Official warning from Bitmalta regarding DAScoin

It has come to our attention that an offshoot of OneCoin[1], one of the most notorious Ponzi schemes in cryptocurrencies over the past year, has emerged onto the market and news about it is circulating at a rapid pace. Known as DAScoin[2], it claims to be utilizing a novel blockchain technology which touts itself as “the most secure” yet. However, as to date, no actual product has been released despite it being promised since March of this year.

 The DAScoin project is being led by NetLeaders (previously known as Coin Leaders), and the Chairman of NetLeaders is John Pretto[3], one of the most active promoters of the OneCoin Ponzi scheme.  Additionally, the CEO of DAScoin is Michael Mathias, a well-known OneCoin affiliate although it is unknown whether he is still involved in OneCoin or not. Therefore, two infamous OneCoin backers are behind the DAScoin setup, which should already serve as enough red flags to send a bull into full frenzy.

However, the alarm bells keep on ringing, as the project was promised for release in March this year[4], but to date, nothing “tangible” has emerged and everything is built on a pipe dream. Moreover, the promised product is built on a private blockchain, and for something which is being touted and advertised as “the Bitcoin killer” and “the most secure cryptocurrency”, it is ridiculous to have something of that magnitude built on a private blockchain, unlike Bitcoin, which utilizes a fully transparent public blockchain.

The aggressive marketing style is attributed to a Multi-Level Marketing (MLM) hybrid pyramid scheme[5]; although MLM in itself is not necessarily illicit, it is often used for fraudulent purposes, as happens to be the case in DAScoin. NetLeaders/Coin Leaders has laid out a seemingly-attractive investment scheme whereby the more one invests into DAScoin, the more one receives corresponding tokens, in a non-linear manner (another red flag). Original investors get a hefty bonus once a certain amount of referrals are accumulated in order to encourage other people to join in the scheme. What makes this project stand out as a scam is that the value of DAScoin is centrally assigned by the people behind DAScoin themselves, which means that the value of DAScoin is “pegged to nothing more than the rate of investment from NetLeaders affiliates”[6].

Several other deplorable schemes[7] have emerged over the past few months and unwitting investors have lost significant amounts of money thanks to such rogues who taint the benefit of blockchain technologies and applications built upon them such as legitimate cryptocurrencies. We urge the general public to exercise caution and to heavily research projects in which they would like to invest, and that the old adage stands true: if it’s too good to be true, it probably is.

 

[1] http://behindmlm.com/mlm-reviews/onecoin-review-100-5000-eur-ponzi-point-cryptocurrency/

[2] Official DasCoin website <https://dascoin.com/>

[3] http://behindmlm.com/mlm-reviews/coin-leaders-review-dascoin-is-a-onecoin-ponzi-points-clone/

[4] https://www.facebook.com/DasCoins/videos/1761353720548868/

[5] https://www.thebalance.com/is-it-multilevel-marketing-or-a-pyramid-scheme-2947159

[6] https://bitcointalk.org/index.php?topic=1636850.0

[7] OneCoin, SwissCoin, PlatinCoin, LeoCoin, CapriCoin, etc