DavorCoin, found online at Davor.io, claims to be one of the world’s most ambitious cryptocurrency projects to date. Find out what that means today in our review.
What Is DavorCoin?
DavorCoin is a new cryptocurrency that, according to the official website, “aims to become the best alternative to current popular coins such as bitcoin and Ethereum.”
Obviously, that’s an ambitious goal.
The ICO for DavorCoins is scheduled for November 5 to December 5, 2017.
After you spend some time reading the DavorCoin website, you’ll notice some unusual things about the company. First, the company has no information about the team. It also has some type of lending system and referral system in place. That lending system promises to pay “investors” returns of 48% per month.
Obviously, these are the same types of claims made by scams like Bitconnect, which is notorious for running a Ponzi scheme while advertising itself as an investment opportunity.
How Does DavorCoin Work?
DavorCoins are digital tokens that can be stored on your computer drive, smartphone, hardware wallet, or somewhere in the cloud. Like other blockchain-based currencies, DavorCoins are created by complex mathematical computations and validated by millions of users.
DavorCoin uses a PoW/PoS hybrid blockchain with a block time of 120 seconds. Difficulty is retargeted with every block. The PoS reward consists of a 10% reward monthly for the first 6 months, with a PoS minimum staking time of 1 hour and an unlimited maximum staking time.
There’s a total supply of 40,000,000 DAV, with 10 million pre-mined DAV coins.
DavorCoin also has a lending program that pays a monthly interest rate of up to 48%. Plus, there’s an affiliate program where you can be rewarded for referring users to the platform.
Obviously, when you start seeing words like “daily interest”, “lending program”, and “affiliate program” on a cryptocurrency-related website, red flags should start to appear in your head. Typically, programs like this are associated with scams and pyramid schemes – like Bitconnect and other notorious scams.
DavorCoin’s website mentions enormous staking rewards. Users can earn 10% per month during the first year, for example, and 8% per month in the second year, dropping to 5% per month by the third year.
You can lend anywhere between $100 and $25,000 and up to earn different daily ROIs. If you invest at least $1,000, then you’ll be paid the daily variation rate plus a fixed rate of 0.10%. You’ll be paid back after a 239 day period. Investments also have a locking period of 30 to 120 days.
The more you read about DavorCoin and its guaranteed daily interest rates, the more we’re concerned that it’s a scam – or at least some type of HYIP-based investment scheme. One of the easiest ways to spot the scam is when we start looking at the team section of the official website, which features few details about how the platform works.
Who’s Behind DavorCoin?
Here’s how DavorCoin describes its founding team:
“DavorCoin has been created by bankers and traders from major financial places (London, Paris and other EU cities) working in investment banks and hedge funds.”
That may sound good – but it doesn’t really tell us anything. We’ve seen many pyramid schemes and investment scams use similar wording online. These companies make big promises about the experience and qualifications of the team. However, when you ask for any team information or specific experience, they refuse to disclose anything. This appears to be the case with DavorCoin.
In any case, DavorCoin’s founding team claims to have launched the company in December 2016. They built their blockchain platform throughout 2017. Before the end of the year, they aim to release their iOS and Android app.
The DavorCoin ICO
The DavorCoin ICO is scheduled for November 5 to December 5. During the ICO, tokens are priced at $0.72 to $1.20 per token (starting at $0.72 on days 1 to 3 while finishing at $1.20 on days 14 through 30).
6 million tokens are being released through the crowdsale out of a total supply of 10 million. Of the remaining tokens, 3.4 million are reserved for marketing, development, and lending, while 600,000 tokens are reserved for bounties and incentives.
DavorCoin’s website and whitepaper have a number of red flags. Based on these red flags, it seems possible that DavorCoin is a scam.
The first red flag is the fact that DavorCoin advertises a lending program that pays lenders 48% ROI per month or higher. Interestingly, that’s the same number advertised by Bitconnect and other notorious bitcoin lending scams.
The company also refuses to disclose any team information. The team describes itself as “bankers and traders from major financial institutions”, yet we have no evidence to suggest that’s true.
DavorCoin may be a legitimate investment opportunity that pays investors 48% returns per month. However, based on what we can see at the official Davor.io website, that seems unlikely.