A separatist movement based in the African nation of Cameroon has recently finished an ICO for its new cryptocurrency. AMBACoin will be used to raise funds for the promotion of the group’s independent Republic of Ambazonia.
Rebels in the southern part of Cameroon declared their region the Republic of Ambazonia back in 1999, and are seeking independence from the nation of Cameroon, although the UN has not recognized it. They are mostly English-speaking people, in the former British-held territory of a predominantly French country.
An ICO has been launched for AMBACoin, and sales are due to end around December 2019. The crypto is an ERC-20 token, and it will be backed by Ambazonia’s natural resources, such as crude oil, gold, diamond, and wood. The separatists promise to buy back all AMBACoin sold, with 34 percent interest, if they are able to establish political sovereignty.
According to a statement on the group’s website, “AmbaCoin is a promissory contract between the International Community and the Post Independent Ambazonian Government. All sales of the AmbaCoin will be directed to fund the Ambazonian Cause, to assist Refugees & Internally Displaced Persons, to rebuild homes destroyed by occupying military forces, and to defend communities from the repressive regime of La Republique Du Cameroun.”
This is possibly the first time that a crypto has been used to attempt to establish an entirely new state, although digital tokens are increasingly seen in the developing world as a way to liberate people from established authorities or the problems they may have caused. Venezuela has seen an increase in crypto adoption in the wake of the failure of its own national currency, and the Marshall Islands is seeking to establish a national crypto to be more financially independent as a nation.
Read more: Marshall Islands pushes ahead with national cryptocurrency project; Time magazine cites Bitcoin’s “liberating potential”
How to Add ICO in MyEtherWallet
Having possession of cryptocurrencies is not a piece of cake. It involves the user to pursue the best security practices of the online and also the crypto world. To keep working with Bitcoins, the user needs to consider the important feature of wallets and figure out how to add/store tokens to them. It is ideal to set up a multi-currency digital wallet to have the option to utilize different currencies from the wallet and enjoy a hassle-free experience.
- MyEtherWallet is a well-known choice among cryptocurrency ICO (initial coin offering) investors as it can be utilized to sell, purchase, and store ERC20 tokens acquired from token deals. It is a smart choice since it is an online wallet, which offers offline hardware wallet support simultaneously.
- MyEtherWallet (MEW) offers three different ways to make a new ETH wallet. These are through MEWconnect, Keystore document, or Mnemonic expression.
- MyEtherWallet is a free, customer side, an open-source, hot wallet that enables the user to associate with the Ethereum blockchain. Furthermore, during this, the user stays in full control of their private keys and their funds. MyEtherWallet supports working with all ERC20 tokens.
- MEW wallet recommends suitable gas limit and gas cost while sending a transaction. Likewise, it has customized options to get the transaction confirmed quicker.
Platforms Supported by MEW
MEW enables the user to interface with smart contracts in a private way. It does not collect any login data, nor does it need any registration to begin. It is a sort of self-hosted web wallet and can be utilized with any operating system or any browser. Additionally, it supports Chrome extensions, which are also accessible for MEW.
How Tokens can be Stored
ETH can be purchased in exchanges or on exchanges. Before buying, the user needs to consider where to store the procured tokens securely. Ethereum, like any other cryptocurrencies, can be stored in different kinds of wallets. Few types of wallets are,
- Cryptocurrency exchange wallets
- Cold, hot or multi-currency wallets
- Hardware wallets
How to add ICO in the Wallet
- To add an ICO in the wallet, open and unlock the wallet, at that point, find the “Send” item. In the window of the outgoing transaction, the user needs to specify the recipient location and the amount to be transferred. The balance amount in the wallet is shown in the lower right corner.
- The user can add tokens and see their balance utilizing the special menu situated on the right side of the wallet page.
- To send tokens, the user should have a positive balance in ETH to pay a small amount as the commission.
- After leaving the wallet, the user can gain access to their funds by clicking the “Transfer ether and tokens” button on the first page of the site.
At a major level, MEW makes the handling of ERC20 and ETH tokens simple. In any case, if users want to trade crypto, using smart contracts, or taking part in ICOs, they can very well do this by using MEW.
PlexCoin ICO’s fraudulent proprietors ordered to pay nearly $7 million for defrauding investors
The SEC has obtained a final judgment against PlexCoin’s fraudulent ICO and its proprietors, finding the defendants in the case guilty for violating antifraud provisions of Federal security laws. They were ordered to pay nearly $7 million on 2 October, 2019.
The SEC had filed a complaint against PlexCorps and its proprietors, Lacroix and Paradis-Royer, on 1 December 2017, accusing them of fraudulently raising millions of dollars through an unregistered security offering called PlexCoin. The defendants in the case neither denied or admitted to the allegations, but were enjoined in several sections of the Security Act and were enjoined from participating in any digital securities offerings as well.
The SEC in its complaint accused the proprietors of misleading potential and actual investors by providing false information about the size and scale of PlexCorps’ operations, the money raised in the ICO, and its use, while also orchestrating an elaborate fraud.
The final judgment
In the final judgment, the defendants in the case were ordered to forego all investor funds seized by the Superior court of Quebec, totaling to an amount of $4 million, along with another $800,000 in investor funds that were frozen by the District court. The court will also be taking action to reimburse harmed investors via Autorité des marchés financiers of Quebec.
This year has seen several cases where many fraudulent ICOs and unregistered security offerings have come to a settlement, including the likes of SiaStock and Block.One’s EOS offering. Such settlement cases are meant to send out a strong message to the market, warning scamsters against carrying out such fraudulent schemes. On the other hand, investors must also focus on finding the right projects for investments and should not fall for potential scams that promise hefty returns, without providing a realistic roadmap for achieving it.
