The legend of Swisscoin pseudo-cryptocurrency (swisscoin.eu): What catches the eye when analyzing this scam, is the fact the creators did not bother much to create a decent legend or make any attempt to turn this legend (fictional activity) into something remotely resembling the truth. Why would they? Buying a Swiss company – this dupe-a-matic will be good enough for the users (pseudo-investors); that’s the logic. Let's start with a definition of cryptocurrency; Wikipedia provides the following description:
Cryptocurrency is an electronic exchange mechanism, a digital asset, the emission and accounting of which is often decentralized. System functioning occurs within a distributed computer network . As a rule, all information on transactions is not encrypted and is always available in an open format. Cryptography is not used to limit access to the transaction data, but to ensure the immutability of the chain of database transaction blocks.
By any stretch of imagination, Swisscoin (swisscoin.eu) is not a cryptocurrency, as it does not have a decentralized system. Swisscoin is merely a website swisscoin.eu, which describes a mining technology; there is no description of the principles and processes; if the website (swisscoin.eu) disappears tomorrow, Swisscoin pseudo-cryptocurrency will also disappear. Unlike the popular Bitcoin cryptocurrency, which the scammers Swisscoin try to imitate, and which does not in any way depend on various websites, this cryptocurrency can be stored on a USB flash drive or a CD, and it will always be with you. Swisscoin scam has no analogues: there is no decentralized system (a huge disadvantage), everything is concentrated in the hands of nobody knows who (who hides behind the Swiss company (violation of cryptocurrency’s fundamental principles), there is no mining system and technology at the level of Bitcoin cryptocurrency (a real computing process, rather than an attempt to create it within one’s own site (!)). One more thing, Bitcoin cryptocurrency was created to get away from the banking system for one reason or another, as well as gain anonymity – such are the main advantages of any cryptocurrency (real, genuine, and decentralized one); as for Swisscoin pseudo-cryptocurrency:
- "In Switzerland, release of cryptocurrency equates to release of shares" –This is not true. - "Paper currency will be issued for every SWISSCOIN to be deposited in a Swiss bank in an insured form." – Again, this is not true (nobody has the right to issue paper currency – it is called counterfeiting; provided, the creators meant that the value of the pseudo-cryptocurrency will be ensured by some deposit) – this runs counter with the very reason of cryptocurrency creation, designed to oppose banking systems, in contrast to "bank deposits").
Naturally, no documents on "deposits in a Swiss bank" have been granted in the form of insurance, as well as no legal mechanism for Swisscoins belonging to an individual, allowing to receive this insurance in case of force majeure, has been provided. There is no register of coin holders (necessary for deposit insurance); nor is there a proven or independent regulator of the register (for checking, entering or removing individuals from the register).
Let’s say there is a "bank deposit" (although, there is none at the time of writing this text), and Swisscoin closes – how does a user get a part of this insurance? By personally addressing the bank? The user is not an insurance deposit holder – it is someone else's account, and the user has no right to demand anything from it. Besides, there is no list of users that are part of this "insurance pool" – that is, there is no register of shareholders (the most appropriate word), nor is there a regulator, who has the power (regardless of the guarantees) to enter users in the register, or remove them, and make notes on the part of the shares or rights, based on the legal rights. That is, this is sheer scam and profanity. No deposit insurance; no authority (state or financial) responsible for deposit insurance and the actual number of coins sold by the system. A scam, a pyramid scheme, a financial bubble in the worst tradition of swindling.
Anonymity of cryptocurrency has also been violated; insurance in the form of a deposit calls for a personalization mechanism (it is no secret that verification via foreign passport has already been introduced by Swisscoin), violating the very foundations of cryptocurrency anonymity. Here is how the absolutely stupid fictional activities under the guise of Swisscoin (swisscoin.eu) cryptocurrency are thrown at investors by fraudsters. That is, by pursuing security (via pseudo-verification), swindlers have lost the thread of user anonymity; but even this loss of anonymity does not provide any guarantee or insurance to users-investors.
