Verge (XVG), a decentralized open-source cryptocurrency designed to facilitate ultra-secure transactions, has been a hot topic lately. The project started a crowdfunding campaign to raise 75 million XVG for development purposes and to secure a mysterious partnership.
There has been controversy over the identity of Verge’s new partner and plans for ledger integration on the network.
Controversy Surrounding Verge
Verge is one of the few digital assets that managed to do well during the recent (and perhaps ongoing) bear market in cryptocurrency. Over the last 30 days, Verge has grown from a market cap of $400 million to over a billion, and this has made some people suspicious.
Doug Polk, a popular name in the cryptocurrency industry, has been carefully watching the Verge project. He posted a YouTube video warning potential investors about Red flags surrounding the project, even comparing it to the failed BitConnect scheme.
One of the biggest red flags about Verge is the fact that it is waiting until April 17th to reveal the identity of its new partner.
Many also question the rationale for holding a fundraiser before a partnership. Doug Polk has posted a Tweet about the project which sarcastically states the following:
We’ve got some really good news on the Verge front today guys, I told you we were about to blast off The Verge founders are now selling the raised money on Binance. We NEEDED this, now they will have total flexibility with the money to get us to the moon!”
Potential Exit Scam?
Posts on Reddit also express suspicion about the motivations of the Verge team and what they are doing with the funds they raised. According to one Reddit user, the Verge team claims funds are being used to pay Ledger for Verge integration while the CTO of ledger denies this. The post suggests the possibility of an exit scam. Verge is down by around 6% today for a total market cap of $1.3 billion.
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