The Bitcoin Private development team is experiencing difficulties after researchers for Coinmetrics.io have identified a serious anomaly in the supply curve of the ZClassic / Bitcoin hybrid cryptocurrency. In detail, the researchers recently told how they found that around the 2 million tokens hit the wallets of the developers when the blockchain of the currency was still installed.
They discovered this when they updated the private full site of Bitcoin Private and launched a simple query on it, one of the bitcoin code:
“To check the numbers, we launched the BTCP node (version 1.0.12-1) and checked using the RPC gettxoutsetinfo method. At the time of this writing, the full site reported on the proposal 20,841 million BTCP. This contradicted both the CMC and the expected figures from the initial bid during the fork, combined with subsequent block rewards. ”
Researchers analyzed several alternative options. First, the code they used to get the numbers may be broken, but, obviously, since it was not changed after the bitcoin fork, Bitcoin will have similar false results. Also, zkSNARKs can also be broken.
The researchers made sure they were getting their data from the longest (correct) chain and that their formula was correct, i.e. reward for Mining has not been changed at some point.
None of these opportunities worked, leaving only one conclusion: Bitcoin Private covertly extracted tokens before installing its blockchain, which was a difficult process to merge unspent outputs (tokens) on the Bitcoin-blockchain into the Zcash codebase, which they mainly built on top. Coinmetrics explained it this way:
“While the BTCP cryptocurrency was a“ unified fork ”combining ZClassic and Bitcoin, the basis of the BTCP fork was the ZClassic registry, not bitcoin. In a consistent snapshot block, bitcoin status (registry of unspent outputs) was imported into the ZClassic parent chain by mining thousands of blocks with transactions creating unspent bitcoin outputs, effectively dividing it by BTCP in the 272 992 block. At the end of this import, more BTCP 62 500 tokens were mined in accordance with the “miner’s voluntary contribution program”. After the import is complete, the Bitcoin Private story began. ”
Coinmetrics also add that they found that 300 000 units were sent to stock exchanges:
"Three hundred thousand units were moved from a protected pool to stock exchanges"
The price of Bitcoin Private peaked at $ 86 in March. Over the past 24 hours, however, the cryptocurrency has lost 23% of its price, dropping to $ 1,87.
Where did the figure in 2 million BTCP come from
It is extremely important to understand what is happening here, especially if you are an investor in BTCP or have considered cryptocurrency as an opportunity to save funds in the future.
Coinmetrics tried to prove that during the process of “importing” Bitcoin into Zclassic, Zcash fork, which is the essence of BTCP, approximately 102 of early Bitcoin blocks contained false exits that were in the hands of BTCP developers. The blocks that were supposed to be imported had to contain 10 000 transactions each in order to more quickly introduce tokens into the chain. However, the 102 block contained 10 400 transactions, and each additional 400 transaction cost was 50 BTCP.
Thus, during the import period, we have a very large 102 block, each 400 contains additional unexpected outputs in addition to the expected 10 000. Each of these additional outputs contained 50 BTC. It turns out that 102 * 400 * 50 = 2 040 000 BTCP.
It seems that the BTCP team found a reason to deny this, using the protected Zcash addresses for transfers. Prior to importing Bitcoin to Bitcoin Private, 17 000 ZCL was in protected addresses. However, the researchers found a total of 1,8 million BTCP in secure addresses.
Bitcoin Private has not yet officially commented on the situation, but they promise that they will give their answer:
“We are aware of recent statements and are studying them. We will give our answer to the community as soon as we have all the details. ”