AlpCoin provide no information about who owns or runs the business on their website.

The company claims to be ‘a business group located in UAE with representation offices in various countries‘.

The AlpCoin website domain (“alpcoin.com”) was registered on August 30th, 2016. Patrick Ruegsegger is listed as the owner, with an address in Basel, Switzerland also provided.

Further research reveals the address belongs to WorldWideLinks, who describe themselves as ‘a global working procurement and consulting company with a trading platform.‘

German appears to be the language of choice for AlpCoin. The AlpCoin website itself is hosted in Germany and German is also the first selectable language.

AlpCoin features on the WorldWideLinks website, however whether there is any common ownership is unknown.

An AlpCoin marketing video cites Ruegsegger as CEO of the company:

In the video, Ruegsegger claims to be based out of Dubai and have a history in finance and IT.

Prior to launching AlpCoin in 2016, Ruegsegger was a Dubli affiliate.

Why none of this information is provided on the AlpCoin website is unclear.

As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.

AlpCoin Products

AlpCoin has no retailable products or services, with affiliates only able to market AlpCoin affiliate membership itself.

A “cashback shopping” link is present on the AlpCoin website, however clicking through redirects visitors to a replicated Ominto (Dubli) e-commerce store.

This doesn’t appear to have anything to do with the AlpCoin MLM opportunity.

The AlpCoin Compensation Plan

AlpCoin affiliates sign up and invest in ABL Packages. Commissions are paid when they recruit others who do the same.

In total, there are thirteen ABL Packages AlpCoin affiliates can invest in:

  • INV-0 – €100 EUR (general fee?)
  • ABL-5-12 – €25 EUR (valid for one month)
  • ABL-1 – €59 EUR (valid for 2 months)
  • ABL-2 – €112 EUR (valid for 3 months)
  • ABL-5 – €274 EUR (valid for 6 months)
  • ABL-12 – €548 EUR (valid for 12 months)
  • ABL-121 – €1061 EUR (valid for 12 months)
  • ABL-122 -€2598 EUR (valid for 12 months)
  • ABL-18 – €5173 EUR (valid for 18 months)
  • ABL-24 -€10,322 EUR (valid for 24 months)
  • ABL-30 – €25,697 EUR (valid for 30 months)
  • ABL-36 – €51,358 EUR (valid for 36 months)
  • ABL-72 – €102,680 EUR (valid for 72 months)

AlpCoin ROIs

AlpCoins are points AlpCoin affiliates invest in. AlpCoin is not publicly tradeable and it’s value is manipulated by AlpCoin at will.

Each AlpCoin affiliate package comes with a set number of points:

  • INV-0 – 10,000 points
  • ABL-5-12 – 1000 points
  • ABL-1 – 3000 points
  • ABL-2 – 6000 points
  • ABL-5 – 15,000 points
  • ABL-12 – 33,000 points
  • ABL-121 – 66,000 points
  • ABL-122 -180,000 points
  • ABL-18 – 360,000 points
  • ABL-24 -750,000 points
  • ABL-30 – 2,000,000 points
  • ABL-36 – 4,200,000 points
  • ABL-72 – 9,000,000 points

Note that when an AlpCoin affiliate signs up, they are initially given a quarter of the point values above.

Through something called the “quadrille level”, these initial point balances multiply by four into the amounts quoted above.

AlpCoin affiliates can convert tokens into Alpcoin through an internal exchange.

AlpCoin set the value of AlpCoin. When the value rises above what an affiliate initially invested in (ie. the amount of tokens required for one AlpCoin increases), an affiliate can cash out through the internal exchange and receive a ROI.

Recruitment Commissions

AlpCoin affiliates are paid to recruit new affiliates who invest in ABL Packages.

Recruitment commissions are paid out as a percentage of funds invested.

How much of a percentage is paid out is pegged to how the recruiting affiliate has invested:

  • invest in an ABL-5-12 to ABL-5 package and receive a 10% recruitment commission
  • invest in an ABL-12 to ABL-18 package and receive a 12% recruitment commission
  • invest in an ABL-24 package and receive a 13% recruitment commission
  • invest in an ABL-30 to ABL-72 package and receive a 14% recruitment commission

Residual Commissions

AlpCoin pay residual commissions via a unilevel compensation structure.

A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):

If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.

If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.

Residual commissions are paid out as percentage of invested funds across sixty unilevel team levels.

