The Darkcoin scam

[Ingatqhvq]

1.Overview
Darkcoin was released at January 19, 2014, 01:50:23 AM. The main feature is X11 algorithm, and the first coin claims to realize anonymous.
With Darksend/anonymous, the marketcap occupied the third place in the encryption currency market. And it also help the exchange mitpal to rise suddenly.
But the marketcap stabilized at $ 4-5 million in the February to April. And the skyrocket begins at May. The marketcap is about $6.5 million at May,1. One month later, the marketcap is more than $65 million, soared 10-fold within a month.
At August 18, the price lost 40%, and the marketcap is less than $10 million
2. The question about Darksend
As the main feature, Darksend makes the darkcoin can’t be traced, it totally anonymous. But the Dev tried to avoid talking about Coinjoin or the contribution of Maxwell, and keep the source closed. It’s really weird. The Coinjoin was proposed by one of bitcoin core developer, Greg Maxwell who believe Coinjoin anonymity is not complete.
3 layout
3.1 working quietly
Since preminer was despised by the whole community, preminer is equal to dig your own grave. So the question is how to avoid preminer, but obtain most of coins? The trick is naming a very ordinary name with ugly UI. In short, makes everything looks like very ordinary.
For example, the darkcoin was named Xcoin when it was released, the tile is CPU-Fast, Easy mine, *no premine. With such name, no one care about this coin.
After the Dev miner most of the coins, they change the title as DarkCoin| First Anonymous Coin | First X11 | First DGW | DarkSend+ Is Live!, which is much attractive than the original one.
3.2 no preminer but more than preminer
There is no windows client when DRK (xcoin) released which I will never tell you.
It was minered about 2 million coins after releaed 32 hours.
The first block reward is 500 coins and the 4000 block was 277 coins, the block time is 2.5 minute. That means 4000 blocks was generated after the first 15 hours, about 1.75 million coins.
And now the reward is only 5 coins.

3.3 Leave bugs in the core code.
3.3.1 the first bug: Block Reward
What the exactly number of the Block Reward?
The mooreslaw ( 1111 / (diff+1 ^ 2))?

Or 2222222/(((Difficulty+2600)/9)^2)

And at last the Block Reward was only 5.
3.3.2 the second bug: The total amount of Darkcoin.
First they claimed the number is 84million. They delete their post, but can’t delete other people’s quote.
   
Then they claimed the number is 22million

At last, they claimed there is no unlimited.

[From Above]

+1 Dark Coin is a hardcore scam.

just wait 30 minutes or so and 'LaudaM' will try to defend the coin with some random bullshit talk.

be careful she is in the bed with evan duffy the creator of dark coin.   these guys are pretty hardcore.

~CfA~

[dreamhouse]

Darkcoin is a simple centralized mixer system, nothing new. But they are good at hype and promo. The coinjoin category the best tech I see is supercoin, with pretty convincing multisig tech and detailed workflow published.

[solid12345]

The fact that a dozen devs were able to come along and do in a month what took Duffield in 6 months to do either proves Duffield was stringing people along for months to build hype or he isn't the superstar coder everyone made him out to be, that much is for sure. Also the fact that Dark went around proclaiming to be the first anon coin was nonsense when the Fedora mixer was out months before Darksend and Bytecoin was out 2 years ago.

I am not going to go and call Dark a scam, it is obvious Duffield has a plan and intends to follow through and keep working on the coin but I still never bought his story about the instamine being a mistake. If people want to support him and make him rich hoping to make themselves rich, more power to them, but I find it hypocritical when he is defended for the instamine when every other coin takes so much heat for a paltry 1-2% premine.

[cinnamon_carter]

not a scam really, just not a fair reward system and certainly not anon

[samaricanin]

not a scam really, just not a fair reward system and certainly not anon

Which is the same

[rdnkjdi]

Can't we just bump one of the original threads?  I think this is a pretty well known fact ... don't get why people keep spamming with it.  Everyone knows DRK isn't going to be the winner in anon tech...

[CryptoBang]

I also have made a kind of investigation and posted an article

http://www.cryptobang.com/2014/08/27/investigation-of-darkcoin/

If you have more interesting facts - drop it to me)

[kittycatbtc]

Im glad i never invested in DRK. XMR for the win, was always the number 1 anon coin.

[Chester-Chark]

Im glad i never invested in DRK. XMR for the win, was always the number 1 anon coin.

there are many coins are scam. DRK  XMR and so on.

