Pipcoin, a South African based “cryptocurrency” project, has been a major point of contention over the years. In this review, we look at the controversies surrounding pipcoin and highlight why the project is most likely a scam.Who is Behind Pipcoin?David Schwartz and Ref Wayne Nkele founded pipcoin in 2016. Very little is know about Schwartz while there is a lot of information Wayne Nkele.Ref Wayne is a forex trader from South Africa, who calls himself a self-made billionaire. Further, Wayne Nkele has made several appearances on South African television and radio stations to promote his company, African Forex Institute.African Forex Institute is a South African forex trading company that claims to train people on how to make money through online trading. He started this company on the back of his popularity and large social media following. The company promised to make people millionaires through its paid events and groups. Unfortunately for Wayne, his business model that had also been made popular by Sandile Shezi of the Global Forex Institute was clamped down upon.It was alleged that although these trainers charged for a premium membership, their content came from free sites that charged absolutely nothing. At this point, Wayne had to move into a new industry. He entered the cryptocurrency industry, which was rising in interest and popularity in 2016.As of 2016, South Africa was part of the top ten countries with the highest search volume for the keyword bitcoin. Later in 2017, South Africa became number one on the same metric on Google Trends .With the growing interest, Pipcoin became extremely popular.How Does Pipcoin Claim to Work?Pipcoin describes itself as a “cryptocurrency” that provides an investment opportunity that pays interest every month. The project promised up to 35 percent of interest every month to individuals who bought the “cryptocurrency”.The “cryptocurrency” was launched without any blockchain or code to back up its existence and creation. Pipcoin gained a lot of popularity due to its outlandish claims, making it a very popular crypto-related investment. Below is a video of an interview of Wayne on SABC, a big television network in South Africa. It’s growing popularity in 2016 to late 2017 can also be seen via Google Trends data from 2016 to 2019 on the search trends for the keyword “Pipcoin” in South Africa.To use pipcoin, users have to go to the project’s website and purchase coins on the website. The “cryptocurrency” has no wallet and is not traded on any exchange. If you invest in pipcoin and you want to sell your coins, you will have to sell it on the same website to other people who are interested in buying it. Why Pipcoin Is Likely A ScamPipcoin has all the markings of a classic Ponzi scheme. First, Pipcoin guarantees that your investment will grow at least 1 percent every day and up to 35 percent by the end of the month. There is no clearer red flag than that!Secondly, Pipcoin lacks the features of all legitimate cryptocurrencies. The project has no code backing it, no working blockchain explorer, no mobile or desktop wallets, and no exchange support. Initially, Pipcoin had no record of its “blockchain” until it launched pipchain.com, its version of a block explorer that never worked as it was supposed to.The block explorer has no records of pipcoin transactions. Instead, it contains records of bitcoin transactions. It seems to be a forked version of blockchain.info’s block explorer with all bitcoin words, changed to pipcoin as pointed out by a Reddit user .Another important detail about pipcoin is the unavailability of an inflation model or coin supply information. What’s more, there is no information on how new coins are created. Currently, several investors in pipcoin cannot access their coins or money since the project website is down and cannot be accessed. A visit to their website will redirect you to a domain sales page. This would suggest that its founders have exit scammed their users. List of Red FlagsMakes claims of impossibly high guaranteed monthly returnsClaims that investors cannot lose their investmentThe company has failed to pay investorsThe technical details on the project are sketchyIts website is offlineAvoid the Next PipcoinWhile you cannot technically refer to something a scam until a court of law rules it as such, everything points in that direction for this South African “crypto” project.The story of Pipcoin should act as a cautionary tale for other projects that show similar characteristics. We urge readers to stay away from such investment schemes to avoid losing money. The post Is Pipcoin a South African Scam Coin? appeared first on BitcoinAfrica.io .BitRss.com shares this Contents with License.