Crypto currency
Bitcoin ban could backfire on Pakistan
Pakistanis were third biggest crypto adopters in 2021, pumping up digital currency holdings to more than central bank’s foreign reserves
Pakistan’s central bank has proposed a ban on all forms of cryptocurrency, saying the risks involved in trading Bitcoin, Ethereum and other crypto coins far outweigh the potential benefits.
The State Bank of Pakistan’s (SBP) “risk-benefit analysis” committee, constituted under a High Court directive, recently announced that cryptocurrencies were depleting national foreign reserves and encouraging illicit financing.
The body, comprised of representatives from the Ministry of Finance, Information Technology, Pakistan Telecommunication Authority (PTA) and Security and Exchange Commission of Pakistan (SECP) recommended a complete ban on virtual currencies and other related activities in Pakistan.
India, which has the second-highest crypto holdings worldwide, is moving in the same direction and plans to ban most cryptocurrencies as part of a proposed Cryptocurrency and Regulation of Official Digital Currency Bill, likely to be debated in the parliament’s winter session. The legislation aims to establish a framework for an official digital currency to be issued by the Reserve Bank of India (RBI).
However, Pakistan does not plan to introduce its own official digital currency to replace existing digital money. Instead, authorities intend to ban all forms of crypto, with proposals on the table to block even the websites dealing in cryptocurrencies.
The SBP committee believes a clampdown is necessary because existing laws governing electronic crimes, foreign exchange remittances and anti-money laundering lack provisions for criminalizing the misuse of cryptocurrencies.
Business leaders, blockchain experts and crypto influencers have countered with a proposal for a digital currency regulatory framework. A blanket ban, they claim, would backfire badly and further damage the economy, which is already in tatters.
Karachi Chamber of Commerce and Industry (KCCI) former president Majyd Aziz told Asia Times that the government’s mindset of imposing bans to deal with emerging risks was highly flawed. “The authorities seldom figure out the outcome to analyze the risks and benefits of such an action,” he said. “You cannot ban digital currencies before evaluating its impact on the huge investments people made in the digital economy.
“In my opinion, there is an imperative need for an International Cryptocurrency Regulatory Authority that could run the crypto-related activities in the country. We do not need to ban crypto because the people would still invest in digital currency despite a ban,” Majyd added.
At the same time, he echoed regulators’ concerns in warning, “Greed and lust for fast bucks always result in big-time losses and I pray that cryptocurrency investment may not become another Ponzi scheme.”
Opinion is mixed, however.
Waqar Zaka, a prominent crypto influencer with related online platforms with over four million followers, recently tweeted, “There are minds who are claiming that 20 billion dollars {had} left Pakistan because of Crypto, incorrect. When there is Hundi {system in place}, why {would} anyone want to be on {the} FATF radar? By the way, Facebook {and} YouTube ads are dragging out more dollars from a country where a majority still have no idea about crypto.”
Federation of Pakistan Chamber of Commerce & Industry (FPCCI) estimates total cryptocurrency investments in Pakistan at US$20 billion, or more than the country’s total foreign currency reserves now held by the central bank.
A FPCCI policy brief, compiled in late December, underscored the risks endemic in the lack of crypto-related legislation and other digital assets in the country. It also noted Pakistan’s trading and lending partners such as China and the International Monetary Fund (IMF) have both warned unregulated blockchain technology is susceptible to money laundering and other digital crimes.
The report also noted that the Financial Action Task Force (FATF), an intergovernmental body that fights money-laundering globally, has called on Pakistani authorities to better regulate its crypto industry, as most investors currently use a peer-to-peer (P2P) crypto investment mechanism that renders crypto assets almost undetectable.
Chainalysis, a blockchain data platform that provides data, software, services and research analysis, reported in October last year that Pakistan recorded 711% growth in crypto-related investments during the 2020-21 fiscal year, even higher than India’s explosive 641% growth.
The robust growth in digital currency holdings has made Pakistan one of the most robust crypto markets outside of Europe and the United States, with Chainalysis ranking the country third on its Global Crypto Adoption Index for the year 2021.
Chainalysis opined that Pakistan’s actual crypto holdings could be even higher than the official estimates because many citizens purchase bitcoin through P2P deals, which mostly remain undocumented.
Meet TripleA, a cryptocurrency and blockchain technology outfit, estimates that over 9 million people, or 4.1% of Pakistan’s total population, currently own cryptocurrencies. The firm claims that interest in Bitcoin, judging by online searches and other measures, has risen following the government’s discussion of new cryptocurrency regulations.
