Ethereum

Bitcoin Maximalists Embrace Ethereum After Receiving an Offer They Can’t Refuse

22/08/2019 by Idelto Editor

A group of hardcore bitcoin maximalists have heroically overcome their hatred for Ethereum after receiving ERC20 shares in crypto exchange INX worth hundreds of thousands of dollars. The staunch BTC loyalists, led by Blockstream CTO Samson Mow, have agreed to support a project built on Ethereum, despite all the mean things they’ve said about it. The news has provoked intense debate within the crypto space, however, with some cynics arguing that the maximalists are only in it for the money.

Also read: The World Bank’s Blockchain Bond Is Just a Fancy Way of Selling Debt

Mow Money, Mo’ Problems

As CTO of Bitcoin development company Blockstream, Samson Mow’s primary duty is to keep block sizes small to peddle his firm’s scaling solutions to the problem it engineered. High fees don’t generally concern bitcoin maximalists such as Mow, who have no interest in using BTC for its intended purpose, instead preferring to lock it away in a vault and never look at it again. It’s a policy that, for all its flaws, has helped to make Mow and his cronies extremely wealthy, and Blockstream an extremely influential Bitcoin company.

The significant success of Mow’s primary business, however, has caused a paradox: to launch one of his secondary ventures, a crypto exchange in which he has invested $100K, it will be necessary to utilize a network with low fees. Bitcoin is out of the question for the aforementioned reasons, while Ethereum should also be a non-starter due to a number of immutable statements Mow has made about the rival network, calling it “the most impractical thing in existence,” a “science fair project” and “centralized AF.” The Blockstream bigshot also wrote “I wish ill on Ethereum” which “has no future.”

On the surface, these damning remarks would appear to preclude Mow from accepting 100,000 ERC20 tokens to serve on the advisory board of INX Limited. To do so would be at odds with everything he has ever fought for, and could be interpreted as the actions of a man with no spine or standards. On closer inspection, however, it becomes evident that Samson Mow is not the flip-flopping fool that many have taken him for. Rather, his actions are those of a true bitcoin maximalist, whose sole motivation for accepting Ethereum tokens is to demonstrate the superiority of BTC.

Samson Mow Plays 4D Chess

Samson Mow, together with fellow maximalist Jameson Lopp, and a handful of other close collaborators including Riccardo Spagni and Charlie Lee, will have a significant stake in the venture, which will see 130 million shares issued as ERC20 tokens. All of the project’s early investors will be remunerated in Ethereum tokens, as detailed in an SEC filing unveiled this week. “Ethereum” and “ERC20” appear over 100 times in the document, attesting to the pivotal role that will be played by the network maligned by Blockstream’s Mow et al. Notably, the IPO filing expounds at length on Ethereum’s gas fees, which are multiples lower than their BTC equivalent.

Despite Mow’s previously scathing comments about Ethereum, his decision to accept $100,000 of ERC20s is probably born not out of avarice, but from a principled desire to prove that only Bitcoin is immutable. Everything else in this world – including the Ethereum blockchain and even Mow’s own words – is reversible, and subject to being rolled back when there is a financial incentive to do so.

It’s time to Make Ethereum Immutable! Gray color makes it less likely you’ll get pepper sprayed. Get it on @PurseIO! https://t.co/HbcSsXiTX5 pic.twitter.com/zG1JsC3EIv

— Samson Mow (@Excellion) March 29, 2017

It is to Samson Mow’s credit that, after years of badmouthing Ethereum, he has eaten his words to prove the inviolability of BTC alone. When Mow’s stake in INX became public this week, bitcoiners were swift to label him an unprincipled hypocrite. It turns out he was playing 4D chess all along.

What are your thoughts on Samson Mow’s sudden change of heart? Has Mow now made a greater contribution to Bitcoin than Satoshi Nakamoto? Let us know in the comments section below.

Images courtesy of Shutterstock.

Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

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The World Bank’s Blockchain Bond Is Just a Fancy Way of Selling Debt

21/08/2019 by Idelto Editor

Last year the World Bank and the Commonwealth Bank of Australia announced a permissioned Ethereum-based blockchain to facilitate the end-to-end issuance of bonds between financial partners. The Bretton Woods-created financial institution hopes to make debt capital markets far more efficient with a bank-to-bank blockchain network. At the same time, the World Bank’s bond scheme has been scrutinized for corporate and political collusion with global leaders and Fortune 500 multinational corporations.

