66% Of Europeans Optimistic Crypto Industry Will Survive The Next Decade: bitFlyer Report

More than two-thirds of Europeans believe the cryptocurrency industry will survive in the coming decade.

In a research carried out by BitFlyer, one of the largest crypto exchanges in Europe, titled, “Crypto-Confidence-Index” a poll of over 10,000 respondents across 10 countries revealed the COVID-19 may have a part to play in the increasing optimism.

Over 66% of Europeans Believe in Crypto Longevity

The poll, carried out this March, reveals over 66% of the respondents believe crypto will still be around come 2030. This represents a jump from 63% in 2019’s report. The year on year growth shows the confidence that investors across the continent hold on cryptocurrencies despite the effects of COVID-19 in recent months.

The poll included citizens from France, U.K., Netherlands, Poland, Spain, Norway, Italy, Belgium, Germany, and Denmark.

Italy holds the largest belief of crypto surviving in the course of the next decade with 72% according to the respondents’ opinions. The country which suffered the most from the 2020 pandemic, raises a case for crypto transactions as the country remains in a lockdown period.

Spain, another intensively hit country by COVID-19 came in fourth in the rankings with 68% of the respondents believing crypto will be with us in 2030. Netherlands and Poland come in second with 70% of the total respondents optimistic on crypto.

The COO at BitFlyer, Andy Bryant appreciated the growth witnessed across the field and believes the current hard times may have a role to play in the growing optimism. He further said,

“Although we might look at this as an achievement for digital currencies in spite of the challenging economic times we are facing, it is also worth considering that this may well be partly because of these times.”

Bitcoin (BTC) as a Payment System?

However, Europe remains sceptical on the possibilities that Bitcoin (BTC), the top cryptocurrency, holds in the coming decade.

About 25% of respondents answered that they were certain that cryptocurrencies would still exist, but had no idea how they would be used, with this response being up 2% from 2019. Only 1 in every 10 Europeans further believe BTC will be used as a recognized payment currency in 10 years (9%).

Italy has the largest population of believers in BTC, with 12% of the respondents saying that BTC will be a major payment currency in the coming years, a 2% spike from 2019. The U.K, in contrast, are not as optimistic as only 5% of the respondents believe BTC will be around as a payment system in 10 years.

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Author: Lujan Odera

Latest Ripple XRP Securities Lawsuit Updates: A Decision Must Be Made

  • Ripple has been the subject of many lawsuits through the last few years.
  • Multiple lawyers believe that the only minor victory for Ripple would be if the case were to be dismissed, though it will likely face other lawsuits.

Today, on November 4th, the next stage of the long-running Ripple lawsuit will be taking place, though that stage has seemingly yet to be decided. Bradley Sostack, the plaintiff, can file a response to a motion to dismiss by the end of the day, which was originally initiated on September 20th. If it isn’t fully dismissed, then the case might move into discovery, as it would be newly categorized as a class action lawsuit.

The big question that seems to be on the table during this case is if XRP should be registered as a security under US law, which is what Sostack is claiming. If so, then the Ripple-based token might end up being at risk of enforcement action by the regulators in the US. However, regardless of the ending of this case, legal experts don’t believe that there will be a resolve on the matter.

Rebecca Rettig, a partner with FisherBroyles, commented,

“No one’s finding out whether XRP is a security anytime soon, if ever, at least through this proceeding.”

There are plenty of reasons that this type of decision won’t be made. For instance, the last motion made by Ripple argued that the complaint by Sostack took too long to file, and that the case doesn’t actually show that the plaintiff had purchased XRP from Ripple or even the initial sale. To win the case, Ripple probably won’t even need to address the question.

A partner with Anderson Kill, Stephen Palley, pointed out that “a solid motion” was created by the defense team.

He added,

“The defense lawyers have done a good job so far. They’ve shown some good tactical skills, they could win but even if they do there are a lot of other things that could happen.”

According to CoinDesk, there’s been no response from the general counsel of Ripple.

Rather than being initiated as an argument, the motion from Ripple to dismiss was more about the question being posed in the first place. Paul Godfrey, an attorney that is based in Florida, stated that the platform created “both a statement and a legal conclusion in its introduction.” He added that the introduction pointed out that “the crux of [plaintiffs’] claims is the false assertion that XRP is not a currency, but rather a security.”

Godfrey, who doesn’t practice securities law and has never litigated in the federal courts, believes that the discussion over XRP’s status (or lack thereof) as a security is more of a legal conclusion, which Ripple makes but doesn’t argue.

