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Cryptocurrency

Zugacoin that Plunges Over 99 Percent in 6 Days Partners Innoson, Buy Innoson Products With Zugacoin

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Despite the Central Bank of Nigeria’s decision to halt banks’ involvement in cryptocurrency trading and ease potential pitfall similar to the popular unregulated scheme, MMM, Nigeria’s leading indigenous car manufacturer, Innoson, has partnered with Zugacoin founded by Archbishop SamZuga.

According to a Vanguard report, buyers can now comfortably purchase Innoson products from vehicles, motorcycles to plastics with Samzugar’s Zugacoin.

The partnership was signed at the company’s factory in Nnewi, Anambra State.

Zugacoin was founded in 2020 but was unveiled on December 1st, 2020. On March 3, 2021 Zugacoin made its first conversion into fiat currency.

Let it be on record all over the world that ZUGACOIN was first Cashed out/ withdrawn/ changed into Fiat currency on 3rd March 2021 by 13 minutes after 11 Antemeridiam (a.m) Nigerian time against all odds. When God says YES nobody can say no. With God all things are possible. All things are possible to him that believes,” the philanthropic Cleric also known as Jehovah’s Field Marshall announced.

However, a quick analysis of Zugacoin revealed scary details. Ranked at #2863 on CoinMarketCap, a global leading crypto platform, the coin was valued at $45,653 per coin on Monday, December 14th, 2020 before rising as high as $51,894 per coin on Thursday 17th, December 2020.

It then dropped by over 40 percent to $29,621 per coin on Saturday, January 2nd, 2021 before rebounding to $53,220 on Sunday, January 10th, 2021.

Zugacoin then plunged from that record high to $1,875 on Thursday, January 14th, 2021 within four days.

This decline continues as the new cryptocurrency further plunged to $63.35 per coin before gaining 16 percent in the last 24 hours to $72 per coin as shown in the chart above. Thanks to the partnership news.

Key details like volume/market cap, market dominance and circulating supply were missing. However, the company plans to supply just 1,000,000 SZC coins.

Zugacoin team, another key factor in assessing cryptocurrency viability, has only one tech developer by the name, Trinity Tom. While the rest are largely business developers and marketers with zero tech background.

Similarly, looking at the company’s Whitepaper, Zugacoin is not addressing any new challenges or providing new solutions that banks and other fintech companies operating across Africa have not addressed. This might be the main reason why the coin plunged that fast.

Zugacoin is a unique brainchild that aims to rebuild Africa’s dying economy by becoming Africa’s first coin for equity and investment funding for Africa’s government instead of China. Starting a business in Africa can often be a gargantuan task, especially since the prospects of obtaining a loan are few and far between, we will give out loans to aid businesses and encourage investors,” Zugacoin stated in the Whitepaper.

The Zugacoin ecosystem provides the tools, resources, and ease-of-use necessary for running a successful business. The Zugacoin project will represent a unique access point for rising entrepreneurs in Africa, we will share transaction fees with vendors and merchants, while also integrating our coin to ATM and POS machines across the continent.

According to Adimuchinobi Chukwuma, a serial entrepreneur who commented on the new cryptocurrency, “there’s a lot of questions the white paper didn’t answer. The Zugacoin doesn’t have a strong utility use cases, the team is not obvious except that it has a name of Bishop on it, other than that lot wasn’t addressed.”

“Also, they didn’t mention anything about if the architecture will be decentralized or centralized, no reference to where we can access the code to a certain the quality of the code. All these matters when it comes to Cryptocurrency. Apparently, the white paper seemingly I will call it “clever paper” that sounds more like someone trying to create another Ethereum or Cardon Network.”

Also, the coin is presently listed only on IndoEx, an Estonia decentralized exchange platform. Meaning, it presently does not meet the requirements of Binance, Coinbase and other top exchange platforms that require broad scrutiny and documentation.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Cryptocurrency

Dogecoin is the New GameStop – Are Investors Going to Get Burned?

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Dogecoin has become the new GameStop, with frenzied trading potentially going to deliver a bloody nose to novice investors, warns the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The warning from Nigel Green, the chief executive and founder of deVere Group, comes as the market capitalisation of Dogecoin hit almost $45 billion on Friday, and its price has risen by 400% in the last seven days.

The memecoin was created in 2013 as a joke, poking fun at the rise of established digital assets such as Bitcoin.  Dogecoin was inspired by the popular Doge meme, which offers the image of a Shiba Inu looking sideways at the camera with raised eyebrows.

Mr Green says: “Dogecoin is the new GameStop. The out-of-favour bricks and mortar videogame retailer rocked Wall Street in January when a group of small-scale mainly inexperienced investors, led by a frenzy on Reddit, sparked a historic short squeeze where they drove up its stock prices.

“This week, since Reddit lifted its ban on the discussion of three cryptocurrencies – Bitcoin, Ethereum and Dogecoin – activist investors and also some celebrity investors on social media have been urging others to invest their cash into Dogecoin – their new pet populist bandwagon.

“In the same way that the GameStop frenzy was pitched as a battle-play of ‘Wall Street versus The Little Guy’, Dogecoin is being pitched as a battle-play against the well-established crypto giants like Bitcoin.

