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Bitcoin Private Allegedly Created 2 Million Tokens for Founders, Hard Fork Under Work to Eliminate Them

December 26, 2018 20:43

Bitcoin Private, the privacy altcoin created after a fork from Bitcoin and Zclassic, reportedly created 2 million tokens out of thin air for its founders. The price of token has plunged significantly after the expose, and now a fork is underway.

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This Sunday came as the worst Sunday in the life of Bitcoin private, the privacy coin forked from Bitcoin and Zclassic. When Coinmetrics exposed the preferential treatment given to its founders during its creation, the sky suddenly fell down for this otherwise great private altcoin. The report revealed that the project could have created as many as two million tokens out of thin air for BTCP founders when the coin was being forked, without even mentioning the same in whitepaper. Clearly, the primary goal of new altcoin was to benefit certain individuals instead of generating a private coin with distinct features. And when this reality came to light, all hell broke loose!

The report specifically focused on 102 extra large blocks of Bitcoin that entered the supply import during hard fork. Those blocks generated 400 unexpected outputs, and each of the output blocks had 50 BTCP. This comes down to about 2,040,000 tokens that were created out of thin air without knowledge of anyone but BTCP founders. After creation each of these tokens were routed to some shielded addresse, which made them invisible to block explorer sites, thus hiding them from the world for a substantial amount of time.

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Then sometime in July-August the individual who had control of these mysterious coins started getting rid of his holdings. He dumped about 300,000 BTCP from the shielded pool and made a cool profit of $1 million – $3 million. Coinmetrics has provided detailed proofs for each of these things in its report.

Price plunges, hard fork in the works

Now as you can imagine, these allegations certainly didn’t go down well among the traders of BTCP. An extremely sharp decline followed soon, and by now Bitcoin Private has fallen about 18% over the course of last 24 hrs. Its current price is $1.84, down about 24% from $2.4 before the expose. The community is now calling for another hard fork of the coin to get rid of the founders and their remaining holdings. The solution is being coded as of now, and soon BTCP may have its own BCHABC vs. BCHSV moment.

BTCP Team denies allegations

Bitcoin Private development team, on their part, have denied any wrongdoings, and have put the blame on a single developer called airk42 (who according to BTCP team didn’t contribute anything to the network since claiming a bounty long time ago). The team has also called on exchanges for the trading of BTCP to be halted until they complete the fork.

Let’s see what happens next!

Technology and business were my core interests, so it wasn't surprising that I got interested in cryptocurrencies, which operate at the intersection of both these things. Now I live my passion by trading cryptocurrencies and covering Cryptocurrency news. You can connect with me on Facebook to learn more about me. :)

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