In this review we have a look at the Zeniq blockchain, Zeniq Coin and Safir Global minting program.
What is Zeniq
Zeniq is said to be a blockchain ecosystem for finance and investments. The platform supposedly will allow you to exchange cryptocurrencies and to invest in different projects.
The Zeniq Hub serves as a node in the network and also as your personal hardware wallet to store your tokens.
Zeniq Pay is a crypto solution for payments that allegedly will be quick and cheap.
What’s in it for you? Zeniq wants you to buy their Zeniq Hub to mint the Zeniq coin which is supposed to rise in value and make you money.
You can either buy the physical device or invest in a Safir Minting Hub, Farm or Shares, which effectively means cloud minting. It means that the hardware is run by Safir International, you pay them for running it and get the minted tokens.
The minimum investment in Safir Minting shares is 100 euros, while the Zeniq Hub costs 1998 euros. According to projected profits the hub will make you more than 2000% in five years.
Is Zeniq legit, should you invest money in Zeniq Coin minting with Safir Global?
Beware of Zeniq
When investigating Zeniq, we found several highly suspicious things about this project that make it looks like a scam. In this review we raise the red flags that you should be aware of.
The first thing we have to establish is that the Zeniq Coin is an ERC-20 token in the Ethereum blockchain. This means several things.
The most important thing is that the Zeniq Coin does not run in its own blockchain. It is only a token in Ethereum. Anybody can create an ERC-20 token in Ethereum in a few seconds, there are online generators for that.
ERC-20 tokens are minted, which means generated by people who write their contracts (code). There is no mining involved, you don’t need any hardware or mining software.
This makes the whole concept of Zeniq a nonsense. They claim to have a network with nodes that currently have the combined power of 656.353 MH/s. But this kind of power is needed for proof of work cryptocurrencies that are mined, like Bitcoin or Ethereum itself.
You see, mining is a system to insure to security of a blockchain network, to prevent the double spend problem. The security of Ethereum is currently insured by mining, so every ERC-20 token, Zeniq included, is secured by Ethereum. Zeniq does not need to be mined with hardware power.
If Zeniq created their token with a software that will release new tokens only thanks to mining, it is the stupidest thing in the crypto world we have ever seen. It is an artificial hurdle to make people spend money.
But most likely there is no such mechanism and people who run Zeniq just release new tokens at their will since they control the code.
There is a website that looks like a Zeniq blockchain explorer, but it looks highly suspicious.
Because either Zeniq has its own blockchain and a native token, or it has an ERC-20 token in Ethereum. Why would the Zeniq Coin run in Ethereum if it had its own blockchain?
Also, every new Zeniq block always contains only one single transaction.
Should Zeniq be a real blockchain, it would have a Github repository with all the code and anybody would be allowed to download the minting/mining software to their device and start mining.
Instead, to mint the Zeniq Coin you are forced to pay Zeniq Technologies, which is highly suspicious.
To us it seems that the Zeniq block explorer is fake, that there is no real Zeniq blockchain, only the ERC-20 token in Ethereum.
We have already established that Zeniq Coin is in fact just an ordinary token in Ethereum. The token is not ranked on any reputable website like Coinmarketcap or Coingecko. It means that it is not traded on any real exchange.
The only place you can trade Zeniq Coin is Uniswap. It is a decentralized exchange in the Ethereum network and any ERC-20 token can be traded on Uniswap. People who provide liquidity determine the starting price.
The most likely scenario is that people who run Zeniq took a portion of their Zeniq coins and started a liquidity pool on Uniswap. So it gives no credibility whatsoever to the coin.
In fact, people who provide liquidity in the Zeniq pool on Uniswap can pull out the liquidity at any time which will make the coin untradeable.
So holding the Zeniq coin can be pretty dangerous, because since it is traded only withing the Uniswap pool, it can easily be manipulated and killed.
Zeniq Technologies Ltd., which is the company behind Zeniq, is based in Dubai, in the Dubai International Financial Center.
The company admits on its website that its activities fall under the jurisdiction of the Dubai Financial Service Authority (DFSA).
But when you make a search about Zeniq on the DFSA website, you will find nothing. Which means that Zeniq Technologies is not licensed by the DFSA, unlike what Zeniq suggests on its official website. Which is another big red flag.
Probably an unauthorized security
Zeniq suggest they are licensed by the DFSA, which they are not, we already know that. But does the Zeniq Technologies company need to be regulated? It seems it does.
Because in the official FAQ section, you will find that the Zeniq Coin will be a medium of profit sharing. This means that you buy or mint the Zeniq Coin under the promise that it will generate you profits through the efforts of Zeniq Technologies. And that is a definition of a security.
Therefore we believe that the Zeniq Coin is a security that needs authorizations from financial regulators. And since it has no authorization whatsoever, it might be illegal in most countries, including Dubai.
How Zeniq works
In this review we raised several red flags about Zeniq. There is no proof of a real Zeniq blockchain. There is no proof about any real usecase for the Zeniq Coin.
The only thing that is going on is an ERC-20 token being sold to the public through fake mining. To us it seems that people who run Zeniq are selling a worthless token to other people under the promise that it will generate them profits over time.
But we see no real reason for the Zeniq Coin to go up. It seems that nobody is using it for anything real and there are no signs that it should change any time in the future.
Add to this a huge pyramidal scheme that will reward people that introduce new paying members and Zeniq has all the hallmarks of a pyramidal scam.
Zeniq review – Conclusion
Zeniq and its Zeniq Coin minting are very problematic. The whole project is not regulated, although it tries to make you believe the opposite. The coin is artificially minted so that it can generate money to its creators. We recommend staying away from it.
If you are interested in crypto investing and trading, do it with real cryptocurrencies on real exchanges.
Also be sure to understand the risks associated with cryptocurrencies.