CoinStarter is a platform that promises to power the future of token based fundraising. Find out how CoinStarter works today in our review.
What Is CoinStarter?
CoinStarter is a San Francisco-based platform that promises to give you $200 worth of tokens just for signing up. The platform claims to make it easier for anyone to start an ICO. However, in reality, some are questioning whether or not CoinStarter is a scam.
Another problem with CoinStarter is that when you search for any information about the company online, you find countless people who claim the platform is legit – and then, those people spam you with their referral URLs for the platform.
There’s also the problem that CoinStarter’s founding team refuses to disclose any information about itself. The company claims to be based in San Francisco, but we couldn’t find any evidence of that. We have no information about the company’s founders or executive team.
All of this makes CoinStarter very confusing. Is CoinStarter a scam or legit? Let’s take a closer look at how the platform claims to work.
How Does CoinStarter Work?
CoinStarter promises to help anyone kickstart their ICO. In fact, starting an ICO is as easy as clicking the “Start an ICO” button on the main page. From there, you can start your ICO in minutes with no upfront fees attached.
What’s the catch?
The “catch” appears to be the fact that CoinStarter will automatically issue and distribute your tokens to investors. Although the company claims to “move coins” “for real”, they’ll charge you a fee of 7% of BTC raised, as well as an additional fee of 7% of issued coins.
Nevertheless, at the end of your ICO, you’ll automatically receive all remaining coins to your wallet.
In terms of how CoinStarter actually works, the platform claims to leverage the bitcoin blockchain and the Waves platform. Coins are issued and distributed through Waves. The company has also created a “secure algorithm” so there’s “no input from your end”. In other words, all aspects of the crowdsale are automated.
Skeptical? That’s okay. The main page of CoinStarter has a big emblem that says, “Approved by Satoshi” – so you can totally tell it’s legitimate (there’s no evidence that Satoshi Nakamoto has approved CoinStarter in any way, shape, or form).
The CoinStarter Free Tokens Giveaway
CoinStarter could be a legitimate and powerful platform. However, the free token sale has caused many people to be skeptical. The website is currently advertising 50 free tokens to all new members. Based on the value listed on the official website, that’s a total of about $175 USD worth of tokens.
How can a company give away hundreds of dollars of tokens for free to every new member?
We’re not really sure. In fact, based on some reports online, the website claims to give you 100 tokens or 75 tokens for free. There’s an entire Reddit thread on /r/Wavesplatform discussing the issue. One user writes that,
“Are you guys for real? Giving $344.88 (100 tokens) for free seems too good to be true. How do you how much the values of the tokens will be?”
That thread, like most other threads about CoinStarter, has been bombarded with people spamming their referral IDs. It seems that users receive bonus tokens when other users sign up through their referral IDs. Those users post no other information about CoinStarter.
Who Created CoinStarter?
CoinStarter refuses to disclose any information about itself, its founding team, or its management team. There’s no information about the company available online, or who created the company.
The only information we have is one email address at email@example.com. That’s the only contact information we have for the company.
CoinStarter also claims to be based in San Francisco, although they state that information in the most awkward way possible. The footer of CoinStarter.com states that, “CoinStarter is home to San Francisco.” I’m not joking.
Ultimately, when a company refuses to disclose transparent information about itself, that’s a major red flag.
Conclusion: Is CoinStarter A Scam?
CoinStarter has a cool name, but that’s about all it has. The platform is based on the Waves platform, and is designed to make it easy for anyone to launch an ICO. In exchange, CoinStarter will charge a 7% fee and an additional 7% fee of any cryptocurrency you issue.
It’s unclear how CoinStarter works or how their services are different from Waves and other ICO platforms. There’s also the problem that the company is giving away hundreds of dollars of free tokens, and that pages like “Press” and “Contact Us” are totally broken on the official website.
Ultimately, CoinStarter may be a legitimate platform, but the way the website is presented makes us skeptical. There are too many red flags, and too little information about the company available online. None of this gives us confidence that CoinStarter is a legitimate service.
You can decide for yourself whether or not CoinStarter is legit by visiting online at CoinStarter.com.