Blockchain Australia has ended Qoin’s membership of the organisation on the grounds that the crypto project is a pyramid scheme.
Blockchain Australia—the new tech industry in the country—has expelled Qoin, a crypto retailer based in Gold Coast, Queensland.
According to a notice of disciplinary action issued on Feb. 19, Blockchain Australia initially served Qoin with a summons to respond on Jan. 29.
However, Qoin reportedly failed to respond to the notice, forcing Blockchain Australia to expel the project from its membership ranks. Detailing its decision, the notice reads:
“On 17 February 2021, the Board of Blockchain Australia, having considered the Notice and the Response and the circumstances of the matter, resolved, pursuant to the Constitution, to terminate the Member’s membership of Blockchain Australia. The former Member has been asked to cease the use of the Blockchain Australia logo and name in connection with their business or promotional activities.”
However, the Qoin team claims that Blockchain Australia did not have enough time to respond. Speaking to Cointelegraph, Andrew Barker, Chief Marketing Officer of the project, Qoin was horrified by the decision of the industry body:
“The fact that a National Association like BCA has chosen to attack rather than support Qoin, being the largest Australian-based Digital Currency project that engages over 400 families that service 28,000 validated merchants and near 50,000 Qoin wallet holders, is simply bewildering to us.”
According to Barker, Blockchain Australia is acting on claims made by third-party organisations who have shared such views on social media platforms such as Twitter. The Qoin website no longer shows the Blockchain Australia membership of the project.
Indeed, Blockchain Australia’s action comes amid allegations that Qoin is a crypto pyramid scheme. Tweeting back in January, crypto educator and founder of Nuggets News Alex Saunders stated:
Biggest crypto scam in Australia I’ve been warning people about for years is collapsing. For years there was no way to sell $QOIN, but it finally got added to a tiny exchange & even with a $100/day sell limit it’s collapsing. Investors stand to lose millions. 🇦🇺🚨💰 #ausbiz #scam pic.twitter.com/2KKscwEo1N
— Alex Saunders 🇦🇺👨🔬 (@AlexSaundersAU) January 27, 2021
According to Qoin’s website, the project operates by convincing retailers to embrace the crypto with more than 28,000 participants via the website. Critics like Saunders, however, claim that participants are unwilling to cash out of the scheme.
According to consumer law, pyramid schemes are illegal and participants in such initiatives face penalties of up to 200,000 Australian dollars.
622 Interactions, 2 today