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Canadian OSC warns against BTC Real, Bit Serial and several more cyptocurrency investment firms

May 21 2018
By
Jonathan Smith

The Ontario Securities Commission (OSC) has warned residents of BTCReal, BitSerial, Hypercube Ventures LP, CabinCoin OÜ, and BaapPay Inc. These companies target Canadian investors and are all supposedly connected to cryptocurrencies. The warning comes as they are not registered in Ontario to solicit investments or provide advice on investing in, buying or selling securities. 

 

Below we will provide the OCO comments on each company, as well as our impressions after browsing their websites for a few minutes.

 

BTCReal manages the website btcreal.biz, where it claims to provide full investment services for cryptocurrency-related investments and forex. BTCReal claims it can provide investors with high returns in short periods of time.

 

Our comment: BTCReal offers several investment plans promising amazing returns. The most incredible one requires a minimum of $3,000 and promises “50000% AFTER 3 DAYS”. This sounds too good to be true even if you take the volatile nature of cryptocurrenices into account.

 

BitSerial operates the website bitserial.io, which claims to offer opportunities to invest in “BTE Tokens.” BitSerial’s website also encourages investors to participate in a lending program where they can exchange Bitcoin, Litecoin, or Ethereum for BTE Tokens that are “lent out” for high returns.

 

Our comment: BitSerial’s website is full of typos, which never inspires credibility. Even their FAQ section states: “BiSerial BTE Is A Digital Currency Using Ethereum Platform Under Singapore And Switzerland Technological Advancement”. This makes little sense. 

 

Hypercube Ventures LP manages the websites hypercube.vc, hypercube.fund, vnn.money and vnn.cash, which encourage investors to buy “emission pools” for the purpose of generating “VNN cryptocurrency.”

 

Our comment: This initially feels a lot more professional than the previous two “opportunities”. Still a lot of questions are left unanswered. Other than the obvious “What makes your currency better than Bitcoin?”, the fact the company is selling the “mining software” as well as the entire emissions model (as opposed to a POW one) seems very dubious.

 

CabinCoin OÜ operates the websites cabincoin.com and cabincoin.exchange, and is currently advertising an unregistered token sale for “CabinCoin Tokens.” CabinCoin claims that the future value of these tokens will far exceed their initial price.

 

Our comment: Other than the obviously inappropriate claims of future gains, the entire website presented by CabinCoin somewhat feels like a get-rich-quick scheme of old, with a little crypto sprayed on top. The most amusing thing is they have licenses by the “Financial Intelligence Unit”. They a) don’t specify which country’s unit this is; b) usually these organisations don’t give licenses, but fight money laundering.

 

BaapPay Inc. manages the website baappaytoken.com, and is also currently advertising an unregistered token sale.

 

Our comment: This seems more decent than some of the others on the list, but requires more research than our initial look. Still they aren’t registered with the Ontario authorities and may face an uphill legal battle before integrating their system to the full extend. 

 

Investing in ICOs or “investment schemes” can be very risky. Some of the companies we mentioned in this warning are very likely to be scams. If you are interested in cryptocurrencies, as an active trader, and prefer to trade the coins from a safe environment, maybe consider the highly regulated forex brokers, offering crypto-CFDs

TAGS: btcrealeal  bitserial  hypercube  cabincoin  baappaytoken  cryptocurrency  osc  Canada  warning 

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