I posted this on another thread but it may not get the attention it deserves because many people might not read that far.
1.The "MCX" in MCXnow stands for MicroCash eXchange. An exchange that realsolid started so he would have a place to sell Solidcoin, a coin which he created and was not traded on any other exchange. He promised at some point to convert SC to MC but still hasn't gotten around to it. Basically it was a mechanism for him to convert his worthless SC, and MNC into BTC.
Gdex.com was started by a NXT "stakeholder" so he would have a place to trade his worthless NXT for BTC. Even though gdex.com only trades one coin and has only been open for a couple weeks it is being used as the sole source for stating NXT market cap which is complete bogus and I have said as much in the coinmarketcap forum. All the other top coins are on multiple well established exchanges.
2.Realsolid then engaged in insider trading and price manipulation on his coins. He created fake volume and price spikes with puppet accounts and the fees he was charged to do this went back to himself so it didn't even cost him anything to artificially increase the value of his coins.
He later went on to even bigger scams with his feeshares but that is not part of this discussion.
I cannot prove 100% at this point that insider trading and price manipulation is going on at gdex.com but it is very likely. Anytime you have a small group of people who own 100% of the coins some of them are going to want to engage in price fixing even if they aren't all in on the scam.
I said it earlier and it is true, there is nothing stopping NXT holders from making the price of NXT anything they want. They have all the coins and only need to rig one exchange. NXT fanboys then tried to play this off saying that all markets are manipulated and this is true to some extent but it is a lot harder for a group of manipulators owning 10% of the coins to fix a price on 5-6 exchanges then it is for a group owning 90+% to fix the price on a single exchange.
This is a legitimate concern.
3.Realsolid had a scheme to convert SC to MC where only the SC held as balances at MCXnow at the time of the conversion were going to have a "stake" in microcash. Microcash was not going to be created by conventional mining. "Stakeholders" would start off owning 100%.
Posted 21 March 2013 - 08:29 AM
After a lot of thought I have decided that SolidCoins will be going into MicroCash at a 1:1 conversion rate. Since the MicroCash economy will have ways to balance itself out I think there is no real harm in moving all active SolidCoins over. The key word there being ACTIVE. Previously I wanted to make this 10:1 to increase the average unit price but with all the new systems in place this isn't needed.
This is going to remove all dead SolidCoins and people who haven't kept up with the project. Currently there is roughly 2.9 million coins in SolidCoin, my estimation is over 1.5 million of them are dead, so MicroCash will likely start with just over a million ACTIVE units but it could be less depending upon people who miss the window. This basically means your percentage share if you own SolidCoins right now is going to increase without doing anything.
NXT is 100% pre-mined. They call it 100% distributed to "stakeholders" but it is effectively the exact same thing.
4.When you mine NXT for the fee's the more coins you already own the greater the chance you have of mining success. So it is unlike other coins where an outside miner can come in owning zero of a certain coin and start to build a decent stash just buy mining without having to spend BTC. NXT's biggest holders always have a mining advantage over the little guy and if you want greater mining success you have to buy a whole bunch of NXT enriching the stakeholders that started off with 100%.
This caught my attention because I had done some research on MicroCash and sure enough it was going to function very similarly. The biggest holders would receive the greatest rewards which is great when you are a "stakeholder" and already have most of the coins.
Realsolid (microcash forum):
Posted 25 March 2013 - 12:36 AM
This post will document all the things MicroCash does and is to give everyone an idea of what MC currently does, what it wants to do and allow people to offer suggestions going from the current thing.
Hopefully after reading and understanding these details you will see that MicroCash uses the best technologies and ideas from every source and that should place it technically at the #1 spot in regards to digital currency.
MicroCash "gee wizz" details
Quote
1) Transactions are instant and permanent. They cannot be undone.
2) Transactions are highly optimized in size and the way they are processed, allowing consumer grade PC hardware to beat dedicated Visa supercomputers in performance.
3) Currency creation is determined by internal investment which involves individual risk, no more wasting energy mining. If you want more income in MicroCash then you need to acquire it through investment or buying other peoples MicroCash. The work of GPUs and ASICs has been replaced by the inherent "Work" associated with having money.4) The currency created goes to all MicroCash users instead of to the few. Like a decentralized federal reserve.
Our "mining" is more like having MC and getting MC, more simple, elegant and decentralized. It's also a reward mechanism for early adopters (the earlier they get in the the more total money they will make) which is a key thing missing from SolidCoin which helped it fail.
Dgex.com is registered in panama through a Panamanian Corporation.
MXCnow and all of Realsolids other websites are registered in Panama to a Panamanian corporation.
Registering in Panama to a Panamanian corp is proven to be a sure fire way to hide your real identity. So if you rip people off, intentionally or through incompetence, you never have to face the repercussions of the harm you have inflicted.
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So as you can see there are a disturbing number or similarities between the schemes of Realsolid/Coinhunter and what NXT is doing. I don't know if all this is just coincidence, if RS is involved, or if the devs followed his work and decided to rip him off but these are all red flags.
If it looks like a scam and smells like a scam I don't know what other conclusion I can come to.
http://forums.microcash.org/index.php/topic/737-final-word-on-solidcoin-conversion-must-read/http://forums.microcash.org/index.php/topic/739-microcash-current-working-details/