Let us, once again, look up the description of Bitcoin from Wikipedia:
Bitcoin (the name of which is a compound of the words bit and coin) is a peer-to-peer payment system using the unit of account of the same name and the data transfer protocol of the same name. To provide for the system’s functioning and protection, cryptographic methods are used. All the information on transactions between the system’s addresses is accessible in the open form. The transactions performed are non-reversible, an electronic payment between two parties is made without any intermediaries. But there is a possibility of engaging a third party guarantor by means of multisignature[en]. The money cannot be frozen by anyone except the owner himself, including freezing it for a certain period of time. These and other smart contracts can be implemented with the aid of a specific scripting language, but it cannot be accessed from a graphic interface and is not Turing complete unlike the newer blockchain systems, such as Ethereum. Different authors classify bitcoins in different ways. The most common variants are: cryptocurrency, virtual currency , digital currency, e-cash. Bitcoins can be used to buy goods and services from sellers who agree to accept them. They are exchanged into usual currencies through online digital currency exchange services, other payment systems, or exchange shops. One of the main peculiarities of the system is its complete decentralization: there is no central administrator or anything similar to one. A necessary and sufficient element of this payment system is the basic client program (it has an open source code). The client programs running on multiple computers get connected between themselves into a peer-to-peer network, all the nodes of which are peer-to-peer and self-contained.
Figures in contrast to Bitcoin (all the differences are highlighted in bold under spoiler), the financial scam Swisscoin (swisscoin.eu) has no such technical component, since it is a pseudo-cryptocurrency, which has nothing to do with real (peer to peer) cryptocurrency. Swisscoin’s value is a centralized component; it is the system (swisscoin.eu) that determines the cost of 1 Swisscoin, rather than the market conditions. As currency, Swisscoin is of no interest either; it is not accepted in online stores or exchange offices; you cannot sell it to an individual; the coins are not included in the financial relations in any country of the world, on various cryptocurrency stock exchanges. The two conditions – centralization and lack of interest from major crypto-exchanges – suggest that the cost of one coin is not the market rate, but the rate given by the owners (if they want 1 coin to be worth 10 dollars or 0.01 dollar – they can set such rate; it is simply impossible in real cryptocurrency, i.e. Bitcoin; the cost of 1 Bitcoin is a market (exchange) rate). Such a system of "setting the rate" is not a new; it was present in the long forgotten scam – the Mavro currency (used in the MMM system created by Mavrodi).
That is, the legend of Swisscoin pseudo-cryptocurrency (swisscoin.eu) does not contain a word of truth either financially and morally, or technically. Nor does it in terms of various guarantees (the level of Switzerland, or at least the level of the CIS) due to the absence of any financial or state regulators (as for an ordinary electronic payment system), and the lack of Bitcoin principles (when considering the system as cryptographic – that is, as pseudo-cryptocurrency).
Fascinating features of Swisscoin (swisscoin.eu) pseudo-cryptocurrency (as regards to login, registration, or any other false information available online) on the example of a review in a blog; screenshots available under spoiler. Including Swisscoin (swisscoin.eu) – feedback from bloggers, feedback from users:
Response to this is the following: - the number of actual forks (Bitcoin copies) is tremendous; the above-noted Ethereum is one of the thousand; it was a western model and actually had all the signs of cryptocurrency, rather than posing as something it was not; therefore, the comparison is inappropriate; the basic principles and technologies are completely different. - the coin value, as well as the total volume of "investment" is no more than the next lie set by the owner, which is not decentralized. - insurances, deposits, secret Swiss banks – up until the facts are presented and the regulators of the "creation" become known, the empty words are nothing more but cheating and lies, existing for the sake of pseudo-reliability. - registration in Switzerland is just a registration of a legal entity that is not responsible for all the “coins-rates-regulators-registers-fulfillment of any promises and plans.” The cost of company registration in Switzerland makes up to 10,000 euros; the legislation is loyal (owners can use any nominee services to hide). Provided Euro Solution GmbH is an analogue of LLC, that is, Limited Liability Company, all of its responsibilities and obligations prescribed are not "insurances-deposits", but the amount of the statutory fund, which is CHF 20,000. It is far from 1 billion euros, or 5 million euros, or any other figures/amounts, used for purchasing Swisscoin. Meaning, already at this stage, the number of coins sold does not correspond to the actual Euro Solution GmbH’s authorized fund. - the multilevel marketing (MLM) brings no good (as known from the history of such projects and practices). - everyone is involved in promotion of this rubbish, without confining to some anonymous persons; even даже the scammer Dmitry Naguta has been actively promoting and attracting cheated investors into Swisscoin (swisscoin.eu).
