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SAFCOIN: Crypto-Revolution for South Africa or New Scam?

SAFCOIN: Crypto-Revolution for South Africa or New Scam?

In July of 2018, the South African-registered company FHM (Pty) LTD announced the launch of the Initial Coin Offering (ICO) of Africa’s first-ever cryptocurrency token – SAFCOIN. Founders Neil Ferreira and Tony Ferreira offer this token pre-sale opportunity exclusively to South Africans, aiming to give them a certain “edge” over the rest of Africa, which they envision eventually expanding to, thus transforming SAFCOIN into an African global trading cryptocurrency. While using bold and confident language to engage South Africans into becoming exclusive holders of this “revolution in virtual coin”, at the end of the day, the entire idea, description and adoption plan given for SAFCOIN can only be seen as particularly vague and problematic.

Director and Co-Founder at FHM, Neil Ferreira, specifically claims “Blockchain cryptocurrency is a confusing and unfamiliar concept to many Africans, which is preventing widespread adoption”. Could this potential “unfamiliarity” cause South Africans to invest in such vague a cryptocurrency project?

What Have Been The Red Flags For SAFCOIN?

The first thing to examine when looking at a new token launch that claims to “revolutionize” the industry, is the white paper. Behind all the buzzwords and marketing techniques pushed to potential investors in the official website, there is an official and essential document that serves as a detailed report addressing exactly what the project is, how it plans to be implemented and, perhaps the most critical part, what industry problem it solves and how it plans to solve it. Therefore, this report naturally requires a certain degree of technical knowledge and analysis.

The SAFCOIN white paper on the other hand, not only completely lacks this technical analysis, but has been created in a form that resembles a PowerPoint presentation in which the exclusive goal of the entire project appears to be making investment in cryptocurrencies easy and understandable for all Africans. While the lack of knowledge appears to be the only gap in the market identified in the white paper that SAFCOIN will address and potentially solve, Ferreira uses phrases like

“late sleepers” and “missed out opportunity” to encourage South Africans to quickly jump on the bandwagon and “be part of history and wealth”. He states, “The start-up phase is the most lucrative time to invest in cryptocurrencies, but Africans have missed the boat on many of the global start-up opportunities”. Referencing the Bitcoin rush and success stories from all around the globe as missed opportunities to record massive returns on investment, Ferreira encourages South Africans to “secure their wealth” with SAFCOIN.

 

The majority of the whitepaper is filled with bold statements and buzzwords, while completely lacking any substantial explanation of what SAFCOIN will bring to the market and how exactly it will work. It claims to gradually become a widely accepted form of payment but in no way addresses how they plan this to happen. They vaguely mention that they plan media and investment outreach activities across the continent but nowhere specify what these are. This pattern continues when they refer to current discussions to integrate SAFCOIN as a payment method with a leading e-commerce development company in South Africa, again without giving any reference to the name of the company. Their entire white paper raises more questions than it does answer them, a fact that can only be perceived as a massive red flag.

 

Even when scrolling through their website, no extra value is given to the project. On the website they have added two videos that could have been used as a tool to explain the SAFCOIN project in a different form, but instead linked two generic videos explaining what the blockchain is, one from The World Economic Forum (WEF) and the other directly from YouTube.

 

All in all, the entire SAFCOIN project only seems to raise one red flag after the other, appearing entirely in the form of a pitch full of buzzwords and vague descriptions that prove to have no true aim, technical research or proper adoption plan to back them up.  South Africans would therefore not be encouraged to invest in such a risky project, but instead choose safer and well-established companies that they can trust.

Where Should I Invest?

A smarter investment could be in cryptocurrency CFDs with fully regulated and licensed companies, such as IQ Option or 24Option that offer a variety of legitimate cryptocurrencies, backed both by experience and research. IQ Option offers its users 16 established cryptocurrencies to trade with like Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, EOS, Cardano, IOTA, TRON, Neo, Dash, Ethereum Classic, OmiseGo, Qtum and Bitcoin Gold. 24option offers similar options, giving investors the chance to trade Bitcoin, Ethereum, Dash, Ripple, Litecoin, Monero and Stellar (XML).

One should always look beyond the marketing talk and impressive buzzwords that new cryptocurrency projects like SAFCOIN often push, but carefully examine what the new token actually offers and what research has been made to back their adoption plan up.

 

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