11 December in Kiev held a round table on the theme «Standards of instruments of the blockchain». Among the agencies allegedly supported him, were given the Ministry of digital transformation, the Ministry of justice and the Ministry of economic development, trade and agriculture. While the event was advertised digital asset Bitbon from the company Simcord, with signs of a financial pyramid. About this in Facebook wrote Deputy President of the Association «the Blockchain of Ukraine» Vitalyi Bulychev.
The roundtable was organized by public organization «research center for legal solutions in the field of technologies of the distributed registry». The focus of the advertising of the event becomes apparent when you consider that it was a moderator CEO Simcord Alexander Code, and the speakers are his colleagues.
The list of speakers not included representatives of ministries, stated on the stand. Perhaps the organizers have ranked him the former first Deputy Minister of justice of Ukraine Elena Sukmanova and former Prime Minister Yuriy Yekhanurov. ForkLog requested comment from ex-officials to confirm their participation in the round table, but no answer was received.
The Ministry of the digital transformation of pre-Ukraine has not confirmed the relationship of the office with a round table. The official comment from the Minister will follow later.
First Deputy Minister of justice of Ukraine Olga Onischuk announced ForkLog that he first heard about the event.
Mining with a yield of 10 000%
Representatives of Simcord decided not to ForkLog answer to the question, did the Ministry support for this round table, and redirected us to the research center, indicating that they are the organizers of the event (later they sent a letter with explanations — see UPDATE). Although the event’s page in Facebook says otherwise:
Answering the question ForkLog on the content of speech Simcord at the round table, the representative of the public relations Department of the company said that they covered two topics: «the Prospect of attracting significant investment in the Ukrainian economy in the next 10-15 years subject to the timely and efficient organization of state regulation of the market of goods and services based on blockchain technology» and «the Legal nature of the token blockchain».
Also, the PR girl said that after the event it was decided to develop a «Doctrine of economic-legal regulation of the market of goods and services on the blockchain»:
The final Protocol of the round table by ForkLog on Scribd
Judging by the available photos of the event and previously published statement of the CEO, Simcord now preparing to start mining. At the roundtable they presented the principle of creation of mining pools in the system Bitbon.
Structure mining pool is divided into four levels, each of them promises its participants a certain rate of return from 10% to 100%.
It is noteworthy that when the value of one Bitbon $500 participants of the fourth level promise to yield 10,000%.
System Bitbon separates the two types of mining: «mining consensus-building» and «mining infrastructure». Although in the General sense of the term mining neither one nor the other is not.
«To earn by mining in the system Bitbon no need to purchase various additional hardware (processors and graphics card with a large processing capacity of farms for mining, etc.). Mining consensus-building algorithm uses a Delegated Proof-of-Stake, which was seriously modified and different from those that already exist in the market. Each owner Bitbon will be able to participate in mining and to obtain a permanent revenue, which will depend on the number of available Bitbon his electronic wallet Assetbox».
The company makes the following scheme:
«Private power miner is calculated from the number Bitbon the purse Assetbox. Basic capacity — the number Bitbon on Assetbox + number Bitbon have personally invited people from the first line. Social capacity — the number Bitbon on Assetbox + number Bitbon have invited people + number of Bitbon people in the second line and below. This is called pool miner».
Thus, early investors «bottom» your income from the funds of later investors.
White paper and krausel Simcord
According to the white paper project, Simcord engaged in «the development and production of high-load software solutions based on blockchain technology, which are based on scientific developments and patents in the field of management of property rights on assets by contributing».
«Bitbon is the first financial CryptoStream secured by the assets of the real sector of the economy. Underlying economic model system contributing guaranteed stimulates cyclic supply and demand on Bitbon», — say representatives of the company.
In the summer of 2018, the company came to the ICO, during which they planned to sell 70 million tokens Bitbon at a price of $6. Subsequent changes in the price of the asset is calculated at some «special formula depending on the number of purchased Bitbon».
At the final stage of public krautsalat Simcord announced a campaign Golden Price.
«The agreement stipulates the conditions under which the company will be able to buy every Bitbon customer at a price of $100, resulting in a guaranteed minimum income of the client will amount to 320% per annum, or 1600% at the end of the option contract 11 Oct 2023», — reads the conditions of the campaign.
In addition, the company promised buyers Bitbon option premium in the amount of 3% of the number of tokens bought. Now total supply tokens Bitbon is 100 million
ForkLog asked blockchain expert Pavel Kravchenko, visited the round table on his own initiative, to comment on the presentation of the company Simcord.
«If there is a fixed number of tokens, and they are required to execute transactions in the system and at the same time are an investment vehicle that is confirmed by the screenshots above, this utility model token, and it is in any case exposed a pump and dump.
Simcord claims that their token is a digital asset, proven intellectual property. So they are trying to prove that he is completely in line with the legislation. But no matter how much the lawyers have tried to justify this model, if the token is both an investment and a payment instrument, it is possible to pump and dump,» — said Kravchenko.
