There are many lesser-known cryptocurrencies which hogged the limelight someday and then once again fade away. If you have been looking for such cryptocurrencies to invest, you would have surely come across Bytecoin (BCN). It was launched in 2012. It is a cryptocurrency which claims that it can offer you anonymous and private transactions. However, before you think about investing in Bytecoin (BCN), there are a few red flags which you need to know. Once you complete your due diligence, that is only when you can make the right investment decision.
Why should you stay away from Bytecoin (BCN)?
Bytecoin (BCN) first came into existence through the CryptoNote standard. It was trying to market itself as a Bitcoin (BTC) alternative. The obstacle is that there is no consensus in the cryptocurrency community as to who is the founder and creator of Bytecoin (BCN). It is a privacy-focused coin and is there is not much detail. When you try to find out more about it, you will realize that when it unveiled in 2012, 80% of it was pre-mined. Apart from that, there is very little detail. It is not yet known whether it was launched by falsifying the blockchain or whether it was secretly mined. One of the developers Harry Ullman stated in an email interview that the aim of Bytecoin (BCN) was to provide completely untraceable transactions.
As we stated above, 80% of the coin was pre-mined. The problem with this is that there is no explanation regarding this. That is why it seems like right from the start the fundamentals of Bytecoin (BCN) are not clear. It is still unknown whether it was secretly pre-mind or whether it just inculcated into the blockchain.
Performance of Bytecoin (BCN):
In June 2018 the market cap of Bytecoin (BCN) at least turnaround $ 2.5 billion. Currently, the market cap is around $ 122 million. It indicates that it lost more than 95% of its value. That is why it is a good idea to stay away from it. While most of the other cryptocurrencies have also fallen during this period but the fall has been around 80%. Something which decreases by about 90% is highly volatile from which you should stay away.
Thus, if you’re trying to find more about Bytecoin (BCN), it is a good idea to stay away from it due to the above few red flags which we have highlighted. There are many other cryptocurrencies which have strong fundamentals and more clear vision than Bytecoin (BCN). You should not value it by the promise of exponential returns.