Connect with us

Altcoins

Authorities Are Closing in on Alleged Cryptocurrency Ponzi Scheme OneCoin

Published

on

Bitcoin HYIPs

According to an official statement, OneCoin offices in Sofia were recently raided by law enforcement agencies as part of a joint operation between Germany and Bulgaria. Evidence was collected from the Sofia-based OneCoin subsidiary, One Network Services, where 50 people were questioned but no arrests were made. The Bulgarian authorities have also searched 14 other companies associated with One Network Services.

During a press briefing, Bulgarian prosecutors said,

“[…] About three million people have subscribed for the educational packages offered by OneCoin. […] While bitcoin is decentralised, the so called cryptocurrency OneCoin is centralised.”

Why is OneCoin a Scam?

The OneCoin MLM scheme operates like most Ponzi schemes. In order to make money, new users are expected to bring in new people into the network. Users reportedly earn a ten percent commission on anyone they signup. Six percent of the commission is directed to a cash account, while four percent is directed to a mandatory account. The mandatory account allows users to purchase more tokens or to upgrade packages. The more packages you purchase, the more tokens and splits you get. Additionally, withdrawing money is expensive and it is based on the number of active referrals a user has.

Suspicion further increases when you look at the OneCoin website. The website has grammatical errors and it falsely promotes OneCoin as a cryptocurrency. The “currency’s” compliance policies such as know your customer (KYC) and audit reports are also falsely promoted on the site. In other words, an already fraudulent company claims to protect its customers against criminal activities and it claims to frequently audit blockchain transactions where blockchain technology is not even being used. For a “currency” that claims to be the bitcoin killer, OneCoin does not use any of the protocols that other cryptocurrencies use. Furthermore, the website attempts to advertise the One Ecosystem as an exchange, a Forex, a charity, an e-commerce platform, an academy, a payments platform, and a business app solution all rolled into one.

The founder and “visionary” of OneCoin, Dr. Ruja Ignatova, has been arrested and taken to court by the German authorities for her involvement in the scheme. The legitimacy of her Law and Economics degree, which she supposedly earned from Oxford University in 2004, has also been put in question while TheMerkle reported that “Dr. Ruja’s employment with different companies prior to founding OneCoin remains a big mystery as well.” Other red flags include OneCoin’s centralised nature where you can only buy the “currency” from OneCoin companies.

African Central Banks Have Warned About OneCoin

In Africa, the Bank of Uganda and the Central Bank of Nigeria have warned citizens to be wary of OneCoin. Unfortunately, despite shutting down the Sofia servers, OneCoin operations are still going on through the affiliates of OneCoin Ltd, which is registered in the UAE. Therefore, OneCoin could potentially cause greater financial ruin for Africans than MMM Global already has.

Hence, it is important to stay away from these type of “multi-level marketing” cryptocurrency schemes that promise high returns but are in reality nothing more than pyramid schemes.

Altcoins

Nairobi Securities Exchange May List Africa’s First Cryptocurrency ETF

Published

on

Africa's First Cryptocurrency ETF

Kenya-based Badoer Group ADK ETF is gearing up to launch a crypto-based exchange traded fund (ETF) on the Nairobi Securities Exchange in the first quarter of 2019. If their application is successful, it would become Africa’s first cryptocurrency-backed ETF.

Africa’s First Cryptocurrency ETF

Badoer GroupBadoer Group ADK ETF, a private company incorporated in October, is reportedly finalising an ETF listing arrangement on the Nairobi Securities Exchange (NSE), according to a report by Business Today.

If approved, the NSE would regulate Badoer Group ADK ETF, giving ordinary investors regulatory protection to invest in the asset. About 50 percent of the total ADK in supply, which is 12.5 million ADK, would be available for the ETF.

The founder of ADK, Ricardo Badoer, has reportedly met with the NSE’s commercial director, Ms. Bahati Morara, and the head of Innovation and Project Management, Mr. Irungu Wagema to finalise the ETF listing arrangement.

The NSE is one of the leading securities exchange in East Africa with 66 listed companies and over $20 billion (KES 2.10 trillion) in market capitalisation.

Road to the First ETF

In 2018, there have been debates about whether or when a Bitcoin ETF will get launched. Many believe it will allow investors to diversify their investments without actually owning the assets tracked by an ETF. While others think it is just a distraction to the development of the technology.

Last month, the U.S. Securities and Exchange Commission (SEC) had stopped accepting public feedback on their Bitcoin ETFs policy review. The market regulator postponed decisions or denied applications to list various ETFs. The SEC cited issues like the volatility of bitcoin and rumoured manipulation of prices as obstacles.

However, in Sweden, XBT Providers already provide bitcoin and ether as exchange-traded products (ETP) on Nasdaq Stockholm, a major Swedish exchange. ETFs are one of the investment vehicles under ETPs.

