CoinSpace Review: S-Coin Ponzi points
There is no information on the CoinSpace website indicating who owns or runs the business.
The CoinSpace website domain (“coinspace.eu”) was registered on March 11th 2015, with “Danjel Pawl” of CoinSpace LTD listed as the owner. An address in Malta is also provided.
A different address in Malta is given on the CoinSpace website, with no offered explanation.
Pawl’s name meanwhile is connected to CoinSpace only via the company’s website domain registration. Who he is or what relationship he has with CoinSpace is unknown.
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.
The CoinSpace Product Line
CoinSpace has no retailable products or services, with affiliates only able to market CoinSpace affiliate membership itself.
Once signed up, CoinSpace affiliates are able to invest in offered packages and participate in the CoinSpace MLM opportunity.
Bundled with each package purchase are S-Coin points as follows:
- Minimum Mine – 30 S-Coins
- Basic Mine – 100 S-Coins
- Quarter Mine – 250 S-Coins
- Half Mine – 500 S-Coins
- Full Mine – 1000 S-Coins
- Double Mine – 2000 S-Coins
CoinSpace claim the value of S-Coins are €0.5 EUR each.
The CoinSpace Compensation Plan
The CoinSpace compensation plan sees affiliates invest in one of six offered plans:
- Minimum Mine – €300 EUR
- Basic Mine – €700 EUR
- Quarter Mine – €1500 EUR
- Half Mine – €3000 EUR
- Full Mine – €6000 EUR
- Double Mine – €12,000 EUR
In addition to a monthly passive ROI offered, commissions are paid out when new affiliates are recruited. Residual commissions are paid out via a binary compensation structure.
Note that 25% of all commissions paid out by CoinSpace must be reinvested back into the company.
Recruitment Commissions
CoinSpace affiliates are paid to recruit new affiliates who invest in packages.
How much of a commission is paid out is determined by how much a newly recruited CoinSpace affiliate invests:
- Minimum Mine – €35 EUR
- Basic Mine – €84 EUR
- Quarter Mine – €180 EUR
- Half Mine – €360 EUR
- Full Mine – €720 EUR
- Double Mine – €1440 EUR
Passive ROI
Each CoinSpace package pays out passive monthly ROI as follows:
- Minimum Mine – €36.50 a month for 12 months
- Basic Mine – €84 EUR a month for 12 months
- Quarter Mine – €182.50 EUR a month for 12 months
- Half Mine – €365 EUR a month for 12 months
- Full Mine – €730 EUR a month for 12 months
- Double Mine – €1520 a month for 24 months
Residual Commissions
Residual commissions in CoinSpace are paid out via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
Positions in the binary are generated by splitting previous level positions into another two positions each, with a binary team theoretically able to extend down an infinite depth.
Investment volume is tracked across both binary teams, with each CoinSpace package generating the following point values:
- Minimum Mine – 50 points
- Basic Mine – 120 points
- Quarter Mine – 250 points
- Half Mine – 500 points
- Full Mine – 1000 points
- Double Mine – 2000 points
Every week investment volume is tracked across both binary teams, with an affiliate paid 50% of the generated volume in their weaker team.
Binary commissions are paid out at a rate of 1 point being equal to €1 EUR, with the following weekly caps:
- Coordinator (recruit at least two affiliates and generate an accumulated 6000 binary points on both binary sides) = €1000 EUR a day
- Team Leader (maintain 1 active affiliate and generate an accumulated 12,000 binary points on both sides of your binary team) = €2000 EUR a day
- Supervisor (maintain 2 active investors and generate an accumulated 36,000 binary points on both sides of your binary team) = €3000 EUR a day
- Executive Director (maintain 2 Coordinator ranked affiliates and generate an accumulated 120,000 binary points on both sides of your binary team) = €5000 EUR a day
- Diamond – (maintain 1 Team Leader and 1 Supervisor ranked affiliates and generate an accumulated 300,000 binary points on both sides of your binary team) = €8000 EUR a day
- Blue Diamond (maintain 2 Supervisor ranked affiliates and generate an accumulated 500,000 binary points on both sides of your binary team) = €10,000 EUR a day
- Black Diamond (maintain 1 Supervisor and 1 Executive Director ranked affiliate and generate an accumulated 1,000,000 binary points on both sides of your binary team) = €15,000 EUR a day
- Royal Diamond (maintain 2 Executive Director ranked affiliates and generate an accumulated 2,500,000 binary points on both sides of your binary team) = €20,000 EUR a day
- Crown Diamond – (maintain 1 Diamond and 1 Blue Diamond ranked affiliate and generate an accumulates 5,000,000 binary points on both sides of your binary team) = €25,000 EUR a day
After volume is paid out on, it is flushed from both sides of the binary with remaining volume in the stronger team carried over into the new week.
