Suspicious Bitcoin Scheme Uses Ethereum ICO to Keep the Game Going

Article Source: BitcoinMagazine

Recently, there have been a couple of notable changes in the Indian based alleged Ponzi scheme known as GainBitcoin. The team behind the scheme launched an Etherum ICO after a petition surfaced from an outraged GainBitcoin Investor. The ICO was an attempt to ensure that the alleged scam didn’t shut down.

For people yet to hear about GainBitcoin, it claims to be an operation for Bitcoin cloud-mining. And this operation is linked to the founder of Bitcoin mining pool – Amit Bhardwaj. As a result of the unrealistic profits, which GainBitcoin promises investors in its marketing material, other Indian based Bitcoin companies like Zebpay have warned their clients about the scheme,

The suspicious scheme seems to have bought a new life for itself thanks to the new Ethereum it launched as well as the marketing campaign done by major Bollywood celebrities and newspapers.

Jos Garza, the founder of GAW Miners made use of this technique when creating Paycoin as a way of maintaining payments related to his Ponzi scheme according to a report by Bitsonline.

The Launch of a New Token

MCAP is the new token launched by Bhardwaj and this token was launched officially by Bitcoin Growth Fund which is also another creation of the same man. At $5 per token, the reports on the website stated that up to $19 million was raised by the MCAP ICO. The website also states that although some were sold at a discount, up to 5 million MCAP tokens were sold.

There are similarities between the video on the Bitcoin Growth fund website and the notorious OneCoin. Some of which are, the in price, claiming that by May 2018, the price of MCAP token to rise to a figure around $100. The video even advised investors to invest more even as the price drops because it will help them make more profit when the price eventually rises.

The relationship between the mining profits of the cryptocurrency and the token isn’t really clear; however, they claim the MCAP token gets its value from investments in crypto currency mining.

The MCAP is ranked 35th of the digital market cap as indicated by Coin Market cap. It is estimated that up to 30 million tokens are in circulation. Ethplorer claims there are up to 100 million of them but are unsure how many of them are in circulation.

On the cryptocurrency exchange C-CEX, the token currently trades at a little under $4The token is currently trading at a little under $4 although, in the words of Jeremy Ross, “C-CEX is one of those exchanges you go to to buy the trash.”

Apart from the exchange of Bitcoin Growth Fund Website, EtherDelta and C-CEX were the only 2 exchanges where you could find MCAP

The fact the Bitcoin Growth Fund website was linked to Amit Bhardwaj meant the credibility of the site couldn’t be banked on. Xcoinx which was the exchange which OneCoin hosted at the time for their own coin is now offline.

A Cryptocurrency Book for Beginners

Similar to almost every cryptocurrency related scam, MCAP is targeted at beginners who know very little about the processes of their digital assets. As a matter of fact, a new book titled “Cryptocurrency for Beginners” has been published by Amit Bhardwaj.

The book sells for 1,499 Indian rupees which is equivalent to about $23 USD. People who buy this book are given MCAP worth 1,200 Indian rupees as an encouragement or incentive, to begin with crypto currencies

Amit Bhardwaj

Bhardwaj was able to promote this new book of his in major Bitcoin related media, for example, the NewsBTC and the Cointelegraph. Apart from this, he secured 2 front page ads in 2 of the most read dailies in India – Hindustan Times and Times of India.

Over the past couple of weeks, Bollywood celebrities have sent out supportive tweets about the book to their many followers.

Therefore, GainBitcoin can take advantage of this new token to make payouts to their investors because MCAP is the only way they can receive their payouts. GainBitcoin has successfully made use of the Ethereum ICO to create more money out of thin air just to ensure the scheme keeps going.

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