Over the past few years, we have seen multiple cryptocurrencies which were only meant to work within a specific area. Auroracoin is by far the most notorious example, and it ultimately failed to gain any real traction. NewYorkCoin, also known as NYCoin, is the latest attempt to achieve a similar goal. However, this project raises a lot of red flags, and the team’s intentions may be far less honorable than one would assume at first. People always have to be wary when it comes to projects like these, for obvious reasons.
NewYorkCoin Seems Rather Shady
Enthusiasts who have kept an eye on the developments in New York will know this state isn’t too welcoming when it comes to cryptocurrencies. More specifically, New York state is one of the more regulatory-hostile places in the US when it comes to Bitcoin and similar currencies. Ever since BitLicense was introduced by Benjamin Lawsky, most companies offering Bitcoin services have left the area. It is highly doubtful this situation will change in the near future.
Big was people’s surprise when they found out New York now apparently has its own cryptocurrency. Or that is what the team behind NewYorkCoin would like others to believe, anyway. Given the regulatory “heat” on anything related to cryptocurrencies in this part of the US, it seems highly doubtful the state would get its own digital currency out of the blue. Nonetheless, NewYorkCoin has become a very real thing, and it boasts quite a few features as well.
More specifically, NewYorkCoin claims to offer no network fees, which would be extremely remarkable. After all, no cryptocurrency or digital currency exists without transaction fees right now. As a result of this no-fee structure, sending money around the world is absolutely free of charge. It would be a major selling point for this currency, were it not a potential scam.
Indeed, the website of NewYorkCoin is nothing fancy to look at. One should never judge a book by its cover, but the more you dig, the more questions are raised. For one thing, the team claims NYCoin is accepted at multiple retail locations. A quick check with those companies confirms they have never heard of this project and have no intention of accepting it as a payment method. That alone is problematic, and it confirms people’s worst fears almost immediately.
Moreover, it seems the “marketing” strategy for NYCoin is mainly centered around spamming social media users. While it is good to see projects utilizing social media, there are plenty of concerns to be addressed in this case. Spamming cryptocurrency-related groups on various platforms is a clear sign of desperation and shilling. If NewYorkCoin were 100% legitimate, surely they could resort to other methods of promoting the project.
Furthermore, a Reddit user decided to dig up some information on the team behind this project. As it turns out, there’s only one person involved, there is no whitepaper, and there are no intentions of creating a legitimate digital currency for either the city or state of New York. As is always the case, claims like these need to be taken with a grain of salt and people should always do their own research. What is perhaps most worrying is how this token has a current market cap of over US$75 million, and some pretty solid trading volume for a small-cap coin. Be very wary when dealing with currencies like this one, as you will most likely get burned in the process.