Dogecoin Clone “ShibeCoin” Scam Busted | Dogecoin News Site

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DOGECOIN CLONE “SHIBECOIN” SCAM BUSTED

Howard | May 22, 2014 | Dogecoin News | No Comments

Earlier this month, a couple of naughty individuals decided to launch ShibeCoin — a Dogecoin knock-off which was designed to be an end-life Proof-of-Stake coin. I’ll admit, it is certainly a clever way to get noticed amongst the sea of scam-coins. I am sure many scheming alt-coin developers were kicking themselves for missing such a good opportunity.

Background

ShibeCoin suffered from the same problem that most alt-coins do: mischievous developers. The coin was announced to have a 0.5% pre-mine of 1.5 million coins (out of 300 million). Fortunately, cryptocurrency technology allows us to verify this by simply checking the blockchain. Unsurprisingly, the first 56 blocks are time stamped several minutes before the actual coin was publicly launched (which indicates the developers pre-mined much more than just 1.5 million coins)

Don’t forget: the developers also hard coded the first 50 blocks to have the highest block rewards. Needless to say, the developers lied about their 0.5% pre-mine and received a massively unfair advantage.

Wallet Issues

The coin has been plagued with its fair share of wallet problems as well. As evidenced by many user reports on the announcement thread, staking simply doesn’t work. The coin was forked within the first week of launch, the wallet has been updated five times within the last week, and the developers are of little help.

Price

Bittrex was the first exchange to open Shibe training and the price quickly rose to 700 satoshi. The coin traded at the price of 200-450 satoshi for a few weeks before taking the recent plunge to 50 satoshi. Despite the devious nature of the coin, it actually performed pretty well in the market place. ShibeCoin peaked with a market cap of around $450,000

Conclusion

I have nothing against alt-coins (even ones that try to imitate our glorious Shibe) but such a poorly executed coin embarrasses the entire cryptocurrency community as a whole. The coin doesn’t seem to be done yet. The developer recently released a series of videos indicating he is still involved with the coin. My advice to you all is to exercise extreme caution with ShibeCoin. With that said, steer clear of the most recent Dogecoin clone DojeCoin as well.