SEC warns public that Gaza's XIAN COINS could be a Ponzi Scheme!

The Philippines Securities and Exchange Commission warns the public that Gaza's Xian Coid digital currency could be a SCAM!

Securities and Exchange Commission

A Ponzi scheme?

According to the Xian Coin website (which is down or offline at the time of this article's writing), Xian Coin is a centralized digital currency that is powered by the Etherium Blockchain that is traded exclusively by its coin holders. A blockchain or distributed ledger is a peer-to-peer database across computer networks, recording transactions that can not be altered.

The Philippines Security and Exchange Commission (SEC) has posted an advisory on its official website where it informs the public that Christian Albert Gaza or Xian Gaza's Xian Coin digital currency is not registered with the Commission neither as a corporation nor as a partnership. Thus it is NOT Authorized to solicit investments from the public since it has not secured prior registration and/or license from the Commission as prescribed under Section 8 and 28 of the Securities Regulation Code.

Xian Coin is also not registered with the Virtual Asset Service Provider (VASP) with the Banko Sentral ng Pilipinas under Circular No. 1108, series of 2021 or the Guidelines for Virtual Asset Service Providers.

The Commission also said that Xian Coin does not have a 'White Paper.' A White Paper is an important document that details its design and development, its evolution and how it will generate business. Without this White Paper, it makes the project dubious and out to be treated with suspicions.

With all of that said, the Commission warns the public that the scheme employed by Xian Coins clearly shows an indication of a possible PONZI SCHEME. A Ponzi Scheme is where the money from new investors is used in paying 'Fake Profits' to prior investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to a subsequent member in case of scarcity of new investors.

What do you guys think?

Source: SEC Via BusinessWorld