The world is developing fast in all sectors, notwithstanding the financial one. The developments and innovations in the financial sector are growing fast and we must keep up with the trends (lest we get left behind and yet it could be the apocalypse of the world) These mega changes have gone on to liberalize money and currently I can say that not all money is regulated at the moment by any central bank; be it the Federal Reserve in America or Bank of Uganda. Why? It is simple, some money is not under their jurisdiction.
In Uganda, the Bank of Uganda preserves the integrity of financial systems and also offers appropriate security for the consumers just like all central banks around the world. However, with the invention of new money; the goal posts are about to change if these banks are to remain relevant.
Just like money moved from cowrie shells to shillings, money has evolved with the invention of digital money which can be transferred from one e-wallet to another. This digital money is commonly known as crypto currency that runs on a decentralized system called block chain technology. In short, crypto currencies are digital assets secured by cryptography that can be used as a medium of exchange.
Disclaimer my dear reader; we are about to venture into a territory of terms and words that may be too much for your mind but try to keep up because it could save you from crypto currency fraudsters. Information is power and you may need to ask anyone that flaunts this crypto currency idea around a few questions from the knowledge you will acquire from this article. This is a new booming phenomenon that is sweeping across Africa like a storm and if you are not wise, you will lose millions to fake crypto currencies.
Bitcoin was the first crypto currency and is still the best known and the biggest there is. Interestingly, no one knows who created it except for a name Satoshi Nakamoto who is thought to be the founder of Bitcoin. The beauty about this Bitcoin is that it uses and runs on a special database called block chain.
This means that no one is in charge of it, no one can manipulate or hack or forge or double spend the coins. You must be wondering what block chain technology is in crypto currency. The easiest definition is; block chain is an open and public digital ledger consisting of records called blocks that is used to record transactions and distributed across the entire network of systems on the block chain.
The juicy part of it is that everyone on the block chain monitors the transactions happening as and when they take place. Legit crypto currencies run on block chain technology. Some of the genuine crypto currencies in the world are Bitcoin, Bitcoin cash, Ethereum (others, you may need more research).
Now, remember when I said I could start a fake crypto currency with a good I.T team? Well, Yes. You can easily run a fake crypto currency on a sequel (SQL) server with a database. Unlike block chain which is public and can’t be forged or manipulated, the sequel server with a database is the opposite. The coins/tokens are fake, you can’t exchange the coins for real money and you can’t trade with the coins you get. Wow! There is nothing legit about it.
The SQL server with a database is centralized by an individual. This individual can type in fake numbers and change them as and when they please. They can increase the value of the crypto currency which is not true but meaningless. Many people are running these scams all over and many of you are victims or know someone who has been a victim. The value of these crypto currencies will look good but they are only a made up number and recorded.
Let us say “TEN COIN” my fake crypto currency running on an SQL server with a database has started operations in Uganda. I will make many fake promises of huge returns and many clients will come. Once they give me their money, I will register them into my system and even assign them access to see the growth of their accounts on their mobiles or computers.
Each time they log in, I will be at home sipping on some coffee as I type in the system whatever makes them happy. I will say, one Ten coin is worth 5000/= today, then 10, 000/= tomorrow, then 20,000/=. I will play around their minds and expectations just like that and they will think they are getting rich. In reality it is a SCAM. I can even choose to move it from 20,000 back to 5000/= and blame the dollar or try to make the excuse international (Ugandans love to hear things related to the US or UK, that’s why they even fake their accents to sound like them)
This is a con that no one sees coming because it appears realistic and is therefore too good to pass up. People won’t ask me why they are not trading their coins or exchanging them for real money (Dollars, shillings, pounds) or what technology I am using because I lied to them with fake promises and the idea of getting rich without hard work is on their mind. People tend to ignore complicated stuff they don’t understand and simply wait for results. All I will do is encourage them to give me more and more of their cash for bigger returns which “I convert into my crypto currency.” I may have told them to wait until the price increases for them to trade or I could have told them to be patient because in a year they will be hundreds and hundreds of millions rich.
I may even offer packages from 250,000/= to 10,000,000/= in exchange for a certain number of “coins/tokens” with my fake value attached. This package comes with educational materials like textbooks which I have plagiarized from international authors and simply changed the book cover (If you want to hide anything from a Ugandan, write it in a book) I may not have read these books but to perfect the con, I just have to do it and no one will ever know. These books are business related so it will make the client think I care about them yet I really don’t! All I want is their money.
To make it spread faster and sound real, I can hire marketers, recruiters and operate my fake crypto currency more like a Ponzi scheme where people will recruit one another and just like that my clientele will grow and my fake “Ten coin” will become so popular and become a hit with the masses. I will be a very rich man in a short time while the clients continue contributing/investing with false hope. The clients will be poor in the long run and I won’t be sorry for it. I am rich!
A few months later, I can close business and disappear with the clients billions or I could keep up the lie by cashing out a few clients to keep the con alive. Isn’t that amazing? Yeah, I know but running a popular “clean” but fake crypto currency is easy in Uganda. (This is not a business idea but a well laid out expose’ on what a fake crypto currency looks like and how it could operate so don’t get any ideas)
Some “smart” young people in Uganda are running many “Ten coin” but I wonder if they ever think of the people they are fleecing. People borrow money to finance these fake schemes, some sell off all they have in the hope of becoming rich (Very absurd) To make it worse these “Ten coin” operators make people think that crypto currency is above economics and the forces of demand and supply; All they do is exaggerate the value and price of their fake coins to make you believe that you are a very rich man.
A country like Uganda battles poverty yet it has many people with hopes and aspirations of becoming rich. These are the main targets of these fake crypto-currency schemes. Therefore, if it is a crypto currency that is offering crazy returns please BE ALERT BE SMART. If it is a crypto currency in the form of a Ponzi/ pyramid scheme then just know that it is A SCAM. If it offers packages and products like education packages to teach you on business and mining crypto currency, getting tokens etc. then it is A KIWANI!
Did you know that Uganda is a fertile ground for legit crypto currency? If you get a chance of getting into a legit crypto currency then you are onto something big. But for now go slow because there are more methods I will share on identifying a legit crypto currency from a fake one.
Is this the future of money? Yes and it is here to stay. Many countries still don’t understand the technology around crypto currencies and they are struggling to keep up to date but that doesn’t mean that people are not utilizing this loophole to con people of their money. I have so much to write on this issue of fake crypto currencies and we shall explore it further.
Remember not to be fooled by anyone. Just simply research, read and stay alert. If it is too good to be true then it is just that: too Good to be true. For questions, comments, rants, contributions and coffee donations email me. Hope you have been enlightened by my article.