Pipcoin Crypto Currency – Scam Exposed by Confidante
One of my Facebook friends invited me to this interesting website – mypipcoins.com – that promised to make investors rich through a new pipcoin crypto currency.
Naturally, I don’t really have interest in get-rich-quick schemes anymore as I have seen too many of my friends lose money as the schemes crumbled right in front of their eyes. However, what attracted me was the fact the pipcoin Crypto Currency origin is from Africa, South Africa in particular.
I decided to register because I wanted to see how the pipcoin crypto currency worked and check if the crypto currency was real.
I was disappointed to find that pipcoin was far from being an opportunity to escape poverty for Africans as one of the crypto currency founders, Ref Wayne, claims in his promotional videos.
After scrutinizing their website, doing a bit of research and trying to buy a few pipcoins, I concluded that pipcoin is not a crypto currency. Rather, pipcoin is a bogus digital currency created out of thin air to defraud and scam gullible members of the public who believe in get-rich-quick schemes.
After reading this blog post you will understand why I concluded that the mypipcoin crypto currency and mypipcoins.com website are nothing but an elaborate Ponzi scam designed to swindle investors out of their hard earned cash.
1. How Does Picoins Crypto Currency Work and How to Acquire Pipcoins
To get started with investing or trading in pipcoins you must create an account at mypipcoins.com and then set up your banking details and bitcoin address if you already have one.
If you’ve been a member of MMM, then it should be simple for you to navigate mypipcoins.com website because the websites’ back office is a copycat of Sergy Mavrodi’s MMM.
To buy the pipcoin digital currency, simply click the “Buy Invest” button under the main dashboard platform. A popup dialog box will appear. Specify the number of pipcoins you want to buy and type in your security code, then click OK.
After clicking OK, a ticket will be created at the bottom of your back office until the system matches you to a pipcoin seller.
While you are waiting for the system to match you to a seller, the number of pipcoins you are in the process of buying will be shown under the ‘pipcoin’ menu. The system will indicate that your pipcoins have not been confirmed yet. However, your pipcoins will be earning daily interest.
Once a seller is found, an order with banking details of the seller will be created. All you have to do is check the bank details of the seller and deposit the required amount of money at the bank or through an EFT, then load proof of payment on the system.
Once the seller confirms receiving the funds on the system, the system will indicate that your pipcoins have been confirmed.
The number of pipcoins you have bought, or are in the process of buying will be shown in a blue colour under the ‘pipcoin’ menu, indicating that they are not available for withdrawal. When your pipcoins are available for withdrawal their colour will turn green. According to the administrators, people will be able to withdraw their pipcoins at least 30 days after creating an order.
2. Benefits of Buying Pipcoins
According to the mypipcoins website, one of the benefits of pipcoins is that you can buy them at a low price and sell them at a higher price. And the reason you will sell pipcoins at higher price is because as more people join mypipcoins websites, the demand for pipcoins will grow and eventually result in the price increase.
The website says that you can also benefit because you are using your computer’s central processor to automatically mine (search) for more pipcoins in the servers. As result of this mining, your pipcoins, or your pipcoin value grows.
The problem is that the website doesn’t explain exactly how your computer’s central processor mines or searches for these pipcoins. The reason the website gives for not explaining is that it is too complex for the average person to understand it. Could the real reason they can’t explain be that no mining of pipcoins actually takes place? You be the judge of that claim.
The table below shows the expected growth of your money should you decide to invest or buy pipcoins.
3. Pipcoin Founders
According to mypipcoins website, the founder of pipcoin cannot be attributed to a single person as the system is backed by a team of professional software developers. However, the following individuals were singled out:
1. David Schwartz is credited for the inception of the idea of pipcoin digital currency,
2. Ref Wayne Nkele is responsible for developing the mathematics and algorithms that enable the pipcoin system to work.
It was difficult to perform a quick background check on David Schwarz as there are too many people named David Schwarz that show up on Google results.
Fortunately, Ref Wayne Nkele has a LinkedIn profile. In his profile, he describes himself as a 21 year old Executive Chairman at African Foreign Exchange Institute. He states that he has a Master’s Degree in Forex Trading obtained from DIY University.
What I found bizarre is that his LinkedIn profile does not include coding or software development experience, skills or studies. Something about his lack of software development skills and the role he claims he played in developing the pipcoin crypto currency just does not add up.
Ref Wayne seems to be leading the advertising campaign for pipcoins through a few promotional videos on the internet. He was the main presenter as well when pipcoin was launched in Durban on the 13th of February 2016.
