Horizon Africa, a Blockchain company, in conjunction with CryptoFish, a digital asset exchange platform, has launched a Cryptocurrency anti-scam website. The website, which is called is-it-a-scam.com is to help in the fight against global Crypto Scams.
According to the two entities, the initiative was inspired by many high-profile cases of Crypto scams around the world. The companies estimate the value involved in some of these scams can reach as high as billions of dollars, and the trend is escalating.
In an interview with QT, Suyash Sumaroo, CEO of Horizon Africa, intimated that Crypto scams reduce the trust the public has in these technologies, which is terrible for large-scale adoption. It is, therefore, the main reason the entities came up with the website.
“We want to help people, who are not very conversant with the technical sides of the blockchain technology to have some tool to help them determine whether a Crypto or Blockchain project is a scam,” Suyash hinted. “Determining this is a tough job and can sometimes be quite tricky to get a reliable result.”
How It Works
Is-It-A-Scam provides a Scam Test where users can fill in essential questions about a project they want to verify. After giving the answers and submitting them, the website generates a percentage at which the project is likely fraud or not.
However, the website makes it clear that its recommendations are not financial advice, and people should employ DYOR. When QT asked Sumaroo to explain why that directive, this was his response:
“The website provides a first version of the Crypto scam test and still needs some work to help filter out more complex scams. It is essential to understand that in some cases, labelling a project as a scam can be very subjective. In such cases, is-it-a-scam.com can be quite limited in determining if these projects are scams. Also, this website is intended only as a first step, and I would strongly advise anyone who wants to invest or be part of a crypto or Blockchain project to do their proper due diligence. Is-it-a-scam.com is here to help and not replace due diligence and proper research.”
Role Of Industry Players
The Horizon Africa CEO who recently exposed a Crypto Scam in Mauritius is convinced rampant scams in the space is detrimental. Consequently, industry players should get involved with drives that can assist in curbing the phenomenon.
“Initiatives like this can help in tackling part of the problem, and other actions need to be created to help in other areas. For example, regulators and people in the Crypto sector need to work together more to be able to come up with better regulations and more structured framework for blockchain and Cryptocurrency projects,” Sumaroo pointed out.
He cited an instance, where the Financial Services Commission (FSC) along with the Mauritius Africa FinTech Hub in Mauritius are working in this direction to make Mauritius a better jurisdiction for Crypto and Blockchain projects.
The Is-It-A-Scam site has come at a time where Cryptocurrency fraud is becoming a headache in Africa and standing in the way of adoption. In November, a Ponzi scheme parading as a Crypto defrauded Ugandans of money running into millions of dollars.