Is John McAfee promoting  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 networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. 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 networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term for cash? One reddit user who began a thread entitled "John McAfee will pump your shitcoin for a fee of 25 bitcoins and 15% of your coins- Exposed" seems to think so.

Let's investigate

Last Thursday, McAfee announced through his Twitter page that he will be discussing a new coin every day.

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Beginning tomorrow, I will each day talk about a unique altcoin. Most of the 2,000 coins are trash or scams. I've read every white paper. The few I'm connected to I will tell you. The rest I have no position in. These coins will change the world. You can support that change

— John McAfee (@officialmcafee) December 20, 2017

Note the first response to this message: "Let the pump and dump games begin." Prophetic?

The charge

A Twitter user has posted a screenshot of a conversation between himself and a user purporting to be McAfee. The user asks McAfee if he would like to look at a  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 tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. 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 tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term project called Enigma. McAfee replies that for a fee of 25 Bitcoins and "15% of the coins", he will promote it.

pic.twitter.com/2YYaL5zAY0

— Bobby Axelrod (@ONEXCapital) December 23, 2017

Background to the case

John McAfee is currently the CEO of MGT Capital Investments, and could be called eccentric:

He is a British-American computer programmer and businessman, best known for the McAfee antivirus programme. He resigned from McAfee Associates in 1994, and it was bought by Intel in 2011, but his revenues from that company and other myriad interests led him to amass a personal fortune which peaked at $100 million in 2007.

The above Twitter post could be seen as a deliberately worded invitation. He tells you that he has read "every" white paper, and has an opinion on which coins are worthless and which are worth supporting.

McAfee has influence, something that is evident when we look at a relatively unknown coin called Verge. Verge (XVG) was worth $0.000019 at the beginning of 2017, but by the 20th December it had hit $0.1637. Its market cap grew from $246,300 to $2.41 billion.

McAfee endorsed Verge:

I am inundated by people asking me for recommendations on cryptocurrencies. If you would use your heads you would figure out that the privacy coins (anonymous transactions) will have the greatest future. Coins like Monero (XMR), Verge (XVG), or Zcash (ZEC) cannot lose.

— John McAfee (@officialmcafee) December 13, 2017

Don't get me wrong - it would not be fair to say that McAfee's endorsement is the only reason for the success of this particular coin. Verge places a lot of emphasis on anonymity, routing orders through Tor. This is particularly attractive now that the anonymity which was a major attraction of cryptocurrency in the first place seems to be slipping away. However, a major price spike coincides with the Twitter post:

Opportunity

Take a look at the following three charts:

All three of those spikes coincide with a McAfee Twitter endorsement. So a good word from McAfee clearly has clout, and he did have the opportunity to profit from pumping coins.

Motive

The public frenzy to buy into cryptocurrencies means that this could have been be a good little money-spinner for McAfee.

However, his aforementioned fortune is an argument against him feeling the necessity to make money in this way (although 25 bitcoins is well over $300,000 at today's prices).

The Defence

Now, McAfee claims that the aforementioned offer to promote for payment is from a fake account. While the account name appears to be the same, he says that the fake account has substituted the lowercase L in the username with a capital i. It does seem to work - @officialmcaffee/@officiaImcafee. It is difficult to tell the difference, and could be undetectable given the right font.

Also, it seems to me that if his business model was to use his name to promote a product, it would be counter-productive to make public the fact that he can be bought. Not something that one would expect from a successful businessman.

More evidence against irresponsibility on his part:

If you are new to Cryptocurrency then absolutely do not invest without first educating yourself. Nothing will lose you money faster than investing in what you do not understand. My recommendation for sether.io is for experienced crypto investors only. https://t.co/DWKmYsreT1

— John McAfee (@officialmcafee) December 20, 2017

The jury is out....what do you think?