W3coins is a cryptocurrency that launched in February 2017 in an effort to compete with bitcoin. Find out if this coin is a legitimate opportunity or a pump and dump scam today in our W3coins review.
What is W3coins?
W3coins is a digital currency that makes a number of promises similar to bitcoin. The coin is based on cryptography, for example, and is created through a mining process. Just like bitcoin and other digital currencies, there are purportedly a finite number of W3coins, which means they cannot be affected by inflation and they’re impossible to counterfeit.
The W3coins website, W3coins.com, is worded in a way that explains cryptocurrency for complete beginners. It walks beginners through the unique benefits of cryptocurrency and explains why cryptocurrencies are becoming the popular currency for a digital economy.
The W3coins crowdsale took place in February 2017. However, W3coins has an additional crowdsale scheduled for August 2017. At the time of writing (July 2017), the Prague-based development team claimed to have raised over 60 BTC to date.
At first glance, W3coins appears to be a legitimate digital currency. However, when you take a closer look, you’ll discover that W3coins has multilevel marketing components. You have to pay to join the company, for example, and then you make money by referring other people to the platform. In fact, the company’s CEO was implicated in a major Ponzi scheme back in 2015. We’ll talk about all these issues below.
Based on all of the information we could find online, W3coins appears to be yet another pump and dump MLM scheme targeted towards cryptocurrency newbies. However, keep reading to find out the truth behind W3coins
How Does W3coins Work?
W3coins was introduced to the market in 2017 “to serve as fully functional currency and alternative to cash and brick-and-mortar banking payment system”, explains the official website. The ultimate goal of W3coin is to introduce a complete cryptocurrency ecosystem – similar to what we’ve seen with bitcoin, Ethereum, and other cryptocurrencies.
Some of the key features of the W3coins (W3C) ecosystem include:
- Trading Opportunities
- W3C Wallets
- Peer to Peer Exchanges
- Secure Transactions
- Merchant Services
- Loyalty Rewards
The W3coins ICO
A crowdsale for W3C initially took place back in February. In a post announcing the crowdsale, a Steemit member described how the crowdsale was like an opportunity to buy bitcoin back in 2009:
“If you did not buy BitCoin in 2009 ( 1BTC was 0.10$, Now is more than 1000$ ) I advise you to buy W3Coins ( the price now is 0.10$ ) Don't miss the second chance!”
However, if you missed the February crowdsale, you can still purchase W3C in August 2017 during their ICO. Here are some of the important details regarding that ICO:
- Token Name: W3C
- Total Coin Supply: 200 billion
- Initial Coin Supply: 2.5% (5 billion)
- Public Allocation: 75%
- Holdback Allocation: 15%
- Reserve Allocation: 7.5%
- ICO Value: 1 ETH = 50,000 W3C
- W3C Value: $0.01 USD per W3C
The token is an ERC20 token based on Ethereum. The 2.5% of allocated tokens, by the way, were sold in crowdsales leading up to the ICO (although the Steemit post mentions a crowdsale in February, there appears to have been a separate crowdsale in July).
Who’s Behind W3coins?
W3coins is made by a Prague, Czech Republic based company. You can contact the company by email at [email protected]ns.com.
The company is led by Juri Vasselli (CEO), who is described as a stock trading specialist and digital currency enthusiast turned cryptocurrency professional. Other key members of the team include John Hill (VP of International Business Development and Marketing), a professional with 15+ years of FinTech experience.
Our friends at BehindMLM.com spotted a big problem with Vasselli: a Statement of Financial Affairs dated February 2015 shows that Vasselli was an investor in the $3 billion dollar TelexFree Ponzi scheme. His LinkedIn page also shows that he is based in Italy, and makes no mention of the Czech Republic – despite the fact that W3coins lists its address in Prague.
W3coins Referral System
W3coins has a referral system similar to what we’ve seen with multilevel marketing companies. Some of the key advertised features on the W3coins website include:
- Referral bonuses up to 23% (through 6 levels)
- Society bonuses (5 levels up to 5%)
- Group sales bonus
- Monthly ROI of 4%
On some places online, you’ll see W3coins advertised as a moneymaking opportunity as opposed to strictly a digital currency. In many cases, the people who advertise this opportunity want to make money through your referral. Take everything you read about W3coins online with a grain of salt (although to be fair, you can say this about any cryptocurrency opportunity).
W3coins, like most multilevel marketing companies, charges you a steep fee to join. The more you pay, the more money you can make – at least, according to the W3coins website.
There are 8 levels in total, ranging from a Starter Park ($50 for 700 W3coins) to a Diamond Pack ($10,000 for 140,000 W3coins).
Why would you pay such a large amount of money to join a company like W3coins? The company promises to give its affiliates a fixed ROI per month. Starter Pack affiliates earn 0.5% interest per month, for example, while higher levels receive up to 3% ROI per month.
Conclusion: Is W3coins a Scam?
W3coins has given us no evidence that it’s a legitimate enterprise. For all intents and purposes, this appears to be yet another pump and dump multilevel marketing scam. The scam is designed to target beginner users who have heard about cryptocurrency and want to discover the “next big thing”. In reality, W3coins is a worthless currency that doesn’t appear to have any real-world applicability or value. Making matters worse is that the coin doesn’t even have plans to add any real-world applicability or value in the future. It appears that the only purpose of the coin is to fuel MLM memberships – which is a classic sign of a pyramid scheme or Ponzi scheme.
The biggest problem we have with W3coins is that the creator of the company, Juri Vasselli, was named in a multi-billion dollar Ponzi scheme back in 2015. Why would you trust him with your money again?
In any case, W3coins claims that 60+ BTC have been invested thus far. You can also find reports online – like on Steemit – calling W3coins the “next bitcoin”. W3coins also promises to give affiliates a guaranteed ROI every month. As far as we can tell, none of these things are true, and there’s no evidence that W3coins is anything more than a pyramid scheme that will cause your money to disappear in exchange for worthless W3coins.