RegalCoin Review: BitConnect pump and dump altcoin clone
RegalCoin provide no information on their website about who owns or runs the business.
The RegalCoin website domain (“regalcoin.co”) was privately registered on July 7th, 2017.
Time provided on the RegalCoin website is that of Hong Kong local time. Marketing copy on the site also suggests whoever designed it is not a native English speaker.
Posts on the official RegalCoin Twitter page suggest the company first tried to launch in August. That flopped and so they attempted to relaunch on September 21st.
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.
RegalCoin has no retailable products or services, with affiliates only able to market RegalCoin affiliate membership itself.
RegalCoin affiliate membership provides access to RegalCoin, a cryptocurrency the company claims is “not much different from bitcoin”.
At the time of publication RegalCoin is not publicly tradeable.
The RegalCoin website lists Nova Exchange, Coss and Coin Exchange as potential public exchanges, however all three are marked “on progress” [sic].
The RegalCoin Compensation Plan
RegalCoin affiliates acquire RegalCoin by purchasing premined coins from RegalCoin.
If RegalCoin goes public, affiliates will also be able to buy RegalCoin from one another.
At the time of publication, RegalCoin only accept bitcoin from affiliates.
Once RegalCoin has been acquired, affiliates transfer their RegalCoins back to RegalCoin on the promise of a monthly ROI of up to 45%.
The monthly ROI is paid in RegalCoin itself, with affiliates only able to cash out by convincing other investors to purchase their RegalCoin.
Referral commissions are available on bitcoin transferred to RegalCoin through the company.
RegalCoin pay referral commissions down three levels of recruitment (unilevel):
- level 1 (personally recruited affiliates) – 7%
- level 2 – 2%
- level 3 – 1%
RegalCoin pay residual commissions 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):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
RegalCoin track invested bitcoin on both sides of the binary team.
As an affiliate reaches set milestones, the company pays them a percentage of funds invested across their binary team.
- generate $1000 in accumulated investment volume on both sides of the binary team and receive a 2% residual commission
- generate $10,000 in accumulated investment volume on both sides of the binary team and receive a 3% residual commission
- generate $100,000 in accumulated investment volume on both sides of the binary team and receive a 5% residual commission
RegalCoin affiliate membership is free.
Participating in the attached MLM income opportunity however requires the acquisition of RegalCoin.
At the time of publication RegalCoin do not specify minimum RegalCoin purchase requirements on their website.
If RegalCoin’s business model sounds familiar, it’s because it’s a clone of BitConnect.
BitConnect launched in April and is basically a way for the anonymous owners to steal bitcoin from affiliates.
BitConnect and RegalCoin affiliates transfer bitcoin to the admin(s), who exchange them for premined BitConnect or RegalCoin.
This costs them next to nothing to produce, so the altcoin pump and dump scam model is quite lucrative for those running them.
The altcoin itself, RegalCoin in this instance, has no value outside of the income opportunity.
BitConnect is publicly tradeable, with RegalCoin likely to follow at some point.
This is of course smoke and mirrors.
There’s no public demand for either BitConnect or RegalCoin, with affiliates collecting monthly ROIs each month the only holders.
The ROI itself is paid in the altcoin, which is distributed from the admin’s pool of premined coins (again costing them next to nothing).
The public value of BitConnect is tied to the rate of recruitment of new BitConnect affiliates.
This is because new affiliates buy from existing affiliates offloading their ROI coins.
Eventually affiliate recruitment dries up, which in turn will send the public price of BitConnect plummeting.
CoinMarketCap lists a current value of BitConnect at $133, down from a peak of $140 earlier this month.
Back in April BitConnect’s public trading value was $8 or so, revealing just how lucrative altcoin pump and dump scams are for those running them.
Those who invest early also make a bit before people realize they’ve been had, along with potentially reaping large rewards through pyramid recruitment.
Depending on how affiliate recruitment in RegalCoin goes, if publicly listed it will likely experience a pump similar to BitConnect. After which though the value will crash.
That seems to be happening in BitConnect now, with most of the pump growth occurring during May and September.
Eventually BitConnect and RegalCoin will crash, leaving affiliates with worthless altcoins they can’t dump without incurring massive losses.
And even then the only buyers are those hoping against hope they haven’t been scammed.
By that stage the anonymous owners will have long-since run off with everyone’s bitcoin, meaning victim fund recovery will be next to impossible.
Update 4th June 2019 – Indian authorities have outed Divyesh Darji as an Indian owner of the RegalCoin Ponzi scheme.