Preiscoin Review: Digital currency opp that lurks in the grey
There is no information on the Preiscoin website indicating who owns or runs the business.
Using an annoying “infinite scroll” design template, the Preiscoin website only offers up that the company is purportedly based out of Switzerland:
The Swiss Preiscoin Emission System is based in Switzerland!
Can you think of anything more reliable when it comes to money?
Me personally? Well, yeah – such as who owns Preiscoin for a start… But for whatever reason, Preiscoin don’t want you to know that.
The owner of the Website and the Service Provider is PRS Group AG based in Buchs, 35 Churerstrasse, 9470 Buchs, Switzerland registered in the Commercial Registry of the Canton of St. Gallen under the number CHE-218550229.
Supporting their claim that Preiscoin is based out of Switzerland is the listing off all currencies on the site being in Swiss Francs (CHF).
I can’t see an MLM company not based in Switzerland going out of their way to use Swiss Francs, so at least this much suggests whoever is running Preiscoin is based in Switzerland (or somewhere close in Europe).
One possible suspect is “Mateusz Kurleto”, who the Preiscoin website domain is registered to. Kurleto appears on the Preiscoin domain registration with an address in the Pomorskie region of Poland.
The email address used to register the domain points to the company “Neoteric”, which appears to be a Polish software development company.
In the absence of clear information detailing Preiscoin’s management stucture on their website, whether Kurleto is directly involved in Preiscoin is unclear.
As always, if a 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 Preiscoin Product Line
Preiscoin has no retailable products or services, with affiliates only able to market affiliate membership to Preiscoin itself (free).
After signing up, Preiscoin affiliates are expected to pay 25 CHF ($25.30 USD) a month for a subscription, which Preiscoin exchanges to 25 PRS.
PRS stands for “Preiscoins”, an inhouse digital currency owned by Preiscoin.
The Preiscoin Compensation Plan
The Preiscoin compensation plan revolves around affiliates signing up for a monthly 25 CHF ($25.30 USD) subscription, and then recruiting others who do the same.
The Preiscoin compensation plan is rather vague in clarifying what affiliates need to achieve in order to qualify for commissions:
Generate the required product to activate the commission structure on each product.
This can be done by reffering (sic) at least 3 customers who maintain a subscription to that product if it has a monthly fee.
The only thing vaguely resembling a product on the Preiscoin website is the 25 CHF a month subscription. Ergo from the sounds of it, to qualify for commissions a Preiscoin affiliate has to recruit three new affiliates who each sign up for at least one 25 CHF a month subscription each.
If a Preiscoin affiliate signs up ten new affiliates in a month who purchase at least one subscription each, Preiscoin pays them 100 CHF ($101 USD).
Each additional ten recruited affiliates on a subscription pays out an additional 100 CHF ($101 USD) commission.
If these recruited affiliates are still on a subscription six months later, another 100 CHF ($101 USD) per ten recruited affiliates is paid out.
Whether or not the second commission payout is dependent on all ten recruits remaining on a subscription after ten months is unclear. If not, then the commission payout per individual affiliate still signed up would be 3 CHF ($3 USD).
Profit Sharing Recruitment Bonus
Each month Preiscoin share 10% of the company-wide revenue with their top ten affiliate recruiters.
The Preiscoin compensation plan doesn’t explicitly clarify how the funds are shares, but presumably there are 10 shares (1 per affiliate) in the pool.
Residual commissions in Preiscoin are paid out using a 3×7 matrix compensation structure.
A 3×7 matrix places an affiliate at the top of a matrix team, with three positions directly under them (level 1):
In turn, these three positions branch out into another three positions each (level 2) and and so on and so forth down a total of seven levels.
Positions in the matrix are filled via personal recruitment or the recruiting efforts of an affiliate’s upline and downline.
Commissions are paid out at a rate of 4% of the subscription fees paid by recruited affiliates in the matrix.
Assuming one subscription per affiliate (note that affiliates can have more than one subscription), this equates to a 4% commission of 1 CHF ($1 USD) per affiliate.
Affiliate membership with Preiscoin is free, however affiliates are likely to purchase at least one Preiscoin subscription.
As such the defacto minimum cost of Preiscoin affiliate membership is 25 CHF ($25.30 USD).
Preiscoin, a new kind of digital currency. Better than Bitcoin because this time you can get paid when you tell others about it!
Register now to be on the top a new wave and earn commissions when more and more people turn to Preiscoins as a real alternative to traditional currencies.
Despite mention of Swiss banks and claims like the above appearing on the Preiscoin website, for the life of me I can’t see the currency backed by anything.
As it stands, affiliates sign up and dump 25 CHF of real money into Preiscoin, and in exchange receive 25 Preiscoins each month.
The value of a Preiscoin outside of the Preiscoin MLM opportunity? Who knows.
Hell, even within the Preiscoin opportunity the value of a single Preiscoin is a mystery. The Preiscoin website provides absolutely no information about the Preiscoin digital currency.
So what’s really happening here?
Preiscoin is your basic 25 CHF a month matrix recruitment scheme.
Here’s a screencap of an official Preiscoin capture page:
Tell me it’s not any different to one a recruitment-driven pyramid scheme might use…
Affiliates sign up, pay their 25 CHF a month and then receive a cut of the 25 CHF monthly fee those they and their upline and downlines recruit each month.
Whereas in the past you might receive some token of psuedo-compliance, such as access to an ebook library or internet marketing tools, with Preiscoin its an inhouse digital currency.
A rather useless one at that, considering Preiscoin themselves state on their website that “not everyone can get it.”
Ironically, Preiscoin profess that this exclusivity makes Preiscoin “better than other” digital currencies.
Well if not everyone can use it, it’s probably not going to catch on and enter the mainstream. And if Preiscoin forever remains trapped within the confines of the Preiscoin MLM business opportunity, it goes without saying that it’s value outside of the opportunity is worthless.
So, with Preiscoin harboring absolutely no retail activity and signing up affiliates who are literally investing in monopoly money and getting paid to bring other investors on board – how on Earth does the company justify itself?
If someone registers through your affiliate link as a PRS customer or affiliate, but does NOT purchase a product, then NO commission is generated.
Riiiight. They’re going to go the pseudo-compliance “investing in digital currencies is a product” route.
“You pay us real money and we’ll pay you back in a currency we made up” is unlikely to fit the description of a tangible product being marketed and sold to retail customers in any regulatory jurisdiction.
Oh and did we mention that said currency we made up was made up by person(s) unknown?
Throw in some recruitment commissions and a monthly cut of ongoing investments made by recruited investors and… well you can see where this is likely to end up.
At some point a Preiscoin affiliate is going to question the value of their invested Preiscoins. Realizing there is none they’re going to go into withdrawal mode.
Promotional activity will shortly cease thereafter and with those at the bottom unable to recruit new affiliates, they’ll simply stop paying their 25 CHF a month participation fee.
When that happens those above them stop receiving their commissions and also stop paying their fees.
This effect slowly trickles its way up the Preiscoin company-wide genealogy, triggering an irreversible pyramid scheme collapse.
But uh yeah, “reliable as a Swiss bank” – No worries guys.