Matching Bonus
A Matching Bonus of up to 20% is paid out on binary commissions earned by recruited affiliates.
CoinSpace affiliates receive the match based on how much they themselves invested, with the bonus payable down a maximum three levels of recruitment.
- Quarter Mine (€1500 EUR) – 10% on level 1 (personally recruited affiliates)
- Half Mine (€3000 EUR) – 10% on levels 1 and 2
- Full Mine (€6000 EUR) – 10% on levels 1 to 3
- Double Mine (€12,000 EUR) – 10% on level 1 and 20% on levels 2 and 3
S-Coin Bonuses
When CoinSpace affiliates convince others to invest in S-Coin points, the company rewards them with bonus S-Coins:
- Coordinator – 300 S-Coins
- Team Leader – 600 S-Coins and an iPad Mini
- Supervisor – 1800 S-Coins, an iPhone and a BMW 1 car for 6 months
- Executive Director – 6000 S-Coins, a MacBook Air and a BMW 4 car for 6 months
- Diamond – 15,000 S-Coins, a “Diamond Luxury Trip”, a Rolex watch and BMW 5 car for 12 months
- Blue Diamond – 25,000 S-Coins, a “Blue Diamond Luxury Trip” and a BMW 6, 7 or X6 car for 12 months
- Black Diamond = 50,000 S-Coins, a “Black Diamond Luxury Trip” and a BMW i8, Tesla, Maserati or Porsche car for 12 months
- Royal Diamond = 125,000 S-Coins, a “Royal Diamond Luxury Trip” and a BMW i8, Maserati or Porsche car to keep
- Crown Diamond – 250,000 S-Coins, a “Crown Diamond Luxury Trip” and a “villa or Ferrari, Lamborghini or Bentley supercar”
World Pool
The World Pool is made up of 3% of CoinSpace’s global investment volume.
CoinSpace affiliates earn shares in the pool by having 5 Black Diamond ranked affiliates in their personally recruited downline.
Joining CoinSpace
Affiliate membership with CoinSpace is tied to investment in one of six offered packages:
- Minimum Mine – €300 EUR
- Basic Mine – €700 EUR
- Quarter Mine – €1500 EUR
- Half Mine – €3000 EUR
- Full Mine – €6000 EUR
- Double Mine – €12,000 EUR
Double Mine Packages are valid for twenty-four months, the rest expire after twelve months.
The primary difference between the packages is income potential through the CoinSpace compensation plan.
Conclusion
Under the now-familiar guise of operating a legitimate cryptocurrency, CoinSpace offer up a Ponzi frontend powered by a pyramid scheme backend.
The Ponzi nature of the business is evident in the passive ROIs paid out each week. Affiliate investment is the only source of funds entering the scheme, ergo this is the source of passive ROIs paid out each week.
Thus CoinSpace take newly invested funds and use it to pay existing investors, which is otherwise known as a Ponzi scheme.
The pyramid layer of CoinSpace sees the scheme reward affiliates for recruiting new affiliates and getting them to invest.
Direct recruitment commissions are offered, as well as residuals through the binary. The matching bonus is also a recruitment incentive, with payment restrictions adding an additional “pay to play” element.
The offered S-Coins themselves are worthless, with the typical “what if” scenarios thrown about. The bottom line however is that nobody except CoinSpace affiliates are gong to be using the coins (and then only to request withdrawals from CoinSpace), meaning S-Coins aren’t really a cryptocurrency.
