Elite Coin is a peer to peer payment system that aims to bridge the cryptocurrencies and gaming industries together. The Elite Coin project's main objective is to integrate its cryptocurrency into gaming platforms so users can use the Elite tokens as an in-game currency.
The Original Project
The original Elite Coin project (inactive site: https://www.1337coin.net/) was announced on a Bitcointalk post entitled: "ANN ---------------[X13`37]----------[1337%]" by a user named TillKoeln on October 30, 2015. According to this first announcement, the Elite Coin project had its own blockchain, worked using a "hybrid Proof of Stake/Proof of Work" consensus system, was based on the X13 algorithm, had 60 second block times, offered 1337% annual Proof of Stake interest with a Proof of Stake minimum age of 60 minutes and unlimited maximum Proof of Stake ages, and had a maximum supply of 23531157.216 Proof of Work coins.
This first version of the project gave links for wallets compatible with Windows, Linux, Mac OS X, and Raspberry Pi. At the time of the announcement, Elite Coin was reportedly available for exchange on YoBit and C-CEX, and linked to the twitter account @TillKoeln.
A subsequent modification of TillKoeln’s post added the following message in bright red letters:
Info added to the  ANN thread […] Don't waste your hash/money into , this is not a legit investment […] Please read this thread and check the posted roadmap before you invest anything into this coin.
The modification also added the announcement:
new thread here: https://bitcointalk.org/index.php?topic=1319833.0 […] Velvet78 TakeOver the Project. https://bitcointalk.org/index.php?action=profile;u=473816.
This “new thread” started on January 8, 2016, 09:45:08 PM in a Bitcointalk post by the user Velvet78 entitled: [ANN] 1337 [MANDATORY UPDATE] 41.78% APR| POS ONLY, that starts with the announcement: “DONT SEND COINS TO C-CEX”, elaborates on a reportedly new roadmap for the Elite Coin project.
According to the new project guidelines, Elite Coin would function with a pure Proof of Stake consensus system and would continue to use the X13 algorithm, with 60 second block times. The Proof of Stake interest rate was halved from 1337% to 668.5% and the maximum coin supply was maintained at 23531157.216 Proof of Work coins.
Bitcointalk user tester99 posted a thread entitled: “Be careful of 1337 coin (pump n dump or worse)” on October 16, 2017, where he stated that the Elite Coin project was a scam because of several red flags, including:
A person that calls himself “Lady Whale” owns almost 70% of the total coin supply, stashed in several wallets, including a Cryptopia wallet.
The maximum coin supply is actually 38 Billion Elite Coins, and the proof of stake interest rate has actually been set at 20% down from the original 1337%, which means that only a handful of people got rich at the beginning by controlling almost all the supply.
The user that claims to be the lead developer (Velvet78), has not added any major upgrades to the project code and has proved difficult to contact. Plus, the project has not delivered anything from their proposed timeline.
The Yobit exchange is holding several million Elite Coins, which augments sell pressure.
The user Lady Whale has admitted being the largest buying support on all exchanges, plus he owns the Elite Coin Slack, website, but is not part of the 1337 foundation or the development team.
On January 6, 2018, a user named “admin” posted on cryptocoinint (offline as of time of writing) that the 1337 Coin project would be rebranded, promising major gains and success, while offering their coin for exchange in Cryptopia and Coinex.