Cryptocurrency Collision? Another Crypto Scam Emerges in China
CXC, a crypto Ponzi scheme emerges in China. It claims a mode of “cryptocurrency collision”, which means investors can convert BTC into CXC.
In its white paper, its full name is “CAPITAL CELL FISSION BLOCKCHAIN”. CXC claims to be a new generation of blockchain application incubation platform surpassed Ethereum. It boasts TPS of one million. It claims itself a public chain created by an anonymous geek group.
It has a mode of “cryptocurrency collision” , which means investors can convert BTC into CXC. Put on mainnet in Jul.4, CXC prepares a crypto wallet for investors. Investors can deposit BTC into the wallet, and then convert(collide) BTC into CXC coin. CXC creates a pyramid system, investors can charge varied amount of BTC and get corresponding CXC in different levels of this pyramid system. In theory, one can get one CXC by one BTC in the last level. Of course, one can get rewards when attracts more investors.
Different from ISO mode, CXC has a process of “mantissa guess”, which means one can get 110% CXC if he guessed the mantissa of collision hashrate, and get 91%-92% CXC if he not, 1%-3% of the CXC will be destroyed and the rest will flow into the collision pool.
The destroy and back-flow seemingly a salute to Satoshi, but it is a measure to manipulate stock quotations in deed. By July 11, just 7 days after it appears in the social media, there were 943 BTC in the CXC’s collision pool, which is worth about 75 million yuan.
Now CXC is available in many crypto exchange like BIKI, Lbank and ZBG. Lbank launched CXC trading on July 9, with a 24-hour gain of more than 100%.The reason why those exchange launch CXC trading is that CXC brings large user flow.
Many investors turn to “Shitcoin” when Altcoins in 2019 bring little profits. In the first half of this year, BRC rose from about $1 to $18, an increase of about 17 times; VDS went on the exchange in early March, with the issue price of about $1, and rose to $11 at its peak in May, an increase of more than 10 times. While altcoins have risen only 3 to 4 times.
Another report analyzed the inflation rate and number of collision of CXC, it pointed out that the total amount of CXC is wrong according to half-cutting mechanism announced in CXC’s white paper. Due to pre-excavation, half-cutting and CXC’s production speed have little effect on the its inflation rate.
Earlier this month, a similar crypto ponzi scheme “TRX·μTorrent Super Community”went bust in China, victims lost at least 200 million CNY, one family even killed themselves as they borrowed heavily to take part in the scheme. Now the crypto ponzi scheme in China tend to be more sophisticated and cunning.