ChainCoin - 'investors' bewaresteemCreated with Sketch.

in #bitcoin7 years ago (edited)

I am editing this post at the top with the due diligence that I've performed on ChainCoin, I'm not FUDing what I believe is a good coin, I'm warning you guys from investing in something that has seen very little development. This update was made in response to a comment from @apollo92

There is a huge difference between organic growth of a coin, and having someone on the internet tell you "let's buy a low volume coin and hodl it and shill it so we can all make money somehow"
I'll enumerate some of those differences here.
Firstly: Coins that grow organically tend to have active developers and great communication to those who follow the coin. The last tweet on ChainCoin's twitter is talking about their live funding over 1 month ago... (Source: https://twitter.com/chain_coin)
Secondly: Coins that grow organically tend to stick to their roadmap, or update everyone when goals are not being met or are being pushed back. ChainCoin has not met several of its Q2 2017 goals and has not updated its roadmap to reflect this (Source: http://www.chaincoin.org/development-roadmap/).
Thirdly: Most great coins will have an active github. ChainCoin hasn't had any changes to their git for over 2 months now (Source: https://github.com/chaincoin/chaincoin)
Fourthly: Most alt coins have slacks in which investors can talk to the dev team and ask get updates! ChainCoin, however, does not have an open slack group (Source: Try entering your email here - https://chaincoin.herokuapp.com/invite)

I have done my due diligence, I've been investing in cryptocurrencies for years, I've seen monstrous rises and falls of other currencies. I know what a good dev team can do with an idea, and how it can positively affect my portfolio. What I can't see, is how youtubers can shill a coin, get a bunch of people to buy it, and then claim it will reach 100 dollars which would push the market cap of this coin with lackluster dev and commication to over 1.5 billion (pushing its way to the top 5 coins in existence at this point).

Pump and Dumps usually occur in micro-cap stocks

Many cryptotraders have no experience trading stocks on a stock exchange. I don't want to discredit those that do, I'm sure there are many people on this forum who are much more knowledgable than me! But I want to share with you all my earliest experience in attempting to trade stocks... I bought into something that was very similar to ChainCoin, similar in the way that it was promoted extensively by outside sources who have already bought the stock in attempts to create an extremely exaggerated price. I was young, stupid, and I wanted to get rich quick. Like ChainCoin, the promoters of the stock promised insane returns over very short time periods, and they were right, I watched as the stock rose from 8 cents, to 40 cents, to 80 cents, to 2 dollars!

That's where I bought, at 2 dollars.


Why? Because, like the organizers promoting chaincoin, I was promised that the price of the stock would EASILY rise to 10+ dollars! Of course I'm not greedy! I would sell my stock at 6 dollars for an easy 200% return instead of trying to go for 400% at 10 dollars. However, things didn't turn out that way, once the buy volume starts to decrease substantially, the organizers will dump their stocks (in this case chaincoin) on you.
whenIwasYoungandDumb.png

I learned a valuable lesson that day, I hope steemers reading my blog can learn from this 2nd-hand, rather than losing your money in this newer, slightly more sophisticated pump and dump.

If the organizers live in the US, and plan to sell before 100 dollars, they may be committing securities fraud


Securities fraud is something I've researched quite a bit after falling victim to my first pump and dump. Securities fraud is a very serious crime in the United States and a crime that organizers have gone to prison for and a crime for which organizers will continue to go to prison for in the future. Making statements such as 'you can't really lose', touting how it's 'bitcoin resistant', 'we're not trying to manipulate the prices', and finally HighOnCoins claiming they own more than 50% of the market supply should be a HUGE red flag...

Here are some links where you can read about pump and dumps and securities fraud:
https://www.sec.gov/fast-answers/answerspumpdumphtm.html
http://www.criminaldefenselawyer.com/crime-penalties/federal/Securities-Fraud.htm

You've been warned... Goodluck if you 'hodl'...

ChainCoin still could go up, up, and up... But I guarantee there will be a crash after this exponential rise. Who knows, maybe I'm wrong! I wish you the best of luck if you choose to ignore everything I've said.

