It’s a sad fact, but the cryptocurrency space is prone to scammers, largely due to its unregulated and misunderstood nature. As Bitcoin rises to fresh yearly highs and news of people becoming crypto millionaires breaks every day, more and more people are looking to get in on the action. This is where scammers can fill their boots, as desperate people invest their life savings for a chance at becoming wealthy beyond their imagination.
In a fresh round of warnings, the Zambian Securities and Exchange Commission (SEC) has stated that Kwakoo Marketplace is hosting an ICO and members of the team are projecting 100-1,000% increases in the value of the token by 2021 – a phrase that should never be used in the investment world.
Breaking SEC Laws
The Zambian SEC states that: “Securities Act, No. 41 of 2016 (“the Securities Act”) that any person engaging or holding out as engaging in the provisions of advice on investments in securities, including advice on subscribing for, of purchasing, selling, exchanging or holding of, securities to any person in Zambia must be licensed, unless otherwise properly exempted by Law.”
Unfortunately, not a single Kwakoo employee promoting the service or OnyxCoin ICO satisfy this regulation. The presentations provided by employees contain enough information about returns to constitute financial advice in Zambia, yet another breach of Securities Act 41.
Scams Going Awry in Africa
Earlier this year, a cryptocurrency scam took a small township in South Africa by storm, promising villagers the chance to get rich quick. Similarly to the Kwakoo investment, Bitcoin Wallet was promising 100% returns in as short as 15 days. Bitcoin Wallet turned out to be a Ponzi scheme and the founder ran away with all the money. Shortly after his disappearance, a 1,500 strong angry mob looted his house and burned it to the ground. If the OnyxCoin ICO goes the same way and turns out to be a scam rather than a poor choice of wording, we could see further violence and destruction.
There is a nearly inexhaustible list of scams out there in the crypto world, so making sure you have your wits about you when investing is vital. Any project that promises guaranteed returns is likely a scam, so avoid these like the plague. GlowCryptos promised guaranteed returns and it turned out to be a con, despite having legitimate-looking documents.
If you’re considering investing in the OnyxCoin ICO, do so with a good dose of caution – as all that glitters is not gold.