Romanian "blockchain technology and crypto liquidity startup" ZoidPay, which aims to become "the largest open source Web 3.0 architecture platform in the world," attracted a USD 75 million investment from GEM Digital Limited ("GEM"), a Bahamas-based investment firm "focused on the area of blockchain and cryptocurrencies," Ziarul Financiar announced.

ZoidPay, the leading Web 3.0 architecture provider, has secured an investment commitment of USD 75 mln from digital asset investment firm GEM Digital Limited ("GEM"), the official press release reads, though.

Superficial investigations on the GEM digital asset investment firm reveal, however, what this investment in the metaverse actually is, and whether one should or not put their money into the coins or tokens ZoidPay will most likely soon issue. The answer is: better "commit" but rather not pay, if possible. 

Bahamas-based GEM Digital Limited has "committed" billions of US dollars over the past several months to such ambitious projects - nothing wrong here. But in contrast to the most funding news, in which an investment institution directly announces an actual investment in a project, GEM Digital is basically announcing that it "is issuing an investment commitment," influential crypto blog Wu-talk.com explains.

In brief, such "investment commitments" are primarily aimed at increasing awareness among investors hoping for stellar profit rates derived from trading coins and tokens.

"In other words, GEM Digital's investment agreement is more like a cooperation and sharing agreement, where both parties sign a so-called huge investment agreement, create good news in the market, and then collaborate to make profits and share them," explains Colin Wu in an article dated July (since then, GEM has "committed" more hundreds of millions of dollars).

In the crypto world more than in other investment universes, the meme stories filled with buzzwords are gold ("developing the go-to open architecture for building the next generation of financial services, scaling the first on-demand Metaverse, facilitating the first-ever bank acquisition by a blockchain firm, and launching a Web 3.0 super App" - this is what ZoidCoin plans to achieve). The scheme resembles the digital version of the gem scam - a confidence trick usually performed against tourists in Thailand, where the targets are convinced to buy fake gems (startups) at a discount by building confidence through fake third-party (venture funds) testimonials.

ZoidPay might genuinely plan to become "by the end of the first quarter of 2023, the biggest Web 3.0 architecture provider in the world," and there's no reason to doubt their good faith - but this is still a big promise. And, if successful, this means there would be nothing left to be achieved by Elrond Network - which also promises to deliver the MultiversX project, through which it wants "to create a global ecosystem that integrates the concepts of metaverse, Web3 and blockchain."

In separate news, Ziarul Financiar published a warning note from the Romanian Financial Supervising Authority (ASF) that points to the increasing financial criminality in the new crypto-world. ASF warns potential investors that using the services of an unauthorized entity will not entitle them to compensation through the Investor Compensation Fund.

Regarding virtual currencies, ASF reiterates that they are not considered financial instruments, as they are defined by Law no. 126/2018, so that entities issuing virtual currencies, their trading and the platforms on which they are traded do not fall under the Authority's supervision.

iulian@romania-insider.com

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