10% of ALL ETH in Ponzi? Litecoin Foundation Broke?

by birtanpublished on September 2, 2020

Nearly 2 billion dollars worth of eath was collected by plus token a Ponzi scheme that you may or may not be aware about litecoin is reducing salaries in the wake of reduced donations which opens up an interesting point that we'll talk about in finance offering VIP

Treatment for what what's going on everybody it's your boy Krypto Bobby I hope you were having a great day great night wherever you are watching or listening in from and with the market fairly flat up and down a percent or two

Across the board here they're depending upon whether it's Bitcoin or your favorite altcoin doesn't really matter market not doing all that much right now outside of the entire world freaking out about China versus the United States

Versus Donald Trump going absolutely apeshit on twitter per usual the Fed Jerome Powell a lot of crazy stuff happening in the macro-environment of which I am not thoroughly competent or qualified to be really discussing

Outside of everybody's talking about it so I'll let everybody else talk about it but let's talk about what's happening right now in the crypto specific world cuz there is a lot of stuff that yes the macro is important yes all the big

Things happening with China in the United States and Trump's Twitter and and the Fed and negative interest rates and all that type of stuff that is obviously important that's obviously big news but there's also some other things

That now people definitely talk about but maybe don't get the the insight or the look at that they deserve so I want to dive into that in particular and we can kick things off with research from elementa sand we'll talk a little bit

About what elements this is but we can kick things off with research from elementa s– in today's discussion if you are new to the channel by any chance though make sure to hit that subscribe button view videos multiple times a week

On the crypto ecosystem and if you've been here for a while make sure to hit that thumbs up button helps to get this video out to as many people as possible and I always always appreciate that helps me to buy as many buffalo chicken

Wraps as I possibly can you guys know the left eat that so hey here we are getting into the research on plus token though if you hadn't heard about poss token it was basic the bit Connect of China or some form of

The bit Connect of China shout out that connect shout out Trayvon James shout out crypto Nik shout out Ryan Hildreth and all those homies as well but this was pretty crazy because it really went under nobody talked about this in the

United States I sure didn't know about it I would assume that the vast majority people in the US and Europe South America were not aware of this we're not talking about it didn't really know much about it if at

All and W on and a few other people and shout out to Delhi for always breaking or not so breaking news but W Wan tweeted about it a while ago and kind of started the ball rolling on a lot of this but this was crazy and continues to

Be crazier as companies dive into the blockchain data about it and elements this is a company that does on chain data research compliance regulatory work and a lot of other things but they do some really cool stuff with

Visualizations if you're interested in jobs with them wink wink hit me up you'll never know so elements this is really cool stuff with blockchain data and they looked at plus token and they

Looked at all the addresses associated with plus token and there's also a Bitcoin involved this as well but us token and the plus token scam took in at ten million eighth which is close to two billion

Dollars that is a massive massive amount of money and in general two billion dollars is obviously a ton of money but also when you look at the actual market cap of aetherium right now the market cap of eath is only twenty twenty-one

Billion dollars it's close to ten percent of the entire market cap of eath was captured by a ponzi scheme by a pyramid scheme and this basically went completely undetected by anybody at least publicly in the US and in a

Variety of other places was not really talked about at all and some really crazy stuff happened there are still at this point in time of the 10 million eat that were collected according to elementa s– in their conclusions

According to element is there were 10 million eat that were collected roughly 800,000 of those eath remain on chained and somewhat unmoved of those funds since the end of June however 9 million viii was sent to a

Variety of plus token wallets 248,000 addresses at this point in time and the vast majority of those funds were actually moved to hubie 48% of the funds were moved to hubie and you can see here if we scroll down 48 percent went to

Hubie about 8 percent with dizzy be calm 6 percent went up it about 3 percent ok acts and about 3 percent to gate so 4.3 million eath which is hundreds of millions of dollars moved to Hue be really curious

About what happened there once it got on Shanter once it went onto hue OB if that was dumped put into something else if that was somehow washed out why they chose you OB what the issue is there why hue OB didn't stop it if they were able

To identify that was from from those exchanges very interesting to see a lot of this stuff panning out and I think number one I'll put a link to the research bloke is this really interesting and it's definitely

Worth definitely worth worth reading about according to elementa stun of the reasons that they chose this was she will be having a strong bias the people that were the moving the money had a strong bias towards utilizing a Chinese

Exchange but one of the things I think that's that's interesting about this is for a lot of people seeing this type of thing happen you don't really see it until it's too late but this could very well have a massive massive massive

Impact on the price of aetherium the price of many other assets because you're talking about 10% of the liquid supply of aetherium potentially being moved into another cryptocurrency being moved into whatever it might be to