Meet TripleA said that despite Pakistan’s surging interest in cryptocurrency, the country’s potential was is being hampered by low banking penetration and limited proof-of-stake (POS) terminals for processing transactions and creating new blocks in a blockchain. Even so, the outfit said the bitcoin market is a “fast-growing sector of the economy.”
Regulatory screws are already tightening on crypto-trading platforms. Last week, Pakistan’s Federal Investigation Agency (FIA) said it approached Binance Holdings Limited, one of the world’s biggest Bitcoin hubs, as part of an investigation into a suspected $100 million scam.
The agency claimed that several thousand Pakistani investors had been cheated through “fraudulent online investment mobile applications” and money transferred to at least 26 suspect Binance blockchain wallet addresses. The agency directed Binance to give the details of these blockchain accounts and mark a lien on the funds.
Soon thereafter, FIA director-general Sanaullah Abbasi said during an SBP briefing in Karachi on January 15 that the agency would soon block websites dealing in cryptocurrencies to prevent fraud and possible money laundering.
The meeting was informed that there was no section of law available in the Prevention of Electronic Crimes Act 2016, Foreign Exchange Remittance Act 1947 (FERA) or Anti-Money Laundering Act 2010 (AMLA) to criminalize the misuse of cryptocurrency.
The meeting also observed that there was no regulatory framework for virtual asset service providers to comply with FATF requirements.
China, Bangladesh, Saudi Arabia, Egypt, Iraq, Qatar, Oman, Morocco, Algeria and Tunisia have all already banned crypto transactions, while 42 other countries, including Algeria, Bahrain, Bolivia, India and Pakistan have implicitly banned digital currencies by restricting banks and cryptocurrency exchanges from dealing in the digital assets.
In 2018, Pakistan’s central bank declared that it had not authorized or licensed any individual or entity for the issuance, sale, purchase, exchange, or investment in virtual currencies like bitcoin and others. Digital currencies, SBP said at the time, were not a legal tender issued under the bank’s guarantee.
The SBP not only prevented banks from processing, using, trading, holding, transferring value, promoting and investing in virtual currencies but also advised them not to facilitate their account holders’ cryptocurrency transactions. Now, that regulatory noose will likely tighten into an outright crypto ban.
Telegram
10 Surprising Reasons Telegram Mini Apps Are Redefining Crypto Engagement—Join the Movement Now!
Introduction
In recent years, Telegram Mini Apps have emerged as a transformative force in the crypto world. These lightweight applications, integrated within the Telegram messaging platform, have revolutionized how users engage with cryptocurrencies and blockchain technology. This blog post explores ten reasons why Telegram Mini Apps have taken the crypto world by storm and discusses their implications and prospects for those looking to familiarize themselves with the crypto landscape.
1. Massive User Base
Telegram boasts over 800 million monthly active users, providing a vast audience for mini apps[2][3]. This extensive reach allows developers to introduce cryptocurrencies to a broad demographic, significantly enhancing adoption rates.
2. Seamless Integration
Telegram Mini Apps are designed to work seamlessly within the platform, offering functionalities similar to traditional websites without requiring users to leave the app[5]. This integration simplifies user interaction with Web3 services, making it easier for newcomers to explore crypto opportunities.
3. Gamification and Engagement
Mini apps like Notcoin and Hamster Kombat leverage gamification to engage users[1][3]. By incorporating game-like elements, these apps make learning about and using cryptocurrencies enjoyable, attracting millions of daily active users.
4. Decentralization and Web3 Adoption
Telegram Mini Apps promote decentralization by integrating blockchain technologies into widely accessible applications[4][5]. This alignment with Web3 principles encourages the adoption of decentralized finance (DeFi) and other blockchain-based services.
5. Monetization Opportunities
Developers can monetize mini apps through in-app purchases, advertisements, and tailored notifications[2]. This potential for revenue generation incentivizes the creation of innovative apps, further driving user engagement and platform growth.
6. Secure Communication
Telegram’s focus on privacy and security makes it an ideal platform for crypto interactions[5]. Users can engage in secure transactions and communications, fostering trust in blockchain technology.
7. Community Building
The platform’s community-building capabilities support the development of vibrant crypto communities[6]. Mini apps facilitate direct marketing and engagement with users, enhancing community interaction and loyalty.
