Hey Everybody, Marcus here,
Since I released my video entitled “The Red Pill Coin Is A Scam” a number of things have transpired. Kris Cantu responded by simply labeling myself and anyone who would share my suspicions as a hater. DDJ conducted his own investigation in relation to the Red Pill Coin and put out his own video.
What I want to do in this video is address a number of questions that have been raised by a number of people within the MGTOW community in relation to my approach, the situation with the coin and so on. Firstly, I would like to say that I was in no way aware of the suspicion of Kris Cantu growing within the MGTOW community. I did not listen to Kris’s videos before I put out my own video. I was not aware that Coach Eli had been vocal on his channel about Kris either. I did not even know Coach Eli existed. Suffice to say, my video “The Red Pill Coin Is A Scam” came into being in complete isolation from the suspicions in relation to Kris within the MGTOW community.
So the question is this. How did I become aware of Kris and the Red Pill Coin. On November 9th of 2017 I received an email from Kris Cantu. The email is currently on the screen. It reads:
Kris Cantu and fellow MGTOW creator here..
Your work is of great importance to the community.
I’m writing today as I am leading a new cryptocurrency called Red Pill Coin and looking for channels to promote the coin via donation link. (get paid for promoting).
I can also offer you a bag of 10,000 coins in exchange for promotion in your videos.
I did a Red Pill Coin ICO review here.
Would you be interested?
Appreciate your work Brother and congrats on growing your channel to 12k subs!
This was the first time I ever heard of Kris or the Red Pill Coin. I ignored this email because at the time it was one of many emails I get from random MGTOW in relation to either collaboration, or to do reviews and so on. I tend to reply to these emails in bulk every few weeks when I have the times but other than that I typically let them sit there. Now, it would not be until December 29th until I would return to this email. I was browsing through the recently uploaded videos on youTube that were returned on the Today filter when you search for the term MGTOW. I do this from time to see what new channels are out there and so forth. What I was met with in the search results were a number of videos about cryptocurrency promotion within the MGTOW community.
This jogged my memory about the email from Kris and the Red Pill Coin he mentioned. So, I loaded up the video in which Kris reviews his coin. Immediately I became suspicious. I navigated to the Red Pill Coin website to get my hands on the White Paper.
The first thing I encountered on the Red Pill Coin website was a countdown clock. The Red Pill Coin was currently conducting an ICO sale. There was only 1 day and 9 hours remaining before the ICO sale would complete.
I downloaded the white paper and read it. It became immediately apparent that this is going to end badly for the reasons I enumerated in my video “The Red Pill Coin Is A Scam.” So here I am. I know that what the Red Pill Coin is offering is very poor and the company itself is anything but doing things properly. The first clue to this was that nowhere on the website does it say the name of the company itself. You do not have a full address of the company, and you do not have a contact number; only an email address. So, anyone investing in the Red Pill Coin actually has no idea what company they are investing in.
The only team member listed in Kris Cantu whose title reads: Director of Operations – COO.
Kris’s title is suspicious also. COO stands for Chief Operations Officer. In fact COO is the short form for the formal C-Suite executive title of Chief Operations Officer. Why would anyone list a title of Director of Operations which is itself a different title to COO. Not only this, but the COO role reports to the Chief Executive Officer in the organization. Why would the CEO not be listed on the page? It makes no sense.
Now, if you look at the section entitled “Our Platform” on the Red Pill Coin site you see even more red flags! You have 6 line items in there. The first is the Red Pill ICO. The second is Red Pill Wallet, then Red Pill Wallet Chrome extension, then Red Pill Wallet Mobile App, then Red Pill Miners, and finally Red Pill Miners Mobile App.
There is an enormous red flag in this listing. The sections entitled Red Pill Miners, and Red Pill Miners Mobile app scream of scam. The Red Pill Coin according to the White Paper is a ERC20 token issued in the quantity of 200 million units. This is your run of the mill pedestrian grade token that takes an hour or so to create. But that’s just it. 200 million units of it were created! You cannot mine a token on Ethereum that has already been pre-mined in this way. There is literally nothing to mine. To my knowledge, there is only one Ethereum based token that has a faux sort of ability to be mined. It is called Bitcoinereum.
I have linked to an article about Bitcoinereum and to their official website.
