PlatinCoin is a new cryptocurrency and accompanying platform that encourages investment in this new digital currency. Existing investors are also strongly encouraged to recruit new ones in order to earn affiliate commissions.
What Is PlatinCoin?
PlatinCoin is a product of PLC Group AG, which is described as a “Swiss joint-stock company.” There's no other information on the PlatinCoin site regarding this company, where it's headquartered, or who the principals are.
Web searches reveal an address for PLC Group in the city of Zug, Switzerland.
However, the address is associated with virtual office space provider Regus, which makes it highly unlikely PLC Group has an established physical presence anywhere and is just an empty address.
Independent investigations into PlatinCoin marketing materials have been able to determine that an Alex Reinhardt is named as CEO of PLC Group.
This is the same Reinhardt that has been involved in cryptocoin scams in the past, most noticeably SwissCoin, which folded last year under its own weight.
Reinhardt, from Germany, was one of SwissCoin's top affiliates before the company went down in flames. Why it's not a matter of public record that Reineardt is CEO of PLC Group is unknown.
PLC Group offers PlatinCoin, its proprietary digital currency, for sale as its core product. However, PlatinCoin is not currently traded on any cryptocurrency exchanges, making it a closed system.
Becoming a member of the PlatinCoin system requires investing at least 5 Euro to purchase an equivalent amount of PlatinCoin – currently set arbitrarily by the company as 0.10 Euro per coin.
Doing so supposedly provides investors with access to an “online learning library” called PLC Academy, an obvious attempt to mask the fact you're engaging in an unregulated investment scheme by “purchasing” access to a service that, by all accounts, doesn't exist.
As investing in PlatinCoin doesn't actually get you anything tangible except a stack of digital currency that has no value besides what PLC Group says it is, the company also offers ways to increase your stake by awarding recruitment-based commission income.
Using a unilevel structure, investors can recruit new affiliates for a 10% cut of any funds they invest in PlatinCoin.
Compensation can reach deeper – up to 11 levels deep – depending on how much money is invested in PlatinCoin – to unlock second-level commissions you need to invest at least 50 Euros, while unlocking level 3 requires 250 Euros.
This pattern continues; unlocking all 11 tiers in your downline requires an investment of 10,000 Euros.
Additional opportunities include a cash reward for certain downline investment milestones, ranging from a 100 Euro reward for generating 5,000 Euros in downline investment to a 1 million Euro reward for generating 20 million Euros in downline investment.
PLC Group provides opportunities to invest in an essentially worthless cryptocoin, and then encourages you to recruit more people to invest in this same digital currency by enticing you with commission-based income.
Why do we consider PlatinCoin worthless? Well, the fact that it's not publicly tradeable on any digital currency exchanges means that it's a proprietary coin and only holds value in this closed system.
It also means that PLC Group can change the valuation of the coin completely arbitrarily, and can engage in a classic pump-and-dump at any time.
PLC Group, meanwhile, is just keeping all the money investors are throwing at it for this worthless cryptocurrency. They don't even have to pay out their own funds to reward affiliate recruitment either, as commissions just skim a bit off the top of other investments.
The rest goes to the company – or to Reinhardt, who probably saw his own earnings potential vanish once SwissCoin blew up.
PLC Group says it has plans to eventually raise the valuation of PlatinCoin to provide an ROI to investors. How it plans on doing that is a complete mystery. How it expects people to buy into this line of magical thinking is an even bigger one.
Don't bother with investing in PlatinCoin unless you like getting fleeced.