Zugacoin founder, Sam Zuga, defends currency as expert warns Nigerians against it

After reports that merchants and holders of “Zugacoin” cryptocurrency are unable to make withdrawals, the founder of the Nigerian crypto, Sam Zuga responded by accusing unnamed “ignorant people” of working to tarnish the project. One Nigerian expert has advised prospective zugacoin investors to prioritize learning finer details about the project before investing.

A Financial System for the Future
As promoters of zugacoin — a Nigerian cryptocurrency ostensibly created to end poverty in Africa — continue to tout the token as a legitimate digital currency, there are growing reports on social media of merchants and holders of the coin who have failed to withdraw. These reports have sparked allegations that the project is yet another scam which is cleverly disguised as a complex cryptocurrency project.

The complaints and allegations against the project have, in turn, prompted Archbishop Sam Zuga, the founder of Zugacoin, to issue a flurry of Facebook posts condemning “ignorant people” peddling false information about the project. In one of his recent posts, Zuga said that while he is not involved in cryptocurrency trading, he is “building a digital financial system to fix the future of finance.” He added that he would “automatically earn 200% profit on the amount you transfer”, adding that his crypto will only be used as “a driver for the system into its future”.

Zugacoin Controversy: Suspected Poverty Alleviation Cryptocurrency Slammed as Another Complex Pyramid Scheme in Nigeria

In a lengthy post on August 25, 2022, the founder denies allegations of manipulation within his Zugacoin ecosystem. Zuga’s post also explains how the ecosystem works and why some holders struggle to withdraw. He said:

“The only challenge is the lack of user knowledge. Anyone can conveniently withdraw when there are fewer withdrawals than deposits. The system will not survive. “There is no problem anywhere in the Samzuga ecosystem. You can send money to P2P.”

In an earlier Facebook post, Zuga similarly attacks an unnamed individual he accuses of ignorance and defaming the “noble project.”

Experts Question Project`s Lack of Transparency
However, despite Zuga`s spirited defense of the crypto project, influential players in Nigeria`s blockchain industry told Bitcoin.com News they remained unconvinced. They point to the project`s lack of transparency or its apparent exploitation of Nigerian people`s affinity to religion or their religious leaders as red flags.

One of the players, Ophi Rume, aka “Cryptopreacher,” told Bitcoin.com News that unless the Zugacoin founder reveals the rest of the team behind the project it will be difficult to make a judgment about the project`s legitimacy. Noting that scammers often exploit people`s desperation and ignorance, Rume, a blockchain analyst and educator, said ordinary Nigerians should only consider investing in this project after doing some basic due diligence. He noted:

As basic as searching for the words; Is Zugacoin a scam or a Ponzi scheme via Google, Nigerians can read and learn a lot of things about this project. Also, before making an investment, Nigerians need to know the project stakeholders. I need to know if the board, developer and project are on her Github.

Rume said that if a potential investor learns or learns more about the project, they are likely to keep their meager savings and abandon the investment.

Meanwhile, another expert, who requested anonymity, lamented the increasing use of religious titles by scammers when promoting their projects to unsuspecting victims. Experts say that when a questionable cryptocurrency project is led by a religious leader, people refrain from criticizing it. An expert explained:

“It turns out that no one wants to be seen as a prophet of doom or an enemy of progress when it comes to a large and questionable project like Zuga. He has a following and has used his influence to popularize Zuga.Think Inksnation.”

For his Paul Ezeafulukwe, former president of the Nigerian Blockchain Technology Association (SIBAN) stakeholder and his leader of the Bitget Africa team, Zugacoin is the most volatile cryptocurrency and has completely broken its promise. virtual currency. Some of the promises include claims that cryptocurrencies will help end poverty and reduce Nigeria’s debt.

“Another promise they made, like Moonlight Tale, is the ability to pay off Nigeria’s $97 billion worth of national debt and help Africa pay off its debt. It is clear that promoters have been sold the lie that their ability to create tokens could bring immediate monetary value without building an ecosystem to support the utility of the tokens. I think,” he explained to the former SIBAN leader.

Ezeafulukwe said he regrets that some poor and gullible individuals have invested in his Zugacoin because of these promises. For investors who are still thinking about buying Zugacoin, Ezea Fulukwe said, “Look at these two promises of his [poverty eradication and debt repayment in Nigeria] and see if these are being fulfilled by his one person. We need to do a simple survey to see if there is.”