the cryptocurrency Xiglute Coin (XGC) catches the attention of investors who like to bet on altcoin promises.
On the other hand, it has also gained the spotlight of many skeptics and veterans of the cryptomarket with its dubious information and advertisements that resemble practices harmful to the medium.
The bigger the promises, the bigger the losses can be
While there is a discussion about the project’s legitimacy, one of the contract review sites classified Xiglute Coin as a scam.
The site called Token Sniffer, with an automatic contract auditing system, analyzes different aspects of a project to determine its safety and, through the estimation, marks a coin as safe or with a hit.
According to the site’s investigation, Xiglute Coin has different red signs. Some of the alerts are: similar/identical contract to old projects, lack of present liquidity and lack of lockout or supply burnout — which can lead to carpet-pulling blows.
However, the most concerning according to the analysis is the concentration of cryptocurrencies in the developer’s hands.
According to data from BSC Scan, a single address owns 98% of the total 100 million Xiglute Coin in the Binance Smart Chain. the others 1% is split between 29 addresses.
This kind of concentration indicates that only one address can handle the token price, especially if you want to dump the asset on the market in a massive sale.
Furthermore, the contract for the BEP-20 version of the cryptocurrency can be paused at any time by the developer.
With that, Token Sniffer has issued an alert about the Xiglute Coin, determining that the project is marked with “WARNING” because of evidence of being buggy, hacking or a scam.”
Situation on the Ethereum network is similar
While Token Sniffer analyzed the contract for the BEP20 version of Xiglute Coin, the “main” version of the coin is the ERC-20 (Ethereum network), the native place where it was created by Dário Cândido de Oliveira.
However, just look at the Etherscan numbers to have a situation very similar to the Binance Smart Chain (BSC) network.
At the ERC-20, despite having more holders, with 2,179 addresses with currency in their wallets, we observed the same dynamic, with more than 99% of the 200 trillion coins in a single address, owned by the developer/owner of Xiglute Coin.
As with the Binance Smart Chain contract, the ERC-20 version has exactly the same big red flag: the developer controls practically all the supply and it can at any time sell its assets and “pull the rug out” on inattentive investors.
But even so, those aren’t the only concerns: its publicity campaign has also been drawing attention.
Xiglute Coin (XGC) and the promises to beat Bitcoin
Among cryptomarket watchers, Xiglute Coin’s promises are shared with skepticism and criticism of the marketing strategy.
In a Facebook sponsored campaign, the cryptocurrency states that we must forget bitcoin, since it has already grown more than 3,000%.
In paid news, on Brazilian portals, the promise is that the coin goes exceed the value of US$ 200 thousand dollars, something that is not even close to happening.
Despite claiming that the currency “grows” 2,000% and may even surpass Bitcoin, when you see the graph, you can see that it has a very volatile history and no defined growth, just moments of high and low, without a solid foundation.
Even with peaks, the currency, it is currently 80% below its highest value. recent.
Another thing that draws attention to the project is that your whitepaper is practically a copy of the project Safemoon.
By itself, creating a copy is worrisome — and that makes it even worse since Safemoon itself is a project considered dangerous by experts.
With a suspicious whitepaper, totally unstable price and no confirmed uptrend, say that the currency will surpass Bitcoin and reach the US$ 200 thousand sounds a lot like an empty promise to attract investors who are less aware of the cryptomarket and less knowledgeable about altcoins.
Suspicions of the Xiglute social network
Finally, another key part of the Xiglute ecosystem is also under suspicion by members of the Brazilian cryptomarket.
In news and promotional material, it is stated that Xiglute has more than 20 million users worldwide. The one with the headlines is trying to make them believe that the social network is one of the “most modern in the world”, presenting a strong community, and with the possibility of the user earning cryptocurrencies when interacting with posts.
However, with its 20 million users it’s hard to understand why the The app has only 2,800 downloads on Android and only 41 reviews on the iOS App Store.
Even though the majority of users are accessing Xiglute from their computer rather than mobile devices, it is still difficult to find groups that demonstrate the millionaire number of users.
From Bitcoin groups to those on well-known channels on Brazilian YouTube, the number of users is always very small.
Xiglute has similarities to Facebook
Finally, some also criticize that for the “most advanced social network in Brazil” and full of innovative features, Xiglute uses the exact same old Facebook layout, for both your stories and the news feed.
It is not possible to say that Xiglute Coin is a scam or that there are no good intentions behind the development of the project.
Although, it is important to keep an eye on the different points raised by critics, both to protect their investments (of money and time) and for the development team to improve the platform — if that’s their interest.
Livecoins tried to communicate with the team through the phones available for contact, but did not receive a response until the end of this article.