In one of his promotional videos he claims that one of their pipcoin developers used to work for Google, and another highly skilled developer used to work for Facebook. However, we won’t know for sure if this is true as these software developers want to remain anonymous.
Video Below: Some pipcoin founders and beneficiaries subtly mocking pipcoin investors.
4. What is a Pipcoin?
According to the mypipcoins website, pipcoin is one of Africa’s first crypto currencies that is decentralised and completely without a middleman.
Fact: It is a pure lie to say that pipcoin is decentralised. Pipcoin is not decentralised, but the opposite is true. Pipcoin is highly centralised because the only way to buy Pipcoins is through their website. You can’t buy pipcoins from any other crypto currency exchange, other people or even your friend. Additionally, you cannot access your pipcoins any other place than through their website.
The pipcoin website states that Pipcoin has some similarities with Bitcoin, but it is unique and better than Bitcoin because pipcoin serves as a payment getaway for ecommerce websites, supposedly meaning that you can use pipcoins to make online payments at some ecommerce websites.
Fact: You cannot buy anything from any ecommerce website with pipcoins. The way the system is set up, it doesn't allow for it to happen in the future, whereas with Bitcoin, you can buy from hundreds, if not thousands, of online and offline stores.
The pipcoin website states that pipcoin serves as an investment tool as well because by buying and trading in pipcoins you’ll make money as the price of Pipcoins is predicted to increase at 35% per month due the expected increase in demand for pipcoins in future.
Fact: It is misleading to say that the price of pipcoins will increase by 35% per month because of supply and demand. In a true demand and supply scenario, the price can go down or go up. However, I am fairly certain that the price of pipcoin will increase by 35% per month over time, not because of supply and demand, but because the website administrators control the pipcoin, meaning they can set value of the pipcoin at whatever price they want.
5. Where Did the First Pipcoin Sellers Obtain the Coins as the System is New?
According to the pipcoin website news, savvy members of the public have asked the following pertinent question:
“How is it that there are sellers but the system is new? Who are these people and how and where did they get the coins to sell?”
In answer to the above question, the administrators say that the sellers of pipcoins acquired them in the following manner:
1. The people who tested the pipcoin system invested a lot of money into the development of the system, as a result they acquired pipcoins worth about 5 million Rands,
2. People who were providing service to the company such as miners, programmers and administrators were paid with pipcoins.
Although, I don’t believe this explanation, let us assume it’s true for now. It still does not explain how the company itself acquired the pipcoins that it used to pay its employees and contractors. My guess is that the company simply decided how many pipcoins they wanted to have and made the number up. Remember that the company controls everything about pipcoins and no one can check how they created the R 12 000 000 worth of pipcoins that are on the system.
6. Is Pipcoin Really a Crypto Currency?
When Pipcoin was launched on the 13th of February in Durban, 2016, it was claimed that it is an African Crypto Currency. However, the characteristics of the pipcoin does not support that contention. Evidence obtained from using mypipcoin.com website strongly indicates that the pipcoin is not a crypto currency, for example:
· The only way to store and access your Pipcoins is through mypipcoin.com. As a result the pipcoin currency system is highly centralized, meaning there is a central point of control of the supply of pipcoins by the administrators.
· The only way to sell your pipcoins is through a buyer randomly selected by the mypipcoin.com website system. You cannot sell or transfer your pipcoins to your friend or family members. Which ultimately means you don’t really own those pipcoins.
· Real crypto currencies have wallet addresses which you can use to receive the coins from anybody. Pipcoin does not have wallet addresses.
Read the Centennial of Coins Review to find out if you can really make money with this pyramid scheme.
It should clear to anybody who has used bitcoins in the past that pipcoin is not a crypto currency. The pipcoin is just a convenient way to represent the amount of money participants have invested in the website. Pipcoin works in a similar fashion as Kipicoin in KIpi Mydeposit241, and a Mavro in Sergey Mavrodi’s MMM.
Finally, the de facto way to determine if a coin is a real crypto currency or not is through their blockchain.
This is because all genuine crypto currencies must have a blockchain. For those of you who don’t know what a block chain is, a block chain is a public ledger of all coin transactions that have ever been executed. Below, see an example of a proper and genuine blockchain transaction that is available for any member of the public view. Not a single pipcoin can be verified in this manner.
The block chain enables the proof of work to be carried out. The crypto currency transactions must be verified by at least three independent sources, that’s how the bitcoin and other genuine crypto currencies function.
Essentially, if a coin does not have a blockchain associated with it, then it is not crypto currency, and because the pipcoin does not have any blockchain associate with it, the coin cannot be classified as a crypto currency.
