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Bitgrin has minted billions of tokens despite 21 million delivery limits, warns CoinMarketCap

June 4, 2020

The Bitgrin (XBG) network appears to have minted billions of tokens despite a declared maximum delivery limit of 21 million XBG.

On June 4, the leading cryptocurrency information website, CoinMarketCap, warned its followers of the anomaly on Twitter. The ad says:

“Warning issued: We have received reports that billions have been minted by XBG despite a maximum offer of $ 21 million.”

The warning is now also displayed on the special BitGrin page of CoinMarketCap. Strangely enough The site also notes that the coin “was released on January 31, 2019 by an anonymous team of developers”.. At press time, market data showed that it has increased by approximately 11.5% in the last 24 hours.

Bitgrin has minted billions of tokens despite 21 million delivery limits, warns CoinMarketCapBitgrin has minted billions of tokens despite 21 million delivery limits, warns CoinMarketCap

The price change reported yesterday on the website is a gain of almost 40.6%. Shortly after the publication of this article, the cryptocurrency lost 45% against yesterday’s price.

Notification on Bitgrin's CoinMarketCap page

Notification on Bitgrin’s CoinMarketCap page. Source: CoinMarketCap

Five billion XBG were mined in a single block

Bitgrin’s main developer Pharazen told Cointelegraph that Exactly five billion XBGs were issued as a reward for a single block in the blockchain, bringing the total cryptocurrency offering to 5,021,000,000 XBG. He said he knew that the anomaly was a manifestation of a mistake because he himself had dismantled the block in question.

Pharazen said that he had already made the coins inaccessible by transferring them to an address that he himself could not access, but admitted that this could not be proven. While he claimed that mimblewimble-enabled cryptocurrencies couldn’t be burned, He promised to implement a hard fork in the network so that the coins would not be accessible in a publicly verifiable manner.

As Cointelegraph reported in late 2018, a similar case occurred at Bitcoin’s Bitcoin Private Fork (BTCP). The developers of the blockchain in question confirmed the creation of 2.04 million BTCP units “that should never exist in the blockchain”.