Hab Coin Review: Worthless Habcoin altcoin + pyramid recruitment
There is no information on the Hab Coin website indicating who owns or runs the business.
On the “partners” section of the website, Hab Coin name Hab & JPR Privee Group of Companies as a partner.
Multiple corporate addresses for HAB & JPR Privee Group of Companies in England, Israel, the Cayman Islands and Hong Kong are given.
According to the HAB & JPR Privee Group of Companies website, they are
a number of member firms (who have) collaborate(d) together sharing expertise, know how and a network of contacts that include the Government and Banking sectors to achieve the core activity of HAB & JPR Privee Group of Companies which is project financing.
In a South African media report from earlier this year HAB & JPR Privee Group are identified as a “Swiss company”.
The same publication names “Marco Lacchini” as a ‘master partner with the HAB & JPR Privee Group of Companies‘.
Whether Lacchini is involved in Hab Coin directly is unclear.
The Hab Coin website domain was registered on the 17th of February, 2016. “Naiadi Snc Societa/Ditta Naiadi Snc Societa/Ditta” is listed as the owner, with an address in L’Aquila, Italy also provided.
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 Hab Coin Product Line
Hab Coin has no retailable products or services, with affiliates only able to market Hab Coin affiliate membership itself.
Once signed up, Hab Coin affiliates can invest in Habcoin.
Habcoin is a cryptocurrency owned by Hab Coin. At the time of publication Habcoin is not publicly tradeable.
The Hab Coin Compensation Plan
The Hab Coin compensation plan sees affiliates invest in Habcoins and get paid to recruit others who do the same.
Hab Coin Affiliate Ranks
There are fifteen affiliate ranks within the Hab Coin compensation plan.
Along with their respective qualification criteria, they are as follows:
- Startup – sign up as a Hab Coin affiliate
- Bronze – generate a total of 500 BV
- Silver – generate a total of 2000 BV
- Gold – generate a total of 6000 BV
- Pearl – generate a total of 20,000 BV
- Sapphire – generate a total of 40,000 BV
- Ruby – generate a total of 80,000 BV
- Emerald – generate a total of 200,000 BV
- Platinum – generate a total of 500,000 BV
- Diamond – generate a total of 1,000,000 BV
- Diamond 1 – have at least one Diamond 1 ranked personally recruited affiliate
- Diamond 2 -have at least two Diamond 1 ranked personally recruited affiliates
- Diamond 3 – have at least three Diamond 1 ranked personally recruited affiliates
- Diamond 4 – have at least four Diamond 1 ranked personally recruited affiliates
- Diamond 5 – have at least five Diamond 1 ranked personally recruited affiliates
BV stands for “Business Volume” and is investment volume generated by a Hab Coin affiliate and their downline.
Commission qualification in Hab Coin is pegged to downline investment activity:
- generate 35 BV in a month and qualify for commissions for one month
- generate 100 BV in a month and qualify for commissions for three months
- generate 1000 BV in a month and qualify for commissions for twelve months
Corresponding BV with Habcoin investment amounts are as follows:
- a €92 EUR investment generates 35 BV
- a €244 EUR investment generates 200 BV
- a €2440 EUR investment generates 1000 BV
Residual recruitment commissions in Hab Coin are paid out 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.
Positions in the unilevel team are filled via direct and indirect recruitment of new Hab Coin affiliates.
Commissions are paid out as a percentage of sales volume generated via investment by a unilevel team.
What percentage commission is paid out and how many levels a Hab Coin affiliate can earn on is determined by their rank:
- Startup – no commission
- Bronze – 5% on level 1, 4% on level 2, 3% on level 3 and 2% on level 4
- Silver – 5% on level 1, 4% on level 2, 3% on level 3, 2% on level 4 and 1.5% on levels 5 and 6
- Gold – 5% on level 1, 4% on level 2, 3% on level 3, 2% on level 4 and 1.5% on levels 5 to 8
- Pearl – 5% on level 1, 4% on level 2, 3% on level 3, 2% on level 4, 1.5% on levels 5 and 8 and 1% on levels 9 and 10
- Sapphire – 5% on level 1, 4% on level 2, 3% on level 3, 2% on level 4, 1.5% on levels 5 and 8 and 1% on levels 9 to 11
- Ruby and higher – 5% on level 1, 4% on level 2, 3% on level 3, 2% on level 4, 1.5% on levels 5 and 8 and 1% on levels 9 to 12
The Matching Bonus is a percentage match on commissions earned by a Hab Coin affiliate’s unilevel team.
How much of a match and how many levels the matching bonus is paid on is determined by a Hab Coin affiliate’s rank:
- Pearl – 10% on level 1 and 5% on levels 2 and 3
- Sapphire – 15% on level 1 and 5% on levels 2 to 4
- Ruby – 20% on level 1 and 5% on levels 2 to 5
- Emerald – 25% on level 1 and 5% on levels 2 to 6
- Platinum – 30% on level 1 and 5% on levels 2 to 7
- Diamond or higher – 35% on level 1 and 5% on levels 2 to 8
Diamond 1 and higher affiliates are able to earn a commission beyond the first twelve levels of their unilevel team.
