When we look at the encrypted market in the last two years, we will notice that the space has been populated by several scam projects. BitConnect, Davos, Onecoin are probably the ones that come to mind to most of the Encrypted Enthusiasts when they think about this topic. However, there have been many other projects that have not received much attention and have simply escaped public criticism. Today we will take a closer look at one of these projects called the MCAP currency.
The currency was created by the brothers Amit and Vivek Bhardwaj, famous for creating and managing several encrypted initiatives such as GBMiners, HighKart, GainBitcoin, GB21 and BitcoinGrowthFund.
The Bhardwaj brothers were among the first and greatest miners of Indian cryptocurrencies, they said that they controlled about 3% of the hash power of BTC at one time. The brothers (Amin in particular) were also quite good at marketing and advertising, partly thanks to their close relationship with many well-known personalities from India Bolywood. Using her connections, Amit Bhardwaj obtained the stars of the Indian show as Shilpa Shetty, Neha Dhupia and Huma Qureshi to approve her book, Cryptocurrency for Beginners.
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This helped him gain recognition and confidence from retail investors who eventually fell for a number of its multilevel marketing schemes (MLMs). Officials have told India Today that the amount of money these two have cheated with their projects could range between $ 5,000 and $ 13,000 ($ 730 million – $ 1.8 billion USD). The MCAP project was just one of its MLM schemes that eventually stole about $ 300 million from the pockets of its investors
MCAP was to be a key part of the BitcoinGrowthFund / GainBitcoin initiatives. Users were given an option to purchase MCAP tokens with Bitcoin and therefore BGF would have invested said Bitcoin in various mining projects and ICOs. They claimed to have developed an algorithm to calculate which altcoin would be more profitable for mine at any time, based on its level of difficulty, the volume of trade and the profit it would generate. The company immediately mentioned the investment in "altcoin" as Bitcoin, Litecoin, Ethereum, Zcash, DashCoin and Monero (the bitcoin is not clearly an altcoin, their inability to make this simple distinction was one of the many red flags available ).
They also said they had a dedicated analyst team that would continuously analyze the ICOs available on the market based on over thirty parameters such as the team background, feasibility and scope of the product idea. In addition, the GainBitcoin platform was apparently a cloud mining start-up that had a similar business model that attracted investors asking them to invest their BTC and promising monthly returns of 10% in 18 months from the day of their investment.