Tether to to Bitcoin to something else those types of things have a really really large impact on the market and it's tough to it's tougher for the average person out there especially to have any insight into to what's going on

With this so seeing it after the fact and you've seen the price of aetherium really not doing too well in comparison of Bitcoin curious as to if this amount of money what happened with it you know if this amount of of eath was this just

Market dumped or dumped over a long you know long period of time really causing the price to dip on qob and elsewhere anything like that curious to see exactly as additional research and additional kind of exposure happens here

With this whole plus token scam but I mean you're talking about 10% of the liquid supply of eath that was collected that is a that's a massive massive amount that clearly has market implications on it and up until you know

We're starting to see some of the on chain data around it you really couldn't know pretty crazy to think about in the long run we would love to hear your thoughts on it and again I'll put a link below to elements' this as research

Because a it's it's really worth the read another thing that I think is is interesting in general is open source development I've talked about this a little bit before where open source

Development is is hard it's it's really hard and you have things like Bitcoin you have things like aetherium and financial incentives specifically around open source development are pretty fascinating to me for a variety of

Reasons you know number one if you are depending upon your contributions to open source development if let's let's take Bitcoin let's take a theorem and let's take a light coin for example in the case of Bitcoin in case with the

Area maybe even in the case of light coin some of these developers if you're solely a core developer you might not and you probably aren't getting paid for the work you're doing so how do you sustain your cost of living how do you

Support yourself are you doing it purely for passion purely for fun what why are you doing what you're doing and and how are you doing that in some cases and things like the coin and things like aetherium maybe these are people that

Participate in those ecosystems financially very early on and made life-changing amounts of money and are now simply working on this type of technology because they're extremely extremely passionate about it and they

Want to move the industry forward however there are certainly developers that have bills and families and rent and whatever have you and have established cost of living so if you are of the you know if you are of that ilk

And you really want to participate in if you really want to be a core developer you really want to participate in that ecosystem and contribute code how are you gonna do that on an open source basis when nobody's paying your salary

And I think that aspect of things just fascinating because you have some companies in the space that really are subsidizing development when it does come down to the core to core development in the Bitcoin space you

Have things like block stream you have things like chain code labs now you have places like Square even places like coin based I think are contributing twenty twenty five thousand dollars a month that go towards open source development

As well in aetherium in the etherium world you have the etherium foundation you have of consensus which doesn't necessarily contribute one hunt like doesn't contribute necessarily to the etherium

Foundation directly or directly to but builds infrastructure that is really utilized by the entire etherium ecosystem so I'd say kind of by by some respect consensus is basically a huge in the entire the theory of ecosystem is a

Benefactor from consensus spokes like meta mask and and furor and things like that but in the case of something like litecoin where you know you don't have a block stream you don't have chain code labs you don't have square you don't

Have a consensus you don't have an etherium foundation that received a you know kind of a basically a Treasury through the through nico and to another extent you don't have something like z cache where you're getting a percentage

Of of the the founders rewards through miners miners aren't paying a foundation or anything like that to continue to work so nobody is paying this so you're relying exclusively on donations and as i think a lot of people know and

Probably are familiar with when you rely exclusively on donations it makes life very difficult you're basically a non-profit and you're relying on the altruism of up people to support you and right now when it comes down to light

Coin there's really not many people supporting the light coin foundation outside of charlie lee so there's kind of been this conversation around how is the light how was the light coin network owned it continued to be sustainable

Who's actually developing this because people have looked at the github and seen not a ton of development on the core repo some other kind of auxilary repos there but not a ton in the core like coin repo and people have called

This FUD like charlie's came out and called it Fudd but is it really is it not and it does come down to the you know to the fact that this stuff is number one it's it's somewhat reliant on on the market as a whole but it also

Does go to show the issues surrounding what happens with open source development and how people need to to look and and think about it and some of the issues that you have with centralization versus decentralization

Yes decentralization is span tastic and it's it's wonderful and you know there's nobody to send a cease-and-desist letter to and there's nobody to necessarily that to you know stop the network per se and it's it's

Great but on the other end of the spectrum when there's no when it's decentralized there isn't a core entity behind it really that is actually able to to subsidize the work outside of donations and Bitcoin in aetherium I

Think are slightly different because there was so much of a you know wealth generation behind Bitcoin so you have all these people that made a ton a ton of money and now they're basically subsidizing development or they've

Raised a bunch of money in a venture capital and they're able to go through that to develop on the network that's not the case in in litecoin right now and you're having these issues where like coin came out in a recent interview

Where their board director I'm not gonna pronounce this right xing Zi Wang probably incorrectly pronounced that but talked about the contributions to the litecoin foundation have dropped sharply the github showing

