9 highlights
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All it took was a couple of tweets from Salman Khan to sell out 2 million of an unknown cryptocurrency in less than seven hours.
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Investors and spectators alike have flagged the founders’ and developers’ stake as dangerous.
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As far as how the project has been envisioned, broadly speaking, 40% of all BollyCoin will be held by the community, 30% will be held by the founders and developers and 18.75% by an undefined “Treasury” which would work towards development of the platform and the cryptocurrency.
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If the coin does exceedingly well, this group could sit on a mountain of profit. But on the flip side, if the coin tanks in value, they could dump its chunk of the token onto the community and escape any significant losses, driving down the value of BollyCoin and leaving community holders with a junk coin.
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For a quick comparison, the percentage usually reserved for founders and developers on projects like BollyCoin is between 5% and 9%
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While the actual price of BollyCoin is less than a dollar ($0.1 to be precise), backers of the project have spent upwards of nearly $100 to secure even the smallest bag of these tokens (around 5-15 tokens). This is because BollyCoin is currently listed on the Ethereum blockchain, which has one of the highest transaction charges—gas fees in crypto terms—of any blockchain currently.
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Curiously, during the first couple of hours of pre-sale, 93% of the tokens that were sold were held by only seven wallets—hinting at uneven distribution of the token. This means that there could be rogue buyers who could potentially buy a large chunk of coins available and overvalue the token.
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Just like how independent audits affirm investor faith in a company, third-party audits in altcoins or NFT projects affirm backers’ interest in a project. BollyCoin is yet to undertake a credible audit on its project
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The way it stands, BollyCoin looks very much like a quick, easy way for the founder group, which largely comprises Salman Khan and his close associates, to cash in on India’s large appetite for cryptocurrency and NFTs