Godfrey stated,

“Ripple does not advance any argument to prove such a denial… Accordingly, it is addressed, but not argued.”

Rettig believes that pushing back against the idea of XRP is a security could be considered “too risky,” and a major analysis of the facts would be essential to making the argument in court. Ripple avoided this type of fight with “straightforward legal defenses,” as Rettig sees it.

She remarked,

“If you have independent grounds or a dismissal, [and] you don’t have to get into a fact-intensive analysis, why do it?”

Furthermore, in claiming that XRP is not a security, adding that it is instead a currency, Ripple could face holes in the argument.

Palley points out an interesting conundrum, stating that securities law may still allow something to be considered a security or investment contract, as well as a currency, simultaneously.

He stated,

“Basically, just because it’s one thing doesn’t mean it can’t be another. It can be a security for one purpose, and currency for another. The application of one framework doesn’t exclude another.”

He brought up the current legal battle involving Kik Interactive and the SEC, during which time that the former stated that their kin cryptocurrency cannot be a security because it is a currency. The SEC has since disagreed.

The “statute of repose” argument used by Ripple is interesting to Rettig, who noted that the argument has been brought up in other cases. This period of time covers the period after a sale that allows parties to file a lawsuit in response to an alleged wrongdoing. The “statute of limitations” is different, as it starts upon learning of the misconduct, according to law professor Peter Henning that wrote about these circumstances in the New York Times.

Rettig elaborated, stating,

“The statute of repose argument … was used successfully a number of times in cases bringing Securities Act claims relating to mortgage-backed securities six or seven years ago, which provides precedent the defendants could rely on.”

Rettig explained that the first filing of the amended complaint by the plaintiff involved,

“a lot of discussion about how novel and interesting it was that plaintiff cited extensively to websites, to social media and the like.”

He added that the “interesting” approach made the complained “robust.”

Ripple used this maneuver to their its advantage, bringing in their own facts.

However, Rettig commented,

“Usually defendants can only use the facts alleged in the complaint itself or the facts incorporated by reference in a complaint in defending against claims on a motion to dismiss. Here, however, defendants were able to use all of the facts in the documents, websites and social media posts to which the complaint cites in rebutting plaintiff’s claims.”

Ripple brought in information sourced from a wiki page to support their argument, though Rettig commented that other details on that same page were used by the plaintiff to support his argument.

Godfrey remarked,

“By showing no relief was available for count 1, Ripple was able to demonstrate there was a failure to state a cause of action for count 2.”

Now, in the filing expected to be today, the plaintiff has a few ways available that could ultimately push the case along. Rettig believes that the plaintiff may try to “relate back” to the first case that was filed, which stated that Ripple was in violation of securities laws. This wouldn’t be a new accusation, considering that Ripple has been facing lawsuits since May last year that alleged that XRP was being sold as an unregistered security. However, it still may not be enough to win, since Ripple already argued against it.

Rettig explained,

“Plaintiff also relies on a ‘continuing sale’ theory and they may apply that argument to the statutory requirement that the statute of repose runs from the date the security was ‘first bona fide offered to the public.”

Godfrey remarked that the discovery process that eventually is implemented could help with the verification of the XRP purchase from Ripple by the plaintiffs.

He stated,

“If I were Plaintiff’s attorneys … I would focus on the fact that while the inference could not be maintained in the past, with present technology and some well-aimed discovery, it would be quite easy to determine whether or not XRP was purchased by Plaintiffs from Defendants.”

Even if Ripple manages to come out victorious, Palley believes that the platform will continue to be faced with new lawsuits.While other cryptocurrency companies tend to be difficult to sue with their lack of liquidity, Ripple doesn’t have the same problem.

Palley pointed out,

“[With] ICO class action litigation from an economics perspective, you have to ask … how much money can you recover? Ripple, you have a solid [chance] of money.”

Palley added that winning now isn’t a win overall, and that the case being dismissed would mean more of a victory for the platform.

Tobacco companies often face a similar problem, as they would have to win every single case. The loss of just one case opens the door for other parties to use it towards their own victorious lawsuits.

Palley added,

“It’s not like winning this case means that nobody else can sue them for securities violations.”

At the same time, it doesn’t mean that Ripple can be faced exclusively with losses; it only means that parties have the ability to file lawsuits.

