Falcon Coin claims to be “the cryptocurrency revolution”. It promises to make you rich quick with no risk or hard work required. Find out if it’s a scam or legit opportunity today in our review.
What Is Falcon Coin?
Falcon Coin, found online at FalconCoin.io, claims to be some type of lending platform. The crowdsale for Falcon Coin has been taking place since October 15 and is scheduled to end on November 14.
At first glance, Falcon Coin seems similar to Bitconnect, Regalcoin, Hextra, and other notable cryptocurrency scams. These companies are blatant pyramid schemes that are destined to collapse – although to be fair, some investors will inevitably make money from some of these scams.
Falcon Coin, like most bitcoin scams, revolves around a mysterious “lending platform”. That lending platform pays users enormous ROI every day, guaranteed. There’s no risk and no skill: you just give the company a bunch of your money, and they’ll magically turn it into more money.
Falcon Coin also vaguely mentions a trading bot – although there’s no evidence this trading bot actually exists. The company also refuses to disclose its management team, its location, or any other information about the organization.
How Does Falcon Coin Work?
Falcon Coin will pay you a return of up to 46% per month for no apparent purpose. The company claims that it loans your money to other people. However, very few people are going to pay an APR of 300% or more per year to borrow money – so it’s unclear how Falcon Coin plans to compete with payday loans and other short-term lending solutions.
Based on the ridiculous lending scheme listed on the official website, Falcon Coin seems to be more of a Ponzi scheme than a legitimate investment opportunity.
A Ponzi scheme collects money from investors without investing the money in any legitimate products, services, or financial products. Gullible investors are lured by promises of high returns – like the 48% advertised by Falcon Coin. These investors give money to the company. The company takes your initial deposit, then pays you a daily interest rate while preventing you from withdrawing your initial investment. The scheme pays old investors with the deposits of new investors. Eventually, the company runs out of new investors, and the entire scheme collapses. This is how Ponzi schemes or pyramid schemes work – and there are hundreds of such schemes in the bitcoin community.
Based on the total lack of transparency on the Falcon Coin website, we assume Falcon Coin is a Ponzi scheme. The company has no business plan in place. it appears to be a straightforward pyramid scheme.
The Falcon Coin ICO
The Falcon Coin ICO began on October 15 and is scheduled to end on November 14. The company is releasing just 6.25 million Falcon Coins (FFC) out of a total supply of 32 million. It’s unclear how the remaining tokens are being used.
The tokens are being sold at a price of $0.85 per FFC.
You can get a 5% referral reward for referring other users to the platform.
Falcon Coin Pricing
You need to pay to participate in the Falcon Coin lending platform. If you give the company a bunch of money, they claim to turn it into more money. Here’s how the company’s “investment packages” are priced:
- $1 to $1,000: Earn “volatility software interest” every day for a 180 day period
- $1,001 to $5,000: Earn volatility software interest + 0.10% ROI per day for a 180 day period
- $5,001 to $10,000: Earn volatility software interest + 0.15% ROI per day for a 180 day period
- $10,001 to $50,000: Earn volatility software interest + 0.20% ROI per day for a 180 day period
- $50,0001 to $100,000: Earn volatility software interest + 0.25% ROI per day for a 180 day period
- $100,000 or More: Earn volatility software interest + 0.30% per day for a 180 day period
No matter how you slice it up, Falcon Coin promises unrealistic returns on investment. When someone advertises returns of 1% per day, guaranteed, then that’s a sure sign you’re participating in a Ponzi scheme.
Falcon Coin Features
Falcon Coin advertises the following features:
- Earn 180% Returns Per Year: Falcon Coin will pay you 180% per year to stake your coins; this feature is scheduled to launch in December 2017
- Automated Trading System: Falcon Coin claims to have an automated trading system that makes profitable trades all day, every day, with no risk.
- Mining: Falcon Coin’s blockchain generates 10 Falcon Coins (FFC) every 2 minutes; however, this service isn’t launching until mid-December 2017.
- Proof of Stake Mining: Falcon Coin claims to have a proof of stake (PoS) mining system in place.
- 32 Million Coins: Falcon Coin claims to have a fixed supply of 32 million coins, although only 6.25 million coins are available during the ICO.
- 46% Returns Per Month: Give your money to Falcon Coin, and they’ll pay you 46% interest every month.
Who’s Behind Falcon Coin?
Falcon Coin doesn’t even pretend to be transparent. The company has no “Team” page or “About Us” page. There’s no location or address listed on the official website.
Typically, bitcoin scams work like this to prevent legal recourse when they eventually shut down.
In early November 2017, the official Falcon Coin Facebook page was flooded with complaints about the company. Specifically, users were complaining that BTC had disappeared from their Falcon Coin wallets. The company later posted an update explaining there was a vulnerability in their system, although it’s unclear if users will ever get their money back.
Ultimately, when someone is asking you to send them money online, yet refuses to disclose their identity, it’s a sign you’re probably being scammed.
Falcon Coin Conclusion
Falcon Coin appears to be a bitcoin investment scam – similar to Bitconnect, Regalcoin, and other Ponzi schemes. You give the company money, and they claim to pay you ROIs of 46% per month. How does Falcon Coin generate such high returns? The company claims to have a lending system and automated trading platform – although we can’t find any proof these services pay investors anywhere close to 46% returns per month.
Overall, like most bitcoin scams, there’s a lack of transparency around Falcon Coin. The founders of the company refuse to disclose their identity. There are no products or services listed on the official website, and there’s no evidence that anyone has been paid by the platform (as with most Ponzi schemes, the company will likely prevent users from withdrawing their initial deposits until the scheme eventually collapses).
Based on everything we can find online so far, Falcon Coin is a blatant scam. Even if you see Falcon Coin as “the next Bitconnect”, it’s important to note that Falcon Coin has serious vulnerabilities, and users have complained about losing BTC after depositing it into the platform.