It shuld also be noted that many would characterize such settlements as merely a slap on the wrist. Block.one’s case for instance, saw a settlement that was just a small percentage of what the firm raised in its ICO back in 2017.
Messaging App Kik’s Legal Battle Shines Light on Past ICO Scams
Popular messaging app Kik is shutting down due to a Securities and Exchange Commission lawsuit regarding ICO activity for the company’s cryptocurrency, kin. Ted Livingston, Founder and CEO of Kik and Kin, denies the allegations and maintains that the SEC’s case is based on mischaracterizations, but that shutdown for Kik is necessary to focus on defending the crypto branch of the company. Whatever the reality, new attention is being directed at ICO scams in general, which have a storied history.
Scammers: Ruining a Good Thing for Everyone
ICO regulation is a hot topic in the crypto space these days, as the past two years have seen changes in the legal landscape governing such activities globally. In June, an amendment to crypto-friendly Japan’s Financial Instruments and Exchange Act (FIEA) dictated that ICOs must be registered and strictly licensed as securities offerings. Across the pond, the U.S. Securities and Exchange Commission has been equally unforgiving when it comes to ICOs, stifling the moon Lambo dreams of many a con, but also potentially killing legitimate projects, as may be the case with Kik’s messaging app. Typically ICO scams involve big promises of easy money to be made via investment, future products to be delivered, or both. While Kik’s fate is now sealed, Kin’s is not, and many past efforts at bona fide scamming, lawsuits, and regulatory abuse bubble back to the surface of crypto’s less-than-glamorous memory of ICOs past.
Lambos, Sky-High Promises, and Sly Exits
Arguably the most infamous ICO and crypto scam to date, Bitconnect showered enthusiasts and get-rich-quick believers with big promises, endless hype, and even super cars. The bogus, supposedly interest-generating lending platform turned out to be a Ponzi scheme, and was issued a cease and desist order from the Texas State Securities Board on January 3, 2018. As the fate of the operation was sealed further, outstanding loans were released to customers, but in the form of the soon to be near-worthless bitconnect coin (BCC), completing the exit scam cycle, and leaving previously wide-eyed believers jaded and initiated into the world of crypto cons. Amazingly, even after costing investors $1.5 billion, the nebulous organization continued to scam the gullible with a supposed new coin and ICO via an initiative known as “Bitconnect X.”
The story of another now infamous crypto swindle, onecoin (ONE), reads similar, but almost with a touch of Hollywood screenplay thrown in for good measure. A brother and sister duo plot to create a shitcoin and make a killing, scamming victims out of $4 billion while still somehow evading major punishment from the justice system. Of course, flashy cars and media-sensationalized events were prominent here as well. Though Onecoin fancied itself as “the Bitcoin killer,” it’s now nothing more than a sour taste left in the mouths of those who once shouted its praises.
Paycoin (XPY) was another con involving a Ponzi setup, and perhaps most notable for being one of the earliest ICO-type scams. Mastermind Josh Garza guaranteed a $20 floor on his supposed stablecoin, and shifted funds between various company fronts while guaranteeing mining dividends to customers, and a reserve of capital to back his currency. All the pics of flashy cars and lofty promises couldn’t protect him from prison time, though, and from being on the hook for over $9 million in restitution to investors. A press statement from the Connecticut U.S. Attorney’s Office stated: “GARZA’s companies sold the customers the right to more virtual currency than the companies’ computing power could generate.”
Even Respected Crypto Vets Get Sucked In
Questionable initiatives have even included much respected Bitcoin developers from the early days of the pioneering digital asset. Jeff Garzik, co-founder and CEO of Bloq, and recently subpeonaed party to the Kleiman vs. Wright lawsuit, also experienced a fall from the graces of the bitcoin community at large for backing half-baked projects. United Bitcoin was one of those, a December 2017 fork of the Bitcoin Core blockchain that set out to do some pretty unorthodox things, including KYC-intensive airdrops and the “reclamation” of old BTC whale addresses.
Security and user privacy issues aside, the fiasco also featured elements typical to ICO scams of lesser repute: failed predecessors (Segwit2x), sports cars, and big promises. Many bitcoin OGs were understandably surprised at the news, with Electron Cash wallet developer Jonald Fyookball commenting on Reddit “Haven’t seen Jeff disavow this. I assume he’s involved. If he is, kinda sad as the pegged auditable asset is a gimmick and no better than tether.” With a respected name like Garzik’s being leveraged, many called foul, asserting that much financial support had been garnered on the basis of a name alone. At press time the United Bitcoin project is basically dead in the water.
A Scammer’s Next of KIN?
It’s not hard to believe that the SEC would fabricate stories to keep regulatory dominance securely in hand, and Kik CEO Ted Livingston’s September 24 letter to the public does evoke sympathy from some. For those all too familiar with governments’ draconian tactics when it comes to financial outliers, rebels, and innovators, the story of the state crushing private business is not surprising. Livingston writes:
While we are ready to take on the SEC in court, we underestimated the tactics they would employ. How they would take our quotes out of context to manipulate the public to view us as bad actors. How they would pressure exchanges not to list Kin. And how they would draw out a long and expensive process to drain our resources.
At the end of the day, things in the crypto space are as they always have been: caveat emptor. Buyer beware. If KIN is truly a good coin or a scam to be avoided like the crypto plague, is for the market to decide. The chain-migrating, Stellar-forked token is not without significant market distaste already. Crypto Twitter is full of takes on the matter, with commentators saying that kin will be useless without the messaging app for which it was built, that it’s an exit scam, and still others defending the group against the historically corrupt and “friendly” blind-eye-turning SEC.