Monday, December 5, 2022

Bitcoin Gold a Scam? BTG Pre-Mining Debacle Exposed for Public to See

Bitcoin Gold a Scam? BTG Pre-Mining Debacle Exposed for Public to See

In a devastating breach of trust, the Bitcoin Gold team has officially confirmed they’ve been pre-mining BTG for some time now ahead of the coming BTG “fork.” This ugly revelation could sink the BTG project before it ever even had a chance to start. 

Also read: Coinbase To Stick With Bitcoin Chain During Hard-fork, Credit Customers With B2X

BTG Bitcoin Gold
More and more red flags are appearing for Bitcoin Gold (BTG)

In a bombshell revelation, a Bitcoin Gold developer using the GitHub moniker “h4x3rotab” confirmed the pre-mining of Bitcoin Gold in a Slack conversation regarding the veracity of swirling pre-mining rumors.

This admission counters previous assertions by the BTG team that Bitcoin Gold would not be pre-mined, a development that greatly decreases the value—and trustworthiness—of the project.

BTG, a seemingly promising effort to decentralize mining by allowing GPU mining, is now facing a scandal of doomful proportions. Indeed, many pundits in the crypto space are saying this latest breach of trust is enough to destroy the Bitcoin Gold project permanently.

Twitter user @SuprnovaPools was the first person to make h4x3rotab’s damning Slack conversation available to the general public.

In @SuprnovaPools’ snapshot, h4x3rotab’s admission is clear:

“Yes, we will have a premine. The amount is not finalized but you can assume it should be less than 1% of the total supply.”

To this end, some citizen investigators on Reddit have come to the conclusion that the Bitcoin Gold developers have already pre-mined over 200,000 BTG coins.

Not only is this pre-mining extremely deceitful, then, but it also means the Bitcoin Gold team can all but dump their pre-mined coins on exchanges post-November 1st.

Coinbase, Bittrex Refuse to Support BTG

Two of the world’s most dominant crypto exchanges—Coinbase and Bittrex—have officially come out against supporting the Bitcoin Gold fork.

Coinbase is standing their ground as the BTG devs refuse to release the BTG code, which is a huge “red flag” for Coinbase’s compliance officers.

Bittrex—the 3rd largest exchange in the world—is refusing along similar lines:

“At this time, the information and codebase presented by the Bitcoin Gold team is not in a functional state and Bittrex will not commit to opening a Bitcoin Gold trading market.”

What’s your take? Is Bitcoin Gold showing all the signs of being a scam, or is it getting a bad rap? Sound off in the comments below!

Image via Coin News Asia

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