In our article on Segwit2X, we had mentioned that several altcoins are about to be created through forking of Bitcoin network in the weeks ahead. One such altcoin named Bitcoin Diamond has received the market’s attention for the wrong reasons. Hardware wallet Ledger and several crypto specialists have warned that it might be a scam to steal Bitcoins from the wallet of users.
Through a series of Tweets, Ledger has cautioned its followers about fake websites, facilitating Bitcoin holders to claim BCD coins. The BCD developers claim to have a main net up and running since December 21. However, splitting the coin is still not possible.
The people behind the project are not known. Further, a user has to enter sensitive security information for claiming Bitcoin Diamond. A detailed scrutiny of the altcoin was recently presented by a crypto specialist in Medium.com. The article has raised the following concerns:
• Twitter account was registered only in November 2017. There is no slack. Only a link to slack is available.
• The Bitcoin Diamond Telegram Group was created only in November 2017 and has no real activity.
• The website of Bitcoin Diamond was registered only on November 3, anonymously.
• The article also raises doubt that Chinese exchange EXX.com is probably behind the scam. The exchange is believed to operate from Hong Kong.
• Developers are only represented by the nicknames “Evy” and “007”.
• There are no source code and wallet support. The word Wallet is spelled as “WALLTETS”. Further, Bitgo is falsely represented as a wallet.
The blog ends with the statement
“If you have Bitcoin Diamond sell them immediately. You are holding Bitcoin Blood Diamonds.”
Investors are advised to remain cautious and take adequate precautions to protect their valuable digital assets.