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India: $13 million cryptocurrency scam busted in Mumbai; fuels government’s fear in cryptocurrencies

Biraajmaan Tamuly

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India: $13 million cryptocurrency scam busted in Mumbai; fuels government's fear in cryptocurrencies
Source: Pixabay

The Indian subcontinent is one of the major economies in the world that hasn’t implemented or legalized any form of cryptocurrency payments yet. Adding to the government’s disbelief in cryptocurrencies, the Mumbai Crime branch has managed to bust a gang which allegedly orchestrated a 100-crore [$13 million] cryptocurrency fraud over multiple states.

According to the Times of India, the accused individuals cheated several people across the states of Maharashtra, Gujarat, and Uttar Pradesh. The gang in question fraudulently launched a scam coin known as Cashcoin and promised investors a double return on their investments by advertising it as a coin similar to Bitcoin.

Sunil Jadhav, one of the key police inspectors who cracked the bust, stated:

“The accused held meetings in Mumbai, Surat and other parts of Gujarat, and lured people into investing their hard-earned money by promising to double it in two months. Initially, the gang repaid a few investors to lure more people in and then defaulted. Their intention was to cheat.”

The initial complaint was registered by Umeshchand Jain, a resident of Surat, who accused the felons of duping him of Rs 1.2 crore.

The police reported that the complainant’s money was transferred from his bank in Surat to a bank account in Uttar Pradesh after the accused had siphoned the capital. The police have been freezing several accounts since then in different parts of the country.

Ajay Dubey, the advocate of the accused, has however denied his clients’ guilt and said:

“My clients are innocent and have been wrongly arrested. Indian Penal Code sections 419, 420, 406 and 409 are not applicable in this case as no one has been cheated since all transactions are in cheque payment.”

The Indian government had already raised concern over the subject and had consistently held that it is not comfortable with virtual currencies. However, there has been a common consensus amongst the government, Twitterati, and enthusiasts to push forward and promote blockchain technology.

Economic Affairs Secretary of India, Subhash Chandra Garg, who also led the committee that looked into the possibility of a legal framework for cryptocurrencies, is believed to be unsure of the repercussions cryptocurrencies could have on the fiat currency [INR] of the country if it is legitimized payments across the subcontinent.





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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.

Bitcoin

Bitcoin’s on-chain/off-chain valuation indicators the key point of focus as coin heads to $13,000

Akash Anand

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Bitcoin's on-chain/off-chain valuation indicators they key point of focus as crypto heads towards $13,000
Source: Pixabay

With the rise in Bitcoin’s price, the rest of the cryptocurrency market has followed suit by displaying a green trend across the board. In a recent series of tweets by popular cryptocurrency analyst Adam Tache, users were informed about the top Bitcoin on-chain and off-chain valuation indicators, derived from on-chain valuation models.

The analysis touched on the Mayer Multiple created by dividing the price by the all-important – 200 day moving average. The current average Mayer Multiple stands at a figure of 1.39, which may climb higher. Looking at previous figures, the normal Mayer Multiple figures stated that if the value shoots up to 2.4, then Bitcoin eventually retraces back to a comfortable 1.5. The Mayer Multiple is usually considered as the original indicator used to clock the valuation of Bitcoin.

Another major indicator discussed in the thread was the NVT Ratio invented by Willy Woo, Partner at Adaptive Fund. The indicator is used to calculate Bitcoin’s prominence or value in the cryptocurrency space by evaluating the amount transacted on the blockchain as a “proxy for investment flow and bear and bull market cycles.”

At the moment, the NVT ratio for Bitcoin is in an abnormal region compared to the start of previous bullish patterns. The NVT ratio was above the “bear market” separator, which meant that the cryptocurrency was overbought. When Bitcoin is overbought, it usually means that the buying pressure is much higher than the selling pressure. Adam Tache opined,

“NVT signaling overbought is likely due to a number of factors — namely the proliferation of exchange-based, purely off-chain txs driving short-term price action.”

The analysis also pointed out the liveliness of the Bitcoin indicator created by Tamas Blummer. The indicator showed the inverse count of lost or ‘HODLed’ Bitcoin, while stating that when the ratio increases, long-terms holders of the cryptocurrency decrease their positions. The indicator conveyed accumulation of Bitcoin when the ratio decreased.





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