During the latest surge ter bitcoin prices te 2015, Gainbitcoin, a bitcoin cloud mining company wasgoed launched by Amit Bhardwaj(Founder of GBMiners) ter India. GainBitcoin promised to supply 1.8x times the investment within Eighteen months by providing 10% comes back every month. It wasgoed similar to all other cloud mining ponzi schemes like Hashocean and GAWMiners that failed after some time.
Rise ter popularity of GainBitcoin
With the rise te prices of Bitcoin, Bitcoin news coverage across India enlargened. Several people eyed bitcoin spil a way to make quick money. GainBitcoin took advantage of this chance and embarked organising Bitcoin information seminars across different cities of India.
GainBitcoin used thesis seminars to explain bitcoin mining spil a very profitable way of earning income and sold their contracts to the attendees. They then introduced a referral system which operates like a MLM suggesting sales commissions on every contract sold.
Introduction Of BitcoinGrowthFund
Ter May 2018, they introduced BitcoinGrowthFund which issued a token called MCAP on Ethereum network. They sold this token for $Four vanaf token. According to their whitepaper, there are total 100 million token available. BitcoinGrowthFund webstek states that they raised a total of $Nineteen Million which means they sold 5-6 Million MCAP(including discount period). But according to the block explorer, they still had 99,702,800 MCAP until june 25th,2018.
Despite so many crimson signals ter this ICO, the price of MCAP hasnt crashed. Since no one truly has MCAP, the price cannot crash until they unveil their final project.
GainBitcoin to MCAP interchange
Following the MCAP ICO, GainBitcoin announced the shut down of their mining contract program. To reimburse the customers of GainBitcoin, they have announced that they will begin paying out users te MCAP instead of Bitcoin.
This is where it gets interesting. MCAP virtually had no value. To give it some value, they held an artificial ICO and demonstrated $Nineteen Million investment to give it some value.
They can pay users ter MCAP since they already have fountains of MCAP. Since the users are going to get paid 100% of their investment according to the market price,they wont complain. After everyone is payed out, the price of MCAP is surely going to waterreservoir which will leave many users with heaps of MCAP which they didnt even buy.
Since India has no regulations regarding bitcoin, it is going to be truly difficult to take legal act against Gainbitcoin. All ter all, once this scam starts coming out, it will leave a truly bad reputation around bitcoin ter India where adoption is on its peak right now.
What do you think about this scam? Have you invested ter Gainbitcoin? Let us know te the comments.