Coinspace is a scam or not? It's a question that's been asked a lot, and that’s what some people are calling this cryptocurrency, MLM investment opportunity. Will S-Coin be the next Bitcoin?
Let’s take a look and find out…
Over scams and dodgy money making schemes that don't pay?
Company Name: Coinspace
Owner: Jerry Plesko
Price To Join: Free to join
My Rating: 1/10
~ Coinspace Review ~
What Is Coinspace?
With cryptocurrencies being all the investment rage these days, we seem to be seeing new digital currencies entering the market at a rapid rate. Everyone wants their cryptocurrency to be the next Bitcoin. Some will be successful, but many won’t.
When a new digital currency is launched, it appears to be a popular practice to tie that new currency in with a multi level marketing system to try and get the infant cryptocurrency to gain some momentum and recognition.
Unfortunately, not all cryptocurrencies are going to be successful, and many of the systems using the MLM method are nothing short of illegal pyramid schemes or Ponzi schemes. Swapping real dollars for an unproven cryptocurrency is extremely risky, and made even more so when investing in a scheme that is likely to collapse and leave most investors high and dry.
Coinspace is yet another cryptocurrency entering the digital currency space and the company is using a MLM method to gain investors. It works much the same as a system I reviewed just a few days ago called iPro Network, which is doomed to fail; not so much as a cryptocurrency, but the innate business structure via which it is being promoted.
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With Coinspace the cryptocurrency they trade is known as S-Coin. At this stage S-Coin is only available through the Coinspace company. It’s not available via a reputable digital currency broker and it’s not a decentralised digital currency like Bitcoin. Coinspace currently control absolutely everything to do with S-Coin.
While something like Bitcoin has become recognised as a real currency, and you can use it to make purchases at various places around the globe, that is not the case with S-Coin, yet. It is not yet listed on an exchange.
The Coinspace Packages
The basic premise when it comes to these new digital currencies operating under a MLM system is for investors to exchange real money for the new cryptocurrency. I mean, this is pretty standard if you want to invest in any cryptocurrency, gold, or stocks. There’s always the risk that you won’t see a return on your investment.
The real issue is with these MLM schemes, because you are essentially doubling your risk. Not only might the cryptocurrency fail, but the scheme your investing in is also likely to fail in the not too distant future.
Coinspace has 6 different packages you can invest in and it works very much like a revenue sharing scheme, only Coinspace isn’t even offering any token products to make it appear like you are getting something of tangible value in exchange for your investment dollars. You’re simply swapping your money for an unproven digital currency.
Here are the 9 packages and the price in Euros to buy into each one:
- Position – Free
- Micro – 150
- Minimum – 300
- Basic – 700
- Quarter – 1500
- Half – 3000
- Full – 6000
- Double – 12,000
- Ultimate – 24,000
In order to be eligible to earn commissions in each level of the MLM system, you first need to purchase that package yourself.
The Compensation Plan
You need to invest money to make a return on your investment, and you really need to buy into each package to gain full benefit of this MLM system.
You see, the real and only way to make a profit with Coinspace is to recruit new investors into the pyramid. You will earn commissions on your direct referrals, and smaller commissions on the people your direct referrals bring into the scheme.
Direct commissions will earn you 20% on your direct referrals, provided you have bought into at least the Micro package. Even in the free package you are still eligible to earn 12% commissions.
The MLM structure works on the binary method, where you create 2 legs of your downline. You bring in 2 recruits, one for the left side and one for the right. Your direct referrals each bring in 2 recruits and so on. You can still keep recruiting, but you’ll only ever earn direct commissions on your 2 direct referrals. The rest will be at a smaller percentage.
I always find the compensation plans in MLM extremely complicated and confusing, and I think they are deliberately designed to be that way so you really have no idea what amount you’re supposed to be earning.
Many people are jumping on the cryptocurrency bandwagon as it does appear to be the next big investment opportunity in the internet age. Some cryptocurrencies will be successful while others will fail. Coinspace isn’t all about investing in a new cryptocurrency, though. It’s main focus is on a money matrix to try and make a quick buck through revenue sharing.
What I Like
- Cryptocurrencies are popular at the moment and that popularity is only going to increase
What I Don’t Like
- S-Coin is yet unproven and is controlled totally by Coinspace
- This works out to be an extremely expensive money matrix
- This is really just a Ponzi scheme and illegal pyramid structure disguised as a cryptocurrency investment opportunity
- This is extremely risky, both from the unproven digital currency point of view, and the inevitability that the scheme is destined to collapse
- New investor money and constant recruitment is required to keep the scheme going
- New investor money pays the profits of previous investors
- There is every chance you will receive no return on your investment whatsoever
How Much Does Coinspace Cost?
While it’s free at the lowest level and you can earn 12% commissions at this level (though it’s not made clear exactly how you can earn as a free member), to really make full use of this MLM you need to buy all the packages, which comes to a massive total of €47,650!
Is Coinspace a Scam?
This scheme looks extremely borderline at best. To me it’s a naked pyramid system or a Ponzi scheme. Meaning, the only way old investors can hope to get a ROI is if new investor money keeps getting injected into the scheme. If new recruits stop joining, the pyramid collapses into a pile of useless rubble.
There are too many unknowns with this. First, you are swapping Euros to invest in a new cryptocurrency called S-Coin. Maybe S-Coin will go on to great things, but then maybe it will fail. Who knows?
But the real risk here is the pyramid scheme itself. These systems can only sustain themselves for so long before they fall apart. Often at the beginning they might do quite well while everything’s new and exciting, but once enough people have heard about it, recruitment dries up and the whole thing grinds to a halt.
This leaves the majority of investors out of pocket with no way to recoup their funds.
I’d stay well away from this Coinspace scheme. Investing in lotto schemes would likely be more profitable.
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