PlatinCoin Review: Top SwissCoin investor launches own crypto scam
Platin Coin provide no information on their website about who owns or runs the business.
The Platin Coin website domain (“platincoin.com”) was registered on July 4th, 2016. PLC Group AG is listed as the owner, with an address in Zug, Switzerland also provided.
Further research reveals this address actually belongs to Regus, suggesting PlatinCoin exists in Switzerland in name only.
In PlatinCoin marketing presentations, affiliates name Alex Reinhardt as CEO of the company. Why this information is not provided on the PlatinCoin website is unclear.
Reinhardt (right) is based out of Germany and up until recently was promoting SwissCoin.
Reinhardt appears to have been head of SwissCoin’s “Team Germany” and was pretty highly ranked within the affiliate-base.
SwissCoin is a Ponzi points cryptocurrency scheme launched mid last year. Following regulatory warnings in Germany, Switzerland and Nigeria, the scammers running the company turned on each other earlier this year.
Legal action was filed in Switzerland, with Alexa statistics showing the company shortly thereafter entered a decline.
This likely prompted Alex Reinhardt to cut ties with SwissCoin and launch his own company.
Read on for a full review of the PlatinCoin MLM opportunity.
PlatinCoin has no retailable products or services, with affiliates only able to market PlatinCoin affiliate membership itself.
PlatinCoin affiliate membership provides access to PLC Network, PLC Market and an “online platform with training
PLC Network is an inhouse PlatinCoin social network. PLC Market is an e-commerce platform.
As as the time of publication, neither entity appears to have launched yet.
The PlatinCoin Compensation Plan
PlatinCoin affiliates invest €5 to €10,000 in PlatinCoins, on the promise of an eventual ROI.
PlatinCoins are points distributed by PlatinCoin, with an initial set value of €0.10 EUR per point.
PlatinCoins are not publicly tradeable and can only be traded and converted into real money via Turbo Button PLC, an in-house exchange operated by PlatinCoin.
After May 11th, 2017, the rising value of PlatinCoins will be determined by PlatinCoin.
PlatinCoin pay residual commissions on affiliate investment 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.
PlatinCoin cap payable unilevel levels at eleven, with commissions paid out as a percentage of funds invested by affiliates in the unilevel team.
How many levels a PlatinCoin affiliate can earn on is determined by how much they have invested:
- invest €5 EUR and receive 10% on level 1 (personally recruited affiliates)
- invest €50 EUR and receive 10% on level 1 and 4% on level 2
- invest €250 EUR and receive 10% on level 1, 4% on level 2 and 5% on level 3
- invest €500 EUR and receive 10% on level 1, 4% on level 2, 5% on level 3 and 6% on level 4
- invest €1000 EUR and receive 10% on level 1, 4% on level 2, 5% on level 3, 6% on level 4 and 7% on level 5
- invest €5000 EUR and receive 10% on level 1, 4% on level 2, 5% on level 3, 6% on level 4, 7% on level 5 and 1% on levels 6 and 7
- invest €10,000 EUR and receive 10% on level 1, 4% on level 2, 5% on level 3, 6% on level 4, 7% on level 5 and 1% on levels 6 to 11
Rank Achievement Bonus
PlatinCoin reward affiliates who generate large amounts of downline investment with a cash Rank Achievement Bonus.