Also read: Central Banks Worldwide Testing Their Own Digital Currencies

The World Bank’s Plans to Sell Debt via Blockchain

The World Bank wants to digitize bond markets and debt capital settlement on a private Ethereum blockchain. The project is led by three other large financial institutions including the Commonwealth Bank of Australia (CBA), RBC Capital Markets (RBC) and TD Securities (TD). According to the World Bank and CBA’s blog post, the project had gathered $81 Million for the issuance of distributed ledger-based bonds in August 2018. This year, on August 16, the World Bank revealed the project’s partners increased the liquidity of the blockchain bond by more than $33 million. Essentially the bank uses the private blockchain to issue a digitized instrument of indebtedness called the Bond-i, an autonomous smart contract token system that pays coupon payments over a length of time. The technicalities of the blockchain platform were developed by CBA’s Innovation Lab’s Blockchain Centre and the bank has revealed that the “blockchain platform’s architecture, security, and resilience was conducted by Microsoft.” Additionally, on the legal side of things, the project is supported by the litigation firm King & Wood Mallesons.

The World Bank was established in 1944 and is deeply rooted in Keynesian economics. Over the last year, the World Bank has been under scrutiny for participating in nepotism and corporate collusion, while also introducing a blockchain bond system built on a private Ethereum-based blockchain.

At its core, the project is very centralized with its permissioned distributed ledger only viewable by bank-to-bank associates, Microsoft, and a well-known law firm. Fundamentally, outside observers must take the World Bank and its partners’ press releases with a grain of salt. The ETH-like token of debt is in its initial stages and the $114 million locked into the project is mere pennies in comparison to what these banks play with when participating in debt capital markets worldwide. Eventually, the World Bank wants to include the institution’s annual lending of $50 billion to $60 billion. The asset manager Northern Trust and several Australian financial institutions and government entities participated in purchasing the Bond-i. With a two-year lifespan, the World Bank expects the Bond-i blockchain debt security to trade among buyers and sellers. Basically, the World Bank hopes to hide the fact that the institution’s bond scheme is inefficient because it only serves the bureaucrats and corporations, rather than countries buying the bonds.

The World Bank’s Blockchain Bond Is Just a Fancy Way of Selling Debt — So far the World Bank and its partners have issued more than $114 million into the Bond-i experiment, but they eventually want to process $50 to $60 billion worth of debt capital on a blockchain.

The IBRD: Selling Debt to Governments to End Extreme Poverty Since 1944

In order to understand what the Bond-i project is, it’s a good idea to gain some knowledge of what the World Bank’s operations entail. The World Bank was introduced as the International Bank for Reconstruction and Development (IBRD) at the same time as the International Monetary Fund (IMF) was announced. The two financial institutions were created after the 1944 Bretton Woods conference, and the IBRD concept was designed by the project’s principal architect and leading economist John Maynard Keynes. At the time, economists called the period between 1944 and 1971 the Bretton Woods era and IBRD was meant to provide financing to developing nations in need of an economic boost.

The whole concept was and still is deeply rooted in Keynesian Economics, a theory of total spending and using debt capital markets to affect the output of inflation. In essence, the IBRD is not much different than a loan shark who loans out zero to negative-interest credits and government bonds to countries in need. Despite the fact that spending and debt markets have produced high inflation rates, Keynesian economists behind the World Bank still believe it works. The World Bank says that the ultimate goal is to end extreme poverty by the year 2030, but so far it has only enriched fortune 500 companies, bankers, and politicians. As the Austrian economist Murray Rothbard once said: “It is easy to be conspicuously ‘compassionate’ if others are being forced to pay the cost.”

The Artificial and Insidious Bond Scheme Seriously Damages the Global Economy

This is because the global elite, politicians, world financiers, and the banking cartel are the only ones reaping the benefits of the World Bank’s debt selling scheme. Basically, the World Bank sells these bonds for real-world commodities and political influence and promises to pay bondholders interest or they promise to pay the full principal at a later maturity date. The biggest borrowers, who have secured bonds and loans through IBRD in 2018, include India ($859 million) and China ($370 million). In 1998, it was estimated that countries with very little economic resources owed the World Bank close to $2.5 trillion and the figure has risen more than $50-60 billion every year since.

