Bithumb Criticized For Listing a Cryptocurrency Created by its Developers

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Bithumb Criticized For Listing a Cryptocurrency Created by its Developers

Bithumb Criticized For Listing a Cryptocurrency Created by its Developers


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Earlier this week, Bithumb, South Korea’s second-biggest cryptocurrency change – behind UPbit – that’s identified for its rigorous verification course of for brand new cryptocurrencies, introduced the airdrop of Popchain, a cryptocurrency which the worldwide neighborhood has not heard about beforehand.

Two Weeks Into Development

Hankyung, one of many main mainstream media retailers in South Korea, reported that many traders of Bithumb have requested the change to rethink the itemizing of Popchain and initiating an airdrop to the platform’s customers provided that the cryptocurrency has solely been in two weeks of improvement and 91 p.c of its provide is owned by two people.

More importantly, an investigation into the supply code of Popchain revealed that its total supply code was copied from the supply code of bitcoin, Monero, and Dash, and the copyright of those cryptocurrencies are nonetheless within the supply code of Popchain. Various cryptocurrency communities inside South Korea closely criticized Popchain and its improvement workforce’s plagiarism of the whitepaper and supply code of different cryptocurrencies.

As of presently, Popchain is value round $2 million. But, 91 p.c of the availability is saved in two wallets. As such, traders raised issues in the direction of a attainable ponzi scheme, as no different cryptocurrency within the international market has two people having greater than 90 p.c of all the provide.

Why Did Bithumb Rush Listing?

Earlier this yr, Bithumb created a firm in Singapore to launch an preliminary coin providing (ICO) for the corporate’s personal token referred to as Bithumb Cash. South Korea banned home ICOs in 2017 and as a end result, Bithumb moved its blockchain enterprise exterior of South Korea.

The prime three contributors of the Popchain supply code are Kwuaint Li, Lialvin, and Su Mingrui, the three foremost builders of Bithumb Cash. In April, Bithumb said that it could rethink its ICO plans and for now, put all the challenge to a halt.

As a cryptocurrency listed in Bithumb, ‘Popchain’ is inflicting controversy amongst traders.

Investors have began to say that Bithumb paused its ICO plans to advertise Popchain, a cryptocurrency created by its builders that management 91 p.c of the cryptocurrency’s provide.

Initially, upon the introduction of Popchain, the Bithumb workforce stated that it’ll use The E&M’s Popcorn TV and Celeb TV to evolve Popchain into a profitable blockchain-based content material service platform. Investors have been attracted by the token, as Popcorn TV and Celeb TV are platforms which are already getting used by hundreds of thousands of customers.

Investors Outraged, Bithumb Cancels Listing

Investors in South Korea have been outraged by the Popchain itemizing and airdrop as a result of in contrast to different tokens like Kyber Network, EOS, and Storm, which needed to undergo a rigorous verification course of, Popchain, a cryptocurrency that’s merely two weeks in improvement with supply code copied from different cryptocurrencies, secured a itemizing on Bithumb.

When Bithumb introduced its plans to checklist Popchain, lower than 18 wallets or customers had the Popchain token. To put it merely, Bithumb introduced a itemizing of a cryptocurrency owned and held by 18 folks.

Cryptocurrency traders advised Hankyung that the itemizing of Popchain is a fraud-like operation and that Bithumb prematurely integrating Popchain.

In response, Bithumb said that it’ll not checklist Popchain within the short-term and wait till Popchain is built-in by main cryptocurrency exchanges.

Images from Shutterstock.

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