8. Payment Gateway Integration
Telegram Mini Apps support integrated payments via Google Pay, Apple Pay, and Toncoin, enabling seamless transactions within the app[5][6]. This functionality simplifies financial interactions for both fiat and cryptocurrencies.
9. Simplified User Experience
By offering a unified interface for DeFi interactions, mini apps make managing investments and trading assets more accessible[6]. This streamlined experience is crucial for attracting new users to the crypto space.
10. Future Prospects
With ongoing innovation in the mini app space, Telegram is poised to become a super-app platform[5]. The continuous development of these apps will likely drive further adoption of blockchain technology among users unfamiliar with it.
Implications for Crypto Adoption
Telegram Mini Apps have significant implications for crypto adoption:
- Wider Reach: By tapping into Telegram’s user base, mini apps can introduce cryptocurrencies to a global audience.
- Increased Engagement: Gamification and community-building features enhance user engagement, promoting long-term involvement in crypto activities.
- Enhanced Security: Secure communication channels within Telegram build trust among users exploring blockchain technologies.
- Simplified Onboarding: The seamless integration of mini apps lowers barriers to entry for new users, facilitating easier onboarding into the crypto world.
Prospects for Getting Familiar with Crypto
For individuals looking to familiarize themselves with cryptocurrencies:
- Explore Mini Apps: Engaging with Telegram Mini Apps provides hands-on experience with various crypto services.
- Join Communities: Participating in Telegram-based communities offers insights into market trends and developments.
- Utilize Resources: Leverage educational materials available within mini apps to deepen your understanding of blockchain technology.
Conclusion
Telegram Mini Apps have undeniably taken the crypto world by storm by providing innovative solutions that enhance user engagement and simplify interactions with blockchain technology. As these apps continue to evolve, they hold immense potential for driving widespread adoption of cryptocurrencies and introducing new users to the dynamic world of Web3.
Citations:
[1] Are Telegram Mini Apps a New Global Trend for Crypto? https://hackernoon.com/are-telegram-mini-apps-a-new-global-trend-for-crypto
[2] Telegram Mini Apps Pave the Way For A New Era of Crypto Adoption https://nftnewstoday.com/2024/05/23/telegram-mini-apps-pave-the-way-for-a-new-era-of-crypto-adoption/
[3] Telegram Mini Apps: Revolutionizing Crypto Adoption … – NFTmetria https://nftmetria.com/nft-news/telegram-mini-apps/
[4] History of Telegram Mini Apps and the Web3 Tap To Earn Trends https://blog.mexc.com/history-of-telegram-mini-apps-and-the-web3-tap-to-earn-trends-creator-kubiat/
[5] What are Mini Apps in Telegram’s Web3 ecosystem? – Cointelegraph https://cointelegraph.com/learn/mini-apps-in-telegram-web3-ecosystem
[6] What Do Telegram Mini-Apps Mean For The Web3 Industry? https://coinpresso.io/blog/what-do-telegram-mini-apps-mean-for-the-web3-industry
[7] Trend Spotting: Telegram Game Mini Apps – CleevioX https://www.cleeviox.com/blog/telegram-mini-apps-the-new-gateway-to-crypto
[8] Rise of Telegram Mini Apps: How it started, and how it’s going – Bitget https://www.bitget.com/news/detail/12560604177098
September is a vibrant month for airdrops in the cryptocurrency world, with numerous opportunities available for enthusiasts. Following the successful $DOGS airdrop in August, excitement has surged, prompting various projects to announce their own airdrops, including $CATS, $GOATS, XEmpire, and more.
Upcoming Airdrop Schedule
- W-Coin (September 15)
W-Coin has quickly established itself in the crypto space with its tap-to-earn model, rewarding users for task completion and social media engagement. - $GOATS (September 15)
This new tap-to-earn game, launched shortly after $DOGS, has garnered significant interest due to its unique goat-themed concept. - $CATS (September 16)
Following the success of $DOGS, $CATS has announced its Token Generation Event (TGE) and airdrop, promising exciting rewards for participants. - Catizen AI (September 20)
With the motto “Play For Airdrop, Heal the World,” Catizen AI is launching its Game Centre and airdrop after overcoming initial delays. - Rocky Rabbit (September 23)
This smaller project is generating buzz within its close-knit community, potentially offering higher rewards due to its limited participant pool. - $HMSTR (September 26)
Despite facing delays, the $HMSTR airdrop for Hamster Kombat remains highly anticipated, with many eager to claim their tokens. - XEmpire (September 30)
Inspired by Elon Musk, XEmpire is set to launch its airdrop, combining innovative gameplay with a strong community following.
