Avatar Coin claims that it’s about to “change the financial world” by being the first cryptocurrency designed specifically for multilevel marketing companies. Here’s our review.
What is AvatarCoin?
AvatarCoin, found online at AvatarCoin.co, is a peer-to-peer cryptocurrency that seems to function like most other cryptocurrencies in the world today: it’s an international currency with low transaction fees and a decentralized governance system.
What makes Avatar Coin different from the hundreds of other cryptocurrencies on the market? The company claims to have created “the first cryptocurrency that applied for the payment system of multi level marketing companies in the world” (yes, that’s a real sentence posted on the official website).
In any case, the ICO for Avatar Coin is taking place throughout November and December 2017. Before the end of the year, the company plans to launch some type of lending program, followed by mining, Android apps, and MLM partnerships in 2018. Avatar Coin claims to be partnering with Avon, Tupperware, and other multilevel marketing giants, with those partnerships announced by June 2018.
The company also claims that their coin will be worth $500 USD within 12 to 18 months of launch.
Obviously, when a cryptocurrency company starts mentioning ridiculously high price targets, lending programs, and a multi-level referral structure, it’s typically a sign that you’re dealing with a scam. Let’s take a closer look at how Avatar Coin plans to make people rich quick.
How Does AvatarCoin Work?
Avatar Coin, like most scam coins, doesn’t provide much information about how it works. The company’s whitepaper is just 12 pages long – and most of those pages feature 100 words or fewer. There’s limited information about the technical background of the platform. There’s no information about the team or where the company is based. There’s limited explanation of why the company believes its token will be worth $500 within months of the ICO.
The whitepaper briefly mentions five areas of focus for Avatar Coin, including:
- Trade: Earn profit through trading
- Invest: Earn daily interest through a lending program
- Stake: Earn interest by staking AVC
- Mining: Earn money through AVC mining
- Referrals: Earn money by referring people to the platform
The Avatar Coin whitepaper describes all of these items as “investment opportunities”. However, they don’t go into much detail about any of these programs.
The only “investment opportunity” described in detail in the whitepaper is the lending program. The company promises to pay you 36% per month through this lending program. The more money you give the company, the higher your returns will be. If you deposit between $100 and $1,000, the company will give you 36% per month. If you invest over $10,000, then you’ll get paid 36% per month plus 0.3% ROI per day.
No matter how much money you deposit into the Avatar Coin platform, the returns are extremely unrealistic. It’s impossible to find an investment that pays guaranteed returns of 1% per day or more. Typically, if a company is advertising returns this high, then you’re being lured into a Ponzi scheme.
The Avatar Coin whitepaper also mentions a referral program where you get paid 8% to refer other people to the platform. There are 7 levels of referrals in total. You get paid 3% and 1% commissions on the second and third levels, dropping to 0.2% on the seventh level.
Ultimately, when a company advertises unrealistic returns through lending, staking, and other investments, it’s a sign you’re probably being scammed. Nothing we see on the Avatar Coin website is convincing us that this is a legitimate company.
The AvatarCoin ICO
The Avatar Coin ICO began with a pre-sale from November 10 to 15, 2017. The general ICO is scheduled for November 16 to December 16, 2017.
There’s a total supply of 24 million AVC tokens. The tokens are built on the X11 algorithm. 2 million coins are available during the pre-sale at a price of $0.80 per 1 AVC. A further 8 million tokens are available during the main ICO at a price of $0.85 per 1 AVC.
The company is exclusively accepting bitcoin for the token sale. As of late November, the company claims to have sold 675,000 of its 8 million ICO tokens, selling the tokens to a total of 1,809 investors.
The ICO is open to investors worldwide, except for investors in the United States and Singapore.
Who’s Behind Avatar Coin?
One of the easiest ways to spot a crypto scam is when the company refuses to disclose any information about its team, its location, or other personal data. As you might expect, Avatar Coin has no information about its team on its website. The company vaguely mentions a location in Germany. However, we don’t have the names of a single person involved with the project, nor do we have any type of address for the company.
The only way to contact Avatar Coin is through their email address, [email protected] No other contact information is posted.
Avatar Coin, found online at AvatarCoin.co, appears to be a scam. The company refuses to disclose any information about itself or its team. The company makes ridiculous claims about how it has partnership agreements with Avon, Tupperware, and other major multilevel marketing companies. They’re selling digital tokens for $0.80 – but claim the tokens will be worth $500 within 12 to 18 months of the ICO. Despite these enormous claims, the company’s whitepaper features no information about the project, its development goals, or strategies.
Ultimately, we can find no evidence that Avatar Coin is a legitimate investment opportunity. It appears to be a scam.