  • levels 1 to 8 – 5%
  • levels 9 and 10 – 4%
  • levels 11 and 12 – 3%
  • levels 13 to 15 – 2%
  • levels 16 to 20 – 1%
  • levels 21 to 30 – 0.75%
  • levels 31 to 40 – 0.5%
  • levels 41 to 50 – 0.25%
  • levels 51 to 60 – 0.1%

How many levels an AlpCoin affiliate can earn on is determined by how much they have invested:

  • ABL-5-12 – earn on eight unilevel levels
  • ABL-1 – earn on four unilevel levels
  • ABL-2 – earn on six unilevel levels
  • ABL-5 – earn on eight unilevel levels
  • ABL-12 – earn on ten unilevel levels
  • ABL-121 – earn on twelve unilevel levels
  • ABL-122 – earn on fifteen unilevel levels
  • ABL-18 – earn on twenty unilevel levels
  • ABL-24 – earn on thirty unilevel levels
  • ABL-30 – earn on forty unilevel levels
  • ABL-36 – earn on fifty unilevel levels
  • ABL-72 – earn on all sixty unilevel levels

Note that 60% of residual commissions are paid as cash. The 40% remaining balance must be reinvested back into new ABL Packages.

Matching Bonus Pools

Each AlpCoin ABL Package generates a set number of “A-Points”:

  • INV-0 – 42 A-Points
  • ABL-5-12 – 15 A-Points
  • ABL-1 – 40 A-Points
  • ABL-2 – 80 A-Points
  • ABL-5 – 200 A-Points
  • ABL-12 – 400 A-Points
  • ABL-121 – 800 A-Points
  • ABL-122 – 2000 A-Points
  • ABL-18 – 4000 A-Points
  • ABL-24 – 8000 A-Points
  • ABL-30 – 20,000 A-Points
  • ABL-36 – 40,000 A-Points
  • ABL-72 – 80,000 A-Points

The AlpCoin compensation plan states that one A-Point is worth 0.8 CHF (0.73 EUR).

A-Points generated across a unilevel team are placed into three Matching Bonus Pools.

  • Pool 1 consists of 1% of A-Points generated across unilevel team levels 41 to 50
  • Pool 2 consists of 1.5% of A-Points generated across unilevel team levels 51 to 60
  • Pool 3 consists of 2% of A-Points generated across unilevel team levels 61 to infinity

To qualify for a share in the pools, an AlpCoin affiliate must have invested in either an ABL-30, ABL-36 or ABL-72 package.

  • ABL-30 affiliates earn a share in Pool 1
  • ABL-36 affiliates earn a share in Pool 2
  • ABL-72 affiliates earn a share in Pool 3

Note that Matching Bonus Pool payouts are split 60% paid in cash and 40% held for mandatory reinvestment.

Also note the AlpCoin compensation plan states that Matching Bonus Pool shares are ‘based on the A-Points (an affiliate) has earned … on a monthly base [sic]‘.

Other than receiving A-Points upon investing in an ABL Package however, there is no indication of how an AlpCoin affiliate acquires A-Points month to month.

Rank Achievement Bonus

Upon meeting specific recruitment and A-Point generation criteria, AlpCoin reward affiliates with bonus AlpCoins.

Note that bonus AlpCoins are only awarded at the Pearl and higher ranks.

  • Partner – invest in an ABL-5 or higher package
  • Bronze – accumulate 1000 A-Points and recruit two Partner affiliates
  • Silver – accumulate 2500 A-Points and recruit two Bronze affiliates
  • Gold – accumulate 5000 A-Points and recruit two Silver affiliates
  • Platinum – accumulate 10,000 A-Points and recruit three Silver affiliates
  • Pearl – accumulate 25,000 A-Points, recruit two Gold affiliates and receive 1000 bonus AlpCoins
  • Opal – accumulate 50,000 A-Points, recruit three Gold affiliates and receive 2500 bonus AlpCoins
  • Sapphire – accumulate 100,000 A-Points, recruit two Platinum affiliates and receive 5,000 bonus AlpCoins
  • Emerald – accumulate 250,000 A-Points, recruit two Opal affiliates and receive 10,000 bonus AlpCoins
  • Ruby – accumulate 500,000 A-Points, recruit three Opal affiliates and receive 25,000 bonus AlpCoins
  • Diamond – accumulate 1,000,000 A-Points, recruit two Emerald affiliates and receive 50,000 bonus AlpCoins
  • Director – accumulate 5,000,000 A-Points, recruit five Emerald affiliates and receive 250,000 bonus AlpCoins
  • General Director – accumulate 10,000,000 A-Points, recruit three Diamond affiliates and receive 500,000 bonus AlpCoins
  • Vice President – accumulate 25,000,000 A-Points, recruit three Director affiliates and receive 1,000,000 bonus AlpCoins
  • President – accumulate 50,000,000 A-Points, recruit five Director affiliates and receive 2,000,000 bonus AlpCoins

