Altcoin City is an interesting place. The Rubes and the Hucksters both live there, going about their daily business.
You can’t have one without the other. If there were no Rubes the Hucksters would have to move on to greener pastures. There’s no sign of that happening, indicating the Supply of Suckers is nowhere near drying up.
Veilcoin is an example of a recent scam that should have scared off potential investors.
This altcoin promised ‘anonymous features‘ that went beyond what was being offered by other cryptocoins. In particular, they made the claim that “Future development that fully incorporates anon-VoIP calling using your wallet address as your phone number is currently being worked on, it will be referred to in the future as “VeilCall” for community clarification purposes.”
A feature like ‘VeilCall,’ even though it likely has limited practical use potential, is a key selling point for a Huckster who is interested in Fleecing the Rubes. Such a selling point is needed in order to justify high potential prices for a CloneCoin. ‘VeilCall’ would give pumpers a chance to explain to future bagholders why this altcoin should be traded for ridiculously high valuations when - in reality - the project team is completely unknown and their chance of failure is just as high as everybody else’s.
Also baked into the ANN Thread were the other important claims of current scamcoins. Anonymous + Tor Addons + Newest Mining Algo = sales bait for the hungry masses. The real punchline is the 1% premine included for the development of the VeilCall vaporware.
With a maximum count of 2.4 million, the premine gave the ‘Dev’ 24,000 of the coins at launch.
At that point he could continue on with the development of VeilCall. Or he could take the easy way out and dump the coins, ensuring he gained the maximum profit for a minimum of effort.
Put yourself in his shoes.
What would you do?
Would you stick around and endlessly coding your anonymous phone application all the while knowing your coin would still lose value and eventually fail? Or would you dump those coins as soon as they landed on an exchange and call it a day?
The ‘Dev‘ decided to go with the latter. It makes sense, the quick payout frees up his time so he can quickly launch another ScamCoin!
Add in the so-called ‘Ninja Launch‘ which should be more appropriately called a FlashCoin launch and you can assume that the Dev also mined heavily at the onset. According to early thread comments, network hash reached 20 Ghz. before other participants joined in. That means the ‘Dev‘ likely doubled his take from the premine with that instamine and had 48K of VEIL to dump upon listing.
The ‘Dev‘ himself didn’t spend much time in the ANN thread. He popped in a few times to reprimand people for creating FUD when they asked simple questions about project development. As usual, scam Devs are generally worried about the price and almost always carry on about being the victims of FUD.
When the FUD turns out to be true, there’s no much left for them to do but exit stage left.
That’s what happened and the rest is history! Veilcoin has made the ScamCoin List for its vaporware and premine/instamine scam.
Thanks for stopping by! If you have any comments, please leave them below.