OneCoin financial pyramid’s clone –Swisscoin pseudo-cryptocurrency (swisscoin.eu): The mystery is very easily solved. Take a look at the design and user account of the system in question and then at OneCoin pseudo-cryptocurrency’s user account; talking about OneCoin (criticism, pyramid scheme, cheated investors, a response from the regulator in Bulgaria), you will see that Swisscoin scam is a bad copy of OneCoin financial pyramid; after learning what OneCoin is accused of, you will understand where the Swisscoin financial scam is coming from:
The Financial Supervision Commission's statement On September 30, 2015 the Bulgarian Financial Supervision Commission published a special report devoted to OneCoin. Potential investors are advised that purchasing, selling and paying through OneCoin is not regulated by the existing EU laws and the national Bulgarian laws on capital markets. OneCoin, like the other virtual currencies, is not recognized and not considered as a financial instrument. Potential investors are advised that investing into cryptocurrencies involves high risk. In the event of the organizer’s bankruptcy, such investments are not subject to compensation from the Investor Compensation Fund.
Criticism: The cointelegraph.com electronic publication specializing in cryptocurrencies considers OneCoin a scam and a pyramid scheme. The publication's special investigation did not find any independent confirmations for Ruja Ignatova's regalia specified in the company’s official website. The cover photo of the May 2015 issue of the Forbes manazine’s Bulgarian edition containing an interview with Ruja Ignatova, which is shown on the site, doesn't correspond to the cover photo of the same magazine in the official website of Forbes. There is indeed a material about Ruja Ignatova in the magazine, which is a paid-for advertisement and not a editorial interview. During a personal meeting with the owners and managers of OneCoin, the answers to technical questions were not detailed and had no sense if interpreted based on what is usually considered true for cryptocurrencies. The managers talk about the price of OneCoin, but it is not possible to verify it using independent sources. For instance, as of the end of December 2015, there was not a single exchange platform that would perform transactions with onecoins. So, the prices declared on OneCoin’s website are self-quotations.
A few comments on Swisscoin:
There is a video from a (presumably) German lawyer:
Where does Swisscoin (swisscoin.eu) come from – is it Switzerland, Germany or the CIS? At the very beginning of this scam, the following was displayed by Alexa:
Russia, Ukraine, and Kazakhstan, are there any more questions? It has been promoted in the country of origin.
Legal Swisscoin: Euro Solution GmbH’s registered capital (as reported earlier – CHF 20,000) and activity:
Business Classification Text: Schulungen und Ausbildungen in den Bereichen Internet- und Börsendienstleistungen; Beratung von natürlichen und juristischen Personen im Bereich strategischer und operativer Fragestellungen, Erbringung von Dienstleistungen in diesem Zusammenhang im In- und Ausland und Handel mit Waren aller Art; vollständige Zweckumschreibung gemäss Statuten. Translation: The activity of Euro Solution GmbH: Education and training in the field of online exchange and services; advising individuals and legal entities in the field of strategic and operational issues, provision of services, the ability to trade goods of any kind at home country and abroad; full purpose description in accordance with the Charter.
Cryptocurrency? Assets? Electronic currency? Deposits? Guarantees? Haven’t heard of. Advising – there you go. That’s pretty much concludes the “Switzerland part”; Euro Solution GmbH has the right (according to the purpose and charter) to engage in consultation, sale of goods, and that’s it – no financial activities or cryptocurrency. Although, the company itself is not even in Switzerland, but in Germany:
ELSTERTONIC UG (haftungsbeschränkt) (ELSTERTONIC UG (haftungsbeschränkt)), Reg.code: 4258095, Form of incorporation: Gesellschaft mit beschränkter Haftung (GmbH) – which is, in fact, the same as LLC (limited charter).