Until the case has some level of movement today, blockchain industry lawyers await the outcome of the Sostack versus Ripple case. Rettig remarked, “It’s not going to end for a long time.”

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Author: Krystle M

BCH Hash Rate Taken Over by Unknown Miner with 50% Control for Full 24 Hours

  • It is unclear if the 50% control was the result of the work of one or multiple miners.
  • Some proponents believe that this ability points to an issue with security and liability with Bitcoin Cash.

In the cryptocurrency industry, every platform thrives on a lack of majority control. Decentralization relies on this idea, as it allows the industry to remain free and unregulated. However, a recent article by Cointelegraph points out an issue with the Bitcoin Cash hash rate, which was in control of 50% of the hash rate for a total of 24 hours.

From 10:00am on October 24th to 10:00am on October 25th, the miner appeared to mine 73 blocks. Notgrubles, a crypto Twitter user, stated that this action is proof that “BCH is a security risk and liability,” and that the coin should be delisted.

With this level of control, the miner, or miners, cannot be far from having control of the entire network. One of the crypto proponents on Reddit suggested that this type of control would lead the miner to do “nefarious things.” Another Redditor – Bitmeister – stated that it is more likely that Bitcoin miners are trying to experiment with their BTC hash power by directing their attention to BCH.

Bitcoin’s network hash rate recently had a major dip of 40% at the end of September, which is still unexplained at this point. Considering the massive highs that Bitcoin experienced in their hash rates over the summer, this drop was even more surprising. Cointelegraph even reported that the hash rate passed 102 quintillion hashes, which was a major milestone for the digital asset.

With a higher hash rate comes greater competition to mine new blocks. At the same time, it increases the resources that would be required for a 51% attack, which secures the network.

Along with the sudden rise in Bitcoin’s price, Bitcoin Cash is also seeing some success, though the value of the token has declined since then. At the time of writing, the token was down by 2.45% with a value of $250.12 per BCH.

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Author: Krystle M

CoinShares CSO: Wall Street Using Bitcoin May Not Be A Win-Win Situation

Most of the crypto community seems to believe that institutional traders adopting Bitcoin can be a huge thing for the market. Surely, prices will go up, but is that the right way for the network to grow? During a recent interview with RealVision, the Chief Strategy Officer of CoinShares, Meltem Demirors, has affirmed that this might not be the win-win situation that most people believe.

According to her, big financial players are set to transform how Bitcoin is seen around the world. Bakkt, the futures exchange of the giant Intercontinental Exchange (ICE), is set to change how the market operates and the same can be said about other successful companies such as Grayscale, for instance, which is having a pretty good year.

This will impact the market. Demirors, however, was somewhat skeptical about the centralization that this could cause. If half of the supply was stored somewhere and people now had receipts to prove that they owned BTC, how different would it be from fiat currency? How decentralized? Would Bitcoin still be the same? This is how she put it:

“If we take 50% of the world’s Bitcoin and we put it in custody with a custodian that’s regulated… and we take these Bitcoins, and we put them in a vault somewhere… and then we issue Bitcoin depository receipts — pieces of paper that allow us to trade the underlying Bitcoins sitting in a vault somewhere — but we never actually exchange Bitcoin on the Bitcoin network, is that still Bitcoin?”

These are important questions that need to be addressed. Bakkt did not have a great launch and it started slowly, but it would be naive to believe that this kind of platform does not slowly change how the market operates.

With so many asset managers in the game (including CoinShares), won’t Bitcoin stray away from what it was created to be? At the moment, we can only speculate, but we’ll probably have the answer to the question in a few years from now.

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Author: James W

Global Elites vs Bitcoin: 3 Reasons Why World Powerhouses are Waging War on BTC

If you believe conspiracy theories, then you already know that elites hate bitcoin.

Bitcoin disrupts the trillion-dollar global banking system. It frees individuals from state-run currency systems. It gives individuals freedom that governments could never have anticipated. And now that the force, might and strength of Bitcoin has become a global phenomenon, it tees itself up for a lot of outside punishment, scrutiny and accusations.

For all of these reasons and more, elites and statists have launched a war against bitcoin. At least, that’s what Redditor /u/descartablet posted on Reddit earlier this week.

Let’s cover is three main talking points of interest regarding Bitcoin’s war with the elites:

  • Debasing
  • Income Tax and Crypto
  • Georgism endgame

Descartablet outlined several reasons why elites and statists are waging a war against bitcoin, including all of the following:

Debased Currencies, Debt, and Inflation Leave Elites in Control

“Debasing/debt is just a way to extract money from the suckers that think they will retire with fiat-related savings and pension funds.”


