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 mission. One Nigerian skilled has suggested potential zugacoin buyers to prioritize studying finer particulars concerning the mission 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 official digital forex, 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 mission is one more rip-off which is cleverly disguised as a fancy cryptocurrency mission.

The complaints and allegations in opposition to the mission have, in flip, prompted Archbishop Sam Zuga, the founding father of Zugacoin, to challenge a flurry of Fb posts condemning “ignorant folks” peddling false details about the mission. In one in every of his newest 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 “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.”

Within the prolonged August 25, 2022 publish, the founder denies allegations of manipulation inside the Zugacoin ecosystem. Zuga’s publish 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 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 one downside 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 mission” with their ignorance.

Consultants Query Mission’s Lack of Transparency

Nonetheless, regardless of Zuga’s spirited protection of the crypto mission, influential gamers in Nigeria’s blockchain business informed Bitcoin.com Information they remained unconvinced. They level to the mission’s lack of transparency or its obvious exploitation of Nigerian folks’s affinity to faith or their non secular leaders as pink flags.

One of many gamers, Ophi Rume, aka “Cryptopreacher,” informed Bitcoin.com Information that except the Zugacoin founder reveals the remainder of the workforce behind the mission it is going to be tough to make a judgment concerning the mission’s legitimacy. Noting that scammers typically exploit folks’s desperation and ignorance, Rume, a blockchain analyst and educator, stated unusual Nigerians ought to solely contemplate investing on this mission after performing some fundamental due diligence. He famous:

As fundamental as looking for the phrases; Is Zugacoin a rip-off or a Ponzi scheme through Google, Nigerians can learn and be taught lots of issues about this mission. Additionally, earlier than investing Nigerians have to know these concerned within the mission. They should know the board of administrators, the builders and whether or not the mission is on Github.

In keeping with Rume, when potential buyers be taught or develop into conscious of such particulars about this mission they’ll doubtless determine in opposition to investing and thus protect their meager financial savings.

In the meantime, one other skilled who wished to stay nameless lamented scammers’ rising use of spiritual titles when advertising their initiatives to unsuspecting victims. In keeping with the skilled, when a doubtful cryptocurrency mission is fronted by a spiritual chief, folks will chorus from criticizing it. The skilled defined:

“I’ve discovered that nobody desires to be seen because the prophet of doom or enemy of progress on the subject of huge and questionable initiatives like Zuga. In addition to, the founder is a Christian chief with a substantial following who has additionally used his affect to mission 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 workforce lead at Bitget Africa, zugacoin is probably 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 cut back its debt.

“One other promise they’ve made which is like tales by moonlight is their capability to pay $97 billion {dollars} price of Nigeria’s nationwide debt and likewise assist Africa clear her money owed. From their place it’s clear they don’t perceive how cryptocurrencies work, I consider the promoters had been offered a lie that your capability to mint a token may translate to on the spot financial worth with out constructing an ecosystem to assist 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 buyers who’re nonetheless considering of shopping for zugacoin, Ezeafulukwe stated they have 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 this stuff are potential by a single particular person.”

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Terence Zimwara

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