After reviews 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 folks” 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 legit digital foreign money, there are rising reviews on social media of retailers and holders of the coin who’ve did not withdraw. These reviews have sparked allegations that the undertaking is one more rip-off which is cleverly disguised as a fancy cryptocurrency undertaking.

The complaints and allegations in opposition to the undertaking have, in flip, prompted Archbishop Sam Zuga, the founding father of Zugacoin, to subject a flurry of Fb posts condemning “ignorant folks” peddling false details about the undertaking. In considered one of 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 right a monetary future.” He added that his crypto, which “robotically offers you 200% revenue of any quantity you switch to it,” is just getting used as a “driver of the system into that future.”

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

Within the prolonged August 25, 2022 put up, the founder denies allegations of manipulation inside the Zugacoin ecosystem. Zuga’s put up additionally explains how the ecosystem works and why some holders could also be having issues withdrawing. He stated:

“The one problem is lack of understanding from the customers. Anybody can withdraw conveniently if the folks which can 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 anyplace 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 Venture’s Lack of Transparency

Nonetheless, regardless of Zuga’s spirited protection of the crypto undertaking, influential gamers in Nigeria’s blockchain trade instructed Information they remained unconvinced. They level to the undertaking’s lack of transparency or its obvious exploitation of Nigerian folks’s affinity to faith or their spiritual leaders as crimson flags.

One of many gamers, Ophi Rume, aka “Cryptopreacher,” instructed Information that until the Zugacoin founder reveals the remainder of the group behind the undertaking will probably be troublesome to make a judgment in regards to the undertaking’s legitimacy. Noting that scammers usually exploit folks’s desperation and ignorance, Rume, a blockchain analyst and educator, stated atypical Nigerians ought to solely think about investing on this undertaking after performing some 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 numerous issues about this undertaking. Additionally, earlier than investing Nigerians must know these concerned within the undertaking. They should know the board of administrators, the builders and whether or not the undertaking is on Github.

Based on Rume, when potential traders study or turn into conscious of such particulars about this undertaking they may possible determine 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 and marketing their tasks to unsuspecting victims. Based on the professional, when a doubtful cryptocurrency undertaking is fronted by a non secular chief, folks will chorus from criticizing it. The professional defined:

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

For Paul Ezeafulukwe, the previous president of Stakeholders in Blockchain Know-how Affiliation of Nigeria (SIBAN) and the group lead at Bitget Africa, zugacoin is essentially the most unstable cryptocurrency and one which has completely did not ship on its guarantees. A number of 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 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 had been offered a lie that your potential to mint a token might translate to on the spot 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 seek out out if these items are doable by a single particular person.”

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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 a Zimbabwe award-winning journalist, writer and author. He has written extensively in regards to the financial troubles of some African nations in addition to how digital currencies can present Africans with an escape route.

Picture Credit: Shutterstock, Pixabay, Wiki Commons

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