de | cn | ru

Market News

Swiscoin Review - is it scam or safe?

Jul 13 2017
Jonathan Smith

SwisCoin is allegedly a cryptocurrency, with some very specific twists. The company has combined a typical cryptocurrency offering with an MLM scheme, aimed at attracting new investors. This immediately raises doubts, as there are multiple examples of similar business which turn out to be a total scam, much like some off-shore forex brokers.

It should be noted “Swiss Coin”, spelled with a double “s” is a clone of this already dubious sounding cryptocurrency. We will not touch on them in this review.


What is SwisCoin?


In essence, SwisCoin is just another cryptocurrency. There are several interesting specifics about it though.

First of all, the project attempts to attract new investors via a MLM scheme. The idea is that users have to convince others to join the firm, registering “under” them. This type of business practice often leads to the creation of Ponzi Schemes, although some of its previous iterations were very successful for the early adopters. SwisCoin is by no means the first cryptocurrency to adobt this strategy, as OneCoin (which Asutralian financial regulators recently issued a warning against) is probably the most famous one.

The second key characteristic is that, albeit a cryptocurrency the entire SwisCoin project appears to be very centralized. There is a single company, with which you have to deal. This is not the case with other forms of digital cash.

Finally and this is the really interesting part, the company you invest in, offers to buy-back your coins. This is probably the most dubious aspect of SwisCoin, which we’ll get to in greater details below.


How it works?


One can invest in SwisCoin via purchasing a “package”, which contains mining tokens. He has the option to wait for these tokens to “split”, allowing him to mine even more coins. Here is a summary of the packages currently available:


Account name Price Number of Tokens Number of Splits
Beginner $100 1,000 One
Seller $500 5,000 One
Pro Seller $1,000 10,000 One
Express Seller $3,000 35,000 Two
Platinum Seller $5,000 70,000 Two
Premium Seller $11,000 160,000 Three
Ultimate Seller $25,000 400,000 Four
Master Seller $50,000 900,000 Four
Pro Master Seller $100,000 200,000 Five


The number of tokens you receive is not equal to the number of coins you would be able to mine. The ratio is determined by the mining difficulty. The number of splits indicates how many times your tokens can literally split into more tokens. These events occur once every few months and are planed by the company. It may be hard to judge if one should instantly start mining or leave his tokens to split the maximum number of times before doing so.


Here comes the really shady part of the equation – after investing, receiving your tokens and you don’t later mine them – the company does that for you. You would then receive coins, which you can trade on exchanges, just like any other cryptocurrency, but you could also … sell them at an “internal exchange”, where the company buys them from you at a predetermined price. This makes them a market maker, of sorts. The internal price is currently multiple times higher than the ones offered at the real exchanges.  Think about this business model for a minute. You give someone money, they give you something in return and then they buy that thing back from you for even more money. It makes no sense at all.

SwisCoin claims this is not the main purposes of the investment scheme. Clients (or partners) are encouraged to keep their coins for the long term. A few limitations are set in place, to prevent people from quickly cashing out: one can sell a maximum of 5% of their coins on the “internal exchange” per day and withdraw only 2% of their cash balance per week. Although this stops the whole thing from falling apart, it does reiterate the point the entire project feels similar to a Ponzi scheme.


Is there a blockchain at all?


After realizing how this mechanism works, some of you may be asking themselves is there any block-chain involved at all? The short answer is yes, there is. As mentioned above, SwisCoin can be traded on a few cryptocurrency exchanges (which operate similarly to a ECN forex broker), where the price is much lower than the one provided by the company. That being said, you can not make an arbitrage trade between the two, as the company only buys back coins, which you have obtained via one of the packages. 

The SwisCoin blockchain has a public ledger, which reveals the biggest owners of the currency are relatively few. Here is a screenshot of the ownership:


An MLM scheme?


The MLM aspect of SwisCoin is the first thing which will alert most people against the currency. Althoughthis model has worked for several cosmetic and nutrition companies in the past, when it comes to purely financial products, most people are skeptical. The particular scheme, provided by SwisCoin includes a 10% commission on people you refer directly and different percentages on people who are registered below them. Again, this practice is considered shady in finance, as the payments are made in advance of any actual gains by the referred person. There system implemented by SwisCoin has two branches which impact the payments one would receive, but we will not get into the details.





