Topic: Bytecent - scam warning (IconicExpert) (Read 3842 times)

Where are the coins from the ICO?  The 'rich list' (https://chainz.cryptoid.info/byc/#!rich) shows 1 big wallet with 159,903.6 BYC.  Are these them?  This is roughly the number of coins that should be in the ICO.  Normally these coins are located at block 1 but these show up at block #3791 or #3110 to be exact.  How did you 'inject' these coins into the supply?
Block 3109 shows a proper 3,109.0 BYC and then BAM!! 156,793.0 BYC are injected into the supply.  How?  What keeps this type of injection from happening at a later time?



holy $h!t lol. BYC block explorer shows first block at 2014-11-09 21:24:47. At 2014-11-12 05:44:37, Block #21920 was mined.  So far 10 bitcoins worth of BYC have been instamined.  I wouldn't exactly call that "minuscule".  Blocks are running less than <1 second - 6 seconds.  Just becuase there was suppose to be a 3million coin ICO doesnt make this right.  At what point do you stop and start over?

This one is not 100% accurated because I had made some edits and did not save them.

Yes, I seen you say these coins were 'minied' but that doesnt make sense.  Where did you 'mine' these coins?  They were not mined from the start.  If these coins were 'mined' the block count would be over 160,000.  1 BYC per block and you need 159,903 +/- BYC.  Instead we are at block 23,851 with 179,653 BYC outstanding.  

It looks like 156,793.0 BYC were injected into the supply on block 3110.  3109 blocks were mined with 1 BYC and then on block 3110, 156,793.0 BYC were mined.  From block 3111 to block 4109, .01 BYC is the block reward.  Normally you see a premine or ICO funds as block 1 or start at block 1.  This makes things easy to track.  Thats not the case here.

How did you 'inject' these coins into the supply? What keeps this type of injection from happening at a later time?

Lets add a touch of reality here.

"Please note: hundreds of people mined coins, not a select few people."

You can assume hundres but actually all you can say is hunreds of address or clients mined the coins.  That doesnt mean people.  You tweeted an image that showed someone with 5 clients running.  Fact of the matter is you have no idea who or how many individuals really mined these coins.



"Let's assume only 500 people download and install Bytecent per day, that is 300000 coins per day needed to mine for 24 hours."

Let’s assume 1000, 10,000, 100,000, etc...  You can assume all you want but those numbers are bullshit.  Making assumptions to justify making the decision to allow a shit ton of BYC to be instamine is total bullshit.

 

"We had to start with a low difficulty to allow more coins to enter circulation, or it would have taken years before mining would have been "fair" for everyone. I did not mislead anyone or misrepresent the numbers."

So you knowing allowed investors holdings to get diluted.  What was the point of the ICO.  Investors didn’t need to invest at all.  All they needed to do was mine.  We are up to almost 17 bitcoins worth of BYC mined.  In just a few hours 1/4 of the ICO raised will be mined FOR FREE.  That should be less than 24 hours from the initial launch.

 

"The difficulty is increasingly getting harder and in a day or two, we will be near or at 1440 coins per day."

 SOOOOOO.... We could be pretty close to the amount of ICO funds raised by the time this happens.  NICE!!  Looking good for investors.

 

"The value of Bytecent hasn't been diluted at all, and the value is increasing due to Bitcoin."

Not Diluted?  Potentially close to the amount of the ICO funds raised will be mined for free within just a few days.  1440 coins were supposed to be mined in a day but significantly more are mined an hour for over 17 hours now.  These miners didnt pay a single sat for these coins in the ICO.  They get them for free and only have a little bit of electric to pay for.  Miners can dump these coins for half the price of the ICO and still make a really nice profit.  No matter how you want to spin it, that’s dilution of the market.

IE Said:
Hello everyone!

Today has been a rollercoaster and some of you are a bit frustrated and rightfully so. I apologize for the issue with syncing, I have a temporary fix up until I can release an update tomorrow: http://coinblab.com/forums/topic/47/wallet-sync-connection-fix

Now I know this was not the smoothest launch, and with new technology there are bound to be some issues. Nevertheless, we were able to pull together as a team and find solutions to fix the problems. This is the meaning of community, when we work together to solve problems. Insulting and criticizing each other doesn't fix problems, it just creates them. The wallet is working fine and everyone is able to mine.

Some of you were concerned about the amount of coins being mined after the coined launched. With any new POW coin the difficultly has to normalize, and it is a bit different with Bytecent do to its unique way of "hashing". The rate of coins being mined has slowed down since early, and once we hit a difficulty of 6 it will be much harder to mine. So I hope everyone can be patient for several more hours while the network adjusts.