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Thank for the informative post. I feel like they'll dump so hard on 90% of the holders in no time

Im not sure where you get the idea that people are promising other people something in return. Your analysis is not impartial. Nobody has claimed anything of the sort. This is nothing like the Stock you Compare it too...you say, "Like ChainCoin, the promoters of the stock promised insane returns over very short time periods," Completely Irrelevant (Not to mention your poor point of entry, on an already exhausted stock) no comparison to ChainCoin whatsoever.... Always Do Your Research

Turns out op was right, ChainCoin has been a dog. and they do more youtube promotion then dev work. their MN stakes haven paid since mid December, and have been hacked do to old code from lack of dev updates, these coins are based on tech not hype. if ChainCoin goes up its more to do with pump and dump than providing a value

Also, for everyone sake here is the link to the cryptopia exchange where chaincoin is actively being listed. The price of ChainCoin was 3300 sats when I published this article
https://www.cryptopia.co.nz/Exchange?market=CHC_BTC#

DO YOU EVEN HODL BROOO!!!!!!!

BITCOIN IS THE TITANIC WE ARE THE ICEBERG THAT NEVER MELTS ! CHAIN GANG

I love how the "chain gang" doesn't see the irony in their name nor the fact they can never come up with a rebuttal that isn't an insult or some sort of cult like phrase.

You are completely right about the "chain gang", love it

we are not pump and dumper! we are real people, who are tired of getting pumped and dumped! anyone who pumps and dumps chain coin is dishonorable and has nothing to do with our community, we are trying to build a coin safe from the daily pumps and dumps from the whales thats why we are doing this, so go warn someone else, you have no idea what you are talking about. ofcourse some asshole might try to pump and dump it, and thats why we build sell walls and buy walls to try to slow that shyt down.. I think its great people talk about things they know nothing about

But seeing as you posted EIGHT times in the past 2 days advocating for this, I don't think I'll convince you otherwise...
Also, you should think about the price at which the youtubers bought this coin... This is the same as a self-serving pump and dump telegram group where the leaders get in way before the followers and make themselves ludicrous profits.

Hi Tree Glad to see you are not only flaming me on Youtube but other sites calling your BS out. Makes me feel less special tho I thought we had a thing.

But dude, "Masternodes!"

Traditional pump and dumps don't last 5 seconds like they do in the crypto markets. In the stock exchange pump and dumps can go on for days, or even weeks. This is a hallmark of that kind of pump and dump. And if you care to read my first post you would know that I do know what I'm talking about... I've been daytrading for years.

The premise of "we're not pump and dumping we're just holding" is awful because you're basically saying your group is arbitrarily adding value to this coin based on things other than its own merit...

12 days later and the price is down to pennies again. A lot of us saw this coming and tried to warn the sheep with dollar signs in their eyes, to no avail. The worst part is that zedomax / highoncoins is still pushing this nonsense. I suppose he might have a few masternodes and would like it to retain some value above whatever he paid for it originally... it's really sad. Even newbies who have lost thousands of dollars are screaming "HODL DONT BUY OR SELL HODL" like lunatics

"Your community" is building a coin safe from daily pumps? So no one else can buy? Do you know how many coins your "iceberg community" holds vs how many there are? Did the core dev(s) pre-mine a few million extra coins before founding 'your community'?
YOU may not be 'pump and dumper', but that's just means you're pumping something until there's nothing for you to dump!
Who am I writing this for???

Outstanding post.. Good to see someone doing the due diligence! thank you!

I wish my arguments were this articulate, good read and valid facts.

Hi cryptotrendz,

What I think you've done here is taking a past event (the pump-and-dump stock), point to ChainCoin, and say that it will end up like that stock. Ok, but why? Unless you explain why, this ends up being a false equivalence based on rate of growth...

The only reasoning you gave is the 50%+ supply holding by HighOnCoins, and that by itself is not a good enough reason to make such a bold claim about ChainCoin.

I really do not care about ChainCoin whatsoever, nor am I claiming that this is or isn't a pump-and-dump, but I'm very interested in cryptocurrencies. With cryptocurrencies' rate of growth and decentralization, there will be no doubt in the presence of several pump-and-dump schemes, but such a simplistic comparison to the stock market and how it works might just cause us to classify any cryptocurrency that witnesses major growth as a pump-and-dump.

