Seaborn Hall, published 12/13/18, updated 12/15/18, updated 12/28/18 (update in red)

The DIG crypto is a coin released by Arbitrade/Cryptobontix, purported to be backed by gold – each token to be backed by $1 in gold. Arbitrade has maintained that they will have a competitive crypto exchange that will be launched soon.

We initially told friends about this coin when it was in the $.09 to $.11 range. CS began featuring articles and other information on the coin shortly after that. DIG reached a high of $.28 during the summer. It is currently around half a cent ($0.005).

Here is a summary of what we know and believe about DIG, the crypto, at this point.

What we know about DIG

  • Ronnie Moas, the primary analyst who has covered and recommended DIG, has recently – just in the last week or so – come out with suspicions that all may not be as it appears with the DIG crypto, the Arbitrade exchange, and – possibly – with the entire Arbitrade/Cryptobontix team
  • He has spoken with the ex-Premier of Bermuda, Michael Dunkley, and Dunkley has taken his questions and concerns before the Bermuda Parliament in an attempt to get answers from DIG/Arbitrade before a Bermuda license is issued. Links to those debates – apparently on 12/14/18 – are below.
  • Ronnie has filed an SEC complaint on DIG/Arbitrade on behalf of his subscribers (he has provided a screenshot and submission # as proof).
  • DIG/Arbitrade executives and team have refused to appear on Wild West Crypto to answer Moas’ chargesand concerns, citing “non-disclosure agreements” – this increasingly appears to be either BS, or massive public relations incompetence. Either is troubling.
  • More than one Arbitrade executive has appeared to have subtly changed their name to avoid being connected to either Broker or SEC flags of their past, and even, recent misdeeds – this information has just come to light in the last few days
  • All of the above reports involve major red flags of either misrepresentation, fraud, or other con activities – had we had this information on executive team members in Arbitrade in the beginning we would not have invested or featured DIG on this site, except with cautionary warnings
  • Arbitrade has consistently promised actions and then failed to meet deadlines over the last year and a half, for example:
    • There is still no license to operate in Bermuda though it has been promised as coming over and over
    • There is still no Arbitrade exchange though was promised to be very close to release many times
    • There is still no release of the DIG coins to multiple and major exchanges even though that was promised months and months ago
    • There is still no ‘proof’ of the gold backing for each DIG token
    • In general, there has been very little transparency with constant fallback on ‘inability to disclose’ based on their legal obligations
  • That said, Arbitrade has ‘appeared’ to fulfill some promises and obligations, for example
    • they followed through with the Airdrop of bonus tokens on Livecoin, albeit much later than promised
    • they appeared to have both Atlanta and Canada mining operations set up
    • Ronnie visited the Atlanta facility – before it was set up and running – and took photos of purchased mining equipment
    • they established relationships with Bermuda government and appeared to have those representatives speak on their behalf
    • Arbitrade claimed to have purchased a $6 million property in Bermuda that would serve as their headquarters
    • They apparently initiated the process of licensing within the Bermuda government, which is supposed to be a top haven for crypto and other tech firms – so one would think that it would be hard to ‘fool’ the Bermudans
      • On the other hand, Moas reported on 12/14/18, per Dunkley, that the Bermuda Congress has not vetted Arbitrade fully, as far as he knows
    • They maintained they had purchased initial gold and recently reported that the $15 billion gold bullion backing the tokens was in place – though they failed to provide the name of the Auditor, a big red flag
  • Arbitrade has sent Ronnie a ‘Cease & Desist’ letter, attempting to silence him and prevent him from talking further about DIG – Ronnie has so far refused to comply
  • Ronnie has tweeted a screen shot of his current Livecoin DIG holdings – it appears that he still holds everything that he has told his subscribers that he holds and that he has not sold anything.
    • This means he has not profited on this from selling DIG at the top – it appears as though he has been straight with his subscribers
    • According to Ronnie, he is ‘devastated’ that this might be a scam and he stands to lose about $1 million if it is
  • Here is a quote from one of Ronnie’s last tweets that appears to summarize his current position: ” There is a 100 to 1 payout waiting for you if this company is telling the truth (or they decide to do a pump and dump on a name that is not legitimate). After 17 months, I can honestly tell you that I have no idea what is going on here because they refused to answer my questions. They refuse to communicate with the public. There are a lot of red, yellow and orange flags all over the place.”
  • DIG/Arbitrade promised Moas an explanation on his questions more than once. No explanations have been forthcoming (to our knowledge).
  • Steve Braverman, Arbitrade COO promised all DIG subscribers that they would ‘have a very good Christmas.’ This is one of the many promises not fulfilled by the Arbitrade team (No doubt, he would blame Moas for this, but Moas’s words against DIG have nothing to do with Arbitrade’s unfulfilled promises).
  • Additionally, the Arbitrade team also refused to appear on The Wild West Crypto Show to offer an explanation (as noted above) within the same time period that Moas appeared there.