After the IBRD secures real assets and commodities from loaning out government bonds and credits, the central banks in the countries purchase the borrowed IBRD bonds from the government on the open market. This, in turn, increases the country’s money supply which then fuels inflation and rising prices attached to goods and services. The World Bank’s bond system is no different than the insidious mechanisms that jeopardize the global economy like fractional reserve banking and quantitative easing. The World Bank selling debt in the form of bonds so central banks can print more money has the same effect as the direct manipulation of interest rates.

“If the government manages to establish paper tickets or bank credit as money, as equivalent to gold grams or ounces, then the government, as dominant money-supplier, becomes free to create money costlessly and at will,” explained Murray Rothbard of the growing credit and debt cycle in 1995. “As a result, this ‘inflation’ of the money supply destroys the value of the dollar or pound, drives up prices, cripples economic calculation, and hobbles and seriously damages the workings of the market economy.”

In the Midst of Selling Blockchain Bond Snake Oil, the World Bank Is Heavily Scrutinized for Nepotism

Despite the World Bank’s blockchain project being one of the highest-profile experiments of its kind, the institution has been under scrutiny for quite some time for allowing the growth of nepotistic behaviors. Last year, the bank was criticized for cronyism and corporate influence in a research report written by Rabia Malik and Randall Stone. The report explained that corrupt states skim development funds, technocrats manipulate statistics, and bureaucrats participate in the political capture of international financial institutions (IFIs). Stone and Malik’s research shows that wealthier countries use the World Bank’s bond scheme to bolster their influence over political power.

“The World Bank withholds loan disbursements in order to build a reputation for enforcing conditionality, and multinational firms lobby for these funds to be released,” the research report details. “We find evidence of participation by Fortune 500 multinational corporations as project contractors and investments by these firms are associated with disbursements that are unjustified by project performance.”

It’s not too hard to notice the shell game taking place with the World Bank’s growing bond scheme and so-called ‘compassion’ toward poorer nations. Many people believe loan sharks of this capacity are not compassionate at all and are only selling debt to the unfortunate in a parasitic way. People like Ludwig von Mises, Lew Rockwell, Ron Paul, and Murray Rothbard have all explained how the World Bank is just another failed concept designed by John Maynard Keynes and his followers. Similarly, the Bond-i blockchain project is just a fancy form of selling debt but the process is not really transparent, unless you are a member of the banking cabal.

Unlike public blockchains, the general public has no access to this project’s blockchain explorer and they likely never will. To skeptics, the $114 million locked in the Bond-i project is a joke and if the World Bank wishes to end the systematic global economic crisis it should stop interfering with the economy by selling debt. The world’s politicians and central bankers, however, are not ready to hit rock bottom as they wholeheartedly believe in interfering with the market’s adjustment process. Whether it’s hosted on a fancy blockchain or not, until the World Bank stops the bond scheme, the borrowing economies will remain manipulated and artificial.

What do you think about the World Bank’s new blockchain Bond-i project? What do you think about the World Bank/IBRD’s practices of selling debt to poor countries? Let us know what you think about this subject in the comments section below.

Image credits: Shutterstock, World Bank logo, Wiki Commons, Pixabay, Jamie Redman, Peter VanValkenburgh, and WBG.

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‘Amazon of Japan’ Rakuten Launches Crypto Exchange Service

20/08/2019 by Idelto Editor

Rakuten, the “Amazon of Japan,” announced the launch of its new crypto exchange platform Monday, August 19, offering spot trading of crypto assets via a dedicated smartphone app. The e-commerce giant has been crypto-friendly for a while now, experimenting and investing in crypto payment systems since at least 2014, but with the launch of the wallet exchange service, Rakuten Bank users are now able to buy, sell, and exchange BTC, BCH, and ETH, as well as utilize fiat off-ramps to personal bank accounts. Other formidable forces in e-commerce are working hard to jump on board the crypto train as well.