A legitimate cryptocurrency is used and traded between members of the general public, without restriction.
The value of the coin is thus determined by supply and demand, as opposed to an entity arbitrarily setting it’s value (CoinSpace in this instance).
As with all Ponzi schemes, once new investment into CoinSpace dries up, the scheme will find itself unable to meet its ROI obligations. A lack of recruitment will also see binary commissions and the matching bonus grind to a halt.
Malta isn’t really known for its regulation of such schemes, with CoinSpace’s purported registration there a calculated exit strategy on behalf of whoever is running it.
Beware, Dominicans Angel Brito and Ariel Vargas are offering this crap, they are providing professional fraud.
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Tengan cuidado, los dominicanos Angel Brito y Ariel Vargas estan ofreciendo esta basura, son profesionales ofreciendo estafas.
Coinspace is 100 % legal and clear company provide mining solutions I respect this company very much.
There’s nothing legal about Ponzi points chief. And whether you respect financial fraud is neither here nor there.
I know people who are regularly drawing their earnings in local currency using their Card issued by Coinspace.
Just this morning my upline withdrew A$1800 and only has about 20 people in her group and sponsored 2, Call it a scam and get your money when you need it?
What they’re actually doing is stealing funds from subsequent investors.
Yup, because whether or not you and your friends successfully steal money has no bearing on CoinSpace being a scam.
Using newly invested funds to pay off existing investors makes CoinSpace a scam, irrespective of whether the Ponzi scheme has collapsed yet or not.
This is where people have faulty scam radars. They think if you can actually withdraw money from a program it means it is not a scam.
No Benali, scams always pay out at first so that they will attract other suckers.
The thing you need to pay attention to is the business model. Is it using new funds to pay old investors? Scam watch needs to be taught in schools I swear.
but how do you guys know how the money is being paid out? where are the financial statements?
There’d probably be a lot more complaints if they weren’t paying out.
And Ponzi schemes don’t issue financial statements, so don’t hold your breath there.
Dear Oz,
I refute that Coinspace is a Ponzi Scheme and here’s why:
1. Company profits from mining legitimate cryptocurrencies on the blockchain, are used to pay member’s commissions.
How can they do that?
The company has responsibly set up the cryptocurrency fund, that guarantees a minimum of 1.0 euro at launch for every S-coin ‘mined’.
That money is set aside for the coins members mine in pre-launch.
Yes, the currency is in prelaunch, but even so has a minimum value of 1.0 euro guaranteed at launch!
Therefore when profit is more than 1 euro, that makes the company build it’s revenue!
The rest of the profit goes into company development and towards paying commissions. Feasible? Yes or yes?
True, Absolutely true!
2. When a mining service ‘package’ is bought, the company installs a mining server that mines cryptocurrency profitably on your behalf (using a secret algorithm) for a contract period of 12 months. They can be renewed and when they are renewed a new server is bought and installed for the new mining!
3. Selling coins and sales commissions (is for mining packages bought, not for recruiting members) go into the ewallet ‘cash account’ and you can request cash out into your debit Mastercard.
I have sold coins for every mining cycle since June 14th, 2016 to prove this can be done!
To support all my living expenses, and to satisfy myself and to prove Coinspace delivers on promises and to prove this business is REAL, and legitimate!
*** I can provide recorded video footage and live webinar footage of my screen, my backoffice, my systematic withdrawals since June 14th! And even the Debit Mastercard Transaction history, a live webinar of my transactions showing that i had withdrawn the money either at an ATM or paid for stuff using that card!
The mining cycles are the 14th and 28th of each month and they are from 14-17 days in length depending on the period.
*And when i sold the coins (by selecting sell coins), i had been able withdraw the value (in the next Coinspace ‘mining cycle’); you can get 0.5 euro per coin when you sell them immediately, and it goes into your cash account on the 14th and 28th of each month, when you select ‘sell coins’
If you don’t sell them then you agree to put them into your ‘held coins’ account to hold onto until launch time and beyond, to sell at the price you want on the open cryptocurrency exchanges.
