In the vast sea of cryptocurrencies, it sometimes becomes difficult to separate malicious projects from the real deal. Over the years there have been multiple iterations on cryptocurrencies which are nothing more than glorified MLM schemes. We have listed a few of these coins below, although more of them still exist.
Anyone who has not heard of Xenixcoin has not missed out on all that much. The “cryptocurrency” advertises itself as a multi-level marketing network where users can earn money from the moment they create an account. In most cases, the price per XEN token will hover around the US$1 mark, as it’s kept afloat artificially by the people running this Ponzi scheme. It is obvious this program wants to take advantage of novice cryptocurrency enthusiasts.
The program itself is pretty simple; invest any amount of money and start “mining”. Once 75 days have expired, the user will receive coins in their wallet. It is a bit unclear what happens in between, although it would appear investors’ money is stuck in limbo. XenixCoin can be traded on C-Cex and NovaExchange, neither of which are the most reputable cryptocurrency exchanges by any means.
Any cryptocurrency named after a country or a group of people is destined to turn into a scam sooner or later. SwissCoin is another MLM cryptocurrency aiming to defraud investors. Moreover, it appears there is no currency to speak of, nor is there a blockchain. Instead, this currency should be seen for what it is: a pure scam that will result in people losing a lot of money.
What is rather interesting is how Manfred Mayer runs the SwissCoin Ponzi Scheme, thanks to his extensive experience in MLM schemes over the past decade. Investors need to sign up for an account before they can make an investment, which is a clear warning sign of a Ponzi scheme. Users can only purchase packages of SwissCoin, rather than it acting as a cryptocurrency infrastructure.
The biggest MLM cryptocurrency scam of all times is none other than OneCoin. With no blockchain, no cryptocurrency, and no morals involved in this project, it is only a matter of time until OneCoin disappears into obscurity. Whenever that happens. investors from all over the world will face the harsh consequences of investing life savings into a notorious Ponzi scheme. That said, a lot of people still believe OneCoin is the only cryptocurrency that matters.
Similarly to SwissCoin, one cannot buy OneCoin on an exchange. In fact, users have to sign up for an account before they can become part of the OneCoin ecosystem. This is not what cryptocurrency is about, as currencies such as bitcoin allow anyone to become a part of the community without using websites to sign up for. OneCoin is a Ponzi scheme and everyone should steer clear of it.