BlockAura (TBAC) gave a 3100% return to an Indian man. But the crypto community calls this multi-level marketing token a Ponzi.
According to the official website, BlockAura is a revolutionary blockchain platform built to create smart contracts for security tokens to bring back an actual store of value of the assets. It is a high-throughput blockchain that will support 450–500k transactions per second without complex solutions like layer two. Firoz Multani, a Dubai-based Indian man, started the project in 2021.
The native token TBAC is mainly listed on decentralized exchanges only. It made an all-time high of over $30 in July 2022, now trading at around $3, according to data from CoinMarketCap.
The 3100% Returns
According to a Bloomberg article, Sanjay Kamble, a 51-year-old Indian man, claims to have made over 3100% returns in eight months from BlockAura. Kamble says, “I don’t need a day job, BlockAura is the next Bitcoin.” He predicts that TBAC will reach $10,000 in two to three years.
The DefiAI project of BlockAura claims to give a staking reward of more than 25% a month. Firoz Multani, the project’s founder, says, “Profit can fluctuate depending on the token’s price, but there’s no risk of losing capital, as staking returns distributed within the community help earn back the principal within five months. Those who believe in BlockAura and know that the coin will touch $100 within a year will stay.”
Is BlockAura a Ponzi Scheme?
Most projects that provided high APY yields have collapsed throughout the bear market. Most recently, BlockFi filed for chapter 11 bankruptcy, while Genesis is trying to raise funds to prevent bankruptcy. However, BlockAura claims to offer over 25% monthly staking reward.
The catch here is that the staking rewards are in the form of highly illiquid native token TBAC. Furthermore, BlockAura limits the withdrawals to $250 per day. Akhilesh Agarwal invested $10,000 in BlockAura tokens in May and accumulated $25,000 in rewards over the next four months. However, he is not able to withdraw even the principal amount.
He says, “Only a handful of people made money at the start when the price of the token was rising. Now we can’t withdraw, and everyone’s money is stuck.”
A Twitter user claims that the project manipulates people with big promises like cars, homes, etc. Due to such practices, he calls BlockAura, an MLM Ponzi scheme. The crypto influencer Pushpendra Singh believes that “crypto + MLM = scam.”
India to Focus on Crypto Regulation in the G20 Summit.
India has got the presidency of the G20 summit for the next year. Nirmala Sitharaman, the finance minister of India, while addressing the Indian Council for Research on International Economic Relations (ICRIER), quoted that:
“We have not come out with any plan to regulate digital assets. The agenda of cryptocurrency regulation will be brought in G20 Meeting.”Nirmala Sitharaman
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.