Bithumb Recalls Suspicious Coin After Community Smells a Rat

South Korean cryptocurrency exchange Bithumb has cancelled its listing of a dodgy-looking coin after several parties identified discrepancies in its code and manner of distribution, according to South Korean news sources.

Bithumb is one of the biggest cryptocurrency exchanges in the world, processing more than $700 million in trades daily. The coin in question is called Popchain.

The website and white paper of Popchain were launched in March of this year, and April saw the release of 2 billion Popchain Cash coins. The first suspicious thing is that the company did not raise money with an initial coin offering, as is usually the case.

More worrying however was that 90 percent of all the coins were held by two wallets, and the rest by a further 16 only:

The coins were rapidly spread around after negative publicity was attracted, but the vast majority of the 200 accounts now involved hold only a tiny fraction of a percentage point:

What is Popchain?

The company's a white paper is entitled "Popchain, Pan Entertainment Ecosystem". It begins with the sentence: "Entertainment is an eternal topic of humankind seeking a better life."

It describes a system which uses Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology to process transactions involving digital entertainment: "POPCHAIN is a ‘live-streamable’ digital contents distribution service platform based on block chain technology which aims to create a new type of contents sharing economic system while protecting copyrights."

However, according to local news source Cafe Nave, Popchain code as published in Github is copied wholesale from other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. When users pointed out that the first line of the code was exactly the same as that of Monero, that line was removed.

Users also claim that fake accounts were invited to the Popchain Telegram group to create buzz, and that the market capitalisation of the company behind the coin (E&M) is considerably lower than the coin's claimed market capitalisation.

Most damning of all though is evidence that Bithumb and Popchain share engineers:

After the story made its way into the news, Bithumb released a statement (translated): "We are aware of the fact that many false facts that have not been confirmed have been circulated on the market and the anxiety about the Popchain transaction has been widespread. In this situation, proceeding with the listing on schedule will cause unnecessary controversy in the market. We will start trading after the listing of other exchanges is decided."