Also Read: Another Self-Proclaimed Satoshi Fails to Sway Crypto Community

Optimism for Crypto

“Rakuten” means “optimism” in Japanese, and with all the effort the e-commerce leader has been pouring into blockchain and crypto development over the past years, that positive moniker makes sense. With a market cap of $14.5 billion, over 17,000 employees worldwide, and $10 billion in sales as of May, Japan’s internet commerce behemoth is ubiquitous in the land of the rising sun, and elsewhere.

In a press release from Tokyo yesterday, Rakuten Wallet Inc., a subsidiary of Rakuten Group, announced the start of its long-awaited crypto trading app and exchange service:

Through the smartphone app, customers can make transactions for crypto asset trading accounts, such as depositing/withdrawing Japanese yen and depositing/withdrawing crypto assets, 24 hours a day, 365 days a year…Three types of crypto assets can be traded: Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash (BCH).

The app features a multisig-based “cold wallet” for user funds, and “There are no fees for opening or managing an account, purchasing or selling crypto assets, or depositing money,” according to the press release. While the company uses the term “cold” in describing the wallet, it is important to note that the actual meaning here is simply offline storage, and as such security is not solely in the hands of the account holder.

Application Process: Convenience In, Privacy Out

For those applying for a Rakuten Wallet account, the process is pretty straightforward. “Customers who already have a bank account with Rakuten Bank will be able to easily open a Rakuten Wallet account simply by entering the required information on the online application form,” the press release confirms.

However, privacy-minded crypto users may find the application off-putting. Japan is arguably the world leader in crypto regulation and adoption, with rigorous KYC and AML protocols implemented industry-wide thanks to Japan’s FSA (Financial Services Agency). The veritable dating game-style personal quiz prior to signing up is reflective of this reality.

Applicants must answer several questions even after opening a Rakuten Bank account including private details relating to one’s job, purpose for opening the account, and income. They must also state how many years they have been active in the crypto space. This is in stark contrast to private, P2P exchanges like local.bitcoin.com, where the only thing needed is an email address.

Rakuten’s Push Echoed by Amazon, Others

Establishing the Rakuten Blockchain Lab in 2016 after an earlier investment in Bitnet, a wallet/payments software firm in 2014, Rakuten is no stranger to crypto. In terms of the breakneck speed proliferation of Japanese regulations and crypto adoption, 2014 seems like light years ago to most. The Tokyo-based company is not alone, though, with other movers and shakers in the industry having also been putting in the time and research, and now seem to be making plans to jump on board with similar projects.

An official patent document from May reveals that Amazon is researching Merkle Tree solutions to proof-of-work challenges for unknown applications. Though Amazon does not directly accept crypto payments like Rakuten’s American site does, via the integration of the Bitnet portal, similar developments may soon be in the works for America’s retail juggernaut. Already the Amazon Coin digital currency is a reality.

Rakuten’s CEO, Hiroshi Mikitani, announced in early 2018 that the company was working on its own crypto token, “Rakuten Coin” to be integrated with the extremely popular Rakuten points system in Japan. Currently these points can be exchanged for bitcoin via the Japanese site.

Amazon has further created a stir in the media in past years by buying up crypto-related domain names such as amazoncryptocurrency.com, amazoncryptocurrencies.com, and amazonethereum.com. While this could be simple brand protection, based on the company’s recent research and investments, real speculation does seem warranted. Especially considering that other companies on similarly herculean tiers of mega financial success like Walmart, Facebook, and Google are all investigating and experimenting with blockchain and crypto as well.

Japan Still Skeptical of Exchanges

Though the Rakuten announcement is big news for crypto enthusiasts in Japan, some remain skeptical. With massive losses of funds at Mt. Gox, Coincheck, and most recently Bitpoint, customer confidence in Japan-based exchange services has suffered. Even lesser known issues relating to regulatory changes have left a sour taste in the mouth of many. Tokyo-based exchange Bitflyer, for example, froze user accounts in 2018 with no clear notification, citing “general maintenance” and the need to comply with official regulatory audits. Some users had crypto frozen on the exchange for weeks, with little to no assistance from customer service.