This month promises to be filled with opportunities for crypto enthusiasts to capitalize on these airdrops.
Citations:
[1] Best Upcoming Crypto Airdrops List September 2024 | CoinEx https://www.coinex.com/en/blog/9076-crypto-airdrops-list-2024
[2] Crypto Airdrops of September 2024: Live and Upcoming https://coinairdrops.com
[3] 3 TON Airdrops For September: Full Details Revealed – BeInCrypto https://beincrypto.com/ton-airdrop-september-full-details/
[4] 5 Telegram Crypto Airdrops Launching This September – YouTube https://www.youtube.com/watch?v=fJ3nPzVZiPM
[5] Crypto Airdrops List September 2024 » Find free airdrops & bounties! https://airdrops.io
[6] Latest Crypto Airdrops September 2024 – Airdrops.io https://airdrops.io/latest/
[7] All actual airdrops of the 2024 year – incrypted https://incrypted.com/en/airdrops/
[8] Telegram Airdrop listing dates: Major, MemeFi, LostDogs, TAP https://www.coingabbar.com/en/crypto-blogs-details/telegram-airdrop-listing-dates-tonstation-lostdogs-catizen-blum
Introduction
The HyperVerse scheme was a virtual world that promised its investors astonishing returns and perfect life. It quickly caught fire online and attracted thousands of people from around the world. However, videos promoting the alleged Ponzi scheme and the senior promoters living the high life concealed the reality of huge financial losses for many.
The rise of HyperVerse was fueled by the allure of a perfect virtual world where people could live their dreams. The scheme promised its investors a chance to earn high returns by buying virtual land and leasing it to others. However, the reality was far from perfect, as many investors lost their hard-earned money. Despite the warnings from financial regulators, many people continued to invest in the scheme, driven by the hope of making quick profits.
The collapse of HyperVerse left many people disillusioned and angry. The senior promoters of the scheme disappeared, leaving investors with nothing. The collapse of the scheme highlights the dangers of investing in unregulated schemes and the need for caution when investing in virtual worlds.
Key Takeaways
- The HyperVerse scheme promised astonishing returns and a perfect virtual world, but it turned out to be a Ponzi scheme that caused huge financial losses for many investors.
- The allure of a perfect virtual world and the hope of making quick profits drove many people to invest in the scheme, despite the warnings from financial regulators.
- The collapse of HyperVerse highlights the dangers of investing in unregulated schemes and the need for caution when investing in virtual worlds.
The Rise of HyperVerse
HyperVerse was a virtual world that promised astonishing returns to its investors. The scheme caught fire online, thanks to the promotional tactics used by its senior promoters. However, for thousands around the world, the reality was a huge financial loss.
Promotional Tactics
HyperVerse used bizarre videos to promote its alleged Ponzi scheme. The videos showed senior promoters living the high life, driving luxury cars and jets, and attending exclusive parties. These videos were designed to create a sense of urgency and excitement among potential investors.
HyperVerse also used social media and online forums to spread the word about its virtual world. The scheme promised to create a perfect virtual world where users could live out their dreams. The promise of a perfect world, combined with the prospect of high returns, attracted thousands of investors from around the world.
Cult Overtones
As the scheme grew, it began to take on cult overtones. Senior promoters were treated like gurus, and investors were encouraged to recruit others into the scheme. Those who questioned the legitimacy of the scheme were dismissed as naysayers and non-believers.
Investors were also encouraged to invest more money into the scheme, with the promise of even higher returns. Those who invested the most money were given special privileges, such as access to exclusive events and virtual worlds.
In conclusion, the rise of HyperVerse was fueled by its promotional tactics and cult-like atmosphere. While some investors made money, many others suffered huge financial losses. The lesson to be learned is that if something seems too good to be true, it probably is.
The Collapse
Financial Fallout
As the HyperVerse scheme came crashing down, thousands of investors around the world were left with huge financial losses. The alleged Ponzi scheme had promised astonishing returns, but the reality was a devastating financial blow for many. According to reports, the scheme had raised more than $1 billion from investors, but the money had been largely squandered on luxury cars, yachts, and other extravagant expenses.
Many investors who had put their life savings into the scheme were left with nothing. Some reported losing tens or even hundreds of thousands of dollars. The collapse of the scheme sent shockwaves through the online community, with many people expressing anger and frustration at the senior promoters who had lived the high life while others suffered.