Having crypto-based fund will make sense to many investors who were cautious of putting their money in an unregulated cryptocurrency market. ADK’s anticipated move with an African-based ETF could open the market to a lot more African investors and institutions.

Continue Reading

Altcoins

Egypt’s Central Bank is Considering Issuing a Digital Currency

Published

on

Egypt central bank digital currency

Egypt has reportedly joined the list of countries that have started studying the issuance of digital currency as an option or alternative for their fiat currencies. That makes Egypt one of the few sovereign countries in Africa to consider a national digital currency option, which is somewhat surprising given the country’s negative stance towards cryptocurrencies.

The “Egypt Coin”

egypt bitcoin exchangeThe Cairo-based news outlet, Amwal Al Ghad, reported that the sub-governor of the Central Bank of Egypt (CBE), Ayman Hussein, confirmed the prospect of government-issued virtual currency in a conference in Abu Dhabi. He said the bank is conducting a study in collaboration with some international financial institutions.

However, he did not disclose details about the proposed currency and did not address whether it would be traded between banks only or issued to the general public.

Amwal Al Ghad says the bank believes the digital currency could “lower the cost of banknote issuance and use of cash.”

State-Issued Digital Currencies

Many central banks all over the world have considered issuing their own digital fiat money, rather than support cryptocurrencies like bitcoin.

In July 2016, the Bank of England became one of the first institutions to analyse the possibility of state-issued virtual currency. Followed by central banks in Canada, Russia, China and Sweden among others, as well as the European Central Bank.

However, Tunisia was the first country in the world to put their national currency on a blockchain in a trial in 2015. The eDinar initiative did not receive enough backing to go beyond proof of concept but highlighted the interest of central banks in testing a blockchain-based currency system.

The following year, various news media wrongly reported that the Senegalese government issued a digital currency on the blockchain. It had issued an e-currency, the eCFA, but it was not created on a blockchain.

Making State-Issued Digital Currencies Work

The use of this progressive financial technology is a positive step forward to help unbanked people in Africa. Also, it could aid electronic payments and support a cashless society.

Still, some people have questioned the approach of these countries. Centralised blockchains with power concentrated with the central banks could impose limitations on general adoption. The allure of the blockchain technology in the first place is decentralisation, giving people freedom from the traditional centralised banking system.

The impact of a central bank issuing its own cryptocurrency is potentially disruptive, even on the business model of commercial banks. The most practical approach for most central banks, it seems, is to restrict the use of cryptocurrency within an inter-bank context.

Continue Reading

Altcoins

Cashaa Announces Launch of Global Crypto Accounts for Businesses and Individuals

Published

on

Cashaa
Images by Cashaa

Cashaa, a London-based blockchain startup, has announced the launch of its global multi-currency crypto-friendly accounts for businesses and individuals, which will take place on November 28, 2018.

What is Cashaa?

CashaaCashaa was launched in 2016 to ease the challenges that were being faced by bitcoin remittance companies such as country-specific regulations, KYC/AML requirements, illiquidity of exchanges among others, will be able to bank all kinds of individuals and businesses from startups based in garages to large businesses or exchanges with revenues in the millions.

Unlike most bitcoin remittance businesses in operation today, Cashaa uses a peer-to-peer model that lets local traders manage fiat currency exchanges with the cryptocurrency feature of the whole transaction occurring in the background.

Talking about the planned launch of its gobal accounts, Cashaa stated in a press release: “The Crypto community has continuously been denied support from high street banks who like to talk and sponsor blockchain events but in reality do not want the blockchain revolution to happen. To speed up our mission to “Bank the Unbanked”, starting from the Crypto community, we have merged our wallet release with the account plans – this first version of Cashaa will be launched on November 28, 2018.”

Cashaa’s Business Products and Fund Security

Cashaa has five business products with different tiers for both businesses and individuals. The five different products are Blue, Basic, Smart Value, Premier and Advance. Each product membership is different for both individuals and businesses in terms of monthly limit.

Cashaa

All the accounts will require CAS tokens to function apart from the free account. CAS is also listed on several exchanges such as Idex and HitBTC, among others. The first release will see Cashaa users get:

  1. Multisig crypto wallet for Bitcoin, Ether and CAS tokens
  2. Accounting and auditing features
  3. Banking product details with different membership plans
  4. Pre-registration for the membership plans
  5. Onboarding business users for the banking services
  6. Deposit CAS token holding period to activate the accounts

Since Cashaa will have business and individual accounts that will potentially have millions of dollars in them, the startup has opted to go with a 100 percent fund protection scheme with European Central Institutions. This means that all deposits made through Cashaa will be kept in a segregated account with the Bank of England to ensure that Cashaa does not risk or invest their users’ money in any way.

Continue Reading

Popular Posts