What is a scamcoin – The Bluecoin Example

The scamcoins are those cloned algorithms, which bring absolutely nothing to the altcoin world, usually made for the goal of quick profit.

There is a small chance for an investor to ride the wave of profits with those coins. Usually, as soon as somebody invests in such a coin, it will disappear. Let’s see the characteristics of a scamcoin, with an example:

Bluecoin Review: The Profile of a scamcoin

Going through the altcoin news in a spree to find a new altcoin, I found this thread on Bitcointalk, talking about a new altcoin. The new invention is named bluecoin, and it really looks like a hit and dump attempt.

Lousy marketing

Besides this thread on Bitcointalk, there is nothing else about this coin online. If you search “bluecoin” online, you will find anything else but an altcoin. It seems like this guy tried to launch this coin a few months ago, but he renounced because of…something. According to this thread on Reddit, this “investor” or somebody else was looking for developers one month ago.

No website, no wallets, no miners

The “developers” didn’t even bother to make a Reddit thread about the coin. It seems like they need nothing else besides a thread on Bitcointalk. This shows that the altcoin will not spend too much time online. Sure, the developers will tell you that those are in development, and that they will make a website, and that the new coin will grow massively. but there will be no pools, bounties, wallets or any other form of online promotional method.

Premined

This currency comes with 3% premined coins. 1% will go to the developers, while the other 2% will go to the “community”. This means that the developers will have 1% of the coin already in their stock when the currency will be mined. This 1% is really good for a hit and dump move.

Characteristics

The numbers are just too rounded. There will be 1 billion coins released. A reward per block of 10 000, and it is based on the Scrypt algorithm of the litecoin. It seems like this newbie only copied another coin, but he was not even able to program the algorithm. This shows that this coin is made by dilettantes, and it does not stand a chance online.

Distribution:

– Scrypt

– Total Coins: ß1,000,000,000

– Block Reward: ß10000

– Total Blocks: 100,000

– POS After Block: 100,000

– Premine 3% for growth bounties, network maintenance, and coin expansion.

– Port TBD

What can be done to avoid scamcoins?

The scamcoins will usually have the same characteristics: premined, not well promoted, and without a strong support online. On the official thread of any altcoin, the bitcoiners will talk about it, asking some “delicate” questions for the developers. Read the entire thread before investing in an altcoin, see what others are saying, and only trade on reputed websites.

source: http://www.cryptopips.com/altcoin-reviews/scamcoin-reviews-scamcoin-bluecoin-example/

What is a scamcoin – The Bluecoin Example