Legal Actions
In the aftermath of the collapse, legal actions were taken against the perpetrators of the scheme. Several senior promoters were arrested and charged with fraud, money laundering, and other crimes. However, for many investors, the legal actions provided little consolation for their financial losses.
Despite the collapse of the HyperVerse scheme, the online world continued to be a breeding ground for similar schemes and scams. The lure of astonishing returns and the promise of a perfect virtual world proved to be a powerful draw for many people, and the collapse of the HyperVerse scheme served as a stark reminder of the risks involved in investing in unregulated online ventures.
Life Inside the Scheme
The HyperVerse scheme promised its investors astonishing returns and a “perfect virtual world,” but for many, it turned out to be a financial nightmare. As the scheme caught fire online, bizarre videos promoted the alleged Ponzi scheme, and senior promoters lived the high life.
Senior Promoters’ Lifestyle
Senior promoters of the HyperVerse scheme lived lavishly, flaunting their wealth on social media. They were often seen driving luxury cars, traveling to exotic destinations, and attending high-end events. Some even claimed to have purchased private islands.
However, for the thousands of investors who poured their hard-earned money into the scheme, the reality was far from glamorous. Many lost their life savings, and some were left with huge debts.
The senior promoters of the HyperVerse scheme have since faced legal action, with some even being arrested for their involvement in the alleged Ponzi scheme. Despite the promises of a “perfect virtual world,” the reality of life inside the scheme was one of financial ruin and shattered dreams.
The Allure of a Perfect Virtual World
The HyperVerse scheme promised investors a “perfect virtual world” where they could earn astonishing returns. The idea of a virtual world where one could earn a fortune without leaving the comfort of their own home was very alluring to many people.
The scheme was marketed heavily on social media platforms such as Facebook, Twitter, and Instagram. Bizarre videos featuring people dressed in futuristic costumes and promoting the scheme were shared widely on these platforms. The videos promised investors that they would be able to earn huge returns on their investment in a matter of weeks.
The allure of the HyperVerse scheme was also fueled by the fact that senior promoters of the scheme were living the high life. They posted pictures on social media platforms of themselves driving luxury cars, traveling to exotic locations, and staying in five-star hotels. This created the impression that the scheme was legitimate and that investors would be able to enjoy the same lifestyle if they invested in the scheme.
However, for thousands of people around the world, the reality was a huge financial loss. The HyperVerse scheme turned out to be a Ponzi scheme, where early investors were paid using the money of new investors. When the scheme collapsed, many investors lost their life savings.
In conclusion, the allure of a perfect virtual world where one can earn huge returns without leaving the comfort of their own home was very alluring to many people. However, the reality of the HyperVerse scheme was very different, and many people ended up losing their money.
Frequently Asked Questions
What is the HyperVerse scheme and how does it operate?
The HyperVerse scheme is an alleged Ponzi scheme that promised investors high returns on their investments through a virtual world platform. The scheme operated by recruiting new investors and using their money to pay off older investors. The virtual world platform was supposed to generate revenue through in-game purchases, but there is no evidence to suggest that this was actually happening.
What are the signs that suggest HyperVerse might be a Ponzi scheme?
There are several signs that suggest that HyperVerse might be a Ponzi scheme. Firstly, the promised returns are too good to be true. Secondly, the scheme relies on recruiting new investors to pay off older investors. Thirdly, there is no clear explanation of how the virtual world platform generates revenue.
How have HyperVerse promoters been living a high life, and what evidence supports this?
Senior promoters of HyperVerse have been seen living the high life, with reports of luxury cars, private jets, and expensive vacations. Bizarre videos promoting the scheme also suggest that the promoters were spending money lavishly. However, it is unclear where the money for these expenses came from.
What type of financial losses have been reported by those involved in HyperVerse?
Thousands of investors around the world have reported huge financial losses as a result of investing in HyperVerse. Some investors have reported losing their life savings, while others have reported losing smaller amounts of money.
How did HyperVerse manage to gain popularity and spread online?
HyperVerse managed to gain popularity and spread online through a combination of social media marketing and word of mouth. Bizarre videos promoting the scheme were shared widely on social media platforms, and many people were drawn in by the promise of high returns.
What legal actions are being taken against HyperVerse for its alleged fraudulent activities?
Several legal actions are being taken against HyperVerse for its alleged fraudulent activities. The scheme has been shut down in some countries, and the promoters are facing criminal charges in others. However, it is unclear whether investors will be able to recover their lost funds.
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