Hshare started its life as a small crypto currency coin and has been trading around 20 dollars from quite sometime. It had extremely small marketcap of 20 million dollars. Today, the company gave everyone 500 times the amount of Hshares they had. The thing is – each coin should technically be worth $0.04 but the market hasn’t reacted to the supply change. This can be explained like this – Imagine you are the first one to do the trade after your balance got multiplied 500 times and the bid book has not reset you to the new prices.
Another example – let us say you have a crypto coin that has a value of 100 dollars and there are mere 10 coins in circulation. This make total market cap 1000 dollars. Now, if you give everyone 500 times the number of coins they have as their balance, the total marketcap will suddenly become 1000×500 = 500,000 dollars.
This is exactly what the scammers behind Hshare did.
Bottom of FormSome innocent people who did not understand this are now buying Hshare coins at extravagant, inflated prices. Another very interesting thing to note is their reddit page has zero posts and their github is empty.
So think like this – this very company has a coin with 1 billion dollar marketcap with no project and empty reddit. Sounds legit, right? Be careful with projects and crypto currencies – be very careful.