SEBI to investigate and regulate Bitcoingrowthfund.com and Gainbitcoin.com
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GainBitcoin.com is an online investment portal where investment is made in cryptocurrencies and you are paid incentives and bonus as payouts over the period of time. Originally, this payout was meant to be given in Bitcoins, later in MCAP tokens. MCAP tokens are newly launched tokens by Bitcoingrowthfund.com (BGF). Both - Gainbitcoin.com and BGF have a common link - Mr. Amit Bhardwaj, the crypto-currency guru of India. These are run by companies registered in Singapore, however these can be be operated and run worldwide, including India.
To continue about the payouts from Gainbitcoin.com, they are being given in MCAP tokens at the price offered or available on BGF exchange. MCAP tokens are traded on limited exchanges and C-cex.com and BGF are the ones with most volume traded.
Why SEBI needs to regulate these?
The payouts are given at the price offered by BGF Exchange. The price of the BGF exchange is not determined by the market forces, demand and supply. The price on BGF exchange is almost four time the Market Cap of MCAP tokens, or that on the other exchanges. The price is artificially set by the BGF team in order to provide less MCAP tokens, as they have high value on BGF exchange and in reality have only 25% salable value.Besides price manipulation, BGF is indulging in unfair trade practices by:
- Cancelling the sell/purchase orders of the investors/users,
- Setting a support price for sale/purchase.
- Removing the support prior intimation.
- Not letting the users/investors set their own price.
- Encouraging arbitrage, buying at lower price from other exchanges and selling at BGF site only.
- Giving MCAP token payouts at higher price, forcing investors to hold or sell at BGF only.
- Delay in withdrawal of money in the form of BTC or MCAP from days to weeks.
- Lack of support team.
SEBI needs to regulate both gainbitcoin.com and BGF exchange in order to protect the interest of the Indian investors having lack of knowledge when they invested. SEBI needs to step in to promote free and fair trade practices. Regulation is required as large amount of money is invested in gainbitcoin.com scheme and BGF exchange. Since both gainbitcoin.com and BGF exchange are linked together these both need to be regulated and checked.
If they are not regulated, it might happen that they may run away with the money invested by the investors leaving behind no trace to track them as they are not registered in India and run in foreign company. Mr. Amit Bhardwaj, the master mind behind this is also stays outside India for the majority period of time. No one will be able to track him once the sites are down. It is important to mention here that the website - domain contract of Bitcoingrowthfund.com expires on 19.08.2017, if not renewed (this can be cheked on various web portals which deals/trade in domains).
Update: Bitcoingrowthfund.com website contract has been extended for 2 years.
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