After being flagged illegally by the SEC, Inksnation – one of the famous cryptocurrency scam projects in Nigeria – continued to operate. They still organize workshops to call for investment, invite new investors to the project as usual.
The SEC has warned about Inksnation, but Nigerians still despise
Inksnation is described as the World’s First Charitable Trust DAO; the Inksnation masterminds claim they can end poverty in any country in less than nine months (by), incentivizing goodness, love, and equitable distribution of wealth.
The SEC has previously warned Nigerians against investing with Inksnation because otherwise, they risk themselves as there is no legal recourse if the scam collapses.
Before the SEC warning, the Stakeholders in the Blockchain Technology Association of Nigeria (SIBAN) labeled Inksnation a scam.
SIBAN said:
“Inksnation is not on any Blockchain while the scam’s purported blockchain. The Inksledger is not public and may as well be inexistent.”
However, the warnings did not seem to be effective. Nigerians are still flocking to this scam. Simultaneously, the instigators behind Inksnation do not seem threatened with any possible legal consequences, as they are said to have used the services of a well-known law firm of Nigeria, specializes in blockchain and cryptocurrency law.
In addition to leveraging the services of a law firm, the instigators also exploited the religious beliefs of potential victims. The risky scammers now exploit Nigeria’s well-known background as a divided but deeply religious country to fight the allegations of fraud.
For instance, in a letter addressed to his followers shortly after the SEC and SIBAN issued warnings, the founder and CEO of iBSmartify, the creators of Inksnation, Amos Sewanu Omotade-Sparks wrote:
“This is the result of the SIBAN guys, and we have been waiting for it. Fear not members, and watch how Elohim JahGah (the deity revered by Inksnation supporters) will convert this to all-round blessings. They have helped us to get attention. of the government which we have been waiting for, and we are so so so grateful. ”
How can Inksnation instigators continue to scam?
Like other large scale scams, Inksnation relies on promising unrealistic returns on any investment, whether small or big. Scammers are well aware of the powerful lure of earning a lifetime passive salary.
As explained on the Inksnation website, investors become eligible to receive a lifetime salary, starting at $ 342 per month after subscribing for the bronze living node. The bronze living node package requires a deposit of $ 3 (1000 Naira), which is cheapest, while the “diamond living node” requires an investment of $ 3,000 for one to be guaranteed a lifetime salary of $ 857.
Interestingly, all benefits are paid out in pinkoin, the scammer’s alleged reserve cryptocurrency is worth $ 17,556.
Chiagozie Iwu, CEO of cryptocurrency exchange Naijacryptos, said:
“Pinkoin is not listed on any exchange in Nigeria because it is neither a crypto coin nor has any ties to the blockchain.”
Many in Nigeria’s blockchain space are adamant that ultimately, pinkoin has no value.
With the SEC recently designated crypto assets as securities, it appears that the legal loopholes Inksnation and other scams are using to defy the regulator that has been closed. Let’s see if this project continues to work!
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