The article is from October 29th 2017. It does a good job explaining to the reader why, along with the countless other altcoins out there, Butcoinereum is a waste of time. However, though Bitcoinereum is a waste of time, it is not a scam as there is no ICO, just the ability to faux mine it by expending ether to call the Bitcoinereum smart contract and get a free coin. The point I am getting at is that the concept of mining a Ethereum based token is, well, retarded and technically impossible in the strict sense of the word. In order to be able to mine a token you create, you would need to spawn your own blockchain. This is usually done by taking a fork of an existing blockchain like the bitcoin blockchain and setting your own primary cryptocurrency as gas. However, this is nothing even remotely similar to how the Red Pill Coin was created.
The short of it is that it is impossible to mine the Red Pill Coin because a set quantity of it was minted when the coin was created. And even if the Red Pill Coin was like Bitcoinereum in its setup, it would still be faux mining and not real mining. Real mining makes the person money. This Bitcoinereum faux mining would actually cost you money to do.
But why do I raise a fuss about this mining thing? Well, I have to think of why anything about mining would even be mentioned on the Red Pill Coin website itself. There were only 2 possibilities. Either the creators of the coin are so ignorant of blockchain technology that they are unaware you cannot mine customer tokens on Ethereum, or they are spinning a possible scam.
How can they spin a possible scam? Well, let me tell you what I would imagine it to be. You cannot mine Red Pill Coins. This is impossible technically. However, you can mine Ether on the Ethereum blockchain. So what about this. What if we would take an existing mining program like the Claymore miner, change the code so that it mines Ether directly into my wallet while rewarding Red Pill Coins to the person doing the mining instead of giving them the Ether they have mined?
But why would anyone do this? Well, because it makes sense to exploit another person’s computing power and electricity costs to get Ether while giving the miner themselves completely useless garbage like the Red Pill Coin. In this way, it may look like you are mining Red Pill Coins but are in fact mining Ether. This is a very neat little trick but screams of scam. There is malware out there that does something similar.
Okay. So lets see where we are in the story. Imagine this. It is December 29th, you have just encountered an ICO website and white paper that have red flags everywhere with a very high suspicion of a scam. There is a 1 day and 9 h countdown timer of the currently active ICO sale of the Red Pill Coin. The targeted purchasers are MGTOW men in a community you very much care about.
What do you do?
My thinking was this. I need to get the word out immediately. Though this ICO is 28 days in I may still be able to stop a few men from throwing away their money. If I am wrong, I can always beg for forgiveness later and anyone I may have prevented from buying this coin today can just buy some in the next ICO round so they won’t miss the boat if this turns out legit.
I need to put out a video right now! I need to get as many views as possible on that video therefore I need a click baity scandalous title; “The Red Pill Coin Is A Scam” seemed like my best bet. I figured I can keep the script of the video a little more neutral and provide a somewhat balanced argument. And so I did just that. I decided that my argument ought not to focus in on the mental state of Kris Cantu in relation to his intentions of scamming the community as I could not prove it. So, instead, I argued that there are 3 possibilities. Either Kris is ignorant, naïve, or a con artist. The bulk of the argument focuses around demonstrating that if any of those 3 are true then the outcome for investors of the Red Pill Coin will turn out to be the same as if it were a scam.
I write the script in a hurry, record it and let it out into the wild. Now, a criticism was levelled again me by a few people in the community saying I should have approached Kris with my concerns before I put out this video. There was no time for that in my opinion. The ICO ended in 1 day and 9 hours. Who knows how long a back and forth between me and Kris would take.
Finally, I knew that Kris was more than capable of merely responding to my video addressing my points and there would have been no further need for a back and forth. I was willing to risk looking like an idiot in front of the community if it turned out I was dead wrong if simultaneously it meant I prevented some MGTOW from losing their money if it turned out I was right. That was the judgement call I made. And you know what, my gamble payed off.
On December 31st Victor Knight puts out a video entitled “My Take On The Red Pill Coin.” I have linked his video in the description of this video. In his video Victor says that he had intended to put in 100k of his money into the Red Pill Coin but after watching my video, he decided to delay his decision until more information presented itself. He said that he never even read the white paper as he was so emotionally wrapped up in the MGTOW community that it overcame his better judgement. He assumed the Red Pill Coin was a no brainer. If what Victor Knight says is true, then my decision to act quickly has saved a fellow MGTOW brother 100k. I had succeeded in my mission.
