The founder of PakCoin, a Pakistani cryptocurrency, has claimed that his startup has been wrongfully portrayed as a scam. Fraudsters from all over the country have been exposed by the team of Sar-e-Aam, a Pakistani TV show that exposes scams and frauds, but an apparent lack of research by the Sar-e-Aam team about Pakcoin is shadowing the future prospects of blockchain startups from the developing country.
Pakcoin is an open source, global payment network that is fully decentralized without any central authorities. Host of the show, Iqrar-ul-Hasan, exposed a group of people who claimed to be the distributors of Pakcoin. They were in fact fraudsters who hoodwinked people into giving them money to get Pakcoin. Once they signed up, the fraudsters would ask the people to install an app on their phones that they could use to earn some profit on their investment by ‘shaking their phones’. Where it really went wrong for the host of the TV show was when he called Pakcoin a fraud and a currency that wasn’t backed by any blockchain.
The founder of Pakcoin, Abu Shaheer, claims that he tagged the TV show host in multiple tweets and emailed him how he was wrong but the latter chose to ignore the former. While talking to BlockPublisher, Shaheer expressed his disappointment stating:
Allegations by Sar-e-Aam about Pakcoin are totally false and hold no truth.
Upon asking how he felt regarding the whole scenario, he replied:
“When I watched the show I came to know that some people were using Pakcoin’s name in a fraud and I literally laughed at the scheme used by the them. But the real shock was when Iqrar-ul-Hasan said that Pakcoin is a fake cryptocurrency and these people were changing its value by themselves. I am glad that Sar-e-Aam caught those fraudsters but sad that they did not research about Pakcoin well and made allegations against it.”
Sar-e-Aam is a popular TV show in Pakistan that exposes fake businesses, industries, scams and frauds to raise public awareness. The show has been helpful in shutting down multiple fraudulent businesses. The host is well liked in the country mainly due to his work for the public awareness though some find his tone to be a bit aggressive. Where the show has helped expose a lot of scams, the episode on Pakcoin might have gone a little over the edge as the allegations were targeted at Pakcoin too.
Since cryptos have been banned in Pakistan for a while and running nodes was a punishable crime, Iqrar-ul-Hasan might have just assumed that the currency isn’t backed by a proper blockchain. Abu Shaheer states:
Pakcoin is not restricted to Pakistan only; people from outside Pakistan can also mine it and participate in running its nodes. It is a decentralized blockchain so anyone in the world can run it’s nodes and maintain it.
He further said,
Pakcoin is a cryptocurrency based on bitcoin and is focused on Pakistani people primarily but is not restricted to Pakistan only. Pakcoin is a decentralized cryptocurrency just like bitcoin and its value is established on online exchanges by supply (sellers) and demand (buyers).
Many in Pakistan have expressed their opinion in using cryptos as a payment method. With the new regulations supposedly coming in soon, that might just happen. If and when it happens, it will greatly benefit Pakcoin as the currency would finally be used for what it was built for — usage within Pakistan. The founder seemed overwhelmed with the news of new regulations in Pakistan that would allow the usage of crypto and formation of exchanges. He stated:
“I am glad that it is going to happen soon, it was needed to prevent wrong usage of cryptocurrency. With the legal framework for cryptocurrencies, Pakcoin has the potential to grow and be the bitcoin of Pakistan. It can be used as a payment method because it’s faster, cheaper and energy efficient, unlike bitcoin. Pakcoin has moved to proof of stake, so it gives anyone an easy way of mining and getting profits while maintaining its network”.