- Jade – generate €1000 EUR in downline investment (no bonus)
- Pearl – generate €5000 EUR in downline investment, personally recruit at least one Jade ranked affiliate and receive €100 EUR
- Sapphire – generate €10,000 EUR in downline investment, personally recruit at least two Jade ranked affiliates and receive €200 EUR
- Ruby – generate €10,000 EUR in downline investment, personally recruit at least two Pearl ranked affiliates and receive €500 EUR
- Emerald – generate €50,000 EUR in downline investment, personally recruit at least one Sapphire ranked affiliate and receive €1000 EUR
- Diamond – generate €100,000 EUR in downline investment, personally recruit at least two Sapphire ranked affiliates and receive €2000 EUR
- Blue Diamond – generate €250,000 EUR in downline investment, personally recruit at least one Diamond ranked affiliate and receive €5000 EUR
- Green Diamond – generate €500,000 EUR in downline investment, personally recruit at least two Diamond ranked affiliates and receive €10,000 EUR
- Purple Diamond – generate €1,000,000 EUR in downline investment, personally recruit at least three Diamond ranked affiliates and receive €20,000 EUR
- Red Diamond – generate €5,000,000 EUR in downline investment, personally recruit at least five Diamond ranked affiliates and receive €100,000 EUR
- Black Diamond – generate €10,000,000 EUR in downline investment, personally recruit at least ten Diamond ranked affiliates and receive €200,000 EUR
- Platin Diamond – generate €20,000,000 EUR in downline investment, personally recruit at least twenty Diamond ranked affiliates and receive €1,000,000 EUR
PlatinCoin affiliate membership requires an investment of between €5 and €10,000.
The more an affiliate invests the higher their income potential via the PlatinCoin compensation plan.
PlatinCoin retains the Ponzi points business model SwissCoin used, but is more closely aligned with OneCoin’s version of the scam.
Despite clearly soliciting investment from affiliates in exchange for tokens, which are then converted into PlatinCoins, the company insists it is not selling coins:
We do not sell coins, we sell the training content and technological solutions.
This is of course pseudo-compliance baloney, with official PlatinCoin compensation plan a few pages down revealing the true nature of the business:
The Ponzi points model sees affiliates invest real money in exchange for worthless points.
PlatinCoin is not publicly tradeable and only holds a value within the PlatinCoin MLM opportunity. That value is entirely artificial and is manipulated by PlatinCoin as they see fit.
In their official compensation plan documentation, PlatinCoin provide prospective investors with an estimated PlatinCoin value of €10 EUR by the end of 2018.
PlatinCoin state that they hope to generate revenue to pay affiliates out with via
- sales of business packages (AcademyPoints, PLC, Likes, AdPoints)
- the social network (advertising, premium accounts, business pages for companies etc.)
- the crowd funding platform (advertising, revenues from transactions and other business transactions)
- the online shop (% of shops, advertising, premium accounts)
- real assets (% of company profits are invested in gold and holdings in promising companies)
The reality is “sales of business packages” (affiliate investment) is the only verifiable source of PlatinCoin’s revenue. The other sources are just empty promises.
And in any event, even using a small percentage of newly invested funds to pay off existing investors is Ponzi fraud. As with SwissCoin and OneCoin, typically in the Ponzi points model however 100% of ROI payouts are newly invested funds.
As a top affiliate in SwissCoin, Alex Reinhardt likely made a pretty penny via recruitment commissions (pyramid scheme fraud itself). To what extent Reinhardt was able to convert held SwissCoins into real money is unclear, but it’s likely it paled in comparison to what he made convincing others to invest.
As SwissCoin began to stall in late 2016 and early 2017, Reinhardt no doubt realized all he had to show in SwissCoin was an account full of worthless coins he couldn’t cash out.
A stall of collapse in affiliate investment sees a Ponzi points scam deny affiliate exchange withdrawals for any number of manufactured reasons (the real reason of course being they have no new funds to pay out with).
The real money in a Ponzi point scam is running the company. Top affiliates like Reinhardt make fair coin, but most of the invested funds are squirreled away by the owners in secret offshore bank accounts.
Looking to make even more than he did in SwissCoin, Reinhardt is no doubt aware of this and so we have PlatinCoin.
Stacked with Reinhardt’s SwissCoin downline and who knows what else, once again the bitcoin comparisons are trotted out.
Unfortunately for most PlatinCoin investors however, once again the end result is going to be a worthless altcoin and widespread losses.