Rakuten’s Positive Push

Japan’s troubles of the past notwithstanding, Rakuten Wallet is pushing forward, with its Android app already available and an iOS implementation expected sometime in September. The service is set to be available 24-7, 365 days a year, except for maintenance periods. Fees only apply for withdrawals of Japanese yen and crypto assets. According to the press release “The app also features many useful functions that allow customers to effectively manage their crypto assets, such as confirmation of assets deposited in Rakuten Wallet, the purchase and sale of crypto assets, and real-time chart rate confirmation.”

The optimistic foray into crypto is perhaps to be expected from the group that is already an online mall, credit card company, Japan’s largest online bank, and owns an actual baseball team. With Rakuten riding the crypto wave in the East, and spreading integration worldwide, it can’t be too long until other giants follow suit.

What are your thoughts on Rakuten’s announcement? Let us know in the comments section below.

Images courtesy of Shutterstock, fair use.

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Samsung Adds Bitcoin Support to Its Blockchain Keystore

15/08/2019 by Idelto Editor

Tech Giant Samsung Adds Bitcoin Support to the Blockchain Keystore

On August 13, Samsung, the South Korean multinational conglomerate, published the company’s new Blockchain Keystore SDK for developers and the latest release supports Bitcoin Core (BTC). The version follows Samsung’s previous Keystore release which only supported ETH and the ERC20 standard.

Also Read: Exploring the SLP Token Universe Built on the Bitcoin Cash Chain

Samsung Quietly Adds BTC Support to Its Blockchain Keystore

Cryptocurrency advocates were pleased to notice that Samsung (OTCMKTS: SSNLF) had finally added BTC support to the company’s Blockchain Keystore software development kit (SDK). The news came on Tuesday, August 13, when Samsung published the SDK with release notes, API reference, and programming guide. The reference to BTC can be found in a table that mentions “Cryptocurrency Specification,” “Cryptocurrency Limits,” and “Transaction Type Limits.” The cryptocurrency limits section notes that there’s a limit of 21,000,000 BTC or 2,100,000,000,000,000 satoshis. Transaction type limits include P2PKH (Pay To Public Key Hash), P2PK (Pay To Public Key), P2SH (Pay To Script Hash), and P2WPKH (Pay To Witness Public Key Hash). The transaction type limits are meant to require a sender to supply a valid signature within a wallet application that utilizes the Samsung Blockchain Keystore.

Samsung Adds Bitcoin Support to Its Blockchain Keystore — The Samsung Blockchain Keystore specs

The new Samsung BTC support can only be accessed by app makers and developers right now and only residents from South Korea, Spain, Switzerland, the U.S., Germany, Canada, and the U.K. can use the Samsung Blockchain Keystore. Interestingly, the tech giant added support for the Klaytn blockchain as well. This means developers using the Note10s, Galaxy S10, S10e, S10+, S10 5G can use ETH, any ERC20, BTC, and KLAY tokens. Samsung says there are two benefits to integrating the Samsung Blockchain Keystore SDK into an Android application:

Developers can use Samsung Blockchain Keystore API to request the Samsung Blockchain Keystore to sign a cryptocurrency transaction.
Developers can link a user’s Blockchain address like a user’s account. With the address returned from Samsung Blockchain Keystore, developers can check and show users how much cryptocurrency balance is in the account as well as view the transaction history.

Software engineers who use the Samsung Keystore SDK are able to leverage many features that are commonly used in applications like noncustodial lite wallets. For instance, the Keystore will generate a cryptocurrency’s keypair (public & private key) on the device itself, while also storing the keys in a secure environment within the mobile device. “[Samsung] does not rely on other network or a third party to generate these keys,” the Keystore 1.1.0 version SDK specification reads. All the mnemonic words (seed phrase words) are compatible with the BIP-39 standard allowing users to deploy the recovery phrase on another device if the phone was ever lost or stolen. However, sending a signed transaction is out of Samsung’s scope, the company explains, and engineers who want to send signed transactions need to rely on their own nodes or a public node.

