ForexMinute.com – A high voltage pump has one again brought few days of limelight to yet another cryptocurrency. This time it is Vericoin which has grabbed the investors’ eyeballs by rising extensively in last few hours – a move which is well criticized by the regular users inside the crypto market.
While waiting for a supposed dump of Vericoin, we took a chance to think of this old-fashioned mechanism of new coins, to rise to fame overnight. We took a look at the Vericoin’s well-designed website, which neatly created an optimistic flimflam. Our sources on internet revealed that this new kid on the block is a rip-off of BlackCoin. It is a proof of stake verified with a multipool, proof of work distributed coin, allegedly waiting to be abandoned by its development and pump crew as soon as it hits the peak threshold.
And in fact, the coin is at press time, the ninth wealthiest cryptocurrency by market cap.
A whole group from BlackCoin community is currently discussing Vericoin on Reddit, openly criticizing its sudden surge to be yet another fraudulent gimmick. Some among them have also condemned the Vericoin interest model for being more harmful than the fiat interest rates. Incidentally, this interest model was distributed as one of the key attractions of Vericoin but fell right short of its hidden agendas.
One comment reads:
“The protocol is set to give less interest when few people are staking, which is when security is most needed, so why would you reduce the incentive? And they give more interest when many people are staking, a time when security is less needed, relatively speaking. This may also encourage people not to stake altogether, waiting for a time when interest is at its highest to spend coin age.”
The Vericoin Defense
There are also some users who are protecting Vericoin by calling its centralized services a better thing to implement. For example: one among few supporters points out the SMS feature offered by Vericoin developers that would be able to send money across different online wallets by using simple messaging services. Incidentally, this feature is considered untrustworthy by many others.
Some users have also taken BlackCoiners for being too jealous of Vericoin. One of them comments, “I understand the frustration of the community but face is these developers are smart and hungry it’s not a pump and dump is anything BC is looking more like a pump and dump as it went up from 10k-95k in three days. So [hating] it makes the BC community look bad!”
The conclusion of this ongoing spat can only be given after watching the markets for few days more. Do read our daily cryptocurrency trading news to where these coins are heading.
To contact the reporter of the story: Yashu Gola at email@example.com
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