Made-in-India cryptocoins? Avoid all of them!

Last Updated: Sat, Jan 13, 2018 22:03 hrs
Bitcoin

The frenzied rise of cryptocurrencies (seven of them delivered 1000% returns in 2017) is being cashed in on by a few "Made-in-India" fraudsters, a report warns.

Ananya Bhardwaj in her story in The Print highlighted that investigations of eight complaints received by the Delhi Police's crime branch revealed crores of rupees had been defrauded in this manner. The scamsters were perpetuating these frauds via websites run from Delhi, Sonipat, Bengaluru, Pune and Mumbai.

Taken in by the lucrative returns being promised, one Delhi businessman, according to The Print reporter, ended up investing Rs 25 lakh before realising he had been scammed.

Desi crypto coin/wannabe crypto coin platforms flagged off as dubious by the police, according to the report, included Laxmi Coin, BullCoin, LiteCoin Classic and Kashh Coin.

"Investigators said that all these sellers have a similar modus operandi. They first invite famous personalities to seminars held in five star hotels to attract investors. They explain their scheme and assure them good returns for their investors. Once a person gets ready to invest, they trap them into their multi-level marketing strategy," the website wrote.

A visit to Laxmicoin, billed as India's first cryptocurrency, showed that six years after floating the idea they were now finally keen on getting their coin out.

In an article published in the Medium on November 2, 2017, one of the 'brains' behind Laxmicoin wrote: "At Laxmicoin, we're working towards a better future of finance. A new and revolutionary set of financial services - bringing the freedom and autonomy of cryptocurrencies together with the speed and convenience of existing payment solutions. We've created a platform to enable instant cryptocurrency payments at points of sale. Together, we're working towards the first seamless integration of cryptocurrency into a mainstream financial services solution, delivered right from your smartphone. We are working for micro payments, cross border payments, merchant APIs, POS & SDK for ease of payment."

A hugely ambitious goal indeed, considering that bitcoins themselves are yet to become a "mainstream financial services solution".

The Laxmicoin twitter account recorded further progress when they noted the start of a new office in December with "good deeds":

The Laxmicoin team - Mitts Daki and Raj Dangi are the names that crop up on search - have now promised to release their whitepaper (Pre-Initial Coin Offering date and Roadmap) at an educational seminar on cryptocurrency they are hosting at the Maharana Pratap Stadium in Jaipur. Free Laxmicoin distribution and free pizza has been promised to all the participants. This despite the company stating elsewhere on their website that the Initial Coin Offering will only happen on March 1, 2018. It would be interesting to know more post the seminar. Do note that Laxmicoin's launch has been postponed on an earlier occasion.

The Laxmicoin.com website itself warns that laxmicoin.tech, coinlaxmi.net, bitlaxmi.info, laxmibitcoin.co, laxmicoin.trade and laxmicoin.ltd are all fake and to avoid them.

There is way lot more bull on offer on the Bullcoin website.

Talking about the advances in technology that Bullcoin has embraced vis-a-vis a platform like Bitcoin, the website's about page features this explanatory gem:

Initially BULL COIN used a hashing algorithm (Scrypt-Jane) that gradually increases the demand in RAM (a computer's processing power). This method is known as Proof of Work. The more powerful a computer you had, the more digital currency you could mine.

Afterwards, BULL COIN has now moved to a Proof of Stake model which, rather than rewarding BULL COIN investors for the power their computer lends to the network, it rewards BULL COIN users based on the number of BULL COIN's they currently hold. Essentially this means the more BULL COIN's you have, the more you will earn.

Those keen on buying the coin are taken to a Bullcoin wallet page, where you have 20-plus currency conversion rates displayed. The only question is how this value being decided. You can even create a free bullcoin wallet through a RagisterCountry page. All https secured, mind you.

For Kashh Coin, as exhibit we have this video of a spokesperson of theirs holding forth on YouTube. Their multi-level-marketing play is quite evident:

A more glamourous Kashh Coin event here. Looks more like wine and dine, than mine (coins):

The LCC Litecoin classic doesn't even bother hiding its MLM roots, running as it does from the site of MLM marketer MLMAMAN.

Here is a video where its founder Manish Kasana explains why the coin he created is not rising as promised. Help me find ways to generate buyers, he stresses repeatedly:



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