Vitalik Buterin advises to ignore ICOs with volume bonuses

Co-founder of Ethereum, Vitalik Buterin is considered that ICOs offering volume-based bonuses contradict the idea of cryptocurrency and should be ignored
21 November 2017   1233

Vitalik Buterin talked against ICOs that offer volume bonuses in his Twitter and asked users to ignore them.

Co-founder speaks that the main idea of cryptocurrency is to build the economy based on equality and fair without such so-called few that holds all the wealth.

Initial Coin Offerings raise more than $3 billion on their projects this year.

ICOs and token sales usually offer some time and volume-based bonuses. Buyers often get extra coins in the early stages of sales.

One Twitter user reproached Vitalik Buterin’s tweet because Etherium ICO also offered bonuses.

Vitalik answered that those time-based bonuses were acceptable but nevertheless he disagree with all the decision Ethereum ICO made in 2014.

The main idea of ICOs was to help skillful teams with their great ideas to get through easily, but it didn’t become a trend, especially by teams which couldn’t raise their funds using traditional methods.

Also the discussion began about the transparency of operations, fund usage and achievements teams working on projects got. In contradistinction to original companies and startups, ICOs are not the ones which can be regulated and few token holders can say about how such project progress.

Users Suspected RusGas of Scam

Reddit users have already accused RusGas of exit scam, since its behavior is much like  recent scam project Oyster Protocol
07 December 2018   97

The RusGas cryptocurrency project (RGS) demonstrates disturbing signs and releases new tokens in excess of the pre-set emission limit, Cryptovest reports. With an aggregate capitalization of $ 117, RGS trading volume for the last few days is $ 35,000. Events unfold against the backdrop of promises made by the project organizers about the upcoming restart.

Most of the RGS trade is focused on the Crex24 exchange, which has a daily  of $ 700,000. RusGas had a daily volume of several million dollars in its best days, which already then caused questions about the authenticity of this value.

According to CoinMarketCap, RGS emissions are limited to 10 billion tokens, but Etherscan indicates that currently 298 addresses contain 860 billion RGS. The rapid growth of emissions was recorded in recent days and hours. The largest wallet contains 99% of all tokens, which is probably the crex24 wallet. The developers themselves explain these movements to the next restart.

Reddit users have already accused RusGas of exit scam, since its behavior is much like  recent scam project Oyster Protocol(PRL), when the additional issue feature was used in a smart contract.

The likelihood of such an outcome is a characteristic feature of projects based on the Ethereum protocol, which allows additional emission of tokens through a smart contract at the discretion of its owner, not to mention other vulnerabilities that cost investors a lot of money.

RusGas is based on the idea of ​​using tokens and blockchains to optimize the Russian gas industry. Despite the dubiousness of the project’s mission, the data on the network indicates that in April of this year he managed to raise $ 2.2 million for ICO.