Seaborn Hall, Originally posted on another page 12/05/18, Updated 12/12/18, Updated 12/28/18 update in red

This entry will be updated as events unfold. Check back at least once a day.

Please see the Ronnie Moas/Wild West Crypto video in the Money section Week Of December 9, 2018 under the sub-heading Editor’s Choice for the latest Moas public statement on DIG. Or you can click on this link.

For those reading this the second time as an update, please see the comments at the bottom of this page.

CS is reducing our assessment that DIG will be a profitable investment. We now place this possibility at around 30%, or 3 out of 10 chances.

This is primarily based on communication from Ronnie Moas, the analyst involved who initially recommended DIG (as well as observed history of the unprofessional manner that the company has communicated). 

As of this morning DIG went below $0.01 a token at coinmarketcap. At its high it was approximately $0.28.

As we have said from the beginning DIG should be considered a speculative investment and no money should be invested that you can not stand to lose.

See this link for our most recent comments on DIG. See this link for our 11/11/18 guidance on DIG. See this link for our 7/12/18 comments on DIG where we expressed reservations about how the company was communicating with token holders and other interested parties and we downgraded our estimation that this investment would actually work out to 50-50. Our estimation is now 30-70, against.

In every communication we have made regarding DIG we have emphasized that it should be considered a speculative investment and that you could lose all of your money. It is more likely now that this may be the case.

Meeting With DIG COO

We attended a meeting in Los Angeles about a month ago where Steve Braverman, COO of Arbitrade spoke to a group of Ronnie’s subscribers. Our conclusions from that meeting can be accessed in our 11/11/18 update here.

If Steve Braverman is a con man, he is a really good one. There was only one moment in the meeting where we had questions about Steve’s statements, answers to questions, or his body language as he was responding. We will continue to withhold judgment on this until this whole thing pans out.

It may be that these guys just got in over their heads and did not understand the space or have the expertise to put together what they were attempting – that still remains to be seen. However, at this juncture the skepticism expressed in recent Royal Gazette articles linked on this site should be taken seriously.

We still believe the analyst involved with recommending DIG, Ronnie Moas, to be a good, straight up guy. If this turns out to be a scam, it would appear that he got pulled into it by some really sneaky guys with a talent for misleading. If it is a scam – and we emphasize that this is an unknown at this point – they were able to fool Ronnie about facilities in multiple locations and a number of other things. This would suggest that either they had good intentions in the beginning and got in over their heads – or, that it was a well-orchestrated ‘sting’ from the very beginning. If Ronnie were to go back to the location in Atlanta that he toured months ago and witnessed the mining rigs, would they still be there today? Who knows?

Arbitrade Statement

Arbitrade just released an extensive email in response to Ronnie’s statements that CS is still analyzing (and we will continue to update this update over the next several days). In part, it reads:

It has come to Arbitrade’s attention that the Standpoint Research analyst Ronnie Moas has sent out several updates to his subscribers recently discussing Arbitrade/DIG timelines being missed, as well as claiming instances of being ‘misled’ by Arbitrade executives and consultants. While some of his emails contain factual information pertaining to matters relating to crypto-mining, gold, Bermuda, etc., in connection with Arbitrade, the claims made by Mr. Moas being misled on timelines for delivery of certain items are rejected. Arbitrade is committed to operating its business to extremely high standards. It has chosen to domicile in Bermuda, a country which also holds companies to the rigorous standards of business and compliance under which all directors, officers, and consultants have been fully vetted prior to the company being approved to do business within the country.

The Arbitrade email then goes on to say:

Arbitrade has asked Mr. Moas on numerous occasions to stop writing about DIG and Arbitrade in his emails and on Twitter, however, to date, he has refused to comply with its requests or to cease requesting almost daily updates with an apparent expectation for Arbitrade to break its NDAs to reveal confidential information about the company. The company recognizes that Mr. Moas has been a loyal supporter of Arbitrade and is an authority in the blockchain space and, as a result, the company has not contradicted him up until this point; however, this behavior has now become unacceptable. We trust that on mature reflection Mr. Moas would accept the position that the company is legally bound to take as a result of the NDAs to which it is subject.

Based on the above, it is hard to know who to believe at this point. The Arbitrade/Cryptobontix statement seems reasonable when taken at face value.

However, we were at a Los Angeles meeting where Steve Braverman, COO, promised the 20+ people attending that we would have ‘a very good Christmas,’ implying that Arbitrade promises would be fulfilled to the extent that it would push the token price of DIG up to Moas’ predicted levels. He also said at that meeting that DIG was worth $1, regardless of where it was selling at in that time frame. If the company does not fulfill that promise in the next 2 weeks, it will be one more in a series of misstatements and broken promises, that from our perspective, at least, they were under no pressure to make – whether Moas encouraged them to do so, as they claim, or not.