Whether the Swisscoin (swisscoin.eu) pseudo-cryptocurrency scam is popular: First thing we need to note is Bitcoin purse - 1R5Z1taSRhjegprZeLtnxrz2CLuUj7K2C - a very small number of daily transactions (coins purchase; not counting the settlements within MLM system). Alexa displays some interesting data (with allowances made for error):
By the way, Algeria is a country in North Africa. In the CIS segment, very few people have been interested in Swisscoin (which is a good thing, because in order to make money through this system, you either need to drag someone into it, or wait until they raise the rate by at least 10% via self-quotation, and it is unknown when this will happen):
Swisscoin (swisscoin.eu) or Swiscoin.com: Few people know that there are two objects under the guise of Swisscoin; they are Swisscoin (swisscoin.eu) and Swiscoin (Swiscoin.com), the difference is literally 1 letter – Swisscoin и Swiscoin. Why? What for? Given that Swiscoin domain was registered 3 months later. This project is promoted by a renowned conman and fraudster Dmitry Naguta (Ukraine), who had cheated Helix investors and then darted at Swiscoin (Swiscoin.com) scam promotion.
Conclusions of the investigation: - lack of a decentralized control system (all pseudo-coins are tied to one founder and its website, while a centralized system has a center – owner); - complete lack of understanding of the principles and basics of the real Bitcoin cryptocurrency (a deliberate lie), although it is this financial tool that is being imitated; - lack of anonymity (verification), cheating on the part of "insurance-deposit", lack of security mechanism for users; - lack of state (financial) regulator, including for control over "insurance-deposit"; lack of register as such (supervised by an independent party), lack of state (financial) regulator over the compliance of the number of coins to the actual "insurance-deposit" (not available at the moment and in the future); - lack of technical description and actual mining (pre-mining) of this fork-currency; complete absence of peer component; - deception on the part of reliability and the Swiss origin of Swisscoin pseudo-cryptocurrency; - cost of 1 coin is not determined by the market, but by a centralized system (scammer website), lack of purchasing power, lack of financial movements outside the centralized system (apart from the scammers and their clients, the coins are of no interest to the outside world), lack of Swisscoin trading on the biggest crypto-currency exchanges (something that can raise the cost of fork, the meaning of Fork or Fork cryptocurrency); - non-market value of Swisscoin; the value is artificially set by owners (center); this parameter will persist; the owner set the cost of 1 Swisscoin at the start (the cost was set, rather than being defined by a mining system or exchange interests for buy/sell on the international crypto-currency exchanges), which is called self-quatation; - under the charter, Euro Solution GmbH is not a company that deals with finances, electronic currency, or cryptocurrency; it provides consultation and sells goods; - Swisscoin is actually not a Swiss, but a German company (not legal but actual address), registered in Germany (ELSTERTONIC UG); - it is a clone of OneCoin financial pyramid (convicted of fraud and currently experiencing problems with the obligations to investors); - there is every reason to believe that Swisscoin originates from the CIS; - Euro Solution GmbH’s authorized fund (that by which the company stands by its words before the community) is limited to CHF 20,000, although, by all accounts, there has been sold more Swisscoins, meaning that Swisscoins are not secured in reality; Euro Solution GmbH has no statutory fund to meet these obligations; it is an illiquid company (i.e., bankrupt).
Active actions against Swisscoin financial pyramid (swisscoin.eu): The Profit Public Organization of Active Investors plans to undertake the following actions against the Swisscoin pseudo-cryptocurrency (swisscoin.eu) financial pyramid:
- informing law enforcement agencies and prosecutor's offices in Germany and Switzerland on the scammers’ activities - informing the authorities and law enforcement agencies in Germany and Switzerland as regards to the financial pyramid creation and money laundering - informing tax and fiscal authorities in Germany and Switzerland - collection and publication of data about the creators as part of transparency policy and information support of investors of this financial scam - other actions not to be publicly disclosed but aimed at cessation of scammers’ operation - work on information support and formation of the correct (true) image of fraudsters in the media and social networks - distribution of information about the nature of financial pyramid, including through investigations and previously published materials