How has really rarely been updated and right now the white like coin foundation is only receiving about $1,000 in monthly donations I mean raise your hand here if you can live off a thousand dollars a month and if you're especially

If you're in the u.s. maybe internationally in some places you can you know live very well thousand dollars a month but in the US or in a variety of developed countries you're you're not you're not living well off the US let

Alone are you supporting an entire foundation or multiple salaried employees of $1,000 a month it's not gonna happen so clearly there's an issue right now and not only that but that without a thousand dollars a month

Eighty percent of the donations that have happened to the like one foundation in the past have come from Charlie eighty percent of those donations have come from Charlie since 2017 so basically Charlie Lee is is supporting

Litecoin 100 percent putting two team on his back dough and even though he sold all his like going at like 300 bucks which is the greatest trade ever the the peak trade of 2017-2018 shot charlie for that one there are some really big

Issues around open-source development and they say so what a Justin what adjustments will the litecoin Foundation make after this and they said we're considering launching a project based crowdfunding system so people can get

Funded by the community directly this will make the dev and fund management process even easier and more transparent and then they also mentioned just the block reward process in general and how the hash rate is dropping significantly

But I really don't see a good way for litecoin to continue subsidizing development and this is gonna continue to happen in the future for for some of these projects and you look at the projects that I've really kind of

Focused on the quote-unquote fair launch you have things like white coin which the launch happened a long time ago so but Keogh proof-of-work launches with with no pre mine is what I would consider a quote unquote fair

Launch you can get into the the kind of specifics around that but when you do a proof-of-work launch with no subsidy with no founders reward with you know with no pre mine with no IC o—- and there is no kind of core group that

Actually has an amount of money that can subsidize development how do you create a sustainable development ecosystem how do you create people that actually contribute to the open source world and right now

There's not really a great answer for that and I think litecoin is probably gonna suffer in the long run and you might start seeing things like grin and some of these other companies out there or not grin is not a company obviously

But grin is another one where they were very I think admirable in nature and the way they launched but you even saw issues with the kind of the the main developer behind grin who put in a ton of work for free and and wasn't paid by

Anybody and didn't have anything like that that the main developer behind that was like really struggling initially to even afford his own cost of living so that type of thing is something to keep in mind when you're looking at different

Projects because ultimately people have to pay the rent people have to pay the mortgage people out to pay their salary people have to pay whatever and if they can't do that they're not going to contain

To develop on a technology and if nobody's developing on the technology in the long run while dogecoin is still worth like 200 million dollars you might end up a little bit like dogecoin you might end

Up a little bit like some of these other assets they're probably gonna trend towards zero in the long run and lastly this is Alice's eye it's kind of funny cuz I think by Nantz can be the king of spin it was obviously the hacking that

That one of the hackings that happened with finance and they had a number of people who basically they utilize the third-party vendor in 2017 2018 for kyc and that third-party vendor was hacked and I had some images released and

Specifically passports and and just kyc details and the way they're they're kind of compensating their users for that who were affected by this hack is that they're giving them VIP accounts on the site lifetime lifetime VIP accounts or

VIP accounts and I think that is the king of it's like hey you know what we may have been slightly irresponsible with your data we may have made a mistake but hey you know what stick around folks we got you for a lifetime

Access but I think it does in many respects go to show that cz and just by dance in general are really good at taking negative occurrences and turning them into positive spins it's it's pretty incredible how that continues to

Happen like there have been many things I think that finance would probably like to do over and many times that they've had issues and whether it's been their hack or anything else like there have been many things that have not played

Out perfectly for them but even the headline like finance offers VIP accounts to hacked users like it's not like hacked users on you know it doesn't make the the headline actually softens the blow and I feel like by Nance every

Time something negative happens to them they're able to successfully like kind of deaf the situation is soften the blow which is pretty crazy to see in real time and always watch how that goes down but would love to hear your thoughts on

Everything in general you know what you think about the the the plus token issues with etherium what you think about like coin and open source development like is like coin gonna be sustainable is open source development

With a fair launch proof-of-work cryptocurrency and no pre mined no ICO is that sustainable it sounds great to invest in but who's actually gonna build it what do you think about that and what do you think about the buying it binding

Us offering VIP accounts to your to your hacked users would love to hear from you in the comments below on YouTube and if you're listening on the podcast make sure that you hit me up on Twitter at crypto underscore Bobby as always really

Appreciate the time if you're new to the channel by any chance make sure to hit that subscribe button and if you have been around hit the damn like button so I can just many buffalo chicken wraps as possible

Take it easy crypto Bobby peace

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