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| September 26, 2018

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

September 15, 2018 |

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

Just recently Josh Garza was sentenced to 21 months of prison and six months of home confinement for his role in the many Ponzi scams like Gaw Miners, Zen Miners, Hashlets, and of course the controversial Paycoin that appeared in 2014. Back then lots of people were scammed by Garza’s schemes but he had a bunch of help bolstering his fraudulent ideas. Unfortunately, mainstream media and a slew of other online publications did a really good job in assisting Garza’s pump-n-dump schemes and the Paycoin scam.

Also read: 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 infamous character that’s been known for a lot of fraudulent cryptocurrency-related scams. Garza the controversial cryptocurrency executive and a few other associates are now paying for their crimes, but if it wasn’t for mainstream media and other online publications his scams probably wouldn’t have gone as 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 were involved in the Bitcoin scene around November of 2014 you definitely 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 many more online news outlets. Of course, some of the editorials were paid for but some people unwittingly published Garza’s gross lies. Garza even did an illustrious interview with Techcrunch (with plenty of backlinks to Garza scams) explaining how he got all the money to purchase the domain Ironically Garza explains that his company was created because he was once scammed.        

“GAW Miners was born after someone ripped me off during an ASIC purchase,” Garza explains to Techcrunch in August of 2014. Then Garza further explains to Techcrunch just how successful Gaw Miners had become that year. The founder makes some very bold claims stating:

The company was an overnight success and achieved over $ 10 million in sales during its first month and is on schedule to do $ 100 million in this first year.

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

Garza’s Paycoin was considered by many people to be one of the first high-profile initial coin offerings (ICO) that also claimed to offer ‘stablecoin‘ features. Basically, people could purchase Paycoin (XPY) and his operation would guarantee to buy them back at $ 20 USD per XPY. The promises Paycoin offered was all described in great detail in the XPY white paper that was widely distributed on the web four years ago.

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 pretty contentious story on Paycoin back in 2014 as well. The story’s headline actually refers to Paycoin as a ‘bitcoin challenger’ and highlights quite a bit of Garza’s claims. Of course, the article immediately had criticisms towards Paycoin and Garza in the comment section not long after the article was published. The comment section below Casey’s Bitbeat story has a bunch of individuals complaining about misleading claims and outright fraud.

Crypto-Flashbacks: How the Media Pumped the ICO Known as Paycoin However, in 2014 and early 2015, not every online publication and journalist gave credence to Garza and Paycoin’s claims. On October 15, 2014, the online cryptocurrency publication Coin Fire (which is now called 99 Bitcoins) published a story that revealed Gaw’s Hashlet mining operation didn’t have any miners. A few months later Coin Fire published more incriminating details about the misleading claims Garza and Gaw told the public and media. Gaw Miners fired back at the Coin Fire editorial team and threatened them with legal action over the articles. On November 22 the news outlet outlined all the business partnerships that Gaw Miners lied about, and Coinfire’s claims were 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 a lot has changed in the last four years since Garza, Gaw Miners, and the Paycoin ICO scam took place within the cryptocurrency-community. However, there are definitely lots of fraudulent ICOs out there today, and plenty of so-called collateralized stablecoins with many more on the way. Furthermore, we’ve reported on the many ‘next generation’ snake oil blockchain projects being bolstered by mainstream media and other online publications these days.

The community is well aware of scammy ICOs throughout 2017-2018, but just because a financial incumbent sends out a press release saying they’ve produced a ‘world-class blockchain’ doesn’t mean its true. However, we’ve seen many news outlets report on these blockchains when they never even seen the software, let alone tested it themselves. There are plenty of Josh Garza’s and Paycoin projects out there today that raise similar red flags but still get wide media coverage.

What do you think about this story? Let us know what you think about this subject in the comment section below.

Images via Shutterstock, Pixabay, Paycoin archives, WSJ, Techcrunch, and DCK.  

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The post Crypto-Flashbacks: How the Media Pumped the ICO Known as Paycoin appeared first on Bitcoin News.

Bitcoin News

Media batter Trump with storm criticism as Hurricane Florence looms

September 13, 2018 |

As the media blast out dire warnings about the destructive power of Hurricane Florence, they are also beginning a familiar ritual involving President Trump.
FOX News

Attorney general announces review of social media platforms following Capitol Hill hearing

September 5, 2018 |

Lawmakers on Capitol Hill questioned top executives at Facebook and Twitter on Wednesday about their companies’ ability to thwart foreign interference, and hinted that industry regulations may be coming.

The “size and reach of your platforms demand that we, as policy-makers, do our job, to ensure…

L.A. Times – Business

Tech companies drag down market as social media execs face Congress

September 5, 2018 |

U.S. stocks are mostly lower as technology companies lag the rest of the market for a second day.