(Ozedit: Attempt to take discussion offsite removed)
Thanks
Tutorman
Where is the proof dollar for dollar that ROI paid out through S-Coin is tied to cryptocurrency mining?
Why does S-Coin need to solicit affiliate investment then to pay a ROI on premined S-Coins?
That is not how legitimate cryptocurrency works. It’s how Ponzi points work.
How are you selling coins if the coin is in prelaunch?
You’re earning recruitment commissions… which without retail sales is a pyramid scheme.
I refute that Coinspace is anything more than a clumsy scam and here’s why:
Is this mining done with the $750,000,000 worth of equipment that John Boutakis fantasizes about?
Hahaha. There’s a few Chinese that might have something to say about that….
So does Coinspace have a real Coin trading on a real exchange with a real Blockchain ?
Does anyone know ?
If a cryptocurrency isn’t on CoinMarketCap, it’s not being publicly traded (in any significant volume).
I do not agree with you OZ. Coinmarketcap is kinda advertising website. I can see some coin are not be able to mined but listed in this website.
Fact of the matter is though, no legitimate cryptocurrency being traded in any significant volume isn’t on CoinMarketCap.
Agree, disagree… doesn’t change the fact.
The outright MLM cryptocurrency Ponzi schemes aren’t on CoinMarketCap. The MLM altcoin pump and dump schemes might be on there, but volume is either minimal or solely affiliates trading what is otherwise a completely useless altcoin.
Is there a possibility that this company is trying to launch a coin and have an large amount of usability and investors to back it up, maybe there guys are mining and trying to hit a goal!
Indeed its a gamble but kindly don’t leave the conversation without a directions or any advice, my wife’s good at criticizing but it carry’s no value what soever if there isn’t a solution, especially if your saying stay away coinspace where else can we all go?
I myself invested in Bitcoin and alone i stood, the money gained replied to to all in the end.
No legitimate third-party merchants will accept Ponzi points backed up pyramid recruitment.
CoinSpace is just another pump and dump scam. Admins sell you worthless coins for real money.
I’m not here to give you personalized investment advice. Meanwhile the solution to not losing money in Ponzi schemes is simple: Don’t invest.
Ponzi? Pyramid? Scam? Guys, you are bullshitting.
I would confirm that business model looks like pyramidal scheme. What about (Ozedit: Offtopic derail attempts removed)
Considering Coinspace:
They currently have 4 mining centers, where they produce crypto currency including s-coins, bitcoins and 9 others. They trade Bitcoin, ethereum, ripple, monero etc. on the market that brings main income to Coinspace.
wn mining, own products. Investment from people gives not more than 30% of Coinspace income. Investments needed to improve and expand mining facilities, pay electricity bills, etc. I ll tell you why s-coin is not in Coinmarketcap.
It is not launched yet, because Coinspace is creating demand for s-coins. What happens, when crypto currency is launched, but no real demand is created? It goes up first 1-2 months, then it rapidly goes down. This picture we can see with leocoin, swiscoin, e-dinar which have lost their value.
Onecoin and swisscoin (don’t confuse with swiscoin) are scams – they have no mining. Coinspace has mining. Coinspace is as much scam as Ethereum, Litecoin, Monero, e-dinar, leocoin.
Yet the only verifiable source of revenue entering the company is affiliate investment. Why is that?
Yes, this is the usual cover story for MLM altcoin Ponzi schemes.
A legitimate cryptocurrency develops usability which drives organic demand.
An MLM Ponzi altcoin scam creates investor demand. That doesn’t translate into real-world usability because nobody outside of the scam is interested in using the altcoin.
You said it yourself.
You are missing one thing. Dragging investors is not a demand creation. It’s more supply creation 🙂 Demand creation of Coinspace is the following:
1) setting terminals where you can pay with usd, eur, btc and later with s-coins. Terminals are being set in shops, restaurants, airports etc.
