A crypto currency website with a New Zealand domain name has been taken down following a 3 News story three weeks ago.
The people behind the Megacoin website say it will be back up soon but a computer forensic examiner says people should be cautious.
Megacoin is one of countless virtual or "crypto" currencies, but a Christchurch man says it's not one to be trusted.
"People are getting into Megacoin thinking that it's just a form of digital currency just like our real money, and it isn't," says computer forensic examiner, Daniel Ayers.
Mr Ayers says the founders of Megacoin appear guilty of 'pre-mining' - a process where makers of crypto currencies acquire the currency before launching it.
"It seems that the people that have created Megacoin have generated a lot of coins for them to keep and if it gets to the point that people are going to give them real money for it, those coins could be worth around $4 million."
Mr Ayers looked into Megacoin.co.nz after a 3 News story on the currency 3 weeks ago.
He discovered the site was registered to an anonymous person, something that contravenes New Zealand domain name policy, and made a complaint.
The Megacoin website has since been down temporarily but the Domain Name Commission says it could be pulled for good.
"It's possible that it could get pulled down if the registrant still doesn't correct their contact details but that's a worse-case scenario," says Patrick Woods of the Domain Name Commission.
Matt Meek is an early investor of Megacoin.
He says the coin is legitimate and accusations of pre-mining are false, and he's accepted a request from an anonymous person behind Megacoin to put his name as the site's registrant.
Mr Meek believes the site will be back up within a week, but Mr Ayers warns those tempted by its potential gains to be careful.
3 News
source: newshub archive