Governments are debasing their currencies around the world. Some countries have already sold huge portions of their gold reserves. No major fiat currency is backed by the gold standard, at least not since 1971 in the United States.

Descartablet argues that today’s “suckers” think of their wealth in dollars. They assume inflation will be under control for the rest of their lives and pay no mind to the notion that their money could be devalued despite warning signs plastered everywhere on the Internet.

Elites, meanwhile, accumulate assets. They consider fiat just a means – not an end. That’s why they’re okay with pro-inflation policies like quantitative easing (QE).

Sure, individuals can buy real estate to avoid the threat of debased fiat currencies. Descartablet, however, sees real estate as too risky due to tax issues (linked to Georgism below).

Bitcoin counters this inflationary system of debased currencies.

“If crypto wins the war the states will not be able to debase their fiat currency anymore as every penny printed will create inflation.”

Elites Prefer Taxes on Income Because They’re Less Affected

“Elites hate taxes on wealth and prefer taxes on income/spending as they are already rich. They lobbied for centuries to design the tax system for their convenience. They still need nation states but they don’t want to pay for them.”

– Descartablet

Today, elites generate income through property and assets. Capital gains taxes are generally lower than income taxes. And don’t forget how easy it is for the wealthy to launder money into tax havens around the world, which is another reason why a blockchain-based financial monetary system might suit the world better than not having it.

Crypto counters this system. It gives ordinary people the ability to hide their money:

“Crypto poses a risk to this goal as society will be able to hide complete layers of economic activity from the eyes of the tax collectors.”

If Crypto Succeeds, States Will Implement “Georgism” and Tax Natural Resources to Keep States Afloat

If crypto starts to succeed and ordinary people can lower their income tax burden, then governments will implement an economic system called Georgism, where natural resources are taxed but income is not. There is a lot to learn and digest on this front, but here is how he put it.

Descartablet explains how crypto and Georgism are intertwined by saying the following:

“If crypto wins this war, statists will find it hard to fund the nation states services using debasing or taxing income so they will resort to something different, and if you think a little bit, very fair: Tax natural resources.”

Under this system, a company like Coca-Cola would pass these taxes onto consumers. When you buy a can of Coke, you’ll pay taxes on the land usage of the Coca-Cola plant, the water usage, the waste management, and more. Talk about being at the upper echelon of the pyramid scheme.

Goods and services reflect their natural resource usage. Prices of services drop for consumers. Real estate prices also drop. Elites and statists lose control and individuals gain control.

Final Word: Bitcoin Threatens the Existence of Elites and Statists

Ultimately, the points above boil down to a simple conclusion: people who are currently wealthy and powerful want to stay wealthy and powerful, no questions asked and almost no obstacle is too tough to overcome. Bitcoin, however, prevents that from happening and opens up the door to a whole new world of possibilities and opportunities.

For that reason, elites and statists have launched a war against bitcoin and is very evident given the coordinated mainstream media coverage and so forth.

If their war is successful, bitcoin will fail. Bitcoin will become a symbol of the past – like the global ‘Esperanto’ language in the early 20th century.

But if their war is unsuccessful, bitcoin will not only succeed – it will create a new economic future where today’s elites and statists are no longer in control. This is at the forefront in the fight for the future of finance. Bitcoin’s programmable money dreams lie in the shadows, awaiting to be unearthed and polished off, ready for primetime.

And what better time to bring up the fact that we just entered the ripe zone of the bitcoin reward halving set to take place in May 2020. As one analyst put it, Bitcoin’s peak outperformance has started to catch fire roughly 90-240 days before the past halving events of 2012 and 2016 – and we just entered that timeframe. This makes the global elite’s war on bitcoin just that much more entertaining to see how much influence and power they can produce to impact the price of bitcoin moving forward.

One thing remains clear, be sure to take out the whenlambo-memes.gifs and get your popcorn ready. The spotlight bitcoin has casted has always came with its fair share of double-edged sword takes, but this time around the fireworks are expected to shine brighter and bigger, no matter what way we go up (or even down) the charts.

You can read the full post from Descartablet here.

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Author: Andrew Tuts

ING Chief Economist: Central Bank Cryptocurrency Developments Will Happen in Next 2-3 Years

Mark Cliffe, chief economist of ING bank believe that central banks around the globe would move towards creating their own digital currency. Cliffe was responding to a question on when would a central bank among G20 nations can launch a full-fledged digital currency.