According to him, the round table brought together the «friendly company Simcord lawyers and politicians who expressed positive opinions in their address». The ultimate goal is to enlist the support of different public organizations and to enter the Parliament with a draft law on digital assets.
«It’s hard to tell whether Simcord pyramid, but based on the screenshot, the signs of the pyramid are present there», — the expert added.
Certificate of jesaconitine
«We initially laid down in the legal nature of the system Bitbon adaptive legislative regulation, which is an important indicator of value in the development of the global information economy. All the activities of system members Bitbon occurs exclusively in the legal field, which ensures the legality of all processes», — said on the website Bitbon.
The token Bitbon lot of different documents, allegedly confirming its legality, from inventory passports to scientific and legal opinions, signed by the National Academy of legal Sciences of Ukraine (it, by the way, is the previously mentioned roundtable moderator Nicholas Kucheryavenko). But we will focus on one of them.
7 Dec 2019, OOO «Concord» received from the already familiar to us of the research center for legal solutions in the field of technologies of the distributed registry a certificate of compliance token blockchain Bitbon digital asset.
«This certificate proves that the token blockchain Bitbon complies with all categories of digital asset, and it is a knowledge resource derived from the right to the value of addressing in a distributed registry unique identifier», — reads the conclusion of the center.
The research center was created at the end of the panel discussion «the Future of digital assets: financial-legal opinion», held in Kharkiv the third international legal forum in September 2019. Its founder is (drum roll) CEO Simcord Alexander Code.
The final Protocol by ForkLog on Scribd
According to the document, the center is engaged in implementation of blockchain technology in the public administration, as well as the development of normative-legal documents regulating the use of blockchain technology in Ukraine.
However, according to the head of group of advisers of the parliamentary Interfactional Deputy Association Blockchain4Ukraine Konstantin Yarmolenko, this public organization is «nonama» and in no way involved in the preparation of new legislation on the subject of technology, the distributed registry and virtual assets. Not heard anything about the center and President of the Association «Blockchain Ukraine» Mikhail Chobanyan.
In addition, Yarmolenko noticed that the logo and print centre is the state emblem of Ukraine that is the prerogative of the public authorities.
«Article 11 of the Law «On the state coat of arms» directly prohibits the use of public organizations. Specifically in this situation, these actions can be part of fraud», — said in comments ForkLog managing partner of the Juscutum legal company Artem Afian.
In General, Afyan called the panel discussion «one of the most cynical imitations of state, which he saw for the last time.»
«People who signed documents with an analysis of the blockchain network, Simcord, are experts in the field of law. It’s a little weird, because I personally, as a lawyer, will never undertake to analyze the network without technical expertise. Also I was confused by the statement about the compliance of the token definition of a digital asset, although this term in Ukraine is not enshrined in law», — said the lawyer.
Afian suggested that not all participants could be aware of its real purpose. As an example, he named a well-known expert in the field of intellectual property Olena Orlyuk. She wrote about his participation in the round table on Facebook.
«Obviously, these people simply used them to the end did not say where they participate, so they came and his presence seems to have betrayed the significance of this event», says Afian.
ForkLog expects comments Olena Orlyuk about who exactly and for what purpose invited her to the event.
«While I have no evidence to suggest that this pyramid, but the force of trying to give confidence to this project, about which no one in the technology and the cryptocurrency community doesn’t know, and overall aplomb of this round table which indicates the risk that it’s a pyramid scheme», concluded Artem Afian.
Suspected members of the forum
On the discussion forums dedicated to the Simcord, some users talk about negative experience with the company.
Similar feedback has on the activity of the Cypriot broker UBK Markets, a subsidiary of Simcord. The documentation UBK Alexander the Code is the Executive Director.
Given ForkLog facts are taken from public sources. The editorial Board is open to comments from representatives of the Simcord.
After the material representatives of the Simcord sent version ForkLog a letter in which he said that the national Academy of legal Sciences of Ukraine sent to the Ministry of the digital transformation of Ukraine in the name Fedorova M. A., official letter of invitation to the round table «Standards of instruments of the blockchain» with the offer to personally take part in it and to delegate to specialists of the Ministry. The letter was in the office of the Ministry from 04.10.2019 G., reg. room No. 34300/0/1-19.
«Support to the Ministry of justice was marked on the following basis: a round table «Standards of instruments of the blockchain», which was held on 11 November in the Ukrainian house, is the official continuation of the panel discussion «the Future of digital assets: financial-legal opinion», which was held in Kharkiv the framework of the III international legal forum, which was enshrined in the Protocol of the panel discussion. The forum was held with the support of several organizations, companies and ministries, particularly the Ministry of justice, information about which is available on the official information resource of the forum and, accordingly, was moved to information resources round table», — said the letter.
From the site of the event began to clean up the list of ministries, support for which was announced.
Compare, so the site looked before the release of our publication:
And so — after:
More information about MLM schemes can be found in the investigation ForkLog about the projects «Cerberi», OneCoin and Prizm.