Billcoin Crypto Currency – Another African Digital Currency Scam
Another digital currency has been introduced in South Africa. It is called billcoin cryptocurrency.
Ref Wayne Nkele presented pipcoin as the first African cryptocurrency during its launch on the 14 of February 2016. However, according to mybillcoins website, the billcoin is the first African cryptocurrency because it was created in 2014.
As you read this blog post, you will see that it does not matter which came first as there is no evidence supporting the claim that either of them is a cryptocurrency.
The administrators of the billcoin define it as follow when promoting it: “Billcoin is a peer-to-peer program online where you buy billcoins from R150 up to R 200 000 for now.”
They go on to say that the value of the billcoin can grow at any time due to high demand and that buying a billcoin will result in the investor earning compounded interest of 40% per month as shown in the table below.
Although they also refer to the billcoin as a South African Crypto Currency, at the moment, the billcoin is only useful for trading on mybillcoins.com website to earn 40% interest per month while holding it. Outside of the website, the billcoin is pretty much useless and worthless as you cannot do or buy anything with it.
1. How to get started with Billcoins
To get started, follow billcoin registration link to the website and click ‘register’ on the menu. Then type your personal details in the form. The following information will be required:
· Name and surname
· The number of billcoins you want to buy
· How long you want to invest your billcoins
· Your ID or Passport number
· Your phone number
· Your email address
· Your residential address
· Your preferred payment method
· Your banking details
After filling in, all the detail submit the form, and you will receive instructions with bank details where you should deposit funds. You will be given access to the systems back office once you have deposited the funds.
2. My Experience with Billcoin
I registered for Billcoin on the 12th of March 2016. I wanted to buy 120 billcoins, at a price of R150 per billcoin, so 120 billcoins would cost me R 18 000.
What worried me about the registration process is that my ID or Passport numbers were required. I don’t understand why they would want ID or Passport numbers as mybillcoins is an online scheme that is not registered with any official financial institution. Moreover, nobody knows who owns the billcoins website, the details of the owning individual or company are hidden.
I was not comfortable about handing over my ID numbers to unknown people over the internet. As a result, I used incorrect ID numbers. I then proceeded to complete the rest of the required personal details, including cell numbers, email address, and bank details. Then I clicked the submit form button.
I was hoping that the system would take me to the back office where I would be able to see billcoins I was in the process of buying.
Instead, I go a message stating that I will get access to my back office once I have paid for my billcoins. The message stated that the system will send an SMS with banking details of a billcoin seller to my phone within 24 hours.
Unfortunately, a day went by, then 2 days, eventually a week passed without receiving anything. I never received the message with banking details of the seller so I could deposit the required R 18 000. I concluded that I never got the message because I provided an incorrect ID number. But I will never know for sure; it could have been for some other reason.
3. Is Billcoin a Real Crypto Currency?
A standard feature of all legitimate cryptocurrencies is a blockchain. If a coin does not have block chain, then it is not a cryptocurrency. The question is does billcoin have blockchain. On their website, a diagram purports to show billcoin mining process and block chain (Exhibit 1 below).
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However, besides the diagram, there is no evidence to support the existence of a blockchain or a network that validates billcoin transactions independently.
In fact, the website does not have much to say about billcoin cryptocurrency, and it's processed work. The only thing the website seems to focus on is get-rich-quick language and how you can help others financially. The website uses terminology favored by snake oil salespersons and conmen.
The billcoin does not have a wallet address for sending or receiving purchased or sold coins; does not have a blockchain, and cannot be bought by any cryptocurrency exchange except mybillcoins website.
Therefore the billcoin is not a cryptocurrency. It is just a clever means to attract investors to a fraudulent Ponzi scheme. The problem with this kind of Ponzi scheme is that almost all of the deposited money will be channeled to the administrator's bank accounts, instead of the intended recipients, that is billcoin investors.
4. Who is the owner of Billcoin?
According to billcoin website, billcoin is owned by some people. However, the Chief Executive Officer (CEO) of billcoin is Nomandela Faith. The problem is that Google does not yield any results for the search ‘ Nomandela Faith’. In the absence of more details like a photo, LinkedIn or Facebook page, we have no way of knowing if the so-called Nomandela Faith exist or not.
To obtain more information about the owner, I checked out scamner.com, a free security service made out to rate the online reputation of a website. The aim of the website is to identify fake online shops and scam websites from legit ones.
According to scamner, the owner of the billcoin website has purchased a service to hide his true identity.
It goes to show that this not a real business. Owners of real businesses do not hide their identities. People who run pyramid schemes and Ponzi schemes tend to hire their personalities because they know that the schemes will soon collapse.
5. Is Billcoin a Scam?
Billcoin's main draw card is the 40% investment interest and the promise that the value of the cryptocurrency can grow from R150 per billcoin to R1 000 per billcoin due to supply and demand.
The website comes across as a typical community mutual assistance site such as MMM Global and promises to pay investors 40% compounded interest for buying billcoins. So they are essentially copying and using Sergey Mavrodi ideology and principles to promote billcoins.
The problem is that billcoin business foundation is based on a lie; that is billcoin is a cryptocurrency. If their business foundation is built on a lie, then it is most likely that everything else they say about billcoin investment in their website or social media is also a lie.
I suspect that most investors know that billcoin is not a cryptocurrency, but they buy it anyway because of the 40% compounded interest promised.
However, if an organization lies about how its scheme operates, then it is likely to lie about how the billcoin investor’s funds are channeled.
Therefore, the chances are extremely high that most of the funds deposited will be going straight to the bank accounts of the billcoin website owner.
Greed drives people who invest in these types of Ponzi schemes. What they don’t realize is that the greed of the administrators of these scam websites is far bigger than theirs. These website owners want to get extremely wealthy at all costs, and so they will try to channel most of the investor’s funds to their personal bank accounts.
A lucky few early investors will be paid with the intention of attracting, even more, investors. However, most investors will lose money, especially those who contribute huge sums.
Just like pipcoin, billcoin is a fraudulent Ponzi scheme and not a cryptocurrency.
Are you a member of billcoin? Has the website paid you or have you lost money? Please share in the comment section below, or if you have a question go ahead and ask.
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