Xtrabytes — Update II [Scam]
TL;DR. Ecology:- (2). Technology:- (2). Decentralization:- (1). Valuation:- (3). Rating:1/10. Scam. (2/10)
Almost six months have passed since the last BD Ratings review of Xtrabytes. This article is due 25th of April, but due to the nature of the content it might as well be published a couple of days early. The price predictions have turned out correct so far:
BD Ratings started reviewing the last six months of the Xtrabytes project a day or so ago, documenting official information from the team's blog posts, Reddit threads, and their implications. It wasn't until late in to the research period when scanning non-moderated Reddit threads that it became clear that Xtrabytes is run by scammers. BD Ratings will publish the original review period documentation another time, and instead outline the scam in this article. Other fundamentals are currently of little interest.
First off, BD Ratings wants to thank the anonymous OP of this thread, from which most damning evidence seem to origin from. Also, thanks to Reddit user cameron0208 and others that further spread this information. BD Ratings is consolidating these already known findings in order to portray a more complete picture on what has been going on with Xtrabytes.
Let's start from the beginning. On the 24th of July, 2016, a YouTube video named 'Bitcoin and Crypto Currency - Powerful Entry Point' was uploaded by user MIGPRO7. In it, a man driving a car towards Bucharest is talking about how he is involved with something called Capricoin, and how it can be profitable to buy Capricoin's gold- or platinum package for the neat sum of EUR 2000. When inspecting these products, it is evident that the Capricoin scheme resembles that of the notorious OneCoin, where education packages could be bought for high amounts as well.
In any case, the driver also mentions how money can be made by entering coins where the tokens are traded for just a few Satoshis. This driver is Dave Bergsma, the writer on a blog also named after migpro (where mig is short for Millionaires International Group - some form of investment group with MLM components). The blog has today no reference to Dave Bergsma since that user is deleted, but Dave is still present on an archived version of the blog. So how is this related to Xtrabytes? Dave Bergsma is CCRevolution, founder of Xtrabytes. Here is CCRevolution talking about various aspects of his project. The voice is the same as the MIGPRO7 YouTuber, and the way they end many sentences with an ',OK?', makes it clear as well. The MIGPRO7 YouTuber also has the same kind of sunglasses as a picture of Dave taken from the official Xtrabytes webpage. The beard is the same as well. In another video, MIGPRO7 has put a CCR stamp in the upper left corner of the screen - all accompanied with a clenched 'revolution fist' which ought to be a reference to the alias CCRevolution. And finally, in the first few seconds of the video, MIGPRO7 also refers to himself as Dave Bergsma, so there is that.
Ok, so CCRevolution was pushing some get-rich-quick MLM schemes back in the days, so what? The one and only thing Xtrabytes investors are now waiting for is information on the many cryptocurrency technology patents that the team supposedly has worked on getting approved. This should be known to BD Ratings' readers as it was continuously mentioned in the prior Xtrabytes articles. It turns out that the migpro blog specifically mentioned a patent pending marketing plan:
My first thought; this must be another Gifting Program...My second thought; maybe I should try a gifting program if it is THIS LUCRATIVE...My third thought; I beeeeeetter call my friend who sent this to me and get MORE DETAILS... Well, much to my surprize, this is not a gifting program. It is a legitimate business promoting Internet Business Building Tools, Leads, Training, etc... (nothing new) HOWEVER!!!
We have a PATENT PENDING MARKETING PLAN and that is where I started to get EXCITED!!
[...] There are 3 basic steps here: First you have to register with AlertPay, to send and receive money through their services. You can do this by clicking the image below... Then, once all account verifications are completed, you visit my Residual Cash Blaster site and register for Phase One for $55.
Remember, this is in 2016, just before Xtrabytes or Bitmox got started. It is obviously not a coincident that CCRevolution (Dave) shortly before Xtrabytes launched discovered that a patent pending claim could be used to defraud investors, while also uploading a YouTube video explaining how small cryptocurrencies could be bought up cheap and then pumped. In January 2018, Xtrabytes circulating supply valuation reached a high of almost USD 400M, almost entirely based on the patent hype. It is safe to say that as CCRevolution's background now is known, it is unlikely that anything at all will come from the Xtrabytes patents. They were most likely part of a deliberate marketing fraud to pump the XBY price.
Further MLM Connections
The above is enough evidence to realize CCRevolution is most likely lying or misleading XBY investors with respect to the pending patent claims. There are however some more facts that could be useful in the future, so BD Ratings is documenting those as well.
