Just recently Bitcoin.com reported on the Nigerian SEC Association’s warning about Multi-Level-Marketing (MLM) ‘cryptocurrencies’ such as Onecoin and Swisscoin. Our news team has uncovered quite a bit of shady activity while investigating Onecoin. This week we’ve decided to step into the realm of the so-called Swisscoin economy.
Related: The Far-Out Claims Behind Onecoin: The Self-Described ‘Bitcoin Killer’
Exploring the MLM Pyramid and So-Called ‘Cryptocurrency’ Swisscoin
Swisscoin claims to be a cryptocurrency based on a decentralized blockchain, but in reality it operates more like a token MLM affiliate program with an upline and downline structure. Users are instructed to buy token packs paid for with euros or bitcoin as well as recruit members to join the Swisscoin organization. The project officially launched on June 4, 2016, and is reportedly run by the company director Manfred Mayer, a man with an extensive background within network marketing and MLM.
The company claims to be headquartered in the Canton of Zug, Switzerland where various cryptocurrency and blockchain startups reside. However much of the operations stem from Frankfurt and Leipzig, Germany, such as the company’s bank and registered domains. Furthermore, when visiting the Swisscoin member website, a vast majority of the text and news updates is written in German.
Registering as a Swisscoin Affiliate
Initially signing up for a Swisscoin account is fairly straightforward and only requires a name and email. When I first signed up, I had to confirm the registration using a throwaway email, and I was then allowed into the Swisscoin website. Before I could do anything, I was greeted by a letter from the Swisscoin founder Manfred Mayer that read like a damages waiver. Following the weird letter, which also claims Swisscoin will one day be worth millions, I finally made it to the dashboard.
The panel takes a minute to get used to as there are multiple sections within the Swisscoin user interface. If people think bitcoin is hard to understand, this type of interface is a hundred times worse. Within the user dashboard, it shows me the free 100 coins I’ve received for signing up, and I’m given a sponsor named Reda [last name witheld] from Morocco. Reda is my upline connection which means all of my work and earnings give Reda a percentage of my funds.
The user-interface also gives me tutorials on how to buy packages of Swisscoin tokens and create revenue from my downline, which entails recruiting members to sign up for Swisscoin. Also, there is what’s called a barometer split that measures like a temperature gauge which claims it will reward my “E-wallet” with more tokens. At the time of writing the split is about 93 percent, so users have to wait just a little bit longer to reap their reward.
The biggest thing mentioned all across the entire platform is how they want you to buy packages. Each package contains a specific amount of tokens for a price denominated in euros. Packages of tokens are named by class and price such as Trainee, Trader-1000, Crypto-Director, and the coveted Ultimate. The cheapest package one can buy is €25 and the Ultimate costs €50,000. In order to purchase a Swisscoin package, I can use bitcoin, Payza, Swift, and Sepa transfer. The Swisscoin public bitcoin address has grossed over 2.5 million dollars in bitcoins according to blockchain explorers.
Absolutely No Signs of a Cryptocurrency Infrastructure
Swisscoin shows no signs of being an actual cryptocurrency. The operating system looks like a clone of the NXT dashboard offering a holding tank for token packages. There is no blockchain explorer, and Swisscoin is not listed on market capitalization sites such as Coinmarketcap.com. The Swisscoin ‘whitepaper’ says a source code repository, and a blockchain explorer is “coming soon.” The organization offers a screenshot of a blockchain explorer instead.
The so-called digital currency has a lot of similarities to Onecoin with its packages, barometer splits, and promises to make you filthy rich. Swisscoin affiliates believe these tokens “have the potential to compete with leading global payment systems,” while always mentioning ‘blockchain technology’ throughout every aspect of the business.
Speaking to a Swisscoin Affiliate
A few days ago I decided to reach out to my upline contact Reda from Morocco to get some more details about investing. I was provided with Reda’s email contact, and I sent this message:
“Dear Reda, A good friend of mine told me about Swisscoin, and it looks like a lucrative investment. However, I have a family to take care of, and I can’t afford much. What’s the best return of investment package for someone with little to spend? What else do I have to do to earn? Sincerely, Posternut.”
Fourteen hours had passed, and I received this reply:
“Hi Posternut, Your friend is a very smart person. You’ve come to the right place because we all will be very wealthy soon. Your best bet is the Crypto-Trader package which will give you 25 thousand tokens and immediate returns. If you want to make more money invite all of your friends and family members using your referral link. I do well asking my friends using Facebook, and sending links to all of my contacts. The more people who join Swisscoin the better it is for all of us. Feel free to contact me anytime for more information. Best, Reda.”
Swisscoin is Not a Cryptocurrency
Overall my entire experience investigating Swisscoin has shown the entire operation is a get-rich-pyramid scheme with no real value. In order to participate, you have to spend money on packages, and spend a lot of time convincing others to sign up below you. Everything about Swisscoin had red flags, and it is difficult to understand why people fall for these types of Ponzis. The Swisscoin operation runs in nearly every country in the world minus a few stricter regions like the U.S. Furthermore the leaders of Swisscoin are throwing an event this April in Dubai to entice followers to spend more money on this worthless token investment.
There are also multiple reviews of Swisscoin detailing that is a Ponzi investment from publications such as the Affiliate & Marketing Scams network and Behindmlm.com.
The bottom line — Swisscoin is not a cryptocurrency, there is no blockchain to be found, and there is absolutely no innovation involved with the company’s business practice. Swisscoin is a smaller version of Onecoin and uses the language of cryptocurrencies and “blockchain” as a veil to hide its sketchy business practices. As you can see from the video below leaders of Swisscoin just want people to purchase packages so they can make millions.
What do you think about Swisscoin? Do you think it’s just as sketchy as Onecoin? Let us know in the comments below.
Images via Shutterstock, the Swisscoin.eu website, and Pixabay.
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