Even the most obscure coins get listed on CoinMarketCap – which is why it is strange that My Big Coin, a loud and prominent project on social media, would be missing. However, the cryptocurrency project still managed to reach potential investors, and promise a unique, revolutionary payment system, the potential rival of PayPal.
It is even stranger because My Big Coin claims to exist since December 2013. Yet it was only later that My Big Coin, Inc. and two individuals, were accused of soliciting large investments from 28 customers, raising around $6 million.
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My Big Coin Overview
In general, buying cryptocurrencies can be a smooth, and completely voluntary affair, not requiring the presence of a special broker. In the case of My Big Coin, what alerted investors was the soliciting of purchase without a proper license.
At the moment, My Big Coin only links to Nova Exchange as a source for purchase. Too bad this exchange is already winding down its operations, closing most markets from February, and discontinuing withdrawals this April.
The Origins of My Big Coin
A company registered in the US claims the My Big Coin payment system was founded back in 2013.
The solicitation of individual investors, according to the Commodity Futures Trading Commission (CFTC), happened between 2014 and 2018, in the issued statement related to the case.
“Specifically, the CFTC Complaint alleges that from at least January 2014 through January 2018, the Defendants fraudulently solicited potential and existing MBC customers throughout the United States by making false and misleading claims and omissions about MBC’s value, usage, and trade status and that MBC was backed by gold. Defendants also allegedly fraudulently solicited numerous customers in the District of Massachusetts, receiving in excess of $5 million from those customers.”
Little is known as to why the authorities intervened now, but the possibility is that the general prominence of cryptocurrencies has shed attention on this scheme.
There is no easily discoverable link between My Big Coin and another scam, Big Coin, which is also related to One Coin as the two schemes shared team members and D-r Ruzha Ignatova
How My Big Coin Works
The most current foray of the My Big Coin scheme came from Randall Crater of East Hampton, New York, and Mark Gillespie of Hartland, Michigan, the two people who received charges. Reaching out directly to potential investors, the duo misappropriated around $6 million in what was presented as a crypto-related earnings scheme.
The funds, received in cash, were spent on personal luxury items.
It is unknown if My Big Coin really does anything, beyond an empty promise of crypto returns. The funds taken in were quite small, and there was not enough time for the company to build a large pyramid scheme, in case it meant to distribute earnings through a Ponzi scheme.
The false claims of My Big Coin included a non-existent partnership with Master Card, as well as a claim that the digital assets were backed by gold. Yeah, this scam was all over the place, even looking through the lens of crypto scams.
The Public Profile of My Big Coin
My Big Coin is relatively unknown in the crypto community. Beyond a Twitter account claiming 642K followers, the project's social media and updates showed the coin stalling, and not really doing anything in terms of improvement and innovation.
The project had a small following over the years on the Bitcointalk forum, mostly attracting users with promises of airdrops and potentially mining. Until the last, there were questions on a revival of the project.
But in general, My Big Coin avoided the biggest avenues of communication in the crypto community. The coin had hardly any YouTube promotion, unlike the BitConnect scheme, which used videos, before censoring them once the scheme crashed.
Why My Big Coin is a Scam
My Big Coin is offering a guarantee of stability and returns – something that is quite unusual in the still unregulated, risky, and very new world of cryptocurrencies. Certainly, some investors have made gains on paper, or in actual fiat, but this is in no way guaranteed.
My Big Coin also used aggressive solicitation methods, directly aimed at individual investors. While the technology of some crypto coins remains obscure, My Big Coin was not transparent about its updates, and the coin's code is not publicly available.
My Big Coin has at least one advantage – it is a very obvious scam, unlike more complex schemes related to ICOs.
It is impossible to trace My Big Coin to Big Coin, a very similar scheme promising value and guaranteed returns. Yet the general idea is mostly similar, an overhyped, glossy promise of anonymous worldwide payments, cards, and an air of wealth and prestige.
My Big Coin also resembles OneCoin, the long-running scam by D-r Ruzha Delcheva, which is also unraveling at the moment. Even the offices of OneCoin in the Bulgarian capital of Sofia were raided.
Why Best Avoid My Big Coin
Coins that go out of their way to offer a lifestyle and prestige are raising a red flag. There are thousands of digital assets, and dozens of well-established, leading coins with a grass-roots community. Having a centralized team that aggressively promotes the project is not a good sign.
In addition, the crypto community is mostly open and friendly, with very few exclusive deals offered. Most coins are considered a group effort and an experiment, and growth comes over time, organically.
Luckily, My Big Coin is impossible to buy right now, and mining may be impossible or futile. Still, it is best to avoid similar schemes and instead look for a coin with organic growth and a presence of real developer talent. Also, look for projects that seek contributions in other crypto assets, and not directly in cash, as at least Ethereum and other coins are traceable through wallets.
Please vote for MY BIG COIN for the New Exchangehttps://t.co/tbP3j43EpK
— MY BIG COIN (@MYBIGCOIN) January 11, 2018
In case My Big Coin actually appears on new exchanges, it is best to avoid making a purchase, as it would be a worthless asset. Even worse, the lack of any community around this coin also means that anyone scammed would be left alone to think over the consequences.