I would like to point out the amount of coins mined is minuscule.  There are currently 175,407 coins mined in total, with a marketcap of $32,308 Even IF 200,000 coins were mined  before the network normalized, the market cap would still only be$36.800! That is less than 100 BTC. So the value of the coin are not being hurt by the extra coins.

IE Said:
I addressed this in multiple threads. Once we realized we were not going to come close to selling 3 million coins, we waited until the ICO was over and mined the amount needed. Bittrex now has those coins.

As for the coins currently being mined, that is how the algo and difficulty works. As soon as we hit a difficulty of 6 it will become dramatically harder to mine. We are still only talking about a market cap less than $40,000. These coins are being evenly distributed. There are no farms or pools dominating, just solo miners competing against each other.

Later today as more people mine we will be at a difficulty abovef 6 and everyone will be happy.

IE Said:
November 12, 2014 10:22 AM EST
Good morning everyone!

 
I am writing this announcement quickly so I can get back to resolving the connection problems some people were experiencing.

First, I would ask if everyone who contributed to the crowdfund to not get distracted by FUD and misleading rhetoric. From day one, people have been trying to derail this project, and they are using something that is common for a new coin to scare people.

Yesterday I launched the first ever user-friendly cryptocurrency. No one had an issue with installing or using the software. However, there was an issue with people connecting due to the node list. Connection difficulty is an issue that plagues all wallets, not just Bytecent. However, after a few hours we got most people sorted out. Now that we have active miners and a health node list, I will be able to release an update to fix this issue for new users trying Bytecent for the first time.

I will be pushing out updates on a regular basis until the technology is near perfect. I am asking everyone to be patient since this is not just another clone coin. A lot of time and effort went into developing this, and of course there will be bugs. We are working nonstop to make sure all the issues are fixed. People are mining, and the network is healthy.

There has been a lot of controversies regarding the coins that are mined. The point of Bytecent was to allow everyday users to mine without having to use pools or fight against server farms. Bytecent is the first cryptocurrency to allow people to install a miner, mine fairly easy, and actually receive coins without joining a pool. Everyone is receiving coins, and is the way mining should be.

No one single person instamined or received a ton of coins. The block reward for the first blocks were only 0.01 to allow the fairest launch we could offer. No launch will be 100% fair to everyone, but we did our best to make it as fair as possible. No one, including myself mined a large number of coins, and this can be verified in the blockchain: https://chainz.cryptoid.info/byc/#

Please note: hundreds of people mined coins, not a select few people.

As you can see no one has a lot of coins, except Bittrex.

I made the maximum ICO coins 3 million because I knew once we launched through my distribution channels there will not be enough coins to allow most people to mined without entering captcha ever hour. Let's assume 200,000 coins are in circulation before the difficulty normalizes, 200,000 BYC Supply / 600 required coins for 24 hours of mining = 333 people. If the entire supply just went to mining coins, we will not have enough coins to satisfy the demand of new miners entering the market each day. It is not safe for the network to have a large number of people cut off every hour to restart. We need enough people being able to mine for 24 hours uninterrupted.

Even 500,000 coins will not be enough to satisfy demand. Let's assume only 500 people download and install Bytecent per day, that is 300000 coins per day needed to mine for 24 hours. I expected over 30,000 people downloading and installing the app a day once we go public!

We had to start with a low difficulty to allow more coins to enter circulation, or it would have taken years before mining would have been "fair" for everyone. I did not mislead anyone or misrepresent the numbers. The difficulty is increasingly getting harder and in a day or two, we will be near or at 1440 coins per day. The value of Bytecent hasn't been diluted at all, and the value is increasing due to Bitcoin. So people who have contributed to the crowdfund have more money than they did a few days ago. Our current market cap is 34,622 as of writing this, and the difficulty is increasing fast at 6.12.

In regards to "dumping," I have heard the opposite. Most people that are mining want Bittrex to open trading so they can get more coins to mine. Everyday people who have never been able to solo mine are actually having fun for the first-time mining, and that is why I created Bytecent.

Everyone who has participated in the Bytecent project has made history! ALL of us have launched the first consumer friendly cryptocurrency, and the community along with the devs are fixing whatever issues we run across. Soon we will be ready for the general public, and no one will be able to stop our growth.

I have kept every promise I made to this community, and all I asked for in return is your patience. We didn't copy and paste some coin as is; we took a lot of time and effort to bring you guys something new and innovative. It will take a bit of time to get it right, and that is with any new technology. We only raised 80 BTC, and we have done more in 1 week than every dev who received 10x as much in 2 months. Everyone here is seeing where his or her contribution is going, and we have not even been live for a full day! Just imagine where Bytecent will be in a week or a month. So please keep supporting us though this initial stage.

 

In the next few hours, I will release an update to fix the current issues people are experiencing. I just ask everyone to please give us some time to test and retest

 

Thank you!
IE