2) setting ATMs where you can perform various transactions, including transactions with s-coins
3) s-coins as currency in casinos and gambling machines. Players can pay with s-coins, and this is a huge market
Whatever you want to call it, the net result is a bunch of speculative investors holding a worthless altcoin they can’t do anything with.
No legitimate third-party merchant accepting an altcoin backed by Ponzi points negates the three points you made.
To all those who keep saying that Coinspace is mining BitCoins, someone said that 40% of all bitcoin mined are mined by coinspace, lol), i’d like to ask WHY there is no track at all of this mining activity by coinspace here: blockchain.info/en/pools
As you may now, 90% of bit coin mined blocks is public and mining pools use to leave their sign there in order to prove their quality and to grow their business.
The same thing that Coinspace would do if they really are mining bitcoins… why the hell would you prefer to hide that?
“someone” is brainless partners who were spreading “s-coin launch in october 2016” without understanding whats behind it. then they claim 40% of world pool of BTC are mined by Coinspace.
of course this is bullshit. Coinspace mines not more than 7% of world pool BTC, probably even 3-4%. but they do mine bitcoins.
Do you have any proof of any of that?
This is amazing that people who have not even bought a Mining Pack can say Coinspace is a Scam.
You clearly have nothing better to do.
Before you make any comments, buy a pack, I always tell people to buy small, buy a 300 euro pack, find out how it all works, then you can cry scam all you want, but until then you have no voice.
You have to try something out your self before you can say anything.
What people do not know or bother to find out, unlike Bitcoin which is one coin, mines one coin, Coinspace Mines Multiple Currency’s.
Unlike Bitcoin, with Coinspace you have instant Cash Flow.
Read this important fact, had you bothered to do your home work, Coinspace Hash Powers coins per day, better word genrate – Hence the Cash Flow.
At the end of the month you can sell your Hash Coins back to the Company, you can draw out funds with an ATM Card the Company gives you, or it can go into your Bank Account.
Also if Coinsapce was such a scam why are they Bringing out Merchant Facility’s so shops can accept Digital Currency?.
Do you dam home work, buy a pack yourself and try it out, instead of crying scam.
CoinSpace’s compensation plan defines the opportunity as a Ponzi points scheme. You don’t need to invest to “find out how it works”.
All you need is the compensation plan, which this review is based on.
Right, and where does that money come from?
It comes from the suckers you “tell to buy small, buy a 300 euro pack”.
Ie. newly invested funds are used to pay off existing CoinSpace investors, making it a Ponzi scheme.
So CoinSpace scammers such as yourself can run around the internet reposting the information.
Legitimate third-party merchants aren’t interested in Ponzi points.
So I need to spend 300 EUROS to figure out this is a scam??
No THANKS.
What a pitiful way to tell someone HOW IT WORKS and HOW TO EARN.
PATHETIC George Burns…
Publicly tell me who has been scammed? Give me the name of one person that has lost money?
You must know???
Your writing about a scam, your not got the guts to go in the dam thing so you can tell people real facts, your just surmising.
Scam patrol your nuts.
The CoinSpace investors who haven’t stolen funds from subsequent investors when affiliate recruitment dies down.
Mathematically this is the largest pool of investors at any given time.
Feel free to explain how CoinSpace’s use of newly invested funds to pay off existing investors isn’t Ponzi fraud. Anything else will be marked as spam (conspiracy theories, derail attempts, abuse etc.).
I heard a rumor that if you jump off the Empire State building naked, you’ll die when you hit the ground. Will you test that for me? Thanks.
No? You mean you don’t have to, to know that rumor is false? That can’t be as your logic I quoted points out. So, you’re a liar.
If you would like an example of a company in the past that has done something almost identical, I will provide you with the Global Coin Reserve example.
Thousands put in money while this coin was “building” and getting ready to go live. EAch month they paid for these coins and accumulated many of them whilst many people were making money on the new people coming in and paying a monthly fee.
Fast forward to about a year later… the coin launches and basically dies before it breathers..
So…to answer you question.. the people early on who did not invite and get money from new people GOT BURNED…
The people that joined later on…thinking they would have a valualbe coin..GOT BURNED.
