Binance announced the inclusion of Bytecoin to its trading platform on Tuesday which was followed by a dramatic growth of 165 percent in the altcoin’s value the same day. However, the spike in value was just for a matter of minutes as the coin faced several network and withdrawal issues afterwards.
Currently, Bytecoin has no record on CoinMarketCap or any other relevant website, which leaves crypto enthusiasts questioning whether it’s a legit malfunction or a daylight scam.
What is Bytecoin?
Bytecoin (BCN) is one of the oldest cryptocurrencies, created in 2012. It has forked 25 times since its genesis.
It seems like the shady cryptocurrency had always been a fan of secrecy as its history is “completely covered in mist: countless puzzles, unknown developers names and secret messages,” according to bitcoinwiki.org.
The cryptocoin offers untraceable transactions using temporary public keys for each transaction. Investors are provided with the option of choosing different filters in order to increase privacy. The more privacy chosen, the higher the transaction fee.
Bytecoin uses ‘egalitarian-proof-of-work’ consensus system which registers blocks using programming language that does not rely on memory. This makes the coin easier to be mined by cheap and efficient machines. Block size on the Bytecoin blockchain is set by each miner which makes it more flexible than the Bitcoin blockchain.
When traders came across serious withdrawal issues immediately after the coin was included on Binance, the Bytecoin development team released a poorly-worded statement announcing that the system had been lagged due to an unusually enormous load of transactions and that users should not touch their holdings while the issue is being fixed.
— Bytecoin BCN (@Bytecoin_BCN) 9 May 2018
“Bytecoin network is experiencing unusual high load. Transactions can be delayed, node synchronization can lag far behind. Team is working hard to solve issues. It’s strongly recommended to avoid any transferring’s of BCN until the situation is taken under control. We will notify you right after everything will be fixed!,” Bytecoin stated.
SateKroketje, a Reddit user claimed that the announcement from Bytecoin came 11 hours after the issue occurred, hinting a pump and dump scheme.
He said that before the announcement, Bytecoin was trading at 27 Satoshi on HitBTC and Poloniex. But as soon as Binance announced the inclusion and the price soared vigorously, Bytecoin withdrawals stopped working everywhere. Which means that only a small fraction of Bytecoin was available at Binance that caused the price to reach 2320 Satoshi, a 32-fold rise.
Bytecoin investors are extremely distressed venting out on social media platforms with anger filled posts. Some of the traders claim to have lost whooping amounts of money. “BCN made me lost everything I worked for in a month,” said a Telegram user.
Binance also weighed in on the issue and somewhat alleviated users’ concerns by stating that everything will come back to normalcy soon.
“Due to Bytecoin (BCN) network issues, deposits and withdrawals are experiencing severe delays,” announced Binance.
“Bytecoin project team is working to resolve the issue. Please be cautious of high price volatility and trade with caution.”