After experiences that retailers and holders of “Zugacoin” cryptocurrency are unable to make withdrawals, the founding father of the Nigerian crypto, Sam Zuga responded by accusing unnamed “ignorant individuals” of working to tarnish the undertaking. One Nigerian professional has suggested potential zugacoin traders to prioritize studying finer particulars in regards to the undertaking earlier than investing.
A Monetary System for the Future
As promoters of zugacoin — a Nigerian cryptocurrency ostensibly created to finish poverty in Africa — proceed to tout the token as a respectable digital forex, there are rising experiences on social media of retailers and holders of the coin who’ve did not withdraw. These experiences have sparked allegations that the undertaking is yet one more rip-off which is cleverly disguised as a posh cryptocurrency undertaking.
The complaints and allegations in opposition to the undertaking have, in flip, prompted Archbishop Sam Zuga, the founding father of Zugacoin, to concern a flurry of Fb posts condemning “ignorant individuals” peddling false details about the undertaking. In one among his latest posts, Zuga stated he was not engaged in cryptocurrency buying and selling however was as a substitute “constructing a digital monetary system to appropriate a monetary future.” He added that his crypto, which “routinely provides you 200% revenue of any quantity you switch to it,” is barely getting used as a “driver of the system into that future.”
Within the prolonged August 25, 2022 submit, the founder denies allegations of manipulation inside the Zugacoin ecosystem. Zuga’s submit additionally explains how the ecosystem works and why some holders could also be having issues withdrawing. He stated:
“The one problem is lack of information from the customers. Anybody can withdraw conveniently if the individuals which might be withdrawing are lower than the people who find themselves depositing. No system can survive if what goes out is greater than what’s coming in.
“There isn’t any drawback wherever within the Samzuga ecosystem. The one drawback is your ignorance of how the system has been designed to work. Retailers can switch cash from the Service provider space of the service provider app to the Retailers pockets and from there to P2P conveniently.”
In his earlier Fb posts, Zuga equally assaults unnamed people whom he accuses of besmirching the “noble undertaking” with their ignorance.
Consultants Query Mission’s Lack of Transparency
Nevertheless, regardless of Zuga’s spirited protection of the crypto undertaking, influential gamers in Nigeria’s blockchain trade informed Bitcoin.com Information they remained unconvinced. They level to the undertaking’s lack of transparency or its obvious exploitation of Nigerian individuals’s affinity to faith or their spiritual leaders as purple flags.
One of many gamers, Ophi Rume, aka “Cryptopreacher,” informed Bitcoin.com Information that except the Zugacoin founder reveals the remainder of the crew behind the undertaking it is going to be tough to make a judgment in regards to the undertaking’s legitimacy. Noting that scammers typically exploit individuals’s desperation and ignorance, Rume, a blockchain analyst and educator, stated odd Nigerians ought to solely take into account investing on this undertaking after performing some fundamental due diligence. He famous:
As fundamental as trying to find the phrases; Is Zugacoin a rip-off or a Ponzi scheme through Google, Nigerians can learn and be taught a variety of issues about this undertaking. Additionally, earlier than investing Nigerians have to know these concerned within the undertaking. They should know the board of administrators, the builders and whether or not the undertaking is on Github.
In keeping with Rume, when potential traders be taught or grow to be conscious of such particulars about this undertaking they may seemingly resolve in opposition to investing and thus protect their meager financial savings.
In the meantime, one other professional who wished to stay nameless lamented scammers’ rising use of non secular titles when advertising their tasks to unsuspecting victims. In keeping with the professional, when a doubtful cryptocurrency undertaking is fronted by a non secular chief, individuals will chorus from criticizing it. The professional defined:
“I’ve discovered that nobody desires to be seen because the prophet of doom or enemy of progress in relation to huge and questionable tasks like Zuga. Apart from, the founder is a Christian chief with a substantial following who has additionally used his affect to undertaking Zuga on the market. Bear in mind Inksnation.”
For Paul Ezeafulukwe, the previous president of Stakeholders in Blockchain Know-how Affiliation of Nigeria (SIBAN) and the crew lead at Bitget Africa, zugacoin is essentially the most unstable cryptocurrency and one which has completely did not ship on its guarantees. Among the guarantees embrace claims that the cryptocurrency will finish poverty in addition to assist Nigeria reduce its debt.
“One other promise they’ve made which is like tales by moonlight is their means to pay $97 billion {dollars} value of Nigeria’s nationwide debt and in addition assist Africa clear her money owed. From their place it’s clear they don’t perceive how cryptocurrencies work, I imagine the promoters had been offered a lie that your means to mint a token might translate to instantaneous financial worth with out constructing an ecosystem to help the utility of the token,” defined the ex-SIBAN chief.
Ezeafulukwe stated it’s unlucky that some poor and gullible people have invested in zugacoin based mostly on these guarantees. For traders who’re nonetheless considering of shopping for zugacoin, Ezeafulukwe stated they need to “take a look at these two guarantees [poverty eradiction and paying off Nigeria’s debt] and do easy analysis to search out out if these items are attainable by a single particular person.”
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