Let’s analyze one sentence in the Arbitrade statement above:

Arbitrade has asked Mr. Moas on numerous occasions to stop writing about DIG and Arbitrade in his emails and on Twitter, however, to date, he has refused to comply with its requests or to cease requesting almost daily updates with an apparent expectation for Arbitrade to break its NDAs to reveal confidential information about the company.

If this is true, then why did Arbitrade COO Steve Braverman attend an early November 2018 meeting, where he – under no apparent pressure from Ronnie or anyone else present – made several promises/statements to the 20+ people present? Promises: that DIG was presently worth $1 despite its current trading level, that the Gold backing the DIG token was purchased and had been audited, that it would be a ‘very good Christmas’ for DIG holders. Statements made: that he and his family and best friends all have all of their money invested in DIG. This last statement implied to the listeners that this (DIG) is such a sure thing that he has no problem risking his entire net worth and that of his family and friends on DIG (if true this is an audacious statement, especially considering the overall crypto environment, regulatory issues, and competitive issues. Some people might even consider a statement like this to be a red flag).

If Arbitrade has asked Ronnie ‘on numerous occasions’ to stop writing about DIG, then why are they encouraging him and his subscribers by showing up at a meeting and making all kinds of promises and extreme statements? This seems – contradictory, and – a valid question.

Our Take On Ronnie Moas

As to Ronnie Moas, we have spoken with him on the phone for 20 minutes twice and met him in person three times over the last 2 years: once in Manila, Philippines, once in Atlanta after he physically viewed the Atlanta Arbitrade facilities, and once in Los Angeles in early November 2018. Though as Ronnie describes himself, he is a liberal and an anti-Trump advocate, he appears to us to be a stand-up guy with a high level of personal integrity. No question that he is passionate to a fault, at times. But, I still believe that he has the best interests of his subscribers and people that he advises at heart.

Ronnie Moas has lowered his target on DIG to $0.25-$0.35 ($0.00 as of December 2018). He has pushed out his time frame to sometime in 2019. He is giving the company benefit of the doubt at present, but is not generally optimistic (Moas is no longer optimistic – he believes Arbitrade to be a scam and has filed agency complaints). According to Moas, “When I met UNY (DIG) in July 2017 they told me within three months they would be ready. That was 17 months ago…”

According to Moas, he has not sold any of his DIG and he has not profited in any way on any of his reports to subscribers. He raises some disturbing issues in the above communication, including emails sent to him by the Arbitrade executives full of expletives after he discontinued coverage of DIG.

Our Take On DIG

It is still possible that this will pan out, but as we have said, it seems to be a low probability.

This company has not communicated well from the start and that has been a yellow flag. Perhaps we should have categorized it as a ‘red flag.’ Perhaps we gave the company the benefit of the doubt for too long. If DIG turns out to be a scam we will publish a full report and an apology to our readers for recommending it as even a speculative investment on this site.

That said, we will not be selling our tokens – but, we will also not be buying anything further until/unless Arbitrade fulfills specific promises like listing on further reputable exchanges, providing auditing information on supposed gold holdings, evidence of licensing in Bermuda, activation of the Arbitrade exchange, etc.

At this time, we do not recommend buying the upcoming ICO for anyone who is outside the US and able to do so.

The CS forecast on DIG has always been $.50 by March 2019. Based on this new information, this seems overly optimistic at the present time. If there is any substance to the company’s claims it is likely to take much longer for it to show, especially considering the overly optimistic nature of their past estimates. We would expect that – if the company proves to be legitimate, and this seems to be a big ‘if’ right now – it will be mid to late 2019 before any significant news or gains in the token price are seen.

The highest the token has been previously is U.S. $.28. We recommend selling your initial investment if it ever gets back to that level or close (like Moas’ new $.25 price target). By ‘selling your initial investment,’ we mean sell the number of tokens it takes to recoup your initial monetary investment and let the rest ride.

CS has not sold any of our tokens – and has continued to accumulate on the recent weakness, until these more recent facts have come out.

We do not recommend buying further DIG at the present time.

The Latest DIG Updates

As of 12/11/18 there has been no further communication or explanations from the company.

The Arbitrade website appears to be up and functioning at some level for the first time – as of last night apparently. The website does not appear to be functioning as a live exchange, but only as a comprehensive presentation of the company, the leaders behind it, and the current state of progress towards their vision. In other words, it appears to be a sophisticated marketing presentation. At least there are names and photos of the leadership presented in a public place. If this is a scam all of these people stand to have their reputations and names tarnished – at the least.

This may or may not mean something. The reader should check this out for him or herself and make their own judgment.

We will continue to hold DIG, just in case this pans out and the company comes around. At this juncture that seems increasingly unlikely – but stay tuned for more updates.

 

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