"If you see fraud and don't shout fraud, you are a fraud"
-- Nassim Taleb
What evan did was;
1) Released Darkcoin/Dash
2) Put the block reward at 500 coins per block
3) Make it only available to the extremely small pool of linux users(So his buddies and himself could get the majority of coins)
4) Instamine darkcoin with a few of his buddies
5) Cut Darkcoin's block rewards over 50% from 500 to under 100
6) Cut Darkcoin's max coin supply by 50%
7) End the instamine within 40 hours and go on his merry way
What makes that even worse, was that he made the masternodes as a way to continue enriching himself, so he could gain even more $ from the coins he instamined. Within 40 hours over 2million Darkcoins were mined by Evan and a few others at darkcoins/DASH's release.
If this isnt a scam, then I dont know what is.
This shitcoin is even scammier than i imagined. Someone needs to go jail over this shit
I don't imagine the State of Arizona takes kindly to HYIP schemes, especially when they involve both unregulated financial products and illegal money laundering.
Just at the state level, there are probably a dozen other TLAs who strongly disapprove of crap like this:
In order to run a Masternode, an investor needs to buy 1000 DRK/DASH as collateral.
DASH ROI
You can estimate like this:
- Currently Masternodes get 40% of the block reward.
- The minimum block reward in DASH(DRK) is 4.65 DASH at this moment. I will assume difficulty is high enough so that we are dealing with the minimum reward for a worst case scenario situation, sometimes there are blocks with higher rewards. The minimum DASH block reward decreases by 7% annually to avoid abrupt block halvings, that already happened earlier this year so 4.65 DASH will be valid until next year.
- Average block-time in DASH is 2.5 min, so there are ~576 blocks per day. So 576*4.65DASH*40% = 1071.36 DASH alloted for the whole masternode network currently, we need to divide this by the 2300MN active masternodes. This gives us
~Monthly masternode income = 13.97 DASH
~Current Minimum DASH Annual ROI = 17%*
*This will change and go up throughout this year as the masternode network reward share will continue to increase each month to incentivize node creation following this schedule:
And the Feds will not be amused either.
UPDATE (thanks cryptohunter!)
Let's take a look at the first 5 h of Darkcoin (XCoin at that time)...
https://bitcointalksearch.org/topic/m.4589219
Edufield said (after failed launch) that he will wait the next day to launch DRK (XCoin at that time) it is 11 pm.
https://bitcointalksearch.org/topic/m.4591407
Edufield disregard windows wallet and daemon and hurry up his launch, presumably to not have windows miners on board.
https://bitcointalksearch.org/topic/m.4592827
Edufield say he added four nodes for the launch at 4 am (5 hours later, despite his promise to wait). The 4 nodes from Edufield are 3 amazons AWS + another unknown (whois IP). Launch started at 3h54 am.
https://bitcointalksearch.org/topic/m.4593601
Edufield said the github version was not updated, nobody could compile and only Edufield was able to mine until that time. It is 5.09 am and Edufield instamined alone 1153 block at 500 DRK + 60 block at reward 277 = 593120 DRK for him alone in about 1 hour.
https://bitcointalksearch.org/topic/m.4593987
No windows wallet confirmed at 5h47 am, despite a user attempt to make one avaiable, that Edufield dismissed quickly.
https://bitcointalksearch.org/topic/m.4594096
Illodin, understand dev has instamined alot of coin.
https://bitcointalksearch.org/topic/m.4595573
From this list of nodes, at 8h34 am (4h40 after launch) there were 50 Amazon AWS node and 50 microsoft cloud computing instamining DRK (checked using IP whois service). This is 100/124 nodes using cloud computing to instamine DRK. We are at block 2870 and block reward is 500. From block 1153-1729 block reward is 277. After that it is 500 again hence 2294 block at 500 + 576 at 277 = 1306552 DRK (worth about 13M$ now) were instamined in less than 5 hour by Edufield and coworkers using about 100 cloud mining instances. Edufield himself instamined in not even 5 h from 600K to 1169K DRK ((1306K-600K)*100/124 + 600K) depending how many of the 100 cloud mining instance were its own. All this while having purposefully set the difficult ridiculously low and block reward 100 times what it is now.
From 6M$ - 13M$ in 5 h, Edufield did some lucrative work here!
Edufield is nominee for the Master Scammer 2014 award! UPDATE: thanks smooth!
As I understand it. what was proposed and voted on was not a relaunch but an airdrop. i.e. creating more coins out of thin air to give away.
But the vote was in fact rigged, by closing it early.
It looks like that happened because a few whales didn't like the idea, and, according to Evan (his words), "You can't change the rules in the middle of the game".
And, yet, the rules
were changed in the middle of the game to
cut supply, instead of increase it, boosting the share held by instaminers, instead of reducing it.
So it seems you
can change the rules in the middle of the game, as long as you favor the right people.
Something stinks here. Big time.
Whoa! only 110 votes with 5% difference between yes and no and you decide to abort the vote and lock the thread before 24 hours and conclude that everyone decided not to airdrop?
After I asked many investors that purchased $10-100k USD worth of Darkcoin came out of the woodwork and said that would rob them. You can't change the rules in the middle of the game. It's in the past and we're moving on.
Can you imagine buying $30000 worth of something and then the developers making it worth $15000 overnight to appease a small group of users?
So the community didn't vote, the big holders did (the ones that instamined with you)
Gotcha.
Nope, it was the community that voted.
You just said that you asked the investors, it's even quoted here.
Ah wait, you call "big investores" = community. Gotcha
I asked the community to vote and many of the investors came out of the woodwork (and replied saying what's above). Sorry, my original sentence was confusing.
Community vote for less than 24hrs with 45% for and 55% against, then you canceled the poll and got the thread locked, that's far from a community vote. And you keep admiting that the people that posted had the final word because they had alot invested in DRK.
LOL you just admitted that the "community" = big holders.
.
