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Kazakhstan Investigates Crypto Mining Hotel Allegedly Operating as Ponzi Scheme

Kazakhstan Investigates Crypto Mining Hotel Allegedly Operating as Ponzi SchemeAuthorities in Kazakhstan have launched an investigation into a mining hotel business suspected of being a crypto pyramid as part of an ongoing crackdown on illegal activities linked to cryptocurrencies. The platform, called Bincloud, lured investors through popular messaging apps. Bincloud Operators Kept 16% of Investors’ Funds for Themselves Amid intensified efforts to fight crypto-related […]

Kazakhstan Investigates Crypto Mining Hotel Allegedly Operating as Ponzi Scheme

Authorities in Kazakhstan have launched an investigation into a mining hotel business suspected of being a crypto pyramid as part of an ongoing crackdown on illegal activities linked to cryptocurrencies. The platform, called Bincloud, lured investors through popular messaging apps.

Bincloud Operators Kept 16% of Investors’ Funds for Themselves

Amid intensified efforts to fight crypto-related fraud, Kazakhstan’s Financial Monitoring Agency has initiated a pre-trial investigation into a crypto mining business allegedly working as a financial pyramid scheme. It’s led by the watchdog’s department in the West Kazakhstan region, the FMA announced, quoted by Russian crypto media.

The people behind the Bincloud mining hotel were recruiting investors through the Whatsapp and Telegram messengers, convincing them to put money into the project offering mining equipment rental. As a reward, they were promised to get back 5 to 6% of the invested amount daily.

The fraudsters withheld 16% of the hotel users’ income, a press release detailed. Kazakhstan’s financial regulators are urging victims of the suspected Ponzi scheme to contact the regional departments of the Financial Monitoring Agency and report about their cases.

The Bincloud investigation comes as part of a government offensive against crime involving cryptocurrencies. Kazakhstan’s police recently busted a gang, the members of which allegedly forced IT specialists to run underground crypto farms on their behalf.

The illegal mining operation brought its organizers an estimated half a million U.S. dollars in monthly income. Media reports have suggested that, just like other, similar undertakings, the crime group could not have acted without protection or some affiliation with high-ranking officials or businessmen.

Business Climate for Crypto Miners in Kazakhstan Is Changing

Maintaining artificially low electricity rates, Kazakhstan became a magnet for crypto mining enterprises when China cracked down on the industry in May, 2021. However, things have changed since then and some companies have already moved their hardware to other mining hotspots.

While the administration of President Kassym-Jomart Tokayev has indicated it wants to develop the country’s crypto industry, the growing energy deficit blamed on the influx of miners influenced its policies in the sector while it also started cracking down on illegal mining.

In February, Kazakhstan’s head of state emphasized the government in Nur-Sultan is not against crypto mining within the law but insisted that all mining facilities should be identified and inspected by the FMA. The order came as mining companies were facing power cuts during the cold winter months.

In July, Tokayev signed a law which raised the tax burden for registered mining entities. The legislation introduced differentiated tax rates based on the average price of the electricity consumed to mint digital coins, increasing the surcharge enforced in the beginning of the year.

Do you expect authorities in Kazakhstan to conduct other investigations in the crypto space? Tell us in the comments section below.

Source: Mining Archives – Bitcoin News

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Top 10 Cryptocurrencies to Buy before 2050

What are the top 10 cryptocurrencies to buy before 2050? Let’s take a look at it in more detail.

Cryptocurrencies such as Bitcoin or Ethereum are now dominating the financial world. More and more people are curious not only about making short-term money but also about making long-term investments over several years. In this case, what are the top 10 cryptocurrencies to buy before 2050? Let’s take a look at it in more detail.

What are cryptocurrencies?

Cryptocurrencies mean decentralized coins founded on blockchain technology. The decentralized coins can be exchanged and sold without being under the control of certain institutions. 

Various cryptocurrencies have various functions and areas of application. Many can already be used as a means of payment. Others have a decentralized ecosystem behind them, which can be the cause of decentralized applications. Most major cryptocurrencies are investable as they grow in value over the long term.

Why blockchain is the future?

Blockchain technology is the logic behind the increasing popularity of cryptocurrencies. The blockchain permits cryptocurrencies to function thoroughly decentrally. No monetary institution has authority over the respective cryptocurrency. Also, the blockchain provides whole transparency and a high level of security. Scam or theft of cryptocurrencies is extremely difficult to implement.

