Illustration by Freepik

On 26 June, The Securities and Exchange Commission of Nigeria came out with an official statement about the activities of IBSmartify, a Nigerian company proclaiming to be the first blockchain organization to use crypto for philanthropic purposes.

Following the SEC’s official statement, IBSmartify’s products have been declared as unregistered and unregulated by the Commission. The agency also addressed the danger of citizens in dealing with their promoted blockchain known as “iBledger”.

“The general public is hereby WARNED that any person dealing with the said entity and others in the same business in any manner whatsoever, does so at his/her own risk,” the SEC said in the announcement. After this official statement, users of the iBcash cryptocurrency will assume personal responsibility for any actions connected to trading on the iBledger.

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According to its public position, IBSmartify plans to end poverty in any country in less than 9 months and provide a universal basic income of at least $330 for every person on Earth. This is said to happen through their Native Reserve Coin called PinKoin, which will be “backed by human asset” and distributed across the world’s population.

The organization, also known as “InksNation”, claims that, by 2025, 80% of jobs will be automated by machines and artificial intelligence, leaving a lot of people jobless, especially in the Africa Region. They promote their blockchain solution as being a new ecosystem where AI serves humans “while we the Human Assets live like Kings&Queens that God had programmed us to be”. Such controversial statements have led to public distrust of IBSmartify and backlash from certain regulatory institutions.

Nigeria’s Blockchain Regulatory Association SiBAN has openly expressed their opinion against InksNation’s products. In an official statement on their website, they labeled IBSmartify’s project a “scam” with a “Ponzi scheme model” behind it. SiBAN has also publicly announced that they will serve as a regulatory body for the blockchain environment in Nigeria and ensure that the members of the blockchain community and the general public are aware of the risks in the online space.

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