We cannot deny that news of the Libra coin by Facebook has garnered a lot of attention in 2019, no doubt due to the branding and popularity behind the social media giant.
And in the cryptocurrency space, anything that is popular with the masses more often than not becomes a playground for scammers.
True enough, with Libra, we have begun seeing a sponsored post in July 2019 by an entity called The SMART investor, advertising a presale for the Libra coin or token as follows:
Although there has been a lot of talk about Libra in recent weeks, people should be aware that the launch of the Libra coin is scheduled to take place next year (2020). There are no official pre-releases, presales or private placements that are known.
In the sponsored post above, it is bizarre that a scam ad proclaiming to be selling a digital currency to be released by Facebook, had somehow managed to bypass Facebook’s sensitive post police, which had in the past, been stricter in removing posts which are far less harmful.
Any advertisements announcing the sale of the Libra coin at this time should be approached with caution and large doses of scepticism.
Look, there’s no sale going on for the Libra token at this time – who knows what you will be getting for your money or cryptocurrency that you will be using to supposedly “exchange” for it in this Libra Presale Scam.
Also, it is strange that people would want to buy the Libra coin so early, thinking that buying this digital currency in 2019 would be similar to buying bitcoin in 2009.
Why Libra is Not Like Bitcoin
Those who plan to buy Libra should understand that it is not a cryptocurrency like bitcoin. Unlike bitcoin, it is less decentralised and runs on a permissioned or private blockchain. As such it is less resistant to censorship, which is not a feature of cryptocurrencies in general.
Also, the Libra coin is to be pegged to the US Dollar and a “basket” of a few other sovereign or fiat currencies. This makes it a stablecoin that is unlikely to increase in value or to serve as a good store of value. Buying Libra is not buying cheap bitcoin.
Furthermore, the exchange rate fluctuations of your local currency against any one of these selected sovereign currencies that the Libra is pegged to could result in a slight loss of value to your digital currency when you’re spending it.
Treating your Libra coin as a store of value in this manner may not be very different than treating your fiat currency as a store of value – which really doesn’t sound like an excellent idea.
We understand the branding behind the Libra coin, and how that may appeal to many and provide those who have had less faith in cryptocurrencies so far, to have a bit more confidence in this new digital currency. However, DO NOT let hype cloud your judgment or be a replacement for a sound knowledge and proper education in cryptocurrency matters.
And do us a favour. Stay clear and do not fall for this Libra Presale Scam and other scams like it.