Virtual Mining Coin is set to launch today. Yes, this is another IPO. So far 23
victims investors have sent a total of almost 8 BTC. What are these people investing in? They’re putting their money in because Virtual Mining Coin represents the ‘first IPO with collateral.’
You’ve gotta love when the Dev says: “More than 200 altcoin exist in the world today and most of them have no real value.” Actually there are more like 500+ altcoins in the world and almost all of them absolutely no value except to a few speculators and community members.
Now let’s add to the crazy. “10% of the 100.000.000 coins will be pre-mined, and the 80% of the pre-mined coins will be shared proportionally among those involved in the IPO.“
Got it? And what collateral is being used to ensure these coins have value? Is it Gold held in Fort Knox? Perhaps a portfolio of mortgages? No, the collateral is nothing like that.
Here’s the punchline: “The full amount of IPO will be invested in cex.io, and will be kept in GHS. BTC produced by the GHS daily reinvested to ensure a steady increase in the coverage of our coin.”
Investors won’t start to see a return until 60 days have passed.
A Lot Of Money Has Been Invested
23 people investing is quite a bit of trust being placed in the hands of the OP, somogyipeti, he must be quite a skilled Dev to engender that much respect. A quick perusal of his posting history looking for clues, turns up this tidbit. Here he is on April 2, 2014 wondering if he can find a developer to help after he creates his coin using CoinCreator.
“Yes, there is no support, that I need. After the coin start there is a lot of bugs, problem. I’am searching a developer, who can help the full support, after when I create my coin with coin creator.”
I’m sure most people reading this are familiar with why Coingen.io and CoinCreator aren’t popular. As most people have experienced, when something goes wrong with an altcoin, the Dev needs to be able to quickly fix it. If he can’t, then the coin rapidly loses value. The fact that Virtual Mining Coin has no experienced Dev team behind it should be enough to turn most people off to an IPO.
But for some reason it isn’t. Neither are the complete scams perpetrated in recent memory by EdgeCoin, StackCoin, and EmiratesCoin. All of these IPOs ended poorly, with the Dev stealing the cash. Anon136 is offering escrow service for this coin, which makes the gamble somewhat less risky. Still, it’s hard to believe people have an insatiable appetite for a coin like this that literally has almost no reason to exist.
Why Not Just Buy GHS Directly?
Since Virtual Mining Coin relies on GHS from Cex.io as collateral, why not just purchase these directly from the source? Certainly that would be safer than speculating on an unknown altcoin run by an inexperienced developer. If you can’t answer that question, save your money.
When all is said and done, I have to admit openly I’m no fan of altcoin IPOs. Given the lack of details and accountability about who’s behind the coin I really think the chance for abuse is much too high.
Add in the fact that this is a coin created by CoinCreator and that nobody will see a return for 60 days and I’m genuinely baffled they’ve been able to raise as much money as they have.
In any event, there’s always the possibility that things will turn out well! We’ll be watching!