A generation in the Hab Coin compensation plan is defined when a Diamond 1 or higher ranked affiliate is found in a unilevel leg.
This affiliate caps off the first generation, with the second generation defined when another Diamond 1 or higher ranked affiliate is found deeper in the leg.
If no such affiliate is found, the second generations runs the entire length of the unilevel leg.
Subsequent generations are defined in the same manner, with one unilevel leg able to hold up to five generations.
The Generation Bonus is paid out as a percentage of BV generated in a generation.
How many generations a Hab Coin affiliate can earn on is determined by their affiliate rank:
- Diamond 1 – 3% on the first generation
- Diamond 2 – 3% on the first generation and 1.5% on the second
- Diamond 3 – 3% on the first generation, 1.5% on the second and 1% on the third
- Diamond 4 – 3% on the first generation, 1.5% on the second and 1% on the third and fourth
- Diamond 5 – 3% on the first generation, 1.5% on the second and 1% on the third to fifth
The Coded Bonus is an additional commission paid out on new investment in a Hab Coin affiliate’s unilevel team.
The Coded Bonus pays up to 50% of the BV generated by new investment.
How much of a percentage is paid out is determined by a Hab Coin affiliate’s rank:
- Startup – no commission
- Bronze – 10%
- Silver – 15%
- Gold – 20%
- Pearl – 26%
- Sapphire – 32%
- Ruby – 38%
- Emerald – 43%
- Platinum – 47%
- Diamond and above – 50%
When a unilevel team affiliate invests, the affiliate who recruited them is paid the coded percentage according to their rank.
If they are a rank lower than Diamond, the remaining percentage balance is paid out to affiliates higher in the upline of greater rank.
Eg. A new affiliate’s investment generates 100 BV.
The affiliate who recruited them is a Pearl rank, so they are paid 26% of the 100 BV generates ($26).
24% of the coded bonus remains, so the system looks further up the upline for a Sapphire or higher ranked affiliate to pay it out to.
Let’s say the next higher ranked affiliate found is an Emerald. The difference between the 43% Emerald rate and the already paid out 26% Pearl rate is 17%.
The Emerald affiliate is thus paid 17% ($17) with 7% remaining.
If the next highest ranked affiliate found is a Platinum, they are paid 4% with the remaining 3% going to the first found Diamond or higher ranked affiliate.
If the next highest ranked affiliate found is a Diamond or higher, they are paid the full 7% remaining and the system stop searching.
The National Bonus is made up of two bonus pools:
- a Diamond 4 pool made up of 1% of company-wide BV
- a Diamond 5 pool made up of 0.5% of company-wide BV
Both pools are paid out monthly, with Hab Coin affiliates able to qualify for an equal share in the pools by qualifying at the Diamond 4 or Diamond 5 ranks.
Pearl and higher ranked affiliates are awarded a monthly Habcoin bonus as follows:
- Pearl 5 Habcoin
- Sapphire – 10 Habcoin
- Ruby – 20 Habcoin
- Emerald – 30 Habcoin
- Platinum – 40 Habcoin
- Diamond and higher – 50 Habcoin
Joining Hab Coin
Affiliate membership with Hab Coin is:
- €100 EUR a month
- €150 EUR for two months or
- €1500 EUR for eight months
Habcoin appears to be yet another MLM cryptocurrency that is completely worthless outside the attached MLM income opportunity.
That income opportunity in this instance is Hab Coin, who appear to be dumping pre-mined Habcoin onto Hab Coin affiliates for real money.
There is mention of an exchange being available on the Hab Coin website as of August 26th. This however appears to be an inhouse exchange with Habcoin not publicly tradeable at the time of publication.
With nothing being marketed or sold to retail customers, the MLM side of Hab Coin meanwhile is pyramid recruitment.
With €92 EUR of investment generating 30 BV, it’s pretty obvious that this is designed as a monthly autoship fee for commission qualification.
Hab Coin affiliates sign up and invest in Habcoin, with commissions paid when they recruit others who do the same.
That the only value assigned to Habcoin is funds invested by Hab Coin affiliates adds an additional Ponzi layer to the scheme. This of course depends on how Hab Coin want to handle affiliate withdrawals of Habcoin.
If the company washes its hands of withdrawals and only lets Hab Coin affiliates trade Habcoin with other affiliates via the inhouse exchange, it’s a pump and dump scheme.
If Hab Coin assign a value to Habcoin and handle affiliate withdrawals themselves, it’s a Ponzi scheme.
At the time of publication, Hab Coin do not provide the current value of Habcoin on their website.
The corporate structure behind Hab Coin appears to be well thought out, with offices in a number of shady jurisdictions unlikely to cooperate with regulators.
This combined with the lack of supplied information about who is running Hab Coin should alone set off alarm bells.
As with the plethora of other MLM companies using this model, Hab Coin will collapse when recruitment of new affiliates dies down.
There’s no external activity here, so once affiliates top pumping new funds into the scheme that’s pretty much the end of it.