THELOGICALINDIAN - The Securities and Exchange Commission in Nigeria has issued a accessible apprehension in which attention is brash with commendations to cryptocurrency investments
The Securities and Exchange Commission in Nigeria has issued a warning apropos advance in Bitcoin, Swisscoin, and Onecoin.
The accessible apprehension seeks to active the accessible apropos the accident airish by cryptocurrencies afterward solicitations of the accessible to invest. The apprehension reads:
Other agnate warnings accept been issued apropos Onecoin. The Financial Conduct Authority in London issued an official warning in September allegorical users about the dangers of Onecoin. Chinese authorities accept additionally conducted investigations on Onecoin, which resulted in the arrest of several investors. Bitcoin was not mentioned in both instances.
Although the apprehension issued by the SEC in Nigeria seeks to adviser citizens in times back Bitcoin and blockchain technology are acceptable increasingly popular and bringing innovation to the country, it does so in an acutely ambiguous way. What’s more, is that the watchdog, whether advisedly or unknowingly, has put three actual altered “cryptocurrencies” in the aforementioned category. In fact, alone one of these can be advised a cryptocurrency, i.e. Bitcoin.
Well, Bitcoin is the aboriginal and best defended cryptocurrency in existance. But while it is accurate that there is no axial arising ascendancy or authoritative anatomy authoritative it, Bitcoin is actual altered from the added two bill mentioned in the notice, which reads:
While it is accurate that Bitcoin can be apparent as a chancy investment, the SEC should accept at atomic mentioned the accessible differences amid Bitcoin and the added two, Swisscoin and Onecoin.
While Bitcoin is a peer-to-peer bill with no arising authority, Onecoin and Swisscoin are not. They are absolutely what the advertisement describes as “outright counterfeit pyramid schemes.”
First, these two bill accept no blockchain whatsoever, although OneCoin has fabricated some atrocious attempts at proving they accept one:
These bill are not decentralized in any appearance or form, as they alone abide on the servers of anniversary company. They are instead added agnate to a axial database absolutely controlled by the coins’ founders who can change annihilation at will. They are additionally not “cryptocurrencies” as there is no cryptography involved.
When one invests in Bitcoin, the bill purchased will be awash to them by addition that had Bitcoin (purchased or mined). The barter acts as a agent and takes a baby fee from the trade. The money spent in affairs Bitcoin will be beatific to the agent and the barter will be complete. Whether the advance will see a absolute acknowledgment or not is absolutely up to the market forces that drive it.
When advance in Oncecoin or Swisscoin, however, one is artlessly purchasing bill (numbers on a server) from the company. No added being is affairs you these agenda tokens, added than the bodies that accept created them. The profits from the sales of these affected cryptocurrencies are again acclimated to armamentarium the “investors” that came before, axis the auto of the MLM Ponzi arrangement until it is no best acceptable while the founders abandon with the customers’ money.
These organizations will, however, not advertise you the bill directly. They will advertise you “educational material” and mining spots so that you can “produce” them. They additionally accept antic methods like “splitting” coins, which doubles your bill out of attenuate air.
Onecoin has alike gone as far as to double the bread count on their affected blockchain because there are not abundant bill for anybody (given that it’s so popular). Anyone that accept blockchain technology will acquaint you that this is not achievable and anyone that understands accumulation and appeal will acquaint you that it makes no sense.
So, while the admonishing issued by SEC Nigeria is absolutely a advantageous one, it should not acknowledgment Bitcoin in the aforementioned class as these audacious Ponzi schemes.
Should the SEC accept issued two separate warnings? Share your thoughts below!
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