Alleged Poverty Wiping Out Cryptocurrency Criticized As Just Another Complex Nigerian Ponzi Scheme – Bitcoin News

Following reports that traders and holders of the “Zugacoin” cryptocurrency are unable to withdraw funds, Nigerian crypto founder Sam Zuga responded by accusing unnamed “ignorant people” of working to taint the project. A Nigerian expert advised potential zugacoin investors to prioritize learning finer details about the project before investing.

A financial system for the future

As promoters of zugacoin – a Nigerian cryptocurrency ostensibly created to end poverty in Africa – continue to promote the token as a legitimate digital currency, there are growing posts on social media from merchants and coin holders who are not committed. have withdrawn. These reports have led to claims that the project is another scam cleverly disguised as a complex cryptocurrency project.

Complaints and allegations against the project, in turn, have led Archbishop Sam Zuga, the founder of Zugacoin, to publish a slew of Facebook posts condemning “ignorant people” who spread false information about the project. In one of his latest posts, Zuga said he was not concerned with cryptocurrency trading, but rather “building a digital financial system to restore a financial future”. He added that his crypto, which “automatically gives you 200% profit on any amount you transfer to him”, will only be used as a “system pilot” in this future.

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Zugacoin Controversy: Alleged Poverty Wiping Out Cryptocurrency Struck Like Just Another Complex Nigerian Ponzi Scheme

In the long post dated August 25, 2022, the founder denies allegations of manipulation within the Zugacoin ecosystem. Zuga’s post also explains how the ecosystem works and why some holders may have trouble opting out. He said:

“The only challenge is the lack of user knowledge. Anyone can easily withdraw money if there are fewer people withdrawing than depositing. No system can survive if what goes out is greater than what comes in.

“There are no problems anywhere in the Samzuga ecosystem. The only problem is your ignorance of how the system is designed to work. Merchants can easily transfer money from the merchant section of the merchant app to the merchant wallet and from there to P2P.

In his previous Facebook posts, Zuga similarly attacks anonymous people he accuses of tainting the “noble project” through their ignorance.

Experts doubt the project’s lack of transparency

However, despite Zuga’s fervent defense of the crypto project, influential players in the Nigerian blockchain industry told Bitcoin.com News they are not convinced. They point to the lack of transparency of the project or the apparent exploitation of the Nigerian people’s affinity with religion or their religious leaders as red flags.

One of the players, Ophi Rume, aka “Cryptopreacher,” told Bitcoin.com News that unless the Zugacoin founder reveals the rest of the team behind the project, it will be difficult to pass judgment on the legitimacy of the project. Noting that scammers often take advantage of people’s desperation and ignorance, blockchain analyst and educator Rume said ordinary Nigerians should only consider investing in this project after doing their due diligence. He noticed:

As basic as searching for words; Is Zugacoin a scam or a Ponzi scheme via Google, Nigerians can read and learn a lot about this scheme. Also, before investing, Nigerians need to know the people involved in the project. They need to know the board, the developers and if the project is on Github.

According to Rume, if potential investors learn or become aware of such details about this project, they are likely to decide not to invest in order to preserve their meager savings.

Meanwhile, another expert, who asked to remain anonymous, complained about the increasing use of religious titles by scammers in marketing their schemes to unsuspecting victims. According to the expert, people abstain from criticism when a questionable cryptocurrency project is carried out by a religious leader. The expert explained:

“I’ve noticed that no one wants to be seen as the doomsayer or enemy of progress when it comes to dubious major projects like Zuga. The founder is also a Christian leader with a huge following who also used his influence to project Zuga there. Think Inks Nation.

For Paul Ezeafulukwe, former president of Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) and team leader at Bitget Africa, zugacoin is the most volatile cryptocurrency and one that has totally failed to deliver on its promises. Some of the pledges include claims that cryptocurrency will end poverty and help Nigeria reduce its debt.

“Another promise they’ve made that sounds like moonlight stories is their ability to pay off Nigeria’s $97 billion national debt and help Africa pay off its debts. From their point of view, it is clear that they do not understand how cryptocurrencies work. I think the proponents have been selling a lie that your ability to mint a token could translate into immediate monetary value without creating an ecosystem to support the utility of the token,” explained the former SIBAN leader.

Ezeafulukwe said it was unfortunate that some poor and gullible people invested in zugacoin based on these promises. For investors still considering buying zugacoins, Ezeafulukwe said they should “look at these two promises [poverty eradiction and paying off Nigeria’s debt] and do simple research to find out if these things are possible by one person.

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Keywords in this story

digital financial system, github, Inksnation, merchant wallet, Ophi Rume, p2p, Paul Ezeafulukwe, Ponzi Scheme, Sam Zuga, Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), Withdrawal Freeze, Zugacoin cryptocurrency

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer based in Zimbabwe. He has written extensively about the economic problems of some African countries and how digital currencies can provide Africans with an escape route.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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