LoanCoin Review: 90 day lending ICO Ponzi ROIs
LoanCoin provide no information on their website about who owns or runs the business.
The LoanCoin website domain (“loancoin.com”) was privately registered on November 22nd, 2017.
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.
LoanCoin Products
LoanCoin has no retailable products or services, with affiliates only able to market LoanCoin affiliate membership itself.
The LoanCoin Compensation Plan
LoanCoin affiliates invest in LOAN points at a rate of 55 cents to $1.05 each.
LoanCoin affiliates then “lend” invested points back to the company on the promise of an advertised 90 day ROI:
- invest $100 to $1000 and receive a 105% ROI
- invest $1010 to $5000 and receive a 115% ROI
- invest $5010 to $10,000 and receive a 125% ROI
- invest $10,010 to $50,000 and receive a 135% ROI
LoanCoin pay referral commissions both on funds initially invested and LOAN points lent to the company.
Both LoanCoin referral commissions 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.
LoanCoin investment referral commissions
- level 1 (personally recruited affiliates) – 4%
- level 2 – 3%
- level 3 – 2%
- levels 4 and 5 – 0.5%
LoanCoin lending referral commissions
- level 1 (personally recruited affiliates) – 5%
- level 2 – 3%
- level 3 – 2%
- levels 4 and 5 – 1%
Note that lending referral commissions are paid in LOAN points.
Joining LoanCoin
LoanCoin affiliate membership is free, however free affiliates can only earn referral commissions.
Full participation in the LoanCoin income opportunity requires a minimum $100 investment.
Conclusion
LoanCoin is yet another entry into the MLM lending ICO Ponzi niche.
Affiliates invest real money in exchange for worthless points, which LoanCoin represent will be worth $10 in January 2018 and $400 by July 2018.
There’s no practical reason for these projections, other than the hope that gullible new investors will continue to invest in LOAN points on the promise of advertised ROIs.
The only verifiable source of revenue entering LoanCoin is new affiliate investment, the use of which to pay existing investors a ROI makes it a Ponzi scheme.
Lending ICO Ponzi like LoanCoin play out as follows:
Admins (who are typically anonymous) offload worthless pre-generated points in exchange for real money.
They use some of this money to pay promised ROIs for as long as new affiliates sign up.
Once affiliate recruitment dries up so does the ROI reserve.
When a predetermined threshold is reached, the anonymous LoanCoin admins pull a runner with what’s left.
Early investors make a bit of money (mostly via recruitment of new investors).
The reality of ICO lending Ponzi schemes is that in order for the LoanCoin admins and early investors to make money, the majority of their affiliate base has to lose it.