7. The Good and the Bad about Pipcoins
7.1 The Good Stuff about Pipcoin
1. A low percentage of pipcoin investors will make money from their investments provided the scam is kept going for a few months. People who are likely to make money are the early investors provided they can control their greed and make withdrawals before the scheme collapses.
2. If you're good network marketer, you will make a lot of money by driving masses to the scheme. This is because the scheme is very easy to sell as it has been cleverly marketed to appeal to peoples emotions, mainly greed and the feeling of helping out community members.
3. The scheme has been broadcast on national television. This makes it appear as a legitimate program to the public and hence easy to recruit more members and make good money if you're a good networker.
4. People will learn the hard way that get rich quick schemes don’t work in the long run. Experience is the best teacher.
7.2 The Bad Stuff about Pipcoin
1. The company has promised that it will soon be issuing a debit card. Promising to issue a debit is an old trick used by fraudulent companies to create a false sense of trust and legitimacy to unsuspecting investors.
2. The transfer of pipcoins is verified by one sources, instead of 3 independent source as is usually the case with legitimate crypto currencies with a blockchain.
3. Pipcoin is not a crypto currency. The currency is worthless and useless in the real world.
4. From watching promotional videos and going through their website, one can tell that pipcoin owners are serial liars and will scam your cash out of your pockets.
5. The scheme is extremely high risk and the chances of losing your money are very high. Over 95% of participants will lose money.
6. You will feel like a fool after watching the scheme collapse within a few months and realising that you have been duped.
7. Huge buying orders will be manipulated, they will be forwarded to the system owners, colleagues, friends and family. Remember, they control the system, so they can manipulate it in any way they deem fit.
8. If you invest huge amount of money, say R30 000 to R150 000, then you can be 99% sure that you won’t recover your money.
9. If you’re good network marketer and have attracted a lot people to this scheme, then expect to be blamed for leading people to a slaughter house when the system collapses.
10. By the time the majority of people read this article, it will be too late recover their investments.
8. Is Pipcoin a Front for a Fraudulent Scheme?
Mypipcoins is clearly a Ponzi scam and many of the participants will be left with broken hearts when the scheme collapses.
There are too many tell-tale signs of a scam occurring. The marketing of the pipcoin is designed to appeal to people’s emotions, such as making people feel like they are contributing to making world a better place, for example the phrases “Help a Child”, “Become part a helping community”, “It start with you”, etc… are used throughout their website and promotional material.
They also use wording similar to ‘get-rich-quick' scheme lines such as “Pipcoin will create over a 100 millionaires by the end of this financial year”. These are revealing signs of a fraudulent scheme.
Moreover, pipcoin is a closed system, you cannot trade with anyone other than randomly chosen people registered on the website. Their blockchain is not public or transparent, in fact, they do not have a blockchain and, if they do have one, then it is not operational.
Since we have established that pipcoin is not a crypto currency as they have claimed, it means they can produce as many pipcoins as they want to sell to the public. With this, they can issue the pipcoins to whomever they want. The first people who will benefit from the issuing of pipcoins is their administrators, managers, employees, friends, families and relatives.
Remember, for the first 30 days, new participants will not be able to sell their pipcoins as they will be frozen. So you will be buying your pipcoins from the owner’s friends and family. They will be providing you’re with their multiple bank accounts for you to deposit the money for worthless pipcoins.
So yes, yes, and yes, mypipcoins.com and
9. Alternative To Investing in Pipcoin
If you want to invest in a digital currency, then invest in a real cryptocurrency - Bitcoin. Experts believe bitcoin has a bright future; its price is expected to skyrocket in the next few years.
Therefore, making bitcoin part of your investment portfolio is a great investment strategy. You can invest in bitcoins by buying them
To avoid costly mistakes made by newbies to the world of bitcoin, it maybe a good idea to register for one of many structured and cheap bitcoin videos courses at Udemy. Search for bitcoin courses offered by Ravinder Deol, who in my opinion, is the best bitcoin trainer and offers the best value for money
Alternatively, you can try one of my favourite methods for profiting from forex trading - eToro Copy Trading. You can use it for investing in forex by automatically copying top traders.
eToro has thousands of professional forex traders from which to select a trader to copy.
To learn more about automatically copy other professional and successful traders, check this post on how to profit from forex trading without any forex trading knowledge or experience.
UPDATE - 13 JULY 2016
Ref Wayne's SCAM EXPOSED by his Confidante Thulani Maphiliba [Click to read]
Those who are not lazy to read...I thought I should share ....
Ref Wayne is a scam artist and PipCoin is a scam.