Now, the 10 days that followed the release of my video I had come to discover that Angry MGTOW was involved in the project. The evidence for this exists in an Angry MGTOW video currently up on Minds.com entitled “Time For Angry MGTOW To Leave YouTube.” That video was uploaded on December 12th. Now, I do not know if it is Angry MGTOW who is the primary originator of the Red Pill Coin idea. This is still an open question. Is Angry MGTOW the unlisted CEO of the San Francisco based company behind the Red Pill Coin? I do not know; but he is involved.
Now, blockchain technology is really awesome for a number of reasons. It is awesome because all operations are completely transparent and from a pragmatic point of view unhackable. So, if we go to www.etherscan.io, we can look into what has been going on with the Red Pill Coin since its very creation. If you navigate to Etherscan.io then hit the Tokens menu item then search for RPIL in the lower search box, not the top level search box, you will find the entire history of the Red Pill Coin’s movement between wallets. As of this writing there are 142 transactions total and 80 total token holders. The Red Pill Coin was first minted 131 days ago, or 4 and a half months or so. This would put the token creation in and around the end of August. From the graph we can see that half of the coins are still owned by the originating address. The white paper said that they would issue 200 million coins in total but later decided to destroy half of them supposedly based on the feedback of investors. This information can be found in a blog post on the Red Pill Coin site.
The ether scan record does show that they destroyed 100 million coins. Now, if 50 million coins are still owned by the originating wallet to which the created coins were assigned to, this means that 50 million coins have been put into circulation. There are 9 coin holders currently who control 1% or more of the coin. 1% is a million units of the coin. 90% of all the coins are currently controlled by these 9 holders. The last 10%, or 10 million units, is distributed between the remaining 71 holders. It looks to me like there are upwards of 3 co-conspirators in this Red Pill Coin affair. What you see is that 3 people received massive injections. The original holder wallet when the coin was created had 100 million units. Then another holder received 25 million while a 3rd holder received 15 million. I suspect the 25 million and 15 million transfers were not as a consequence of a sale but a reward for being involved. The 3 coin holders I speak of have a fairly consistent pattern of dumping the coins. This can mean that they are selling them though not necessarily. However, they are dumping them for one reason or another. As each transaction on Ethereum costs around 10 cents USD to performs, I doubt they are moving these coins around for fun.
The token was promised to be put on the Bitsquare.io exchange which as of this writing I cannot seem to find on there. As such, all 142 transactions occurred through either an ICO sale or through private back channel negotiations. As the token is not on any exchanges I am aware of this means that there is no opportunity for a Red Pill Coin holder to exit their investment by exchanging it for crypto currencies which have monetary value like bitcoin. This means that the only way a coin holder can cash out is if someone he talks to directly is willing to part with bitcoin for Red Pill Coins. As the Red Pill Coin came into being 4 and a half months ago, sufficient time has passed to get this coin onto an exchange. Of course, the reason why the Red Pill Coin is not on any exchanges is probably because no exchange will take it. This is my suspicion. And even if an exchange were to take it, there would need to be some sort of demand to buy it. After all, if no one wants to exchange bitcoin for Red Pill Coin then the existing of the Red Pill Coin on the exchange will not mean anything anyways.
This is my analysis of the situation so far. With only 142 transactions and 80 unique coin holders over 4.5 months I believe it is safe to assume this thing is pretty much dead. There would be hope if there was some solid product coming into being that will require the possession of this coin, yet no such product exists on the roadmap the Red Pill Coin website indicates.
Now, a 3rd ICO of the Red Pill Coin is scheduled to begin in February. The first was in October, the second in December. I suspect these ICOs will keep coming until all the coins are unloaded. This only makes money for coin issuers. What I find somewhat suspicious of the whole thing is that even though the intent of the developers of the Red Pill coin was to encourage viewers to tip content creators with this coin, it does not look like even Kris Cantu accepts Red Pill Coins as donations.
I mean, clearly you can use any Ethereum wallet to hold the coin so there is no technical reason he would not advertise the fact he is accepting them. But if he did accept them, what could he do with them? He would have to sell them back out into the community for real cash.
Now, it is important to note that I never went after Kris’s character nor did I try to muddy the waters in my video by attempting to bring into the conversation any of Kris’s activities that are unrelated to the Red Pill Coin itself. I evaluated the coin from the perspective of a business opportunity. From that perspective I still believe it is a bad deal.
