Re: Bytecoin BCN warning don't try price arbritrage
Yeah i've read about these a lot. If you come across a coin too good to be true, it probably is.
Basically what happens is a group of people get together, not necessarily super wealthy. But they have a lot of crucial contacts. They'll all put in a few bitcoins. Buy dirt cheap, pump the price. Get those contacts to get hoax coins listed on big exchanges. The price continues to rise, they cash out, and make a quick buck. Everyone else gets stung.
Some of them make returns of around 10x or more when executed flawlessly. Not so shabby. You invest 10 BTC's, you've come out with 100 BTC's.
My advice is always steer well clear away from such shady coins. P.S. I should add, when I say stay away from shady coins, I mean anything that looks suspicious, i.e. if its over valued etc., because these groups dont make their own coin, they target ones already in existence and a solid whitepaper. |