Bitcoin Diamond is one of the new hard-forks announced for the Bitcoin network. The lack of its blockchain network or its own code raised suspicions and accusations that it is a scam. Some people in the Bitcoin community issued several warnings about the dangers for the users that trust this token.
Bitcoin Diamond or BCD is a bifurcation in the Bitcoin network, which was created with the block number 495866, thus creating a new chain. The project promised 8 MB blocks and considerably faster execution of transactions. However, the Bitcoin Diamond showed a lot of irregularities, especially on its social network account.
Its Twitter account was created in November, it does not have a channel on Slack (a popular network used by developers and programmers in the cryptocurrency world), the BCD account on Telegram only shows jokes and there is no information about the currency.
A recent post on Medium, published by Bitcoinblooddiamond, details some of the irregularities. For example, the domain name btcd.io was created at the beginning of November this year and the EXX exchange listed the token and started operating at the beginning of November. The hard-fork was launched on November 24th, which rises more suspicions. It seems the exchange was created exclusively for Bitcoin Diamond, as a method of convincing other exchanges and wallets to list the token.
Furthermore, the team behind the bifurcation is anonymous. Evey and 007 are the names listed on their website, but there is no additional information about them, not even a GitHub repository. What’s more, the source code has not been published.
The offer of Bitcoin Diamond is appealing: each bitcoin a user has in a private key will equal 10 BCD.
According to some announcements, BitGo was one of the wallets to support Bitcoin Diamond, but the wallet denied this on their official Twitter account: “Our logo and name were used without authorization, BitGo is not associated with Bitcoin Diamond in any way. We have never spoken about them and we recommend caution.”
Ledger, one of the most famous cold wallets, accused Bitcoin Diamond of being a scam. Ledger wrote on its official Twitter account: “SCAM WARNING: several sites confirm you can claim Bitcoin Diamond. They will steal your funds. Never store your funds on a third-party website.”