Pipcoin Scam or Legit? The indepth review

Pipcoin Scam

So you have already heard of Pipcoin and are wondering if it is a scam or legit? Please read this article before you take any further action. I present the facts so you can make up your own mind: Is Pipcoin scam or legit investment opportunity?

Who founded Pipcoin?

Ref Wayne Shaman

Pipcoin is the creation of David Schwartz and “Ref Wayne Nkele who founded the company. Although, no information can be found about David Schwartz, there is lot’s to be found about Ref Wayne the very vocal and flamboyant front man. So who exactly is he?

Ref Wayne got quite a bit of media coverage when he founded his company “African Forex Institute” at the time he was interviewed on a number of radio shows as South Africa’s youngest self made millionaire through forex trading. He used this newly gained reputation to travel the country teaching forex and in the process claiming to create many more overnight millionaires through the courses.

At around this same time, Sandile Shezi of the Global Forex Institute was coming under close scrutiny. They were charging people for the program (Around R4000) and upon closer inspection, most of the material used in his course was plagiarized, some of it taken from a famous FREE online forex website: BabyPips.com. Then there was this- R30m Account Mystery as reported by News24.

Ref Wayne surely saw this and decided he would need to change his game-plan and came up with another great money making scheme.

Enter Pipcoin, Scam or legit?

Pipcoin Earnings

Using his social media following and newly found fame, Ref Wayne and co. launched what they claimed to be “Africa’s first cryptocurrency”. This new currency claimed to offer an enormous guaranteed monthly growth rate. Simply buy some Pipcoin and they will  increase in value by 35%, month on month, without fail. On the 14th of Feb he had this interview on SABC.

When I first saw this interview, I thought to myself: “Cool, a cryptocurrency making the news on SA TV”, but upon closer inspection, I was horrified to find that this “Cryptocurrency” was actually not a cryptocurrency at all. A cryptocurrency by definition in open source and decentralized and runs on a blockchain. This Pipcoin, was completely closed source and centralized and there was no blockchain to speak of. Alarm bells began ringing in my head.

pipcoin fraud

They claim to be a decentralized peer to peer currency.

Instead of a trade-able cryptocurrency, all I could find was a website “platform” that allowed one to buy Pipcoin and then trade it again on the same platform to another user that is looking to join. They could not be transferred out of the platform, there were no wallets to download and no blockchain to view all the transactions on the network. Also there was no mining.(mining is the transparent process by which Cryptocurrencies like Bitcoin come into circulation), you can find more info about mining Bitcoin here.)

I decided to do a bit of digging, you would think that a peer-to-peer system of this nature would take some serious development budget and some top notch developers, all I could find about it’s development was this project on freelancer.

pipcoin freelancer

 

I was surprised to see no mention of Blockchain, cryptocurrency and other peer-to-peer systems that would be needed for a project of this sort. Instead all it is is a platform whereby one can login, buy Pipcoin which magically grow by 1% per day and then sell them to another user who gets your details to make payment. Pipcoin is not decentralized at all, instead it is very much a centralized server based system.

.Pipcoin is centralized

Pipchain.com

Pipcoin recently claimed they were launching their very own blockchain explorer similar to the likes of Blockchain.info where you can view all the transactions that are being propagated on the network. As one reddit user pointed out this was not it’s own Blockchain explorer at all! Instead it is an exact copy of Blockchain.info but with all instances of “Bitcoin” replaced with “Pipcoin”.

PipcoinEven the news section is a joke, they are just Titles from real Bitcoin related articles from websites like “Let’s Talk Bitcoin” replaced with “Let’s Talk Pipcoin” (The article links don’t work by the way)

The Pipcoin Scam

I would avoid Pipcoin at all costs, there are too many discrepancies in what they claim to what actually is based on reviewing their platform. It’s quite clear how it actually works: You buy Pipcoin. Pipcoin magically increases in price by 35% per month as determined by the poorly built website. You sell the Pipcoin to the next sucker that joins.

ponzi scheme

Someday there will be no new chumps to join the program to buy your Pipcoins and your Pipcoins will then be worthless. A majority of people who join this scheme will lose money which they will never get back. In my opinion Pipcoin is a blatant scam and Ponzi scheme designed to defraud people of their money.