“But this is not typically the way reasoned, savvy investors should strategise to create and build their portfolios in order to reach their financial goals.

“We can expect many novice retail investors – who may not have the financial resilience needed – to get burned in the Dogecoin frenzy – in the same way they did with the GameStop one.”

The deVere CEO says that investors should avoid being drawn into the hysteria driven by social media and look at the fundamentals of the different cryptocurrencies.

“It’s very hard to compare Dogecoin with the likes of Bitcoin, which runs on ground-breaking tech and has a limited supply giving it scarcity value, amongst other valuable attributes; and Ethereum, which is solving real-world issues and providing in-demand business solutions.  For these reasons, amongst others, they are attracting huge institutional investment.”

“Whereas we can assume that many people have been buying Dogecoin, not because they think it has any real value, but because they hope others will get FOMO (the Fear of Missing Out), jack the price up, and then they can sell off and make a quick profit.”

Mr Green reiterates a message he gave in January at the height of the GameStop mania.

“If you do want the thrill or novelty of chasing big gains led by activists on social media, you really should make sure that you have a sound, diversified, long-term financial strategy established in place first,” he affirms.

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Ethereum

Canada Approves Two Ethereum ETFs in One Day

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The approval comes just over two months after Canada approved its first bitcoin ETF.

Purpose Investments and CI Global Asset Management both received approval to launch an exchange-traded fund (ETF) in Canada that offers exposure to ether.

Purpose is the manager of Purpose Ether ETF and Ether Capital Corporation will consult. The ETH will be kept in cold storage with Gemini acting as the sub-custodian and CIBC Mellon Global Securities acting as the fund administrator.

CI Global Asset management will launch CI Galaxy Ethereum ETF on April 20 on the Toronto Stock Exchange (TSX), subject to TSX approval. It will charge a 0.4% management. CI GAM is the manager of the ETF and Galaxy Digital Asset Management (“GDAM”) serves as the sub-advisor.

The approval comes a little over two months after Canada approved the Purpose Bitcoin ETF which held 10,064 BTC in the first week of trading. Meanwhile, in the U.S., bitcoin ETF approvals have been piling up in the hope that new Securities and Exchange Commission (SEC) Chief Gary Gensler could change the regulatory agency’s attitude to the novel investment product.

“While bitcoin tends to get a lot of attention as it was the first major cryptocurrency, what ether and the Ethereum ecosystem represent is one of the most exciting new technology visions today in society,” Som Seif, founder and CEO of Purpose Investments, said in a statement. “By launching the first ETF in the world that directly owns and provides exposure to ether, we are enabling every investor to have access to this unique opportunity and ecosystem.”

Purpose ETF is designed to provide investors with exposure to ether by investing directly in physically settled ether. The ETF will offer three classes of units: Canadian dollar currency hedged units (ETHH), Canadian dollar non-currency hedged units (ETHH.B) and U.S. dollar units with ticker units (ETHH.U).

TradeBlock, a CoinDesk subsidiary, is the index provider for Purpose.

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Cryptocurrency

Fintech CEO: The Paxful Data Leak that Wasn’t: A Cautionary Tale in Vendor Selection

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Paxful - investorsking.com

Last week,  it was reported that cryptocurrency exchange Paxful released a firm denial of an alleged data leak with 4.8 million entries. The company noted that the data from the supposed leak, which contained employee information among other items, was actually data which was illegally stolen from a third-party vendor.

“If you take Paxful at their word, and I’m not aware of any reason that we shouldn’t at this point, users can be relieved that the exchange wasn’t successfully hacked. But, the issue of incompetent vendors is one which all too often plagues cryptocurrency exchanges,” said Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges. “It’s tough because the cryptocurrency space is relatively new, so most vendors are new, too. Those are the vendors who compete on cost, instead of on their industry success.”

“Fundamentally, however, cryptocurrency exchanges are, at their core, financial exchanges. The technology required to ensure they run flawlessly and with appropriate security measures in place — those things require experience in providing technology for exchanges. Building online auction sites or websites, dabbling in development… those kinds of vendors aren’t capable of handling the kinds of stress put onto a cryptocurrency exchange,” explained Gardner.

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Over the past twenty years, the company has built technology for the world’s most notable exchanges, with a client list which includes NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“What happens here is that these technology vendors watched Bitcoin explode, and they wanted to cash in on that opportunity. They built technology that’s shiny and works until put under stress. Then they charge rock bottom prices for it. Crypro-preneurs, looking to get to market fast and cheap, find themselves enamored with the offering. For years, the exchange runs without issue because the exchange never saw peak traffic. Once it’s successful and bringing in significant money, hackers will become interested in it. Even worse, the technology stack that powers the exchange isn’t set up to handle the volume demanded by success. Bad things happen. We’ve watched this movie before,” Gardner continued.

“How does this stop? Our industry needs to stop normalizing sub-par, cheap technology provided by suppliers without any experience in the field in which they’re now practicing. We need to normalize and prioritize security. In this case, if the vendor couldn’t secure their own house, how can they be trusted to work on exchange technology in any capacity? Luckily, Paxful executives noted that the vendor is no longer under contract. But, that vendor is very likely still supplying technology to dozens, or even hundreds, of other exchanges. It’s time to flip the script and value experience over sticker price,” opined Gardner.

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