 

What we believe about DIG and the actions we are taking

  • There is about a 3 in 10 chance that DIG will prove to be legitimate and profitable at this point
  • Not even Ronnie Moas knows for sure that this is a scam, but he is increasingly suspicious of the entire operation
  • It may be that the Arbitrade team is legitimate and will fulfill their promises – that is possible, but to us it does not appear probable at this point
  • It is more probable that the Arbitrade team is either not legit or does not fully have the expertise to perform what they are attempting.
  • It appears that the Arbitrade/DIG team may have used Moas – unknowingly on Moas’ part, of course – to run up the price of DIG – we have no evidence of this, we are just saying that based on all of the circumstances over the last year and a half that this is increasingly what it looks like to us. There is a chance we could be wrong.
    • If this is a scam/fraud it has been a very good one. We attended a face to face meeting with Steve Braverman and he certainly seemed like a straight up guy. Considering all of the red flags on his brokerage report, it now seems more likely to us that he is a very smooth con man, with little conscience. Again, we have no evidence of this – but this is our current conclusion until Arbitrade proves their claims.
    • Some readers have commented to us that Ronnie Moas is spreading negative rumors of Arbitrade in an attempt to buy low and sell high. We do not believe this and there is currently no evidence of this. In fact, all the evidence is to the contrary. These readers apparently do not have access to the new reports on the Arbitrade team linked above.
  • It is possible they (Arbitrade/DIG executives and/or team) have been running a ‘pump and dump’ operation – that they are holding DIG and selling it high when they convince outsiders they are legit and new buyers run the price of the token up
  • We are not selling our position on DIG at the present time for the simple reason that we would recoup almost nothing – and there is a chance that we are wrong and that this is still a legitimate operation
    • If it is not legitimate, the principals may still attempt another ‘pump and dump’ and run the price of the token back up, particularly if they are successful getting it into wider release on other exchanges
    • Since at the present time we do not know for sure if this is a scam, If the price approaches anywhere close to, or over, our average cost of token purchase, we will likely be selling at least half of our tokens – further action will be dependent on information that comes forth in that timeframe
  • We are also not buying further DIG at this time

From the beginning in every communication we have emphasized that DIG is a speculative investment and that buyers should not invest more than they can stand to lose. If you frequent this site, you also know that we believe whole-heartedly in global diversification and limiting your risk.

See the Money Common Sense Interpretation Page for more.

See these links for further information on DIG:

Michael Dunkley, ex-Bermuda Premier, addressing Bermuda Parliament on DIG, 12/14/18

Michael Dunkley, ex-Bermuda Premier, addressing Bermuda Parliament, Part II, 12/14/18

Update: Stock Market & DIG Crypto Update With Ronnie Moas 12/11/18 (video, right), Wild West Crypto Show

Also see, Update On DIG, 12/11/18, Seaborn Hall, Common Sense

DIG/Arbitrade: Not All That Glitters Is Gold – Is DIG A Well Orchestrated Scam? Ken Griffith, The Royal Gazette

CS Commentary: We suggest that the comments at the end of the article also be read. The author raises some interesting points, but it is not clear whether…To continue reading see this link…

DIG Crypto Update, 11/11/18, Seaborn Hall, Common Sense; Also see updates and analysis that follows; Current DIG Crypto Update, 10/12/18, Seaborn Hall; Also see, Recent CS Update On DIG Cryptocurrency 9/30/18, Seaborn Hall; Also see, CS Commentary and CS Update on DIG, 7/12/18: There are some worrisome comments here, particularly…See this link for more. Also see, Bermuda Government To Introduce New Regulations On ICO’s And Crypto Firms, Helen Partz, Cointelegraph; Also see, How To Purchase DIG or Any Other Cryptocurrency

 

See the Common Sense Money Home Page and this link for Updated posts and information on DIG/Arbitrade.