 originally I left them and they are no worth $45. Thanks for airdrops!