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Torcoin: Crypto's latest scam

You can receive 0.1 Torcoin free if you tweet the following: "TorCoin is the most anonymous cryptocurrency ever developed! Visit https://TorCoin.org".

Have you not heard of Torcoin yet? A week after its genesis block it's achieved a market cap of over US$500,000. Torcoin was crafted by a single web design freelancer from Idaho who could very well be the next Satoshi Nakamoto. In a single week, this visionary has earned hundreds of thousands of dollars for himself. Can we examine and emulate his success?

Vitalik Buterin 2.0?

Step 1: Build it

Surprisingly easy: just fork an abandoned crypto currency project (the Shadow Project in the case of Torcoin), add a couple lines to the startup code so it simultaneously starts a TOR proxy, and set the mining reward of the first block (which will be mined by us of course!) to 1.2 million coins.

Going from a fork of Shadowcoin to Torcoin only took 17 commits (14 of which were just readme/makefile changes).

Commit 380036ca19d1f295fc..: "Added my sweet, sweet pre-mine".

Step 2: Generating Trust

Before anyones going to buy our newly minted stash of coins we need people to trust the currency. Having a beta period of enthusiasts running nodes and submitting Github issues would be great for security but who has that kind of time?

Much easier to just piggyback off the name of an unaffiliated OSS group, create a landing page with at least five mentions "proof of stake", and throw together a whitepaper.pdf with enough of the greek alphabet to discourage any nosey visitors from taking a closer look.

Notice the convenient share-to-social-media buttons on the side to aid in generating max hype.

Step 3: Generating Hype

A landing page isnt going to visit itself! Spamming reddit may be sufficient but you can always go the extra mile by paying people on your forums to tweet about the currency: http://torcoin.org/forum/index.php?topic=25.0

"You can receive 0.1 Torcoin free if you tweet the following:..."

Step 4: Profit!

Partner with some fringe exchanges and spend the week selling off your pre-mined millions to suckers thinking they're getting in dirt cheap on the next cryptocurrency black swan.

From worthless to $500,000 in a week.

On a Serious Note

Were living in a scammers wet dream: speculators from literally all corners of the globe ready to throw money at anything with a whitepaper. And who can blame them? Who hasn't watched the exponential rise in the value of Bitcoin, Ethereum, etc. wishing you had the foresight to have got in on the ground floor?

Were all looking for time machines and scammers opportunists like the developer of Torcoin are delivering. Now if youll excuse me, I just read a tweet mentioning something called YoGold and must go buy some before it's too late...

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