Bitcoin Cash Problem Part II: ICO Platform or Scam Platform?
In our last article, we discussed the potential problems of the tokenization roadmap that was put forth by Bitcoin ABC. We believe this roadmap would be an ill-fated and poorly timed cash grab attempt. Irreparable damage could potentially be done to the Bitcoin Cash chain and a great deal of development time will be wasted. Moreover, an ICO Platform presents a huge conflict of interest for the current leaders of Bitcoin Cash.
In short, this tokenization roadmap is a scheme designed to enrich the major stakeholders of Bitcoin Cash at the cost of ordinary holders. This is obvious when Roger Ver calls himself an “ICO advisor” while already heavily involved with a variety of ICOs. Ver wishes to turn Bitcoin Cash into an ICO platform like Ethereum, just so he can use his large Bitcoin Cash clout to direct the masses to his own personal ICO. His intention has already been made clear from his released plans to perform an ICO for his Bitcoin.com website. The notion that a website for news needs to create its own tokens to do business is completely absurd. The only person that will benefit from such a ridiculous scheme is Roger Ver himself. We will outline his scheme in steps below.
Roger Ver’s ICO Scheme :
1. Become the most known and powerful leader of Bitcoin Cash
2. Enable cryptocurrency to be ICO platform
3. Promote your own ICO using your gained clout
4. Sell Bitcoin Cash to the ICO investors for Bitcoins or fiat.
5. Buy back the Bitcoin Cash using worthless ICO tokens.
This scheme basically allows him to obtain Bitcoins or fiat for free, without risking his large Bitcoin Cash horde. We are certain that other head figures of Bitcoin Cash such as Craig Wright and Jihan Wu are planning their own similar schemes. Business people can never resist the allure of free cash, especially when it can be obtained with little effort or original thinking.
For an example of this scheme, one only needs to look at Ethereum with Joseph Lubin and Vitalik Buterin. Ordinary investors of these ICOs now must deal with an absolute collapse in the price of these worthless tokens such as Vega, MyBit, SyncFab, and Jet8. These ICOs raised a total of over $46.3 M and have returned an average loss of 98.59%. While this is only four of the 650+ ERC-20 ICOs, the results for many others reflect similar losses. Since all of these projects were funded using Ethereum, the largest holders of ETH like Buterin and Lubrin saw massive returns while the ETH price soared due to increased demand. Towards the beginning of the ETH price crash, Buterin was still valued between $400 and $500 million.
Roger Ver and Bitcoin ABC are attempting to perform the ETH scam part 2. The Bitcoin Cash community cannot allow the chain to become a playground to create deeper pockets for the massive holders at the expense of everyone else. The roadmap to a tokenization and ICO platform on BCH is a dangerous path. It is one that will lead to a price collapse for Bitcoin Cash similar to or worse than that of Ethereum.
So we ask: if Bitcoin Cash is Cash, then why is it being turned into a platform for scams?