Bigcoin Mining Game Accused of Ponzi Scheme Amid Price Volatility
Abstract, an Ethereum L2 blockchain, is promoting a crypto mining game called Bigcoin, which has faced allegations of being a Ponzi scheme. Key details include:
- Bigcoin allows users to “mine” its token via a virtual simulation, not actual mining.
- Players must purchase “miners” using BIG tokens to increase their hash rate and upgrade virtual facilities.
- Bigcoin's creator, pseudonymous user "Satoshi Bigmoto," launched the project recently.
- The project's white paper aims for Bigcoin to become a widely recognized cryptocurrency.
- Current market cap fluctuated between $6.9 million and $7.5 million, with significant price volatility observed.
- Despite mechanisms to stabilize its price, BIG experienced both gains and losses, showing swings from a 40% rise to a mere 12% gain in one day.
Concerns remain regarding the legitimacy and utility of Bigcoin compared to established cryptocurrencies like Bitcoin.