Zugacoin Controversy: Supposed Poverty Eradicating Cryptocurrency Criticized as Just Another Complex Nigerian Ponzi Scheme

After studies 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 mission. One Nigerian skilled has suggested potential zugacoin buyers to prioritize studying finer particulars in regards to the mission earlier than investing.

A Financial 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 authentic digital forex, there are rising studies on social media of retailers and holders of the coin who’ve didn’t withdraw. These studies have sparked allegations that the mission is yet one more rip-off which is cleverly disguised as a fancy cryptocurrency mission.

The complaints and allegations towards the mission have, in flip, prompted Archbishop Sam Zuga, the founding father of Zugacoin, to concern a flurry of Facebook posts condemning “ignorant individuals” peddling false details about the mission. In one among his latest posts, Zuga mentioned he was not engaged in cryptocurrency buying and selling however was as an alternative “constructing a digital monetary system to right a monetary future.” He added that his crypto, which “robotically provides you 200% revenue of any quantity you switch to it,” is just getting used as a “driver of the system into that future.”

In 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 mentioned:

“The solely problem is lack of know-how from the customers. Anyone 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 downside anyplace within the Samzuga ecosystem. The solely downside is your ignorance of how the system has been designed to work. Merchants can switch cash from the Merchant space of the service provider app to the Merchants pockets and from there to P2P conveniently.”

In his earlier Facebook posts, Zuga equally assaults unnamed people whom he accuses of besmirching the “noble mission” with their ignorance.

Experts Question Project’s Lack of Transparency

However, regardless of Zuga’s spirited protection of the crypto mission, influential gamers in Nigeria’s blockchain trade advised Bitcoin.com News they remained unconvinced. They level to the mission’s lack of transparency or its obvious exploitation of Nigerian individuals’s affinity to faith or their spiritual leaders as purple flags.

One of the gamers, Ophi Rume, aka “Cryptopreacher,” advised Bitcoin.com News that except the Zugacoin founder reveals the remainder of the group behind the mission it is going to be tough to make a judgment in regards to the mission’s legitimacy. Noting that scammers typically exploit individuals’s desperation and ignorance, Rume, a blockchain analyst and educator, mentioned bizarre Nigerians ought to solely take into account investing on this mission after doing a little primary due diligence. He famous:

As primary as looking for the phrases; Is Zugacoin a rip-off or a Ponzi scheme by way of Google, Nigerians can learn and study a whole lot of issues about this mission. Also, earlier than investing Nigerians have to know these concerned within the mission. They have to know the board of administrators, the builders and whether or not the mission is on Github.

According to Rume, when potential buyers study or grow to be conscious of such particulars about this mission they are going to doubtless determine towards investing and thus protect their meager financial savings.

Meanwhile, one other skilled who wished to stay nameless lamented scammers’ rising use of non secular titles when advertising their tasks to unsuspecting victims. According to the skilled, when a doubtful cryptocurrency mission is fronted by a non secular chief, individuals will chorus from criticizing it. The skilled defined:

“I’ve discovered that nobody needs to be seen because the prophet of doom or enemy of progress with regards to huge and questionable tasks like Zuga. Besides, the founder is a Christian chief with a substantial following who has additionally used his affect to mission Zuga on the market. Remember Inksnation.”

For Paul Ezeafulukwe, the previous president of Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) and the group lead at Bitget Africa, zugacoin is probably the most risky cryptocurrency and one which has completely didn’t ship on its guarantees. Some of the guarantees embrace claims that the cryptocurrency will finish poverty in addition to assist Nigeria reduce its debt.

“Another promise they’ve made which is like tales by moonlight is their potential to pay $97 billion {dollars} price 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 have been bought a lie that your potential to mint a token may translate to prompt financial worth with out constructing an ecosystem to assist the utility of the token,” defined the ex-SIBAN chief.

Ezeafulukwe mentioned it’s unlucky that some poor and gullible people have invested in zugacoin primarily based on these guarantees. For buyers who’re nonetheless considering of shopping for zugacoin, Ezeafulukwe mentioned they have to “have a look at these two guarantees [poverty eradiction and paying off Nigeria’s debt] and do easy analysis to seek out out if this stuff are potential by a single particular person.”

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