XVG ERC and Why You Should Stay Away

If you know Verge (XVG) great, if not a very brief history: launched by sunerok in 2014 as DogeDark, rebranded to Verge some time later and saw a successful pump in late 2017 and been a dedicated few trying to push the project forward. Fast forward today, the coin is fully minted, miner rewards and hash have dropped dramatically, and the "core" team has raised concerns about finances to keep the servers running. We then get a token pre-sale on ethereum that is rushed through even though the team was not in agreement on any of it. Several long term team members were removed, some were offered payments to stay on board.

And it's this pre-sale that I want to look at a little bit more in depth than most. By all accounts the pre-sale was hugely successful, raking in just over 800eth. But, it's here that I found my first of many red flags. When a pre-sale is "finalized" on pinksale, a couple of things happen;

1 The liquidity pool is created

2 The "dev" share of the raised funds are sent to the owners wallet

So, when the XVG ERC pre-sale was finalized, 367.81307798eth was transferred to:
0xF77a679acd5AacCaa2beAA618eA2f42336a17716 which we have in the contract as "Pinksale wallet" However, this is simply just a labeling. Pinksale does not accept tokens directly to any wallet. Creating a pre-sale on their platform, you deposit the tokens to the contract.

In the below video, is a detailed step by step on how to create the pre-sale for anyone who is unsure of the process

This is a "Verge" controlled wallet. And from this wallet, hundreds of eth has been transferred.

Not even 24 hours after finalizing the pre-sale do we see 230eth being sent out. Strangely enough, the team has denied this on many occasion but never offers an explanation. Maybe even more strange is the fact that these are not the same wallets that we have in the contract as "team wallets".

And this is where the bribes come in to play. A former - long term team member has quit the team and posted his experience for all to see:

https://xvgninja.medium.com/verge-erc-20-reality-check-0df56b95d406

I highly suggest everyone read this article as it really does indicate what this token is all about. While the XVG native coin continues to dwindle and die.

Below I have included the last 30 days of hash rate for XVG and it's terrifying how quickly it's dropped. But, why would a crypto miner, keep mining for fractions of a penny as a reward?

0x9865a90c0B5e31be776Cf331DbC6dEB54E5a61ae - 55.5eth

0xFDeb73f9b6335554eCd9F555ABfEc64e03eBC1cF - 55.5eth

0x37C4c28b2E4E3402da3d25389Af815D0964F5791 - 55.5eth

0x3fF3449301CFDdB885437De1bCA95acB6D73633f - 55.5 eth

0xa28bE6783e5C91E610373943cF1bf718E42d300d - 47.5 eth

At the time of writing 55.5 eth is about $113,000

Now, this is where things get a little bit spicy.

0x9865a90c0B5e31be776Cf331DbC6dEB54E5a61ae sends to 0xa4C09df8Dff947b1Ed79916f9648f228529f276c which cashes out to Coinbase. Starting an hour after receiving the 55.5 eth.

0xFDeb73f9b6335554eCd9F555ABfEc64e03eBC1cF uses some eth to buy XVG, but ends up sending 51.25eth to 0x769D3E4B114293BFCe8Ad14062222B69EF666209 - again, most of the eth ends up going to a different address: 0x1A7432c258B68F2F8cB417Fd07808534849b6437

0x37C40E8F7989f88E3Ce41c21a26C59012FB15791 uses 4eth to buy XVG, and sends 49.9306eth to: 0x769D3E4B114293BFCe8Ad14062222B69EF666209 - where once again the eth ends up in:
0x1A7432c258B68F2F8cB417Fd07808534849b6437

The wallet ending in 5791 has also sent out 7m XVG to 2 new wallets.

0x3fF312d33A0534999934e8A8C55a3c24D4cD633F sends to 0xc20fec26E4c38c867D5C1f9033Cab33F8F83a449 which then sends to 0xaB782bc7D4a2b306825de5a7730034F8F63ee1bC totaling 25eth. This last stop I can only speculate what it is so I'll just say it holds over 5,000 eth.

The last wallet to look at it is 0xA28b5fc1151A86712319C8d8027fF7Cd6931300d
which, honestly looks ok... except of the 7m XVG that is has sent to 2 new wallets.

So in total, without question: 80 eth of the pre-sale has been cashed out by the team with another 100 eth with whomever controls 0x1A7432c258B68F2F8cB417Fd07808534849b6437

Let me be very very clear here: The team is on record declining ANY transfer of funds. Well, we don't have to look any further than Team Wallet #6 to prove that false

What we see here is 9,400,000 XVG being sold for 1.98 eth.

In conclusion, we have a team that has managed to get money by sucking funds from their community for nearly a decade. And it worked because they controlled the tech, they controlled the narrative, and they controlled the data you could see. Welcome to DeFi where the blockchain can see your every move.