Are you looking to get started with Coinspace and worried that it’s a scam? Have you read other ‘Coinspace scam‘ articles on blogs online? Let’s look at some of these scam claims in closer detail.
Is Coinspace a scam?
No it’s not. This blog post is a FACTUAL explanation for all the ‘Coinspace scam‘ articles floating around online which are basically designed to scare people. It’s almost word-for-word what the Bitcoin clubs are saying. I wonder what they are afraid of?
Coinspace is a registered European business, whose mission is to ‘commercialise’ crypto-currency into generic use.
Many people have read Coinspace literature, but are not actually familiar with the facts probably because they haven’t done enough in-depth research into the company itself and the way the company works. I have highlighted some of the Coinspace scam claims in red, with my answer below.
Coinspace Scam Claim: Under the now-familiar guise of operating a legitimate cryptocurrency, Coinspace offer up a Ponzi frontend powered by a pyramid scheme backend. The Ponzi nature of the business is evident in the passive ROIs paid out each week. Affiliate investment is the only source of funds entering the scheme, ergo this is the source of passive ROIs paid out each week. Thus Coinspace take newly invested funds and use it to pay existing investors, which is otherwise known as a Ponzi scheme.
TOTALLY INCORRECT – Members do not ‘invest’ in Coinspace – they purchase a mining lease – a business. Coinspace makes it’s money from the ‘mining and trading of several crypro-currencies’ These funds are used to pay for company running costs, and for paying commissions to members. The price you pay for the annual lease goes towards the purchase of further mining facilities. It is kept separate.
Coinspace Scam Claim: The pyramid layer of CoinSpace sees the scheme reward affiliates for recruiting new affiliates and getting them to invest.
Coinspace offers a ‘single layer OPTIONAL Affiliate program’. It is NOT MLM, and members do not invest – they purchase a business. More than 70% of those who purchase a mining lease do NOT go on to invite others to Coinspace.
Coinspace Scam Claim: The offered S-Coins themselves are worthless, with the typical “what if” scenarios thrown about. The bottom line however is that nobody except Coinspace affiliates are going to be using the coins (and then only to request withdrawals from Coinspace), meaning s-coins aren’t really a cryptocurrency.
Coinspace have been ‘mining’ s-coins on the blockchain since the middle of 2013. Coinspace has chosen not to release these s-coins until there are sufficient members and merchants. The merchant program is extensive, and has lots of new software and hardware which obviously takes time to develop and test. Coinspace is backing the S-Coin to a value of €1.00 at the s-coin launch, and market price will determine the value, exactly the same as Bitcoin.
Coinspace Scam Claim: A legitimate cryptocurrency is used and traded between members of the general public, without restriction. The value of the coin is thus determined by supply and demand, as opposed to an entity arbitrarily setting it’s value (Coinspace in this instance).
Again this is wrong. The s-coin is not released yet, as until is it, is known as a commodity. Once released, it will be “traded between members of the general public, without restriction.” It is important to understand that Coinspace is not “setting a value”. It is backing the coin with precious metals – which no other crypto-currency does – until launch, and then it will be market value.
Coinspace Scam Claim: As with all Ponzi schemes, once new investment into CoinSpace dries up, the scheme will find itself unable to meet its ROI obligations. A lack of recruitment will also see binary commissions and the matching bonus grind to a halt.
This is just the writer’s opinion. He has no understanding or comprehension of who is behind Coinspace, why the company exists, and “who” is supporting Coinspace. All this is being made “public” at or soon after s-coin launch.
Coinspace Scam Claim: Malta isn’t really known for its regulation of such schemes, with Coinspace’s purported registration there a calculated exit strategy on behalf of whoever is running it.
Again, the writer’s opinion only. Coinspace is a registered European Company, compliant with European laws. They have a high-profile lawyer based in Munich – Andreas Wolf. He is “steering” the company legally. They are also dealing with those whose opinions constitute defamation, slander and/or libel.
Coinspace Scam Claim: The company will continue to keep pushing back the launch date to get more people involved.
Coinspace has pushed the launch date back for a number of reasons. Too many people are buying small mines and the development of merchant facilities and company infrastructure is not ready. They will launch the s-coin when they are ready and obviously not before.
With a lot of assurance from my Coinspace upline who has spent 10 months with the company and has an extremely sound knowledge of IT having worked for billion dollar tech companies – I am confident that Coinspace is not a scam nor a ponzi scheme. I am committed to it and more than willing to speak to you about it if you understand the full amazing power of getting in early with crypto-currency. I’m also excited how crypto-currency can help solve world poverty. 80% of the world have access to a mobile phone, where as only 40% have access to a bank.
Crypto-currency is more secure than banks and has virtually no fees at all! It means us as the people have control over our own currency which WE govern. There is a reason why folks like Richard Branson and Bill Gates are investing heavily into crypto startups. 😉
Contact me on my ‘Contact’ page if you’d like to have more of a chat about Coinspace.
Live Powerfully! 🙂