Crypto-Flashbacks: How the Media Pumped the ICO Known as Paycoin

Crypto-Flashbacks: How the Media Pumped the ICO Known as Paycoin

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Just lately Josh Garza was sentenced to 21 months of jail and 6 months of dwelling confinement for his position within the many Ponzi scams like Gaw Miners, Zen Miners, Hashlets, and naturally the controversial Paycoin that appeared in 2014. Back then numerous folks had been scammed by Garza’s schemes however he had a bunch of assist bolstering his fraudulent concepts. Unfortunately, mainstream media and a slew of different on-line publications did a very good job in aiding Garza’s pump-n-dump schemes and the Paycoin rip-off.

Also learn: Josh Garza Sentenced to Prison and Fined $9M over GAW & Paycoin Scam

Did Online Publications Printing Garza’s Lies Bolster His Fraudulent Schemes?

Like Mark Karpeles and Paul Vernon, Joshua Homero Garza is an notorious character that’s been identified for lots of fraudulent cryptocurrency-related scams. Garza the controversial cryptocurrency govt and some different associates are actually paying for his or her crimes, but when it wasn’t for mainstream media and different on-line publications his scams most likely wouldn’t have gone so far as they did.

Crypto-Flashbacks: How the Media Pumped the ICO Known as Paycoin So many publications printed Josh Garza’s lies.

If you had been concerned within the Bitcoin scene round November of 2014 you positively would have heard about Josh Garza and Gaw Miner’s Paycoin launch from the likes of Tech UnboxedYahoo Finance, Wall Street Journal, Market Wired, Payment Eye, Finance Magnates, Data Center Knowledge, and plenty of extra on-line information retailers. Of course, a few of the editorials had been paid for however some folks unwittingly revealed Garza’s gross lies. Garza even did an illustrious interview with Techcrunch (with loads of backlinks to Garza scams) explaining how he received all the cash to buy the area BTC.com. Ironically Garza explains that his firm was created as a result of he was as soon as scammed.        

“GAW Miners was born after someone ripped me off during an ASIC purchase,” Garza explains to Techcrunch in August of 2014. Then Garza additional explains to Techcrunch simply how profitable Gaw Miners had grow to be that 12 months. The founder makes some very daring claims stating:

The firm was an in a single day success and achieved over $10 million in gross sales throughout its first month and is on schedule to do $100 million on this first 12 months.

Paycoin the So-Called ‘Bitcoin Challenger’ Catches Fire From Real Journalism

Garza’s Paycoin was thought-about by many individuals to be one of many first high-profile preliminary coin choices (ICO) that additionally claimed to supply ‘stablecoin‘ options. Basically, folks might buy Paycoin (XPY) and his operation would assure to purchase them again at $20 USD per XPY. The guarantees Paycoin provided was all described in nice element within the XPY white paper that was extensively distributed on the internet 4 years in the past.

Crypto-Flashbacks: How the Media Pumped the ICO Known as Paycoin

The well-known journalist and Wall Street Journal ‘Bitbeat’ blogger, Michael Casey, wrote a reasonably contentious story on Paycoin again in 2014 as effectively. The story’s headline truly refers to Paycoin as a ‘bitcoin challenger’ and highlights fairly a little bit of Garza’s claims. Of course, the article instantly had criticisms in direction of Paycoin and Garza within the remark part not lengthy after the article was revealed. The remark part beneath Casey’s Bitbeat story has a bunch of people complaining about deceptive claims and outright fraud.

Crypto-Flashbacks: How the Media Pumped the ICO Known as Paycoin However, in 2014 and early 2015, not each on-line publication and journalist gave credence to Garza and Paycoin’s claims. On October 15, 2014, the net cryptocurrency publication Coin Fire (which is now known as 99 Bitcoins) published a narrative that exposed Gaw’s Hashlet mining operation didn’t have any miners. Just a few months later Coin Fire revealed extra incriminating particulars concerning the deceptive claims Garza and Gaw instructed the general public and media. Gaw Miners fired again on the Coin Fire editorial staff and threatened them with authorized motion over the articles. On November 22 the information outlet outlined all of the enterprise partnerships that Gaw Miners lied about, and Coinfire’s claims had been later confirmed by the US Securities and Exchange Commission’s Gaw Miners investigation.

The Multitude of Phony ICOs and Bank-Blockchains Bolstered by the Media Over the Last Few Years Shows There Are Still Plenty of Garzas and Paycoins

Now rather a lot has modified within the final 4 years since Garza, Gaw Miners, and the Paycoin ICO rip-off passed off inside the cryptocurrency-community. However, there are positively numerous fraudulent ICOs on the market at this time, and loads of so-called collateralized stablecoins with many extra on the best way. Furthermore, we’ve reported on the numerous ‘next generation’ snake oil blockchain projects being bolstered by mainstream media and different on-line publications as of late.

The neighborhood is effectively conscious of scammy ICOs all through 2017-2018, however simply because a monetary incumbent sends out a press launch saying they’ve produced a ‘world-class blockchain’ doesn’t imply its true. However, we’ve seen many information retailers report on these blockchains once they by no means even seen the software program, not to mention examined it themselves. There are loads of Josh Garza’s and Paycoin tasks on the market at this time that elevate related crimson flags however nonetheless get extensive media protection.

What do you concentrate on this story? Let us know what you concentrate on this topic within the remark part beneath.


Images by way of Shutterstock, Pixabay, Paycoin archives, WSJ, Techcrunch, and DCK.  


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Original article first appeared in https://information.bitcoin.com/crypto-flashbacks-how-the-media-pumped-the-ico-known-as-paycoin/

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