A reader wrote in to CCN, concerned about what is an obvious scam to a veteran Bitcoiner, but might actually rope new folks in with ease. The concerned reader wrote:

Basically they are building a pyramid scheme (sorry, I mean binary member system), where you can buy in and get some hashing power from their cloud mining service. Also they claim, that they will release a new cryptocurrency (S-Coin), which only they will be mining. More absurdly - when the coin comes out, they claim that it will have a value of 1€ and after some time even more. Also the rewards for members are extravagant (iPads, iPhones, Macbooks, BMWs, luxury trips), not to mention the money which they promise from the mining service.

Based in Malta, the company has a variety of websites to watch out for, from S-Coinspace.com to their blog, as well as various YouTube channels and videos. It is reminiscent of Josh Garza's Paycoin scam in that a value of 1 Euro is guaranteed when they launch their custom cryptocurrency, S-Coin. A few minutes into the video below, the British-sounding voice actor appears to claim that the "coins" will be mailed to buyers. The minimum buy-in is 300 Euros, which is a small amount to invest if you're an experienced investor, but just enough to not pursue if you lose it.

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