Opening the Door for Bitcoin Cash Support and the Race to Lead Blockchain Development Within the Smartphone Industry

With BTC being added to the Samsung Keystore, the cryptocurrency spec opens the door for similar networks like Bitcoin Cash. BCH also uses transaction types like P2PKH and P2PK and has a hard cap of 21,000,000 BCH or 2,100,000,000,000,000 satoshis. In the Keystore specs, Samsung notes “We plan to support more cryptocurrencies and expand supported regions in the near future.” People who want to test the Keystore functionality cannot simply download the application from the Galaxy store as Samsung’s blockchain SDK is preloaded on selected devices only. Software developers can test the Keystore application by using Samsung’s Remote Test Lab, which is located in the Samsung Developers Site.

Posts on social media and Reddit forums show that crypto advocates appreciate Samsung finally adding BTC to the Keystore. Currently, there are 17 cryptocurrency-related applications that can be used with the select Samsung phones and the Keystore. This includes decentralized applications (dapps) such as Enjin, Cryptokitties, Coinduck, and Cosmee. Samsung’s dapp store also recently gained two new dapps in the form of Mars and Jupiter, developed by fellow South Korean tech company Trustverse.

There have been unconfirmed rumors that eventually Samsung Pay will sync with the Keystore wallet so people can pay for goods and services with digital assets. The recent BTC support from Samsung follows the released Cryptokit for iOS 13 from the company’s California-based rival Apple. The Cryptokit from Apple gives speculators reason to believe that the Cupertino tech giant will release its own in-house crypto wallet system. Similar to Samsung’s Keystore SDK, the Apple Cryptokit provides three specific attributes:

Compute and compare cryptographically secure digests.
Use public-key cryptography to create and evaluate digital signatures, and to perform a key exchange. In addition to working with keys stored in memory, you can also use private keys stored in and managed by the Secure Enclave.
Generate symmetric keys, and use them in operations like message authentication and encryption.

Apple and Samsung entering the cryptocurrency industry by silently releasing software development kits shows that mobile phones that have blockchain capabilities and offer cryptocurrency solutions are here to stay. The mobile phone giants are neck and neck in terms of sales, and adding cryptocurrency features may give them an edge among the lucrative tech- and crypto-savvy demographic.

The Chinese communications technology company Huawei already beat Samsung and Apple to the punch by selling phones pre-installed with Btc.com’s cryptocurrency wallet in May 2018. Even the phone manufacturer Oppos is on the heels of these three tech giants with its system that could help a peer-to-peer network of cryptocurrency node operators validate transactions in regions with poor internet services.

According to reports, Oppo’s Mesh Talk system could allow phones to exchange blockchain key data without using Wifi, Bluetooth, or cellular data within a radius of three kilometers. With all of the blockchain-related developments from Huawei, Samsung, Apple, and Oppos smartphones, it’s safe to assume that the mobile giants are well aware that cryptocurrencies are here to stay.

What do you think about Samsung adding BTC support to the company’s in-house Blockchain Keystore? Let us know what you think about this subject in the comments section below.

Image credits: Samsung, Wiki Commons, Huawei, Apple, Oppos, and Pixabay.

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Twitter Crypto Scammers Continue to Fly Under the Company’s Radar

14/08/2019 by Idelto Editor

Over the last two years, cryptocurrency scamming on social media has been prevalent. In January 2019, it was reported that crypto impersonation scams on Twitter raked in millions in cryptocurrencies from people pretending to be well known blockchain personalities. Now a new form of deception can be seen on the platform, as scammers are using photoshopped pictures of tech personalities and businesses like Coinbase to further another crypto con game.

Also read: Crypto Impersonation Scammers on Social Media Raked in Millions in 2018

There’s a New Crypto Scam on Twitter

There’s a new swindle on crypto Twitter where scammers are sharing screenshots of well known cryptocurrency and tech luminaries promoting supposed BTC giveaways. Typically these fraudsters will use a very popular post with hundreds or thousands of likes and type the phrase “Great News.” Underneath the user’s text is a photoshopped picture of an announcement from Coinbase saying that it’s offering a BTC giveaway. The tweets are a blatant scam in order to con a person into believing they can “double” their coins. For instance, on August 12, Morgan Creek cofounder Anthony “Pomp” Pompliano tweeted his usual weekly investors’ letter where people can sign up and get regular emails from Pomp. Just below Pomp’s tweet is a Twitter account called “Adam[BTC/HODL]” who states: “Thanks Coinbase I just received 1.90680 BTC — Anyone can join, not much left.” Below that statement is a photoshopped picture of a faked Coinbase account stating:

To celebrate 50 million users, we decided to host a 5,000 BTC giveaway event — You can use any wallet or exchange to participate. Visit our promotion site — If you are late, your BTC will be sent back, thank you for your support, Coinbase team.