MIGPRO7 uploaded other videos on YouTube, many of them concerning other MLM schemes. Avalon Life is a well-known MLM scam, which hasn't stopped Dave from meddling with it. He also 'likes' Immonucal videos - another scheme around protein powder. Dave also follows Michael Dotterer, who is involved with the now seemingly defunct MLM company Duplik8.
Dave's blog also referred to the now defunct MLM webpage health-wealth-freedom.net, which is registered in Dave's name. Looking at the archived version, there are referral links to Immunocal, the MLM-scam CBL Games, and the MLM company KB Gold.
My name is Dave Bergsma and I am from Ontario, Canada. Currently I am 40 years old and have been doing MLM for about 14 years. My career started out part time, while I operated a retail store that seemed to be my dream business. However, I soon found out that owning your own business in the retail sector was extremely demanding and that freedom I thought would come, was non existent. One day, a friend dropped by and placed a bottle of juice on the counter, beside my cash register and said "Dave, I think we can make some money with this stuff".
Well, I didn't immediately bite, but I agreed to try the product, which was an herbal tonic. Much to my surprize, within 3 days, I noticed significant changes starting to take place in my body and that is where my MLM career began.Throughout these 14 years, many good and bad experiences have taken place, which is not unlike most MLM Veterans. My personal successes have been both high and low, with reasons for both ends of the spectrum too numerous to list. However, the one thing I will mention is that my true mission was discovered about 8 years ago and that is the basis to why I have taken the time to create MIGPRO. To put it simply, MIGPRO has been created to help YOU succeed with your MLM, Home Based Business career.
Dave's Google+ profile has now been renamed to Samuel Hampton.
Update 1: Borzalom and the Identity project
As BD Ratings posted this article on Twitter and Reddit, some people came forward with findings on borzalom (also known as Zoltan Szabo), and pointed at a Reddit thread outside the reach of Xtrabytes moderators. Here are parts of what the OP u/m4sturb4tor found.
There were two LinkedIn profiles for a Zoltan Szabo that circulated in the Xtrabytes community. The first one is now deleted. The second one was deleted as well but was saved as an image file. It appeared that the picture of Zoltan was stolen from a Hungarian programmer named Aron Novak. u/m4sturb4tor managed to find a video where Aron gave a talk at a conference, and concluded that this person was not the the borzalom whom CCRevolution interviewed a number of times. The fake LinkedIn profile also referred to a company called Web Programmers Team. That company's webpage is now defunct, but archived. It is unclear to BD Ratings what the goal with all this was, but it ought to anyway be included in the article if any reader wants to continue pulling this thread.
What is clear however, is that borzalom is not the genius some claim to be. Here is an awful flow chart created by him in February 2019. At another point, he demanded up to 600 developers to finish the long awaited Zoltchain code - something that was already 90% done according to CCRevolution. The incompetence and lack professionalism of CCRevolution and borzalom seems to have been the main cause of the CEO and COO Ashley an Allen quitting the project in February 2019. The findings of CCRevolution's MLM activities reached the public around this time as well, and so could possibly also have been the reason.
Further weirdness awaits as we shift focus to a project named Identity. The project, initiated in the beginning of 2017 on bitcointalk.org by user Project_Identity, referred to its webpage getglobalid.com. In June 2017, the webpage suddenly referred to Xtrabytes instead. This is approximately the same time as xtrabytes.global is launched, which is the Xtrabytes project's current webpage. BD Ratings can't see the point of the getglobalid pivot. It is obvious that there is some kind of connection between Identity and Xtrabytes. First off, because of the domain sharing. Secondly, both projects continuously referred to the number 7, 77, or 777 - Identity in terms of its mining rewards, difficulty target and total supply, and Xtrabytes in various borzalom Q&A's. It is a weird connection indeed, and should worry XBY holders as the Identity project seems to have ended up being vaporware and so a lost investment as well.
Update 2: Xtrabytes Sockpuppets
A new r/cryptocurrency thread was recently posted about the Xtrabytes X-CITE wallet. The thread was seemingly quite well received, but upon further inspection it became evident that it was brigaded by sockpuppets. u/arekabsolute, u/TheMekon, u/fuckingthedog, u/jmanrocks91, u/Kbubb87, u/trackstar0219 and u/sreetoponkumer are all present in the thread, praising the update. They are all created over a spectrum of at least ten years, but have only recently activated from their dormant state. This means they are very likely bought by an individual or group. What makes it clear that they are all sockpuppets is not only the fact that it is mainly dormant accounts springing to life, but also that they all post in different VPN-related threads, where they recommend different VPN providers. So far, BD Ratings has not been able to tie them to the Xtrabytes team, so they may be controlled by an external group.