Former Bitcoin Core Developer Calls Ripple, Ethereum And Zcash Are Scams
Former Bitcoin Core developer Peter Todd believes the fraudulent project Theranos has much in common with Ripple, Zcash, and Ethereum. The expert shares this opinion with the readers on his Twitter.
Theranos was a successful scam because they really were developing new technology. The scam was in lying about what that technology could actually do and covering up failures.
So much of blockchain tech does this: ETH, Teechan, Tierion, Ripple, even Zcash to a degree. https://t.co/mV5dHuhoVm
— Peter Todd (@peterktodd) November 26, 2019
According to Peter Todd, the startup Theranos was able to achieve success thanks to the fake off on the creation of new technology. The project was declared fraudulent because its team had been telling lies for many years, hiding problems.“So much of blockchain tech does this: ETH, Teechan, Tierion, Ripple, even Zcash to a degree,” Peter Todd says.
Theranos project was founded in 2003 by nineteen-year-old Stanford student Elizabeth Holmes. The idea of the startup was the development of innovative products in the field of medicine. The availability of ideas, including the creation of devices for painless blood sampling and the diagnosis of a wide range of diseases in real-time, allowed the co-founder of Theranos to get some grants.
One of the project investors was the head of the company Draper Fisher Jurvetson (DJF) venture investor Tim Draper. His name allowed Theranos to attract funding from other reputable market participants. In 2010, despite the fact that not a single device was developed by the Theranos team, the project received unicorn status.
Since the fall of 2015, a campaign has been organized around Theranos, thanks to the testimony of former startup employees. The purpose of the latter was the disclosure of fraudulent schemes of the project. At this point, the Theranos team managed to present one development, but during the tests, it turned out that it does not meet the declared standards and is not innovative.
The interests of the company on the world stage were represented by a team of lawyers. The latter for a long period of time helped the startup to avoid the attention of law enforcement agencies. The project was declared bankrupt in the fall of 2018. The co-founder of a multi-million dollar startup is still awaiting a court decision.
For many years, Elizabeth Holmes was considered a genius of our time. At the same time, the Theranos developments that did not exist in reality were considered unique inventions. According to Peter Todd, the projects he mentioned may also turn out to be dummies, the popularity of which is based on the deception of investors.
The specialist’s negative statement on popular startups has criticized the participants of the crypto community. The latter noted that, unlike Theranos, the projects mentioned by him have real developments that can be used.
“I've issued over 10,000 transactions on Ethereum delivering value to myself and others. I know Ethereum works, ”says one of the participants in the discussion.
Peter Todd, in turn, drew attention to fraudulent projects unity in the blockchain industry. According to the expert, startups are forced to work together, protecting each other from criticism. The former Bitcoin Core developer believes that the projects he mentioned are suitable for the presented behavior model.