Trust me.. Coinspace is no different…unless it never does go public….
Take a look at the price of GCR right now….or maybe it does not exist….
Good luck to ya!!
Via email:
Affiliate membership with CoinSpace is tied to investment in one of six offered packages: For example Half Mine, expire in 12 months
The CoinSpace Product Line: Half Mine – 500 S-Coins.
CoinSpace claim the value of S-Coins are €0.5 EUR each.
The CoinSpace Compensation Plan: Half Mine – €3000 EUR.
According to this value, €3000 EUR should be equal to 6000 S-coin when they buy this package. But it turns out only 500S-coins. Where did the rest disappear???
Please show us where Coinspace early last year promised Public Launch in September, or October 2016.
Yes….. Coinspace coomplete SCAM!!!!!
See that Jerry Plesko has blocked everyone from transfer held coins to others…. So he prevent the members selling to each other…. Because he lose money!!! He scam.
Wow.. Really .. not again ?
I attended a sales meeting in NZ in 2016 for Coinspace. I was told that I could withdraw at ANY time (by selling the mine I purchased).
I am definite on that as I wouldn’t have joined otherwise. Was also told Coinspace would do it’s big launch in 6 months time.
This is May 2017 – no launch by the company and none expected apparently until 2018.
The coin in my account has not increased in value one iota and when I made enquiries about withdrawing, was told it’s not permitted until after company launch.
I smell a rat and have decided to cut my losses. Nor do I like the fact that all members have to supply electronic copies of Passport, Drivers Licence, Photo, Bank Account details, proof of address to a website that I’ve not heard of, supposedly to comply with European requirements of some sort.
Was also told by the sponsor of my sponsor to look upon it as an investment, when Coinspace have specifically stated they are not an investment company and furthermore have instructed that word (and others) to be removed from all media that members may be using personally e.g. facebook.
Big questionmark from my perspective!
@Lyn Walsh – #OneCon ponzi redux
Sorry for your loss. Report them to your local Authorities.
I have on good word that they are ALSO part of a collaborative international investigation.
IMHO: The gauntlet will be coming down with immense measure. Hold on to your hats and glasses and keep both arms inside the vehicle.
What do you have to say about this (CoinSpace affiliate contract – I can provide the whole thing is needed):
(Ozedit: Wall of text removed)
@Milly
I say it has nothing to do with CoinSpace paying recruitment commissions and using newly invested funds to pay off existing affiliates.
Regulators don’t care about “affiliate contracts”.
I think this sh** iz a Ponzi, what I wanted to ask is could “affiliats” be held responsible and be sued by members (or however they are) they pulled into this?
Affiliates aren’t responsible for the business model but they can be subject to clawback litigation if a regulator intervenes.
Affiliate contracts in a Ponzi scheme = pseudo-compliance.
CoinSpace is giving all kinds of crazy information about future value of scoin – from 0.5€ to 1€ to (latest information) 40-50€ or even 100€!!!
Nowhere in their documentation this information is provided, but this it’s spread by affiliates while recruting new members. I guess affiliates are assured (in their meetings with “team leaders”) that this is real value and they can privide this information to others. Do I need to say how crazy this is?
They are also informed that ” product package” they purchesed is being shipped to their home address and it’t delayed due to high number of products sold.
Affiliates are also informed that Italy didn’t ban Coinspace but Coinspace “decided to retreat in order not to step on anybodies toes”.
Affiliates are informed that it’s normal that company owner is anonymous, that Coinspace has computer farms all over the world, unknown locations (again in order to stay hidden from competition) and it goes on and on…
I’m not an affiliate but somebody very near and dear to me is, so I just hope somebody puts a stop to this sh** quickly!!!
I have invested in this and have now after extensive research requested a refund with in the 14 day refund policy #21.
Now lets wait and see if i get my money back. Everything i now know about cryto currency tells me this a ponzi/pyramid scam i want out.
@Mick
Sounds as if you didn’t do your due diligence but seems you have learned. Hope you didn’t invest too much for the learning.