BlockDAG: A Report on a Dubious Presale
This report provides a detailed analysis of the BlockDAG Network ($BDAG) presale, exposing the numerous red flags that strongly indicate it is a pure scam orchestrated by high-level marketing stunts. The data presented here is based on publicly available information and observations from the crypto community.
A Prolonged and Manipulative Presale
The presale for $BDAG began in March 2024 and, after more than a year and a half, is still ongoing. The project’s strategy appears to involve consistently reducing its price to attract new buyers. According to their tokenomics, 50 billion tokens were allocated for the presale, and while they have made a number of tokens sold available to the public, there is no way to validate these claims as the blockchain is still on a testnet.
BlockDAG has repeatedly offered aggressive promotions to drive sales, including:
- A 25% referral incentive for referrers.
- “Double Your BDAG” promotions, where users receive double the number of tokens for their purchase.
The pricing strategy is particularly concerning. While the current presale price is stated to be $0.03, the project frequently runs promotions at prices significantly lower than the current stage. For instance, in May 2025, when the price was $0.025, they offered tokens at a promotional price of $0.0019 a 92% discount. This was followed by a series of “Double Your BDAG” events at the same low price. As of today, they are selling tokens at $0.0013, which is even lower than their previous promotional price of $0.0019.
This is a highly unusual practice. Typically, project owners increase the price with each presale stage to reward early investors. For example, our $SHPRO’s seed price was $0.005, and the public sale price has now risen to $0.01. Recalling prices to initial levels can lead to severe liquidity issues at listing and cause a token to crash immediately.
The Liquidity and FDV Dilemma
If they have raised $400 million, a large portion of those funds estimated at $250 million were raised at these lower price points. This would result in a fully diluted valuation of approximately $6.675 billion at the listing price. No project owner can provide the kind of liquidity needed to sustain this valuation, which will likely lead to a massive sell-off.
The FDV of this magnitude may not be realized at TGE since less than 10% of the tokens will be unlocked. However, this still translates to a potential selling pressure of around $670 million. The price may still crash significantly as the mainnet is not yet functional, and there is no clear market adoption. Furthermore, the claim of 10,000 transactions per second (TPS) is less than many existing blockchains. It’s also worth noting that BlockDAG is not a unique technology; its use of the Directed Acyclic Graph (DAG) architecture is similar to projects like Kaspa.
Massive Selling Pressure at TGE
The potential for a price collapse is further amplified by the token unlocking schedule. The project is only allowing a small portion of tokens to be unlocked at the Token Generation Event (TGE), approximately 10%. However, even this small percentage would lead to a selling pressure of around $670 million at TGE, in addition to the selling pressure from other tokens which have 40% unlocks (these tokens were purchased without bonuses).
Evidence of Self-Dealing / Wash Trading
Further allegations from an X user provide concrete evidence suggesting fraudulent activity within the BDAG presale. It has been observed that the BLOCKDAG presale address transferred 79 ETH to another address. Subsequently, this second address then used that same 79 ETH to purchase BDAG from the original presale address, amounting to over $300,000 in value. This type of circular transaction, often referred to as self-dealing or wash trading, is a strong indicator of an attempt to artificially inflate presale figures and create a false sense of demand.
External Validation of Concerns
Concerns surrounding BlockDAG are not isolated. Renowned on-chain investigator ZachXBT has also highlighted several red flags associated with the project, including its prolonged presale and opaque operations. This independent assessment further validates the dubious nature of the BlockDAG presale. For more details, refer to ZachXBT’s post: https://x.com/zachxbt/status/1957426002432598163
Conclusion: A Cautionary Tale for Investors
BlockDAG’s business model raises serious concerns about its sustainability and transparency. The combination of a prolonged presale, inconsistent pricing, aggressive promotions, and a potential for massive selling pressure at TGE could result in a significant loss of funds for investors.
This kind of event could severely damage the trust in legitimate presale projects. Therefore, we urge all investors to exercise extreme caution and perform thorough due diligence
The BlockDAG Network will likely be marked as a historical scam, with most investors losing their funds. The majority of the bonus coins are locked for a year, and we anticipate a token price dump of over 97% before this locking period ends.
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Disclaimer
This report is not intended to bash or attack any specific project but rather to present findings based on solid research, publicly available information, and verifiable facts. Investors are encouraged to independently verify all claims and exercise caution before making financial decisions.
Part of ShieldGuard Learn: Scam Prevention & Education This report is published under our ShieldGuard Learn ecosystem product, specifically the Scam Prevention & Education initiative. Our goal is to build awareness, educate the community, and create a safer crypto environment for all investors.