Social media companies slipped at the start of congressional hearings where executives from Facebook and Twitter will testify about their efforts to prevent disinformation and election meddling.


L.A. Times – Business

Inspirational Social Media Star Claire Wineland Dead at 21

September 4, 2018 |

A young social media star who inspired legions of fans with her optimism despite a lifelong battle with cystic fibrosis has died at 21—a week after receiving a new set of lungs in a transplant, reports People . Claire Wineland suffered a stroke soon after the Aug. 26 transplant, and…

Mainstream Media Narrative Sensationalizes Chinese Crypto Crackdown

September 4, 2018 |

Mainstream Media Narrative Sensationalizes Chinese Crypto Crackdown

An American academic has written an article criticizing dominant media narratives surrounding China’s regulatory actions pertaining to cryptocurrencies. The article’s author, Nicholas Krapels, asserts that “most casual observers of Chinese politics do not understand” that “by design, Chinese law maintains a grey area” and get caught up in the “clickbait-oriented sensationalist echo chamber” of contemporary digital media.”

Also Read: Indian Officials Visit Regulators in Japan, UK, Switzerland to Study Crypto

American Scholar Criticizes Dominant Media Narratives Surrounding China and Crypto

Mainstream Media Narrative Sensationalizes Chinese Crypto CrackdownAn article written by Nicholas Krapels – an American academic who has lived in China since 2011 whilst working towards his PhD in Chinese politics at East China Normal University, has criticized mainstream media narratives pertaining to Chinese regulatory actions regarding cryptocurrencies.

Mr. Krapels states that “Last week, many minor statements fomented a mountain of fear, uncertainty, and doubt regarding cryptocurrency’s future in China. On Tuesday evening, Wechat blocked a few crypto-oriented news official accounts. Late in the evening the next day, Beijing’s Chaoyang District banned public venues from holding crypto-related events.”

Mr. Krapels asserts that “the way Western media portrays events in China” heightened and exaggerated concerns pertaining to the events, adding: “That situation is only made worse when crypto influencers like Danhua Capital Managing Director Dovey Wan tweets out pictures of the primary source of the Beijing district ban in Chinese along with misleading English comments, ‘The new China crypto BAN is now official’.” Mr. Krapels likens such to “post[ing] […] an official English notice […] on Weibo […] from the NYC police banning handguns in Manhattan and then claim in Chinese, ‘America’s BAN on handguns is now official’.”

Chinese Government Had “No Direct Involvement” With Wechat and Chaoyang District’s Respective Actions

Mainstream Media Narrative Sensationalizes Chinese Crypto CrackdownMr. Krapels asserts that “the national government has had no direct involvement with any of these actions,” emphasizing that “So far, a single district in Beijing and a development zone in Guangzhou have explicitly called for venue bans.”

“Wechat and Alipay, corporations not the government, voluntarily self-regulated the blurry edges of their ecosystem that facilitated illegal behavior such as coordinating pyramid schemes and averting capital controls,” he added.

The article states that “Most casual observers of Chinese politics do not understand that rarely, if ever, does the Chinese Communist Party issue bold black-and-white proclamations,” adding that “By design, Chinese law maintains a grey area, a Hegelian nuance that provides for innovative creativity while at the same time attempts to ward off destructive tulipomania and outright scammers.”

As such, Mr. Krapels states that one must “read between the lines” in order to “find true regulatory intent.”

What is your response to the opinions of Mr. Krapels? Share your thoughts in the comments section below!

Images courtesy of Shutterstock

At there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post Mainstream Media Narrative Sensationalizes Chinese Crypto Crackdown appeared first on Bitcoin News.

Bitcoin News

Rising Democratic Star Bans All Media From 2 Events

August 18, 2018 |

Seems President Trump isn’t the only one with media issues . Now rising Democratic star Alexandria Ocasio-Cortez has entirely banned reporters from two town-hall-style events, CNN reports. The congressional candidate hosted the “listening tour” community meetings last week—one in the Bronx on Wednesday and one in Queens on Sunday—where…

Tribune Media terminates sale to Sinclair Broadcast Group, seeks $1 billion in damages

August 9, 2018 |

Sinclair Broadcast Group’s proposed $ 3.9-billion deal to acquire Tribune Media is dead.

Tribune announced Thursday that it is terminating the merger agreement. The companies had the option to kill the sale if it had not closed by Aug. 8. The deal was first announced in May 2017.

Tribune also said…

L.A. Times – Business

Tribune Media withdraws from Sinclair merger, saying it will sue for ‘breach of contract’

August 9, 2018 |

Tribune Media said Thursday that it would withdraw from its $ 3.9-billion merger with Sinclair Broadcast Group, adding that it would sue Sinclair for “breach of contract” over its failed negotiations with regulators over the deal.

The breakdown of the deal reflects a stunning reversal of fortunes…

L.A. Times – Business