I'm so sad to share this with my fellow Africans but if I don't do it now... many more lives will be destroyed and more money will be lost and families will be destroyed.
All of you know by know that I have been talking about a syndicate that has been trying to silence me to an extend whereby I was threatened and my emails and Facebook accounts was hacked. Well all this time I've been silence cause I had to wait for the right time. But that time has come. Ref Wayne and a selected few are the ones behind all the threats and the hacking of my accounts. This was after I had a very long meeting with him and those behind PipCoin scam where I informed them that I had gathered enough information and facts that they were robbing unsuspecting citizens of their hard earned money. I have solid proof that the lavish lifestyle and all the spots cars a house and atc that Ref owns is not money made from Forex but rather it's the money that people have invested in PipCoin that he uses to maintain his lifestyle. And by the way not everything he has claimed to own is true.
1• there is no private Jet it's all a lie.
2• He only owns one property in Fourways that he bought with your money just recently.
3• The current house that he lives in at Willowbrook is a rented house.
4•PipCoin has no servers - only his laptop and that of his cofounder whereby they control everything and yet claim that the system is decentralised (not true).
5•PipCoin is not a cryptocurrency but an illusion sold to people to convince them otherwise. If you can look closely - PipCoin was just a copy of MMM Just with a few adjustments added to it.
Now how did he direct all your monies to his accounts. They have multiple bank accounts with different names and this are his syndicate that moves the monies on his behalf. And eventually the money ends up on his personal bank accounts. I already have two people that have come forward and are willing to testify that their accounts were also used to ship money around. His greatest skill was to play on people's emotions by promising them everything for free (well if you think it was for free, then ill tell you now. It was all paid for from the money that you all have invested in the PipCoin scam. The car that was bought for Mr Bayanda Gobingca was only to win your hearts and to get you all exited, since after that many people flocked into PipCoin scam hoping for financial freedom not knowing that they were giving away their monies for which I was one of them that got excited. The only people that have received free cars from him are mostly his family members and everything else was an illusion sold to you. If you have received any car or house from Ref Wayne then let me see your hands up. I bet you not even one hand will go up. Last person that was told he won a house, to this day he is still calling and his calls are ignored as someone annoying (sad to say). This young man is not intelligent no - he is a scam artist and very wicked. For your information the claims about the Ref Wayne Shaman fake account (he is behind it). And the reason why he fake his own account was to maintain and illusion that he is an angel and eventually he was going to use that as an excuse why PipCoin has collapsed. He claims to be the youngest - well the anti corruption unit is about to expose that lie too. This man and his confounders have stolen from you. They have defrauded you and made a total fool of fellow South African. And I Thulani Maphiliba (The Chosen One) am saying enough is enough. I am now coming forward because I have gathered enough evidence and prof his crimes and lies. I'm sorry to the people that have lost money to this scam but I have to make sure that from today. No body else loses money to this young fellow Ref Wayne. As a Matter of fact I have already opened a case of fraud with the anti fraud unit and I was permitted to make this public announcement. I'm totally Heart broken - I thought finally this was going to change live. But I was wrong - it is destroying live. And it has to end now. If I die tonight - so be it. I have served my purpose. It's all in your hands now.
They tried to shut down my Facebook account so that the truth doesnt come out, but it is now.
Ref Wayne's Facebook response to accusations by his Confidante [Click to read]
There is a lot of things I can mention about this fraud, maphiliba. However, my ethics and good heart do not allow me. But just a brief.
1. He is VERY dangerous and manipulative (look I even allowed him to use my cars and bank cards) he appears to be a victim. He is very emotional and likes crying like a very small baby.
2. He is a FRAUD. This man got me thinking that he is an attorney . While away to Asia, he successfully changed my cars ownerships in his names and I onl...y discovered when I got an email that says my insurance is cancelled and him saying " thank you for the car sir " .
3. He has a STRONG criminal background and was in jail for a decade and released in 2012. I confronted him about this and he saw that it's GAME OVER.
4 . He claimed to me he is a business partner to Carolyn Steyn and also close to office of public protector. Complete false, this I found only later as well.
5. He works with Billcoin. I found out about this when pictures that were only taken by him were published on the page and I knew long ago already that this man is not trustworthy.
6. I took away my bank card from him as I left for Asia and said he must park my car, instead of doing that, no he goes to my house and takes a very serious amount of money.
7. the only reason his doing this is because I said I will expose him but he thought quicker to post all this nonsense.
8. He has ran away and moved away from his house.
Allegations: well, he is playing very dirty and full of mind games. Pipcoin can not operate from a laptop as it's illogical (where is your data stored?) . This is an angry man and partners who failed to take us down.
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