By CCN.com: CCN.com reported deeply on a pyramid scheme involving cloud mining and a highly pumped-and-dumped cryptocurrency called B2G (“Bitcoiin2G”). It was one of the longest and deepest reports of this reporter’s life. We found that Steven Seagal promoted B2G, and the scheme was hurting enough people that the State of New Jersey officially banned the promotion of it. B2G’s first use case was as a way to avoid paying people out in Bitcoin, via the various DragonMining (and affiliated) cloud mining scams.
As we reported, at the time of its initial usage, only two or three exchanges were listing it. The scam harmed people in that one of those exchanges, Exrates, which our sources said was the only exchange you could truly use, offered wildly lower rates than what you were being paid by. So you would receive “$1500” in B2G, but you wouldn’t be able to cash it out for anything close to that in Bitcoin, for example.
B2G is now listed in about ten different pairs across several markets, none of which are significant markets. It’s trading around $0.30 at press time. John McAfee wants you to know there’s still time to get on board. No, we’re not making this up — first Steven Seagal, now John McAfee, who also claims to know the identity of Satoshi Nakamoto.
McAfee hasn’t tweeted since April 17th. This reporter informed him of previous findings on B2G, in hopes that he might delete the tweet or post some new information after learning its origins.
Nothing of the kind has happened in the meantime.
We don’t know if B2G is created by the same people who launched the various cloud mining scams detailed in our previous reporting.
What we do know is that the owners of those scams wanted to use B2G because they had an awful lot of it on hand — but didn’t, of course, have the BTC to pay the contracts out.
B2G was virtually unheard of before this and Seagal’s promotions. We cautiously wonder if our reporting, and the actions of New Jersey, gave it the attention it wouldn’t have otherwise gotten. “No press is bad press,” as the saying goes.
B2G did a volume just under $1 million in the 24 hours before press time. The fact is, this could all be from McAfee himself, or a few investors of his size. This is an inherent danger in playing with small market capitalization cryptos: you could be up against whales you can’t even see.
As we reported, HitBTC delisted B2G after determining that its low hashrate made it a security risk. Today, probably as a result of the price rise, the hashrate is a little better , at over 500 GH/s. Still, nothing at all, compared to other networks. A few large miners from somewhere like Ethereum Classic could quickly move over to B2G and gain full control of the network, which is another risk in playing with less-popular coins.
We hope that Mr. McAfee realizes the error of promoting something like B2G after it has so widely been associated with scams and criminal activity. If not, as the publication of record in crypto, we can assure you that it will not be forgotten or go unmentioned moving forward.