Network Down: Is Bytecoin (BCN) A Scam?
There could eventually be literally tears in the Bytecoin community if the current failure of Bytecoin (BCN)’s network isn’t resolved. The Bytecoin wallet has “crashed”, bowing under pressure from massive traffic. This is according to the Bytecoin team that is now being blamed by irate investors. To many, this is the exemplification of a scam.
When I last checked on the coin’s mercurial rise yesterday, it was soaring. The reason wasn’t that clear, but apparently, it was due to BCN being added to Binance. The coin had blitzed through the rankings, at one time I felt it was just a matter of time before it hit the top 10.
It did, but has now plummeted and is currently languishing at the bottom, ranked 1594 out of 1597 cryptocurrencies listed on coinmarketcap.com. There are no statistics about the coin.
A simple message on coinmarketcap.com states that:
“BCN is currently under maintenance or experiencing wallet issues. Deposits and withdrawals are disabled”
What happened to Bytecoin?
Bytecoin’s problem relates to the high trading volumes that the coin experienced after being listed on Binance. In a matter of hours, the crypto went from a daily trading volume of $5.2 million worth of BCN traded on May 7, 2018, to over $631 million traded on May 8, 2018. Its price had jumped by nearly 200% within hours, to drive even more traffic as more investors bought in.
BCN had skyrocketed, quickly climbing the charts to move to within the top coins. At one point it was clear that the surge in value was unusual.
It appears that the Bytecoin network could not sustain the huge traffic and its “old” servers have crashed under pressure. Before it happened, the Bytecoin team had tweeted the following message to the community that seemed unaware of what was unfolding.
“The network is experiencing an unusually high load. Transactions can be delayed, node synchronization can lag far behind. The team is working hard to solve these issues. It’s strongly recommended to avoid any transferring of BCN until the situation is resolved.”
Enraged investors, who have been left holding bags of “worthless” BCN coins, are pointing fingers at the Bytecoin devs. The feeling is that they engineered everything, manipulating the prices in a clever scam.
But the Bytecoin team has responded to this, stating that they had nothing to do with the unfortunate turn of events. Reacting to one of the many accusations on Reddit that this was a standard scam that was cleverly planned and executed to perfection, the team said that:
“We haven’t manipulated the price; we really never had anything to do with it. But it was possible for Binance users, and that’s the common situation for new coins which get a listing on Binance. We understand that some of you guys won’t believe us but this mixed with such a high degree of traffic is the reason the wallet is down right now.”
It’s not clear when and if the development team will be able to restore the functionality of the server system. Responses offered on Reddit say that there’s no fixed time frame for the return to normalcy.
What has Binance said about Bytecoin’s issue?
Bytecoin mentions that the massive transaction traffic to its network was a result of the coin being listed on Binance. The exchange, on its part, has issued a note to caution investors to be wary of high price volatility.
Another site that has seen huge volumes simply stated that they had disabled any deposits and withdrawals of BCN till the devs at Bytecoin resolved the network issues.
What’s next for Bytecoin (BCN)?
The next logical thing to do would be for the devs to work towards fixing and restoring the network. Hopefully, then prices on various exchanges will readjust to reflect some sort of uniformity. From here, it could be up to the investors to decide their next course of action. One thing is that prices won’t go back to the highs that saw its market cap take it to 5th in the rankings.