SwisCoin is a company, providing a cryptocurrency, which is being funded by an MLM scheme. The recent crypto-hype is apparently something whch many people have caught on to. Unlike other currencies, like Bitcoin, which proudly state decentralization as a main advantage over the central bank-dominated fiat money, SiwsCoin is very dependent on the company behind it. Investing (via the packages) currently relies on the fact they will pay you back more through their “internal exchange” (which has limitations on trading and withdrawing). SwisCoin can also be traded on several external exchanges, where you can currently obtain a large amount of coins for far less than what you would need to pay for a package. That being said, you can not buy coins on external exchanges and sell them back to the company.

We can not definitively conclude this is a Ponzi Scheme, although it has many aspects of one. SwisCoin does appear verry similar to OneCoin.

TAGS: swiscoin  swiscoin review  swiscoin scam  swiscoin mlm  swiscoin ponzi scheme  swis coin  swis coin review  swis coin scam  swis coin mlm 
Broker Country Regulation Platform Min Deposit Review
$50 Review Website
US NFA, CFTC MT4 $250 Review Website
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Australia ASIC MT4, MT5,
$100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website
Australia, UK ASIC, FCA MT4, MT5,
$200 Review Website

More Forex Market News

$3,5 bln Bitcoin Ponzi scheme Plus Token pressures the markets

Aug 15 2019 17:42:11

The fraudsters behind the China based Ponzi scheme Plus Token are dumping bitcoins worth over 3.5 billion USD on exchanges around the globe, and that is creating a selling pressure on the markets, venture capitalist Dovey Wan warns. Read more

Spain’s CNMV blacklists EurTrades, Trade100, and Key Markets

Aug 14 2019 13:54:57

  The Comision Nacional del Mercado de Valores (CNMV) updated its warning list on Wednesday with several offshore brokers - EurTrades, Trade100, and Key Markets. These entities are not authorized to provide investment services or investment advice in Spain, the CNMV said. Read more

Former binary options broker iTrader to be indicted in Israel

Aug 13 2019 14:07:37

  Israel’s state prosecutor announced that it intends to indict the company behind former binary options broker iTrader, its owner and senior officials, on charges of aggravated fraud and providing investment advice without a license. The company Gal Media Trade Ltd. Read more

CySEC warns of fake recovery agents claiming to be its employees

Aug 12 2019 20:32:52

  The Cyprus Securities and Exchange Commission warned against fraudsters impersonating its officers who are running a recovery room scam. Read more

Aussie crypto scam worth A$2.7 million busted, five arrested

Aug 08 2019 15:46:37

  A criminal group in Gold Coast, Australia were arrested for allegedly scamming over 100 Australians with A$2.7 million in cryptocurrency investment. Read more

EtherDelta investigated for exit scam

Aug 07 2019 12:01:50

  Chinese police are reportedly taking legal action against cryptocurrency exchange EtherDelta in connection with an alleged exit scam.    The news was actually reported in a series of tweets by the ex-owner and founding partner of the exchange Dovey Wan. Read more

BaFin warns against 4xincome, orders it to cease operations

Aug 06 2019 15:44:28

  The German Federal Financial Supervisory Authority (BaFin) blacklisted unregulated forex broker 4xincome and ordered it to cease operation in the country. The regulator said that this broker offers German clients trading in forex and various CFDs thorough its website 4xincome. Read more

Thailand’s AML laws will also apply to crypto exchanges

Aug 05 2019 16:57:59

  The Secretary-General of the Thai Anti-Money Laundering Office (AMLO) stated that the existing anti-money laundering (AML) rules in Thailand will be amended as to also cover cryptocurrencies and prevent their use for illicit activities, as reported by local news media BangkokPost. Read more

ASIC warns against Alpha Financial Group, MGM Markets, and

Aug 02 2019 16:06:03

  The Australian Securities and Investment Commission (ASIC) has updated its warning list today with Alpha Financial Group, MGM Markets,, and several other unregulated brokers. Read more

US court orders forex scammer from Texas to pay almost $3 million

Aug 01 2019 12:27:56

  US Federal Court ordered defendant Kelvin O. Ramirez to pay nearly $3 million after he was found guilty of fraudulently soliciting and misappropriating funds from clients in a forex trading scheme, as announced by the US Commodity Futures Trading Commission (CFTC) in mid-July. Read more

de | cn | ru