McAfee Claims Twitter Hack: “Coin of the Day” Rattles Altcoin Markets
John McAfee, vocal crypto supporter and influencer, halted his controversial pump and dump “Coin of the day” scheme that plagued the crypto market and suggested his Twitter account was hacked following after some extra ‘recommendations.’ McAfee, creator of the famous antivirus software by the same name, will recommend coins on a weekly basis, hence, changing from “Coin of the day” to “Coin of the Week” following continuous backlash from crypto proponents.
McAfee tweeted “Due to heavy pressure from crypto adherents, exchanges, developers and every other corner of the earth (and God himself chastised me in my dreams last night), the “Coin of the day” will become “Coin of the week” starting immediately. You can look for it every Monday morning.”
Therefore, crypto investors will have to wait until January 1, 2018, for the next coin selection.
The famous face received several complaints from concerned crypto enthusiasts to stop manipulating the market. The practice motivated several critics to point out how big players can manipulate the nascent industry.
Start of “Coin of the Day”
On December 20, 2017, the controversial influencer said he shall announce one coin every day, that is capable of changing the world. During his six-day long “Coin of the day” journey, the chosen cryptocurrencies were Electroneum, Burst, Digibyte, Reddcoin, Humaniq, and Tron respectively. Most of the recommendations were of unheard cryptocurrencies that have not enjoyed much limelight.
McAfee’s tweets immediately skyrocketed the price of altcoins he mentioned. The crypto promoter generally suggests underpriced and unknown digital assets. Many criticize him for using the price hike for personal gain, although nothing has been proven.
McAfee Turns to PumpAfee
Several crypto newbies used the tweets as the signal in order to make a quick buck. One YouTuber even made it clear he would use McAfee’s tweets as a strategy to buy new coins. The daily suggestions work as ‘wealth creation’ tool for many crypto traders. Based on trading volume during his tweets, exchange markets have witnessed many hopping onto his tips.
However, no matter the celebrity status or the adoration that a figure receives from the community, everyone has their own view and perspective of the world, and we should never take trades based on someone else’s paradigm view. Moreover, we never know anyone’s hidden intentions or what they truly think, so to take these recommendations and trade based on them alone is perhaps the worst strategy you could adopt.
Several long-term investors have condemned the pump and dump recommendations as it makes it difficult to estimate the true value of the tokens once McAfee advocates it. In the crypto world, many have labeled him as “PumpAfee.”
McAfee has drawn massive attention on his Twitter profile with the “Coin of the Day” stunt. Additionally, the entrepreneur has also made some brazen statements regarding Bitcoin. Witnessing the rise in token prices, programmers have developed bots that read the name of the coin suggested and immediately purchases it on exchanges.
Recognizing the issue, McAfee posted an image of the “Coin of the day,” to sabotage bots that pick his tweets and automates purchases. Although the approach made it more difficult for bots to automate the buying process, several OCR scripts are available online that read text on image files.
Hence, making it unfair for individuals to compete for these automated tools. Whatever the case, McAfee’s recommendations have added a new exciting twist to the trading market and his influence is quite evident in the crypto trading industry.
McAfee Twitter Account Hacked
On December 27, McAfee’s Twitter account was reportedly hacked, pushing out five “Coin of the day” recommendations, which did not seem to be his style. The unusual and disorderly tweets started pumping Siacoin. Minutes later, this was followed by NXT, PTOY, BAT, and XRP.
His followers suspected the account to be compromised or fulfilling his promise to destroy the exchange bots that worked on the Twitter recommendations. Although all five crypto tokens witnessed an immediate price hike, the price quickly dipped. The price surge indicated that the bots still were active to purchase based on his recommendations.
Minutes later, a genuine tweet from McAfee read:
“Urgent: My account was hacked. Twitter has been notified. The coin of the day tweet was not me. As you all know…I am not doing a coin of the day anymore!!!”
Many questioned his skill as a computer security expert but in response he stated “Though I am a security expert, I have no control over Twitter’s security. I have haters. I am a target. People make fake accounts, fake screenshots, fake claims. I am a target for hackers who lost money and blame me. Please take responsibility for yourselves. Adults only please.”
Given the drama, it points how the cryptocurrency industry is still maturing and easy to manipulate.
Is it right for an influencer to ‘pump’ coins through announcements like McAfee’s? Is it market manipulation or a positive force for educating new users? Let us know your thoughts in the comments section below.