2019 has been the year of crypto adoption despite the ups and downs of the trade market. Private technology giants like Facebook and Telegram have announced the launch of their digital tokens, while many others are pondering over the same. SoFi, a financing firm added crypto to its trading platform, Bakkt launched “physically” settled bitcoin futures contracts.

Many governments around the globe who were either skeptical over regulating cryptocurrencies or were watching from the sidelines have decided to regulate it. China has fast-tracked its stable coin launch after Libra’s announcement, France and Portugal have made crypto transactions tax-free while Russia has proposed to tax crypto under property tax code.

Banks must strategize their digital currency plans in the same timeline as private sectors

ING last week released a report in which it discussed the growing trend of private firms releasing their own stablecoin, especially focusing on the recent announcement of Libra. The report pointed out that central banks around the globe must start thinking more seriously towards adopting the modern fintech trend before the private sector captures the future financial market.

The report also hinted that Libra is putting pressure on these central banks to start mulling about the ongoing trend of crypto. However, the report also downplayed the argument of future being cashless.

Cliffe’s response came during an event organized joint event held by ING and the central bank thinktank, OMFIF. The meeting was to discuss,

“Rapid advances in distributed ledger technology have spurred debate about the possibilities, advantages, and drawbacks of central bank digital currencies. The principal limits and trade-offs seem to stem from CBDC’s economic, monetary and financial contexts, and depend on underlying policy and political preferences concerning privacy, data administration, market power, cybersecurity, and the division of labor between the public and private sector.”

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Author: Gabriel Machado

Bitcoin Drops Down $550 to $9,716 BTC/USD as Major Altcoins Price Plunge Suddenly

As soon as investors were starting to believe that $10,000 USD would be Bitcoin’s next bottom, prices dropped a lot. All the major cryptos’ prices, including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Ripple’s XRP all went down today. In only a few hours, Bitcoin lost 5% of its price and other cryptos lost 10%.

Bitcoin was up almost 200% until now, so the plunge comes as a surprise for most investors and marks a bad day. Bitcoin went down 5.6% today, but it stopped to fall as quickly as it started and now prices are around $9,750 USD again.

The reasons for the drop in prices remain unclear at the moment.  Dave Balter, the CEO of Flipside Crypto, told Bloomberg that it looked like a planned sell-off. To him, investors were planning to cash settle futures, which are coming up this Friday. Another investor, Jeff Dorman affirmed that, as volumes are pretty low this week, it is easy to move prices up and down.

Another sign of what may have happened can be seen at BitMEX. Around $144 million USD worth of BTC was liquidated at the exchange, which helps to strengthen the theory that this was a planned move.

The Crypto Monk, a prominent internet figure, affirmed that the weekend was very bullish but the week was calmer, so investors decided to cash on the euphoria of the market.

Will the prices go up again or is the bull run over? Too early to say, that much is sure. The crypto analyst Murad Mahmudov from Adaptive Capital affirmed that BTC will now test the $9,750 mark. If it remains above it, there are good chances that it may reach $20,000 by the end of 2019.

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Author: Gabriel Machado

Planned Sell-Off Causes XRP Prices To Crash By 40% On Beaxy Exchange

The crypto market is prone to manipulation. If you don’t believe it, you can just check the many examples that can be easily found. The latest one was a coordinated sell-off of Ripple’s XRP tokens on the Beaxy Exchange.

This new crypto exchange platform was just launched, but it had to suspend its activities for being targeted by manipulators. According to the reports, soon after the launch, the exchange suffering a massive XRP dump with a lot of people selling the asset at the same time.

In order to deal with this obvious market manipulation situation, Beaxy had no choice but to shut down the platform for a few days. It has been a rough start for the exchange, which was launched back in June. So far, technical issues, manipulation and the lack of infrastructure are getting in the way of the company.

Action was taken very quickly, as the abnormal volumes were pretty easy to spot. The prices tanked pretty fast and now all token wallets are frozen, so the manipulators are unable to pull their funds away from the exchange, which prevented more issues from happening.

Fortunately, the exchange will be able to identify the manipulators soon. The company had a Know Your Customer (KYC) system ready since its launch, so the people who caused the crash can be found. However, the exchange did not determine whether it will take action against the scammers or not.

Ripple, the responsible for XRP tokens, has not commented on the situation at the moment.