There is a huge difference between organic growth of a coin, and having someone on the internet tell you "let's buy a low volume coin and hodl it and shill it so we can all make money somehow"
I'll enumerate some of those differences here.
Firstly: Coins that grow organically tend to have active developers and great communication to those who follow the coin. The last tweet on ChainCoin's twitter is talking about their live funding over 1 month ago... (Source: https://twitter.com/chain_coin)
Secondly: Coins that grow organically tend to stick to their roadmap, or update everyone when goals are not being met or are being pushed back. ChainCoin has not met several of its Q2 2017 goals and has not updated its roadmap to reflect this (Source: http://www.chaincoin.org/development-roadmap/).
Thirdly: Most great coins will have an active github. ChainCoin hasn't had any changes to their git for over 2 months now (Source: https://github.com/chaincoin/chaincoin)
Fourthly: Most alt coins have slacks in which investors can talk to the dev team and ask get updates! ChainCoin, however, does not have an open slack group (Source: Try entering your email here - https://chaincoin.herokuapp.com/invite)

I have done my due diligence, I've been investing in cryptocurrencies for years, I've seen monstrous rises and falls of other currencies. I know what a good dev team can do with an idea, and how it can positively affect my portfolio. What I can't see, is how youtubers can shill a coin, get a bunch of people to buy it, and then claim it will reach 100 dollars which would push the market cap of this coin with lackluster dev and commication to over 1.5 billion (pushing its way to the top 5 coins in existence at this point).

I don't control anyone's money and anyone is free to put their money in this coin. But it sounds like most people didn't do any due diligence but decided to listen to a youtuber say "FREE MONEY" and poured their assets into it.

Wow. Honestly, I think you should put this comment in the main post...

Of course anyone is free to put their money in whatever coin they choose, but consider this: someone new to cryptocurrencies comes along and takes a look at it all. It's an exciting time, and they get pumped, and they wanna put money into it. They don't have that much experience yet so they look for advice from people who "seem" to know their stuff. Based on their inexperience they're easily swayed by comments and end up buying into a scam because they didn't don't do their due diligence because they just don't know how (yet). Your comment with that breakdown would help a lot of people...

Thanks I'll make another post, that's actually really encouraging to hear because it seems like everyone is looking at this post and thinking I'm a fool because they're all already part of the bandwagon :).

--edit-- I didn't know there was an edit function so I will just edit my original post

You can lead a horse to water, but you can't make em drink.

This is why I hate this platform... Whales promote garbage threads yet things people need to read is stuck in the either... I can only upvote you and say I AGREE. There are many here looking for answers, not just looking for diary entries...

Hey, just want to post here a few month later, just to point out how right you were. this shows you know your stuff, github doesnt shill and chaincoin is a dog

Chaincoin price is not $5.86 and moving up fast. You should have HODL on the coins you bought at $2.00 dude :P

I'm sure I make a fair bit more than the average chain coin holder, by doing due diligence. Enjoy the crash sheep.

it's now under 50c. If you bought at >$6 (when your pump leader was screaming at everyone to keep buying), do you still hold it now? or take your 90% loss?

these chaincoin people are blinded like the munchkins in the wizard of oz. so sad.

I think you're wrong about this. It's not a classic "pump and dump" scheme. This is a group of people who consider it an HONOR to be part of this movement. If you follow the HighOnCoins slack, you'll see we're a bunch of nuts, but most of us understand that this is something different. Yes, some people see this as an opportunity to make a quick buck as the price rises. They take their profits, and the price drops temporarily, but we are buying them out, setting up more masternodes. CHC whales are selling out, and they're being bought out by new members coming in who are long term HODLers. Most of us who are in this movement are masternode holders with a long term interest to see it succeed because we're staking. So we don't sell. We will NEVER sell or master node. Sure, no one would know. But WE would know, and we can't live with that, because that's they type of people our community is made of.

The coin offers nothing that isn't already being done out there already. As @cryptotrends already pointed out the dev team seems awol and all the usual "life signs" just aren't there. Do any of these "investors" know what the hell they are throwing their money at, or even what a white paper is - or are they blindly following a promise of easy money? I haven#t seen one single cheerleader say one single thing about why chaincoin has a future, an edge, a reason to invest other than chants of "masternode", "hodl" and "community". Owning a masternode for a coin with no traffic is going to be just dandy. A short look at the cryptopia chart volume shows you exactly when and how many coins were bought, probably by the main cheerleader/s before inviting everyone else in. Check those figures along with those of the first major dumps. "Bulls make money, bears make money, pigs get slaughtered"

I'm just calling it as I see it based on previous experiences. Not only making a huge mistake in the actual stock market, but trading alt cryptocurrencies for years as well. Time will tell what will happen to ChainCoin. Hopefully for your sake you're right, but I wouldn't count on it.

It's one big confidence trick with 1 person laughing all the way to the bank (for now)

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