I hope that some people read this and realize the Pipcoin scam for what it is, if I saved even one person their hard earned money, I am a happy man.

So, what do you think, is Pipcoin a scam? Leave your comments below.

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About the author

Shane Maguire

Bitcoin enthusiast, have been trading and following Bitcoin since 2012. Director at 45ive Media, a small digital marketing agency based in Margate, South Africa.

Readers Comments (12)

  1. Pipcoin is a scam. These days theres so many people promoting these looking to find unsuspecting people.

    Reply
  2. My question is. If somebody comes up writting about weather something is a scam or not, and concludes that it is a scam, just like you sir. What has he/she done for the poor? Those poor people who are joining So called “scams” just to change their financial status. Nothing! Helping someone is not about telling him where not to go to but showing him the right place to go to change their finatial situation. So this blog is just negative and a waist of time.Pipcoin is just starting out and is making mistakes just like any new business would. The founder is not hiding himself and infact he even call apon the media and the gorvenment to see the progress of the business. What a scam artist wouldn’t do. You guys should focus on what will benefit the poor instead of shutting doors for them. Greedy bustards!

    Reply
  3. Pipcoin is a scam. I have even reported them to the SARB under their new easy come easy go campaign to stop scammers, and ponies schemes.

    The above comment asking “what have you done for the poor?” simple answer is, don’t Rob them! Unlike what Ref Wayne is doing.

    Also if you know Ref at all, you know that he is a massive liar and charlatan.

    Reply
    • Brutus Sibusiso Cele September 15, 2016 @ 7:53 am

      I bought R150 000 worth of Pipcoins on July 9, 2016 and within two weeks my Pipcoins had increased in value and I had made R450 000 including my R150 000. The money has been growing tremendously over the past two months but the problem is I can’t withdraw my money now. Three weeks ago this money had grown up to more than R700 000. The unfortunate part, there’s no one who is telling me anything about what’s happening with my money. And I think that I have lost my money.I’m about to lose R250 000 which I used to pay as the deposit when I was buying land for building house for my family. I am in short of R150 000 and I thought I was going to pay the balance with the Pipcoin money but it seems that I will even lose my R250 000 that I paid for a deposit when I was buying the land. Please if you can help me recoup my money.

      Reply
  4. Education is what the poor should consider you moron

    Reply
  5. People should stop looking for any easy way to make money if it sounds too good to be true it definitely is!
    If you want to make money in forex learn to trade don’t just want to become a millionaire over night the markets have no mercy….

    Reply
  6. The poor must not not be poor in mind lol.Ponzi schemes are not joined by poor only but also by greedy,less analytical,envious people. It was Defence-x,kipi,MMM,Pip coi, Imactioning direct,payplan . A hell lot of them and now people are being robbed by forex teachers who can’t trade themselves yet people pay thousands access baby pips information that is freely found on-line or the Steve Mauro video tutorials. South Africans Vukani, forex is not a get rich quick thing but an investment mean for investors who can accumulate money over time.get a simple trading strategy and be loyal to it.

    Reply
  7. The issue here is that as much as the venture is being called a scam, no authority has verified any of these ‘opinions’ as it would seem.

    There is no authoritative body that has neither confirmed nor denied any of these stories.

    Reply
    • Using that logic then any time you are scammed on the street and no “authority” confirms it, it means that you were not scammed? All I can tell you for sure is that Pipcoin members were promised returns of 35% per month and many have not received it.

      Reply
  8. I did buy pip coins too in April and i haven’t received my money.

    Reply

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