The Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), has clarified the distinct nature of cryptocurrency and fraudulent Ponzi schemes.
In a statement signed by its President in Abuja, Mr. Obinna Iwuno, SiBAN emphasized unequivocally that “Ponzi does not exist because of crypto. Crypto is not synonymous with Ponzi. Crypto is not Ponzi. Crypto is not a scam. Crypto has never been a scam.”
The statement acknowledged that while some individuals may exploit the burgeoning interest in cryptocurrencies for illicit activities, this does not equate crypto itself with fraud. “But are there people who are using crypto for scams? Yes, right?”.
Mr. Iwuno in the statement cautioned against unrealistic financial promises, highlighting that claims of doubling investments within short periods, such as 30 days or offering 100% returns, are “crazy and a very wild claim to make.” He attributed susceptibility to such schemes to “poor judgment” and a “lack of financial education,” a problem prevalent in Africa and globally.
“What lures people into Ponzi is the promise of financial returns, huge financial returns, which is directly tied to greed and ignorance,” Mr. Iwuno explained.
He further noted that the underlying tactic of Ponzi schemes remains consistent, adapting to current trends to attract victims. “The era of using money like MMM has passed. People are no longer falling for that. If it is Forex that is trending, they will use Forex. We’ve also had issues with Forex where we had forex platforms where people lost money. So the target is, what is it that people are interested in that gets their attention for financial return, or what’s the card, what can they use to sell the story of huge financial returns that people will believe in and that’s what they use.”
SiBAN, under the leadership of Mr. Iwuno, remains committed to promoting blockchain technology and digital assets through education, advocacy, and the fostering of a secure and compliant ecosystem within Nigeria. The association urges the public to exercise caution, seek financial literacy, and conduct thorough research before engaging in any investment opportunities.
‘As a matter of fact, it is public knowledge that SiBAN is working with many platforms and communities to properly educate people on blockchain technology, digital assets, and cryptocurrency. This aims to increase awareness, knowledge, and literacy levels, ultimately fostering adoption and mitigating exploitation,” he added.
Meanwhile, the Security and Exchange Commission (SEC) has repeatedly warned against using unauthorized and unregistered platforms for investment.
Disclosing that Nigerians have collectively lost over $1.3 trillion to the recently crashed CBEX Ponzi scheme, the Director-General of SEC, Emomotimi Agama, noted the crucial need for Nigerians to understand the dangers of investing their hard-earned money in ventures not registered or regulated by the SEC.