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Author: Bitcoin Exchange Guide News Team

Roger Ver Trolls US President and US Treasury Secretary in Bitcoin.com Tweet

Roger Ver Trolls US President and US Treasury Secretary in Bitcoin.com Tweet
  • A new tweet from Roger Ver was directed at the US President.
  • Some people believe that this Twitter tag was a passive aggressive comment to the government.

The cryptocurrency community is good at making drama out of the simplest moves, whether intended or not. Followers of Roger Ver, who runs the Local.Bitcoin.com website, may have noticed something unique about his tweet this morning. Posting the link to his website, Ver tagged President Donald Trump and Treasury Secretary Steven Mnuchin.

The tweet appears to be trolling the president and his treasury secretary, doing nothing more than offering them the ling. Local.bitcoin.com recently made a major difference in the cryptocurrency world by adding peer-to-peer trading, though this sector of the industry is predominantly rules by LocalBitcoins and Paxful. The main difference between Bitcoin.com and LocalBitcoins is that Bitcoin.com allows for more than Bitcoin trading.

Unfortunately, LocalBitcoins has gotten into legal troubles before, as there have been multiple authorities that have arrested traders n the platform. Though most of these penalties aren’t severe, they can ultimately lead to major penalties, if the government decides to take that approach. For the most part, the government has only paid attention to the people that appear to be involved with illegal activity or massive trade volume.

Overall, there are still many laws coming to light to govern the cryptocurrency industry. By seemingly inviting Donald Trump, who has expressed dislike for cryptocurrency, could Ver be opening a can of worms. The same could be said for Mnuchin, since he sees this industry as a problem for the American public.

Ver hasn’t exactly kept a low profile. He’s spent time in prison for illegally transacting fireworks online, though this action may be in that gray area of cryptocurrency. He has renounced his citizenship of the United States, but it is clear that the US doesn’t care, especially if you get on its bad side.

Ver’s libertarian approach is held by many people, ultimately driving them to promote an extreme level of capitalism. As they speak out on their thoughts on this government, it is clear that they see the impact as being increasingly detrimental to people.

Is Ver picking a fight with the most powerful man in the United States? Maybe not. However, this little tweet is clearly a jab at something bigger, which may or may not be what Ver wants.

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Author: Krystle M

South African Crypto Ponzi Scheme Affirms It Has No Money To Pay Duped Investors

South African Crypto Ponzi Scheme Affirms It Has No Money To Pay Duped Investors

There is one reason not to invest in Ponzi schemes: you will be scammed. Sure, you can believe that you will have a degree of success in case you go in and get out pretty quickly, but the truth is that you will generally only lose money. This is exactly what happened to the investors of Bitcoin Wallet, a lucrative South African Ponzi scheme with a pretty uninspired name.

According to the Ladysmith Gazette, hundreds of South African investors put their money on the company and expected a high return on investment. They obviously were not able to get it. As of July 4, the company basically shut down.

Bitcoin Wallet promised returns of over 100% for investors in only two weeks. Despite how absolutely fishy this sounded, a lot of people were attracted to the investment.

Now, these investors want to know what was done with their money because the company affirmed that there is no money anymore and simply shut down. The founder of the project, a man named Sphelele “Sgumza” Mbatha, affirmed that he simply has no cash to pay the investors, so he had no choice but to shut down the business entirely.

The business was reported to receive over $2 million USD in deposits daily. In fact, there were so many people trying to get the money that they limited investors if they weren’t able to offer at least $350 USD (5,000 rand).

When asked how this happened, the founder of the Ponzi scheme only affirmed that he “didn’t know what was going on”. Far from an acceptable answer, obviously.

Also, there are suspicions that the license of the company was forged and that the creators knew right from the start that they would eventually scam the investors, which is basically the least surprising rumor ever.

In order to run its scam, Mbatha took a 10% “administrative fee” over the money deposited, which was possibly how he got so rich by fooling others and eventually ran out of money as, like in any Ponzi scheme, he was probably using the money that entering in order to pay the investors that were cashing out.

Mbatha, which has stated that he was only a “manager” of the project, affirmed that he has stopped working and that he was using an “online system” to get the money and was also awaiting for payments just like the other investors.

People are obviously pissed with him now, especially as Mbatha basically turned into a local celebrity after the success of the scam, but they will probably never get their funds now.

This is why it is important to never invest in Ponzi schemes. If something has a return of 100% in only two weeks, wouldn’t everybody invest in it?

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Author: Gabriel Machado