Blockchain could be used in more and more areas of digital life in the future. Blockchain offers autonomy and freedom in the digital world. In theory, misuse of power and censorship cannot exist with the blockchain. Technology offers infinite possibilities. Decentralized financial services (DeFi) and non-fungible tokens (NFTs) are examples of the prospects of the blockchain.

How popular will cryptocurrencies be in the next five years?

Cryptocurrencies have obtained growing approval and popularity in recent years. In 2021, NFTs and DeFi came into the mainstream. The Metaverse also witnessed a lot of hype. Due to the tremendous price gains of Bitcoin, Ethereum, and the meme coins Dogecoin and Shiba Inu, more and more people outside the community are also becoming mindful of cryptocurrencies. The popularity could increase in the future, while the doubts become more and more baseless.

Top 10 Cryptocurrencies to Buy

Below we look at the top 10 cryptocurrencies that could remain relevant over the next 10 years and are presently arguably a good investment for the long term.

10. The Sandbox (SAND)

The origins of The Sandbox date back to 2011 when it was created as a rival to Minecraft. In 2018 the game was moved to the blockchain. The Sandbox is now one of the best-known blockchain games and could shape the future of the metaverse in the future.

9. Bitcoin Cash (BCH)

Bitcoin Cash a fork, also known as a hard fork, from the Bitcoin blockchain in 2017. The size of the blocks of the blockchain was raised to 8 MB. This could lead to higher scalability compared to the parent blockchain. Also, it reduces transaction fees. In some nations, BCH could soon be identified as a means of payment. Bitcoin Cash could remain an interesting investment in the future, not only because of the recognition value but various other interesting developments. You can find more information about BCH here.

8. Chainlink (LINK)

— Chainlink (@chainlink)

Chainlink is a decentralized blockchain network, which was also created on Ethereum. It uses smart contracts to move data from the real world to the blockchain (tokenization). This operates via decentralized oracles created to transform off-chain data into on-chain data. Tokenization could become more and more important in the future. Thus, an investment in the LINK token is advised for the future.

7. Polygon (MATIC)

Polygon is a scaling solution for Ethereum. It seeks to solve the blockchain trilemma after it is challenging to simultaneously execute the properties of scalability, security, and decentralization for a blockchain. Polygon utilizes the modern proof-of-stake consensus mechanism and side chains to improve scalability. As a partner of Ethereum, Polygon could remain a relevant project for the next few years.

6. Avalanche (AVAX)

Speaking of scalability, we also need to talk about the Avalanche. Although Avalanche also utilizes Proof-of-Stake, the transaction speeds are much higher than Ethereum. For example, Avalanche can process up to 4,500 transactions per second. The network is suitable for NFTs and decentralized gaming. Avalanche could play a big role in the future.

5. Solana (SOL)

— BEN SPARANG◎ (@bennybitcoins)

Solana is one of the speediest cryptocurrencies on the market. It utilizes its own proof-of-history consensus mechanism. This allows Solana to accomplish transaction speeds of up to 50,000 transactions per second. Solana is particularly popular in the NFT area. Solana seems to be worth investing in for the next 25 years.

4.Terra Luna Classic

— Terra Powered by LUNA (@terra_money)

The Terra project received a lot of attention in early 2022. Terra can utilize algorithms to keep the value of stablecoins stable. This ability makes Terra one of the most interesting blockchain projects on the market. Particularly in the DeFi area, Terra is becoming more and more significant. It is worth investing in the LUNA token in the coming years.

3. Cardano (ADA)

The Cardano blockchain is technically on a different level than many other blockchains. Cardano will be further extended based on proof. The Cardano Foundation uses scientists to systematically design the blockchain. After the introduction of smart contract functions, Cardano is presently working on massively increasing scalability. Cardano could be one of the top 10 cryptocurrencies for the next 25 years.

2. Ethereum (ETH)

Ethereum was the first blockchain to utilize smart contract functionality. This makes the network a leader in decentralized applications. The majority of developers continue to utilize the Ethereum blockchain as the foundation for their applications. It is a leader in DeFi and NFTs. Ethereum just completed its transformation to Proof of Stake. ETH is one of the top 10 cryptocurrencies. 

1. Bitcoin (BTC)

The original also stays at the top of the top 10 cryptocurrencies for the next many years. Bitcoin has changed into an investment entity and a store of value that could not be missing from any investment portfolio. In the future, Bitcoin could also become the authorized currency in many countries.

Source: metaverse Archives - CryptoTicker

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