How Did Nasdacoin (NSD) Avoid the Crash? Game Changer or Ponzi Scheme?

Nasdacoin (NSD) began its sudden ascension into the market cap top hundred just as the market crash struck last week. From Nov 14th through Nov 15th, Nasdacoin went on a 429% growth surge, while the rest of the market was bleeding out in what proved to be only the first dip of a two-pronged fall.

Since then the surge cooled somewhat, but NSD remains parked in the market cap top hundred, and remains in the green for a day in which several altcoins lost 30% of their value in a flash.

But what is Nasdacoin? And how has it avoided the gravitational pull of late which caused the rest of the market to come crashing to the ground?

What Is Nasdacoin?

Well, the project’s whitepaper sounds much like any other, and summarizes itself thus:

“Nasdacoin is an encrypted and decentralized virtual, open source, peer-to-peer currency, developed with the scrypt algorithm in the POW/POS Hybrid format, allowing people with entrepreneurial and passionate financial and technological market profile to store and invest their wealth in a safe currency…”

But delving deeper into the whitepaper immediately causes some alarm bells to sound, particularly when we arrive at the part where you invest your money in return for a guaranteed daily percentage return.

Another worrying sign is the mention of an affiliate programme, where users are paid percentage gains for every new ‘level’ of affiliate membership they achieve.

Furthermore, the whitepaper details a ‘Binary Bonus’, which is paid out every day to the most active affiliate creators, and has a payout ceiling of “infinity”.

In what may be a first for a crypto project, the ‘Team’ section of the whitepaper contains a photo of the co-founder which appears to be a selfie taken while sitting in his car.

Why Nasdacoin?

We’ve covered the warning signs without being too judgemental, but just why did Nasdacoin pump all of a sudden?

The source of the pump may have something to do with the coin’s listing on multiple exchanges, as announced on the day the pump began by the Nasdacoin team:

“We came to make History. NSD is Available in: CREX24 | BTC-Alpha | MERCATOX. Trade now!”

Of those exchanges, CREX24 handled close to 90% of the coin’s trades on Monday, processing close to $300,000 worth of NSD/BTC trades. The coin opened the day at a price of $2.39, and stands at $2.45 at time of writing.

Despite Bitcoin falling below the $5,000 mark, and all the major altcoins taking a tanking, Nasdacoin remains untouched by whatever’s fuelling the selloff.

According to the Nasdacoin explorer, 25 wallets hold 72.5% of the funds, while the top fifty addresses hold close to 83%.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Greg Thomson is a freelance writer who contributes to leading cryptocurrency and blockchain publications like CCN, Hacked, and others.