BEC Spiked 4000% On First Trading Day, Another Pump-and-Dump Scheme?
A new cryptocurrency ,“Beauty Ecosystem Coin (BEC)”, was listed on the cryptocurrency exchange OKEx on February 23. Then we saw a 4000% rise in BEC after trading opened, but a controversy erupts soon.
Many people accuse Meitu Inc. , the listed Chinese company behind the popular photo filter mobile app Meitu, of manipulating the launch of the non-ICO token, BEC. However, the company distanced itself from the event shortly afterwards.
BEC Pumps Up By 4000%
BEC is the token for Beauty Chain, a blockchain-based content incentive network and beauty ecosystem. Like the model of Steemit, Beauty Chain is claimed to give reasonable incentives and token rewards to content producers, consumers, distributors and ecosystem participants on the platform.
OKEx becomes the very first digital asset exchange in the world to list BEC, and has supported BEC/BTC, BEC/ETH, BEC/USDT trading since 16:00 Feb 23( UTC +8), according to a statement from the exchange. A dramatic scene is unfolding.
BEC experienced an meteoric rise on the first trading day, rocketing to the all-time high price of 0.0009 BTC. Referring to the bitcoin price of $ 10,000, one BEC token’s price reached $ 9, pushing its market value to 63 billion dollars with the total supply of 7 billion. In contrast, Meitu Inc ’s market value is only around 44 billion Hong Kong Dollars ($ 5.6 billion).
Nothing good lasts forever. BEC price dropped below $1 as of press time, falling nearly 90% in three days. But its market value is still as high as 2.4billion US dollars.
Another Pump-and-Dump Scheme?
As China strengthen its crackdown on ICO events and cryptocurrency tradings, the project of Beauty Chain is registered in Singapore, a favored ICO destination for blockchain startups.
Surprisingly, the project has never mentioned it would raise funds through an initial coin offering(ICO), so it raise serious doubt about who hold the large amount of BEC.
According to its white paper, 50% of tokens will be reserved for users and ecosystem awards , while the remaining will be left for marketing and daily operation.
Based on a search of EtherScan, it is found that 9908 addresses hold BEC. Measured by holding numbers, the biggest holder has more than 3.4 billion BEC tokens, accounting for 49.9321% of the total supply;the next one has 2.1 billion BEC , accounting for 30%; the third and the fourth biggest holders each have 700 million.
Simply put, the distribution of BECs is highly concentrated. Only the first four address hold 99.9321% of tokens. Its price is susceptible to being manipulated by “whales”.
Meitu Jumps on the BEC’S Bandwagon?
Meitu made it clear that they had nothing to do with the launching of BEC token, the issuer is an independent third-party company, but Meitu’s application BeautyPlus has partnered with it in overseas business.
Still, it is an undeniable fact the company has a strong relationship with this decentralized project. Meitu launched the BEC wallet which is also its first blockchain product on February 13 just before the issuance of the token.Plus, BeautyPlus will be a seed application using the Beauty Chain, as is stated on the project’s website.
Meitu’s ambition to vigorously push ahead with blockchain business is clear. The company has appointed Stanford Professor Shoucheng Zhang who is also a blockchain enthusiast as independent non-executive director last week. And Cai Wensheng, the founder of Meitu and a renowned Chinese angel investor said recently in an online chat group that blockchain is the biggest bubble the world has ever seen, but missing it will be the biggest risk.
It is worth noting that Cai invested in the parent company of OKEX, OKCoin, in 2014. So the fact OkEx acts as pioneer to list BEC is not a surprise.
Without a clear roadmap, how can the BEC token as well as the Beauty Chain project itself survives through wild gyrations ?