Auscoin Cryptocurrency Draws Serious Concerns From Industry Analysts

Auscoin Founder Makes Questionable Statements

Sam Karagiozis, who used to flip burgers at McDonald’s, claims to have become extremely wealthy due to some smart Bitcoin investments. There might be some truth to his story when you consider that he drives around a Bentley that has Bitcoin number plates. Now, Sam, who calls himself a “hustler”, says he has been working on developing Auscoin, a “cryptocurrency for daily life” according to its official website.

The Auscoin founder plans to sell 100 million Auscoins online for 80 cents each. Assuming all coins are sold, Sam would “earn” $80 million. While discussing his new venture, the self-proclaimed “hustler” said,  “You buy the coin [Auscoin], then when it goes up and you’re happy with your return, you have to sell it”. Clearly, this does not sound like investment advice coming from a professional.

Auscoin Called A “Bloodbath”

When asked by his interviewer, Tom Steinfort from 60 Minutes, about what would happen if Auscoin depreciates in value, Sam casually remarked, “Well, that’s part of life”. Based on his comments, it seems obvious that anyone looking to “invest” in Auscoin would have little more than blind faith in Sam’s baseless assumption that its price will go up. Moreover, a number of crypto investors have grown increasingly suspicious of Sam’s new coin, which he has outrageously promoted as Australia’s own cryptocurrency.

Industry analysts have called Auscoin a “bloodbath” and have warned investors to stay away from it. Notably, the coin’s whitepaper has been revised repeatedly during a relatively short period of time. What’s even more alarming that it was even being revised during the coin’s initial seed round. Perhaps the most concerning part is that crypto-experts say the questionable crypto-platform doesn’t even use blockchain technology. This should be another solid reason to completely avoid this “cryptocurrency”, according to analysts.

Many More Concerns

Apart from numerous concerns about the coin’s whitepaper, Mebsites, a web design company that was working on Auscoin’s website, reported that it had “withdrawn support” from the questionable crypto-project. Aaron Whyte, founder and senior developer at Mebsites, stated during an interview for 60 Minutes that,

“We had very different views [compared to Auscoin] towards security and transparency, making us realise that our core values and business principles were incompatible and so we decided to not be involved any further”

Moreover, the party behind this venture is far from professional. They can even be considered bullies and “crypto-thugs”, because Sean Harris, Auscoin’s CEO, threatened Whyte by reportedly telling him that “You have officially f—– with the wrong group of people!”. Mr. Harris allegedly said this prior to Mr. Whyte’s statements on 60 Minutes.

Despite attracting a lot of negative attention and criticisms from industry experts, Auscoin’s team appears to be adamant in following through with its plans. In fact, they want to deploy 1200 customized Bitcoin ATMs throughout Australia and South East Asia. The objective behind this planned move is to increase Auscoin’s circulation and trading, according to its creators.

These plans appear to be very unrealistic, because a simple google search reveals that only 2,163 Bitcoin ATMs have been installed so far in Bitcoin’s nearly 10 year history. It should be evident by now that this “cryptocurrency” has shown plenty of signs that it just might be a scam. The takeaway message here should be to perform thorough research before investing in digital currencies, or anything for that matter.