Joining AlpCoin

AlpCoin affiliate membership is tied to investment in one or more ABL Packages:

  • INV-0 – €100 EUR (general fee?)
  • ABL-5-12 – €25 EUR (valid for one month)
  • ABL-1 – €59 EUR (valid for 2 months)
  • ABL-2 – €112 EUR (valid for 3 months)
  • ABL-5 – €274 EUR (valid for 6 months)
  • ABL-12 – €548 EUR (valid for 12 months)
  • ABL-121 – €1061 EUR (valid for 12 months)
  • ABL-122 -€2598 EUR (valid for 12 months)
  • ABL-18 – €5173 EUR (valid for 18 months)
  • ABL-24 -€10,322 EUR (valid for 24 months)
  • ABL-30 – €25,697 EUR (valid for 30 months)
  • ABL-36 – €51,358 EUR (valid for 36 months)
  • ABL-72 – €102,680 EUR (valid for 72 months)

The primary difference between the above packages is income potential via the AlpCoin compensation plan.

Conclusion

Whereas your typical Ponzi points scheme is a one-time investment with optional re-investment, AlpCoin have gone for a subscription based model.

On top of a mandatory reinvestment fund on most commission payouts, this basically keeps affiliates investing.

This is important to AlpCoin, because affiliate investment is the primary source of revenue entering the company.

The Ominto cashback portal is smoke and mirrors. You can’t use AlpCoin to purchase any goods or services, with the company instead tying the portal to A-Points on the backend.

This of course has nothing to do with Ominto or the third-party merchants the portal features.

As part of the platform third-party merchants can sign up through AlpCoin. These merchants can choose to accept AlpCoin, however this is not true retail (only AlpCoin affiliates are customers).

The cashback bonus is given, on all products from suppliers, who offer a discount to the company ALPCOIN and are paid out in A-Points.

All merchants that sign up to sell goods by accepting AlpCoin must of course also sign up as an AlpCoin affiliate.

AlpCoin itself is not a true cryptocurrency. It’s not publicly tradeable and its value is manipulated by AlpCoin as they see fit.

At the time of publication AlpCoin do not provide the current value of the points on their website.

A-Points appear to be a separate Ponzi points scheme within a Ponzi points scheme.

They don’t seem to serve any practical purpose other than reducing the value of accumulated points (be it AlpCoin or A-Points) to 0.73 EUR a point.

AlpCoin convert whatever commissions they receive from Ominto into A-Points, which is where the reduction in value kicks in.

The commission should be a 1:1 from Ominto, but by using A-Points AlpCoin artificially reduce what they pay affiliates.

In addition to Ponzi fraud, AlpCoin’s compensation plan also embodies pyramid recruitment and pay to play.

Pyramid recruitment is self-evident, with AlpCoin affiliates compensated both directly and residually for recruiting new affiliates who invest.

Pay to play is tied to the more an AlpCoin affiliate investing having an impact on earning potential. In MLM commissions should always be tied to sales performance, not how much an affiliate spends.

As to AlpCoin as a cryptocurrency, the company claims

Our coins are generated with different methods, using four servers and by a unique quattro part technology, which means they are a 100 % secure against forgery.

Once they reached 100% at the “Quadrille Level”, tokens will quadruple and get automatically converted into AlpCoins, based on the current coin value.

This is basically a fancy way of saying “we generate AlpCoins via a script”. Outside of AlpCoin’s internal exchange, AlpCoin points are worthless.

As part of the ruse, AlpCoin do state that they

have a coin coverage fund, which is proportionately invested in real estate, securities, precious metals and cash.

Naturally there’s no evidence of any these claims provided.

As with all Ponzi schemes, once affiliate recruitment dies down so too will new investment entering the company.

This will see AlpCoin unable to meet withdrawal requests, with ROI liability compounded by the rising value of AlpCoin (typically used to lure new investors).

Once withdrawal requests are denied it’s over, with the majority of AlpCoin affiliates losing money in the inevitable collapse.