Below the tweet, another scam Twitter account adds to the con game by saying they got some coins from the giveaway. “OMG — Just got 2 BTC, thanks for sharing this,” the user “Sierra” exclaims while 59 people have liked her tweet. Another fake account dubbed “Charrlees Hooskiinson” can be seen tweeting the same scam in a real Twitter thread started by Cardano’s Charles Hoskinson. The picture shared, in this case, is a photo of a phony Elon Musk account which says: “Our marketing department here at Tesla HQ came up with an idea — to hold a special BTC and ETH giveaway event for all the crypto fans out there.” Just like the bogus Coinbase account picture, the fake Musk account shows a website to visit where people can allegedly double their coins.

Impersonating Prominent Crypto and Tech Influencers and a Phony Block Explorer

While investigating the first fraudulent website tied to these scams, visitors can see a Coinbase logo and a message geared toward new guests. The site says that if a person sends 0.1 to 10 BTC to the address they will receive a whopping 1-100 BTC in return. Below that is a BTC address the person can send funds to, which has also changed regularly since news.Bitcoin.com started this investigation.

The current address displayed on the scam giveaway site today has zero BTC and no transactions tied to the address have ever been recorded. But the website’s visitors get a different look as there’s a dummy block explorer shown on the website aiming to bolster the claim that people are really doubling their money. Watching the fake explorer shows someone just deposited 8 BTC and got 88 BTC sent back to the original address, but on a real block explorer, these transactions don’t exist.

Elon Musk, the founder of Tesla, is also targeted in the fraudulent Twitter act as photoshopped pictures show another BTC doubling scam. The con is done in the same way as the Coinbase example. Some random Twitter account shares a fake picture and underneath another phony account someone says they were just awarded a couple of BTC. The website in the photo leads to a fake Tesla page too that is almost exactly the same as the Coinbase version, but it’s red with a Tesla logo. Just like the last one, there’s another deceptive block explorer showing fictitious BTC transactions. There’s also a progress bar showing how much BTC is left in the so-called doubling pot and the longer you stay on the website it makes it seem like you’re missing out on a lot of BTC.

Twitter Scammers Continue to Make Millions of Dollars From Crypto Newbs

It’s uncertain whether Twitter is aware of the latest scam revolving around the crypto Twitter space. Last year, researchers uncovered empirical data which confirmed 15,000 cryptocurrency scam accounts were strewn across the Twittersphere. In February, social media cryptocurrency community member impersonators were making $5,000 a day in ethereum on Twitter. One particular person sent $18,000 to a fake Erik Voorhees account. In March 2018, the well known crypto influencer Emin Gun Sirer told Twitter owner Jack Dorsey that the scams were getting out of hand, adding that if he “can’t detect this kind of brazen scam, what hope do you have of improving your platform?” Dorsey did respond to Sirer’s post that day and said: “We are on it.”

But the scam tweets have continued relentlessly and people are still complaining to Twitter every day about this obvious con. “People do not tweet out that they are giving away money for free — That is a complete scam — The old saying is true ‘if it seems too good to be true it probably is.’ There is a Bill Pulte investor in the cryptocurrency space that is promising to give away money — Twitter needs to investigate,” one person wrote on Monday. Another person tweeted: “This person has been creating accounts all over Twitter, trying to scam people out of crypto. Accounts keep cropping up replying to tweets from prominent people in the community — It’s a scam.” By the look of some of crypto Twitter’s most popular posts today, it seems the company still hasn’t received the message.

What do you think of the latest crypto Twitter scammers who use photoshopped pictures to promote their con game? Let us know what you think about this subject in the comments section below.

Disclaimer: Readers should do their own due diligence concerning the aforementioned scams and websites. Bitcoin.com or the author is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, company, software or any activities mentioned in this article. This editorial review is for informational purposes only.

Image credits: Shutterstock, Pixabay, Twitter, and screenshots taken by Jamie Redman.

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