Even when the crypto market was bleeding, it presented an opportunity for the daring and the discerning to profit from the dip. In this review, we are looking at the MGT token presented by Megatech to determine how viable the project is. The essence is to enable the investor to determine if this is an investment worth putting their funds in since there are many projects that would send their funds down the drain.
What is Megatech?
Megatech is a company that claims that it is using the blockchain technology and solar energy to address critical shortages of power in South Africa. The project terms their activities in the SA power sector, an intervention that would be fueled with their internal token known as MGT. This token was built on the Apollo blockchain in 2020.
The project made propositions that also projected the benefits that the investor would derive for investing in the MGT token which includes:
⦁ Locking up of the tokens for a minimum of 12 months by staking them and giving the investor voting rights in the energy company’s ecosystem.
⦁ Giving the investor with what it termed “HUGE rewards”
⦁ Listing the MGT token in major exchanges with 200 trading pairs
⦁ A projection of $1.1 trillion profit that the company envisages in 25 years
According to the Megatech website, the activities of the company would lead to “a massive value surge on crypto exchanges”
How Reliable is Megatech?
Sifting out the noise is the crux of the matter when crypto and blockchain projects are the subjects of consideration. This is because it is very easy for the managers of these projects to lay claims, but unless the veracity of these claims are confirmed, investing in such projects would lead to losses. So let us check the background of the entities behind Megatech.
The Megatech Team
The first impression that our team had about the Megatech team profiles is that the company is not eager to make known the identities of those running it.
The team profiles page as seen from the website of low contrast, which gave the impression that the company doesn’t want the identities of its executives to be subjected to scrutiny.
Furthermore, three of the 11 profiles displayed on the page do not have images. This is rather suspicious at best, considering that no reputable business would be casual over its website, especially considering that it actively solicits for investors.
Thise listed on the website as the company’s Executives Management Team are:
Eddy Neilson, the Chief Executive Officer (CEO)
Wessel Sevenster, Head of Legal and Compliance
Willie Boshoff, Head of Marketing
Raan Naude, Head of Commercial Compliance
The Management Team
Craig Black, Public Relations
Deniz Goz, Community Coordinator
Craig Nel, Design and Marketing
Jandre Barnard, Marketing Consultant
Conflicting List of Managers
One of the issues that came up while checking the background of the company on b2bhint is that those listed as the company executives are different from what was seen on the website. The international company listing site listed the active officers and directors as WILLEM STERNBERG B, WESSEL SEVENSTER, FRANCOIS PAUL N and ALASTAIR RORY C. We noticed that the only executive listed on the website is WESSEL SEVENSTER. Also, all the listed active directors are associated with many other companies. For instance, Sevenster is linked with 30 other companies. It seems that all the directors and managers of Megatech are directors and managers of other companies simultaneously.
Crypto-Info summarized this in a post on Bitcointalk:
According to the whitepaper MicroEdge and Amber Trading will be the development and strategic development partner of MGT Solar (Pty) Ltd. Further investigation into this companies reveals Willem Sternberg and Wessel Sevenster are the directions of Amber Trading (https://b2bhint.com/en/company/za/amber-trading–K2019023836) and the directors of MicroEdge are Tsung-Hsien Lin, Edward Vincer N and Alastair Rory Comfort (https://b2bhint.com/en/company/za/microedge-consultant–B1999007516).
What is interesting is that Alastair is not only a director of MicroEdge but also a director for MGT Solar. We also find Wessel as a director for Amber Trading and MGT Solar. This is a perpetual circle that does not provide independence. In addition to this Wessel is linked to the scam Apollo Fintech and a fake country promoting himself as “congressman” of the United Allied States (UAS). It is to be noted that the MGT token is only allocated to the Apollo Network blockchain demonstrating the involvement with Steven McCullah and this scam.
Removed Whitepaper Was Plagiarized
The whitepaper of the Megatech Solar project has been removed from the site, but prior to the removal, it was discovered that portions were plagiarized.
For instance, a portion of the whitepaper that rendered this:
Renewable Energy Certificates (RECs) are a market-based instrument that certifies the bearer owns one megawatt-hour (MWh) of electricity generated from a renewable energy resource. Once the power provider has fed the energy into the grid, the REC received can then be sold on the open market as an energy commodity. RECs earned may be sold, for example, to other entities that are polluting as a carbon credit to offset their emissions. RECs also go by other names, including Green Tags, …etc
was actually copied from another website: https://greenwaveenergy.com/renewable-energy-certificates/
This could mean that there is no originality in the concept of the company behind MGT Solar token.
Claims of Profit
When a project gives an assurance of profit, the investor has to be wary according to SEC Advisory. Megatech claims that buyers of the MGT token would gain 3000% over the course of two decades.
There is no way anyone could be so sure how a business would perform down the line. According to the SEC, if an investor gives assurance of expected returns, the investor should be wary of such offers.
Acquisition of Yet-To-Be-Built Plants
Megatech claims that it has acquired two solar plants in South Africa. This can be seen on its website where the partnership claim was made under New Partnership Acquisition, which the company said has propelled it 3 years ahead in its roadmap.
From the website:
Megatech has recently acquired the massive acquisition in the form of the Beta Solar Power Plant located in Hertzogville, Freestate, South Africa, and boasts one of the largest capacities among solar plants across South Africa. The Beta plant will boast a 65mw PV system integrated with a 100mw storage facility. The Beta plant’s total worth is R1.8 Billion (ZAR) or $113 Million (USD).
However, an investigation into the claims show that the plants that were referred to belong to Project Beta SV and Project Sediba SPV. It is important to note that these are projects that are yet to be constructed. This raises the question of what was acquired by Megatech.
What is obvious is that Megatech is dropping the names of market leaders and claiming unverified partnerships with them while shilling their coin for investors to buy them. With thousands of coins in the market, it is the responsibility of investors to conduct background checks before buying into tokens that may end up enriching a few.