Friday, 2 November 2007

C-Gold : New Gold Based E-Currency or Hoax ?

I’d recently been made aware of a new E-Gold clone called . The website is a dead ringer ripoff of E-Gold’s website, right down to the copy and pasted text. The owners of C-Gold claim that their is backed by gold, much as or Pecunix are. That’s not in dispute because they actually have provided a tiny bit of transparency in allowing users to see where and how much bullion they have in storage. They have also openly stated the business is located outside of the United States in the Republic of the Seychelles with their main headquarters located in Penang, . Both details do check out and the servers are not located inside the United States as well.

The thing that has me the most worried about C-Gold is that one of their operatives, a person who uses the name “Robert” has been a busy little beaver making posts such as the one below at fourms which is a well known haven for scammers and run by scammers who are believed to be involved in operating several former (as well as a new one that is just being launched). Talkgold forum is also rumoured to have ties to the underground crime organization which was taken down by the Secret Service in 2004. My uneasiness comes from the fact, why would an honest, reputable payment processor bother to waste the time to have one of their founders or operatives post at a forum such as Talkgold. Regardless of the indictment against E-Gold, nobody ever saw the owners of E-gold, Dr. Douglas Jackson or Barry Downey ever, ever posting at a forum such as Talkgold. That forum exists only as a purveyor of ponzi and pyramid schemes, so it’s no suprise it gets my radar going when I see posts such as this one…

To avoid neverending discussions and speculations, here is how the management of Private Gold Equities Exchange Limited and thus of views Investment programs and games, etc.:

(1) No Ponzis, Pyramid schemes, etc.

(2) Investment programs that have merit and a certain probability of success are accepted, if -
- they involve a plausible business concept
- do not depend on indefinite new funding to achieve their business objectives
- clearly state what the money is being used for, how expected profits are generated and what the fees are
- clearly define the risk to all users and make sure that users are reasonably aware of them before investing (small print in TOS doesn’t fullfill that requirement).

(3) No Games of Chance, ie. no gambling, unless the operation is licensed in the location of residence to operate online gaming sites, AND takes reasonable measures to ensure that people whose jurisdictions of residence forbid them in gambling online can not access the site. In other words, legitimate casinos are fine, as long as they screen their users and block those that shouldn’t be there.

(4) We will generally tolerate private membership clubs, as long as they do not break the laws of the jurisdictions their members reside in. This does include investment clubs, savings associations, etc.

(5) We will not tolerate fraud and con artists. Justified complaints will get accounts suspended and reinstatement will only be done after the complaint is settled. However, the decission of what constitutes a justified complaint is ours, and ours alone. We will typically take the side of the merchant when justification is in doubt.
Third party arbitration is strongly encouraged for all disputes.

A personal comment regarding the above is that after all these years in Asia, more than half my life, to be exact, I am well aware of amazing business opportunities and that smart operators could well command margins of several 100% in their business, if they had the money. I also realize that in many locations such operators couldn’t get traditional funding or financing, simply because of the way things work there. That is why will outright disallow all types of investments, as that would be very much in contradiction of our stong beliefs in the merits of capitalism. However, outfits that offer 50% a day, or even 500% per month and don’t have a clear and plausible way to achieve these returns, need not apply. If they have a clear and plausible way to make 500% per month, I’ll buy them out myself, on the spot ;o)

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It is to be noted that Andy, the scammer behind XLO/TFT/XLOTwo and has registered his domains through these people, so if thery really were against fraud, why don’t they start by removing their anonymous domain registration and hosting services that are used by ponzi and pyramid scheme operators ?

Again, when I read the post above, something just does not sit right with me. Possibly I’ve read far too many updates from autosurf and hyip admins or too many updates from payment processors that went *poof* but either way, this guy Robert’s posts smack of all the phoniness, lies, dishonesty and general bulls*it that we’ve all heard over and over again for years since we stumbled eyes wide open into this den of iniquities. The more you hear, the less believable it all becomes and eventually one can’t help but become eternally jaded to these type of diatribes, causing one to put on your armour, pick up a sword and a shield and start defending yourself against the con artists and lowlifes.

Long and short of it: Would I use C-Gold? Hell no. With all the other gold based processors out there, I don’t know why anybody would fall for a processor that sends their people into Talkgold forums to drum up business or to post their TOS.

Big thumbs down on this one.

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