PayCoin (XPY) an altcoin backed by GAW miners, which is believed to be a scam, recently joined the Top 5 club of cryptocurrencies according to its market valuation on CoinMarketCap. At the time of valuation, PayCoin was also informally launched on 16th December with an initial investment of $54.5 million brought into the market. It is also believed that PayCoin is part of a ponzi scheme with GAW Miners playing a major role.
This staggering amount of investment was coupled with an enormous surge in mining difficulty as miners rushed to get their first PayCoins. During the initial launch, PayCoin broke all previous records of alt coins and attracted 40 to 50+ peta hash of SHA-256 mining power, the equivalent of Bitcoin
So, is it yet another hot thing to buy on the market for quick profit or is PayCoin really bringing something new to the table? During the early days of Bitcoin, there were obvious scams where red flags were raised all over and yet the new blood got slaughtered. More recently, it has become slightly difficult for the bad players to carry out their illicit behavior. By masking as the greatest thing ever since Bitcoin, PayCoin is now utilizing smart marketing tactics to get uninformed investors involved in their very carefully executed scam.
Lack Of Evidence
According to PayCoin’s whitepaper, they have implemented Hybrid Flex BlockChain – a ‘lite’ version of blockchain ledger that will enable quick transaction clearance for the merchants and prevent blockchain bloating at the same time. Yet, there are no technical specifications of how this groundbreaking technology will work except a brief mention of “Prime and Orion Controllers.” Thanks, but no thanks, I think we need a little more than than that just to believe yet.
Conclusion
One thing that this wild west of crypto world have taught repeatedly is this: Do your due diligence before investing. 95% of the newly created coins are scams in one way or the other. Since there are no regulations, there is no accountability and never invest more than you can afford to loose. If you liked this article follow us on twitter @btc_feed
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