This brings me to the notion of the SEC getting involved. DDJ had recommended that anyone who had invested in this coin report the coin to the SEC. I would say there is no point and even if the SEC would investigate the situation they would not pursue any legal action. The white paper for the Red Pill Coin promises 3 things to its investors. The white paper promises that a Chrome Plugin, Android App, and iOS apps will be developed which will serve as custom crypto wallets for Red Pill Coin holders to transfer Red Pill Coins with. These three pieces of software are the only obligations the Red Pill Coin crew have towards anyone who bought into the ICO. The Red Pill Coin crew can deliver on these promises quite easily and as long as they do so, none of the Red Pill Coin holders have any legal recourse against the Red Pill Coin crew. How can they? The Red Pill Coin crew would have delivered on their promises.
The idea that Red Pill Coin holders will get rich on the price of the Red Pill Coin is an expectation the coin holders and other commentators are injecting into the coin. However, this expectation has no connection to anything promised in the white paper. Anyone buying into the Red Pill Coin with the expectation they will get rich on speculation is playing themselves and cannot hold the creators responsible if the coin fails.
What I am getting at here is that what was promised in the white paper is itself not worth investing in. This means the Red Pill Coin is not a scam in strictest sense of the word. Much like multi-level marketing is not a scam in the strictest sense of the word yet almost always plays itself out that way for most of the people involved.
Think of it this way. I Marcus can create a custom Ethereum based token called the Marcus Coin. I can create 10 million units of this coin and price them at 1 USD per coin. Then I do an ICO selling my 10 million coins for 1 USD each which can bank me 10 million USD. Now, if my white paper promises that if I sell all the coins I will shave my head, then my only legal obligation to the coin holders is to shave my head. If the buyers of the Marcus Coin expected to get rich by speculating on the Marcus Coin then that is their business. However, I, Marcus, the Marcus Coin creator and seller, have never made any promises that would suggest my company will act in a manner that can get the coin holders rich on speculation.
All I promised to do is to shave my head. Why would anyone invest in the Marcus Coin then? Well, they should not unless they really want me to shave my head. So, people in general should not invest in the Marcus Coin because what I am promising for 10 million dollars is not worth 10 million dollars. Yet I am not scamming anyone in selling the Marcus Coin. I am just selling a grossly overvalued product which is not itself illegal.
This is the situation with the Red Pill Coin. What the Red Pill Coin crew have promised is grossly overvalued based on how much they intend to raise on their coin. Remember, they only promised to produce the Chrome Plugin, Android, and iOS wallet. Yet it is not a scam in the legal sense that they are selling something grossly overpriced. However, those people who do invest in it thinking they will get rich on speculation will feel scammed because they have, without warrant, injected the expectation they will make money on speculation. So I do not believe the SEC would pursue this case because it was not deceit that caused the investors to part with their money but their imprudence. Simply put, the investor believed the Red Pill Coin to be something other than what the Red Pill Coin creators claimed it to be because the investor was naïve and thought that every cryptocurrency just magically goes up in value.
Now, I know that Kris cannot be the sole member of the Red Pill Coin crew. Kris is not a software guy which means that he would need a software guy to bring this coin into being. Kris is also not the CEO as stated on the website. I suspect Angry MGTOW is the CEO and the software guy behind the product. Kris might have been the originator of the idea but it is more likely he is a patsy, a fall guy, in case the whole thing goes south as Kris is the only one who put their real identity forward.
Kris might be a victim of this whole thing as well but might be simply too ignorant of blockchain, ICOs, and entrepreneurship to see it. I don’t mind going on a stream with Kris, Angry MGTOW, DDJ or anyone else who might be interested in hashing this out, but I don’t see much point in it. There is no personality clash here. The whole Red Pill Coin thing for me is not some inter MGTOW content creator bickering around MGTOW orthodoxy or how this community is to be run. In fact, it really makes no difference that Kris is MGTOW or that I am a MGTOW. If this community was about Magic The Gathering, I would have still made the same video. To me, this is all business and strictly business; it just coincidentally involves MGTOW content creators. Being MGTOW does not bestow moral virtue or business acumen upon a person. Do not conflate excellence of MGTOW philosophy with excellence of any adherents of MGTOW.
Thanks for listening, Go team!