[PoS]

Everyone knows the Dev released the coin at the most  inconvenient time, Sunday 4 AM and then instamining the shit out of it with 50 Amazon AWS nodes and 50 microsoft cloud computing, no windows wallet is just another minor fact.
https://bitcointalk.org/index.php?topic=560138.msg7535561#msg7535561

Darkcoins biggest problem however is that it is fundamentally flawed. You have to be the dumbest bloke in the block to spend money on something, someone else produces for free. No, the free coins reference it does not include you if you bought the 1000 coins expensively to set-up a masternote only the initiator of the scam profits massively, as with every scam. No price will never be "cheap" as the free produced coins will keep coming. Eventually it will enter into a dead spiral because the more masternotes you have running the faster you have another one and get even more coins. 1 or 2 notes gets you nowhere in this race.

The other fundamental flaw is the fact that out of the thousand or so active coins out there no other coin is easier to take down by the authorities as every masternote operator is a sit′ting duck′. Central connection is utter failure, you take em' down one after the other.

Fundamentally flawed is also the mining reward. 500 to start with then 150 for a few months and now a whopping 5 of which the miner gets 80% and not 100% like at the start or with the 150 reward.
 

[Lauda]

+1 Dark Coin is a hardcore scam.

just wait 30 minutes or so and 'LaudaM' will try to defend the coin with some random bullshit talk.

be careful she is in the bed with evan duffy the creator of dark coin.   these guys are pretty hardcore.

~CfA~

No, when I defend it I use actual fact.
Like that DarkSend+ is working and you can test that yourself, or that Kristov A. is doing an audit.
After the audit the coin should be going open source.

Exactly what is your problem? You verify all of this yourself.
Indeed the reward per block was cut, but this is not the first coin to endorse it.

[rdnkjdi]

+1 Dark Coin is a hardcore scam.

just wait 30 minutes or so and 'LaudaM' will try to defend the coin with some random bullshit talk.

be careful she is in the bed with evan duffy the creator of dark coin.   these guys are pretty hardcore.

~CfA~

No, when I defend it I use actual fact.
Like that DarkSend+ is working and you can test that yourself, or that Kristov A. is doing an audit.
After the audit the coin should be going open source.

Exactly what is your problem? You verify all of this yourself.
Indeed the reward per block was cut, but this is not the first coin to endorse it.

It might not be the first coin to "endorse" it.  But it's the only coin in the top 10 or 20 to ...

[johnray]

The instamine. The masternode implementation with the 20% steal of POW blocks. This is a concern. Anyway we can be sure that these features describe in the official 'thread' as innovation are driven by a scam goal.

[Lauda]

The instamine. The masternode implementation with the 20% steal of POW blocks. This is a concern. Anyway we can be sure that these features describe in the official 'thread' as innovation are driven by a scam goal.

It wasn't instamined. I was there at the start and mined from my linux as well.
First come first serve, don't complain because you didn't get a piece of the pie.
Exactly how are MN payments a scam feature? Are the developers getting that money? Sigh.
Besides payments will be enforced soon, so pools avoiding this will be useless.

[blockjoe]

The instamine. The masternode implementation with the 20% steal of POW blocks. This is a concern. Anyway we can be sure that these features describe in the official 'thread' as innovation are driven by a scam goal.

It wasn't instamined. I was there at the start and mined from my linux as well.
First come first serve, don't complain because you didn't get a piece of the pie.
Exactly how are MN payments a scam feature? Are the developers getting that money? Sigh.
Besides payments will be enforced soon, so pools avoiding this will be useless.

You may say that, but some bugs are set on purpose; And the ones that had the big farms at this time had more coins than the 'specs' of the coin will allow... And the coins 'scattering' process was altered with too much coins generated at the beginning.  With all the good alternates we have, such an issue is more than problematic. The 20% 'innovation' is also more than a concern.

We must stop scam coins, and scams behavior for the alternates to live.

[faraway]

You are right, this coins has a lot of issues that the fair alternates available before doesn't have.

One question; How this happens?

[Lauda]

You may say that, but some bugs are set on purpose; And the ones that had the big farms at this time had more coins than the 'specs' of the coin will allow... And the coins 'scattering' process was altered with too much coins generated at the beginning.  With all the good alternates we have, such an issue is more than problematic. The 20% 'innovation' is also more than a concern.

No, it is not more than a concern.
From the looks of it there won't be enforcement yet, since there is something wrong with the voting system which was reverted for now. One shouldn't complain like I said. If you don't like it, then go mine some other coins.
If it was up to me, I'd bump it to 40% and enforce it right now, so that all previous clients would be invalidated. I tend to be evil. 

[Ignition75]

Running low on steam credit are we boys?

There's easier way to earn money you know, set up a masternode or two and sit back 

[nsimmons]

Running low on steam credit are we boys?

There's easier way to earn money you know, set up a masternode or two and sit back 

Must be nice to be 18 with no responsibilities and no brains where video games are sufficient payment. I wonder if my bank will take steam credits.