Why Experts Think This New Crypto Is A Scam

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A new LGBTQ token called MariCoin is causing concern.

Key Points A new LGBTQ token in Spain promises to create an ethical and transparent payment method. Critics have raised a number of concerns, such as the lack of a white paper.

One of the many potential benefits of cryptocurrencies and blockchain technology is that they can empower marginalized communities. Cryptos can build communities, increase affordability, and help people escape stigma.

Unfortunately, the lack of regulation and the proliferation of scams also means that there is little to stop unscrupulous players from trying to exploit these potential advantages. This is exactly what some fear a new Spanish LGBTQ token called MariCoin is trying to do.

MariCoin is not the first LGBTQ crypto project

Before we get into why experts are worried about MariCoin, let’s discuss some positive ways cryptocurrency and blockchain could help the LGBTQ community.

There is a blockchain marriage certificate project that helps couples in countries where same-sex marriage is illegal. Launched in 2021, the Pride token (PRIDE) wants to create a payment system capable of financing significant change. 2018 is all about harnessing the economic potential of the LGBTQ economy and putting some of the profits back into the community. The anonymous nature of blockchain could help people living in countries where same-sex activity is criminalized move money freely and avoid having their assets frozen by authorities. Why MariCoin Raises Red Flags

According to its website, MariCoin will be, “A social, ethical, transparent and transversal means of payment”. The idea is that the tokens would work as a form of payment in various companies that have signed a manifesto for equality. The coin has completed a week-long pilot project in Madrid ahead of its launch in 2022.

Co-founder Juan Belmonte told Reuters: “Since we are moving this economy, why shouldn’t our community benefit from it, instead of the banks, insurance companies or big corporations that often don’t help LGBT+ people? The idea itself sounds good. But as a potential investment, it raises many red flags.

1. The name plays on a homophobic slur

The name MariCoin comes from an offensive homophobic word in Spanish. Now, this could be an attempt to reclaim the term – as the founders told CoinTelegraph. But if that’s the case, given the token’s mission and the backlash on social media, it seems misguided.

2. There is no white paper

When evaluating a cryptocurrency, one of the first ports of call should be its whitepaper. This is where you will find information about what problems the token plans to solve and how it plans to do so. Responding to the criticism, on January 7, MariCoin co-founder Juan Belmonte promised CoinTelegraph that the first version of his whitepaper would be available “next week.” But more than two weeks later, at the time of writing (January 24), there is no sign of the white paper.

3. There are errors on its website

The website is quite basic. In fact, there is really only one page and you will get more information from Reuters and CoinTelegraph articles than from the site. Even basic navigation doesn’t add up. For example, there are three “waiting list” buttons. One goes to a Google form where you can sign up for the new extended waitlist, and the other two go to a page that says the waitlist is closed. Also, Google Forms is not the most professional way to do a token presale.

The other links lead to a Change.org petition that has yet to receive 200 signatures and an email contact form. Given that the project says 10,000 people signed up for the initial presale waitlist, that in itself is suspect – it means less than 2% of them signed the petition. Although this may be because the purpose of the petition is unclear.

The slightly odd English can be attributed to a suboptimal Spanish translation. But, there is also no information about the team, no details about how the token will work, like the number that will be issued, and no information about which merchants will accept the token. Finally, it claims to be the first piece aimed at the LGBTQ community, but it is not.

Attention buyer

MariCoin raises a number of red flags, even if you try to give it the benefit of the doubt. On the plus side, it received a grant from the Algorand Accelerator Program (ALGO), which gives it more legitimacy. It could be a real project run by people who don’t know the crypto world very well. It is possible that they rushed to put something on the market and did not realize that a crypto token without a whitepaper and a poor website would cause concern. However, there is also a chance that something more concerning is going on.

Its website states that the coin will be released on major cryptocurrency exchanges in February and offers people the opportunity to reserve MariCoins in advance at the starting price of $0.025 by joining the extended waitlist. This seems like an extremely risky proposition. Nobody knows what will happen to the price of MariCoin when (and if) it is released on crypto exchanges. There is no information on how many tokens will be issued, how many are held by MariCoin founders, and where they might be traded.

If you want to support MariCoin, it is best to wait until there is a lot more information available. You need to see its white paper and understand the details of how the token works before spending a dime. Try not to be blinded by the ideals of the project and evaluate it as an investment. If it didn’t promise to do something good for the LGBTQ community, would you give it a second look? I know I wouldn’t.

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