The Sophistication of Ponzi Schemes - ORMEUS COIN

This is fiction to all purposes.


Today Mr. Positive Blue and Mr. Negative Red meet Mrs. Inquisitive Brown to analyse ORMEUS coin. Mr Neutral Black has made a through reading of the document and Mr Technological Green is around just in case. Mr Market Purple has joined today.

- I just spoted a great opportunity! It is an investment in an existing bitcoin mining facility that is producing half a million USD in bitcoin and is going to expand. It would go like 100x the price and produce dividends right at the beginning. It is this one. What would you say?
- Well, the market for the coin has gone strongly up last week. It is quite amazing. Frankly, I have made a few quick operations for a 15% return in one day.
- I have seen the telegram channel. They just posted videos and pictures of the facility. It is inmense!
- I have seen those videos too. I have also checked on-line.
- So, is it good?
- Well, technologically speaking, they claim in their White Paper that they will deploy an smart contract to grant dividends to investors. If you are running an operation like this, that would be peanuts... kind of the first thing you would do.
- There are a few warning indicators on this one. The less important ones are poor Bitcointalk announcement page.
- Actually, what I found is far more distressing for those who invested. Firstly, there is a company called Ormeus Global, that is linked to this development. The business they claim to be inn is wellbeing and people developing their inner potential... and the like.
- That does not seem like the kind of company that would develop a technological venture in the Blockchain.
- However, it does sound like the type of company that would develop a Ponzi.
- A Ponzi?
- A scheme based on paying previous investors with the money from future investors... until it blows up.
- But... I have seen the videos and pictures of the Bitcoin farm.
- Just look closely. They showed a video of a bitcoin mining farm. No corporate image at all, no founder image shown in the video, no team, ... It even looks like a digital makeup.
- Oh, there is a board that says ORMEUS in one of the pictures.
- Take a closer look at that one. It is as fake as it gets. It is not even half decent photo-shopping.
- Oh Oh.... seems like those people who are buying a x10 ICO are not going to like this.

The BlockStack ICO

This refers to https://blockstack.com/


To all purposes, this is fiction, not advice nor endorsement.


Today Mr. Positive Blue and Mr. Negative Red meet Mrs. Inquisitive Brown to analyse the BlockStack Coin offering. Mr Neutral Black has made a through reading of the document and Mr Technological Green is around just in case.

- So, what is this one about?
- This one is in the category of "Blockchain Services". The products proposed are:
a) A decentralized domain name register and the underlying server technology, similar to a DNS, but using blockchains.
b) A peer to peer network, kind of a decentralized internet.
c) A decentralized storage systems.

- What is a DNS?
- It is the protocol that converts names to numeric addresses. For example, google.com to 8.8.8.4, so that browsers and other services can find where it is in the internet.
- So potentially, this project could bring a whole new name register business?
- Yes, in fact they will develop a pricing model based on length and type of characters.
- I think that their pricing model does not make the most of the system. Typically, names should be auctioned, not priced beforehand.
- What about the other characteristics?
- I don't really see that they solve any real problem. At least, not any large scale problem.- Why?
- Because DNS, peer-to-peer networks and storage systems are already out there. Blockchain does not add a lot of value to that.

- The team makes the process "trustless" instead of dependant on Certificate Authorities.
- That means that web page impersonation would be very difficult and Certificate Authorities redundant, that is interesting.
- I think is a small market and very hard to expand unless it is compatible with current browsers.
- On the plus side, they already have a test network running.
- What about the teams experience?

- They come from a background of software engineering and have already tried a few technologies.
- So they are technically competent.
- It seems so.
- But how does all this really look to a prospective user?
- At the moment is a very simple interface, it can be installed or seen here https://browser.blockstack.org/
- It does look quite interesting.
- It doesn't do anything!
- This is a concept for future development.
- So, if I invest in this company I am investing on an idea and a team, since they do not have a MVP.
- A what?
- A Minimum Viable Product, it is the most basic working prototype of your idea, just the basics of the product at the cheapest possible price.
- As far as development, this start-up is just beginning. They work in a field in which many competing alternatives are also launching products.
- Overall, it is a risky bet as a business.
- What about the token itself? What can it be used for?
- It is a services value backed token. That is, it is used to perform operations in the Stack chain, at the moment mostly name grabbing.
- So an strategy is to buy tokens, register names and hope that the technology is adopted and they multiply in price right?
- That would be very risky!
- And could be very rewarding.
- What about the regulatory issues?


- There are quite a few regulatory risks... just to mention one, see their FAQ: " 8. Can Blockstack block illegal content on the Blockstack network?

The Blockstack Core is open-source software that provides the infrastructure for a decentralized

network that is not under the control of anyone, including Blockstack Public Benefit Corp and its

affiliates. It’s technically not possible for Blockstack PBC or Blockstack Token LLC to block any

illegal content. The Blockstack Browser, the main software users are expected to use to connect

to the network, is also open-source software. In the future, Blockstack PBC plans to implement

client-side blacklists that users can use to opt-out of seeing certain content. This functionality

currently does not exist and may never exist."- Overall, this seems like an investable token sale if you want high risk investment. Just don't bet your house on it!

HERO founders token ICO

(This is not financial advice nor an endorsement of services. The author does not accept any responsibility for the accuracy of what is written here. To put it plainly, consider it fiction.)

This refers to this https://herotoken.io/ proposal,  November 9th, 2017.

Today Mr. Positive Blue and Mr. Negative Red meet Mrs. Inquisitive Brown to analyse the HERO Coin offering. Mr Neutral Black has made a through reading of the document. 


- So... what is all this about?

- It is one of the vaguest documents I have ever read! 

- Well, this is written in "Asian Style".

- What do you mean?

- There is plenty that has to be read between the lines.
- So, that would be NEGATIVE, there is lots of speculation and unclear terms in the White Paper.

- It is also a BUSINESS PLAN not a WHITE PAPER as it does discuss a business and not a technological innovation based in scientific research. 

- Is that good or bad? 

- It is good, because when you are proposing a business that does not require much math YOU DO NOT NEED A WHITE PAPER, BUT A BUSINESS PLAN... but let's see what Mr. Black says.

- This business is about LENDING. It's target market is mainly the Philippines.
- An why would they choose the Philippines for this?
- That does not sound like a rich country at all!

- However, THIS PROJECT IS ABOUT LENDING to people who do not have access to a regular banking system. The project speaks about lending to all types of business, prioritising business, but addressing also mortgages, personal credit and the rest of the usual services.- So, on the positive side THEY ADDRESS A LARGE UNNATENDED MARKET.

- I observe that they also have an already running business.

- The White Paper says this project is linked to an existing chain of pawn shops: Pawn Hero.
-That would be POSITIVE, team members and advisor have already running business.

- But, if I put money into the ICO where does it go?
- They propose to create a foundation, non-profit and audited that will develop the products and services. YOU WILL BE GIVING YOUR MONEY TO A FOUNDATION to be created (even that is written as "if" in the paper). 

- And what do I get in return?
- Unsurprisingly... you get a Hero Token. It does give you preferential access to future investments at a discount.

- So I am kind of buying a membership to an investment club.

- Well, I kind of have at the moment plenty of opportunities of investment that do not require a third party involved and I CANNOT SEE A ROADMAP in the proposal.

- Not everyone in the world has the opportunity to invest like you.

- So would you recommend this ICO? 

- AS A BUSINESS, IT IS BLURRY. I WOULD NOT INVEST DUE TO INSUFFICIENT INFORMATION AND LACK OF A CLEAR ROADMAP. This does not mean that could go over ICO price in the short term, depending on the hype.