Is DasCoin A Scam Or Truly ‘The Currency Of Trust’?
DasCoin, which dubs itself the currency of trust, is a hybrid cryptocurrency that works similarly to OneCoin. Anyone who invests in DasCoin does so through NetLeaders, where you use real money (ranging from €100 to €25,000) to pay for your NetLeader license. The more funds you put into your license, the higher assigned value your DasCoins will have.
Your License is your entry point to the DasNet platform, where you build the distributed network (in which DasCoin operates) and you are given more DasCoins once the network uses your contribution.
DasCoin claims to be the first cryptocurrency to run on Apple Pay, Visa and MasterCard technology. However, the official DasCoin website or social media accounts have no information about these payment gateways to this day.
How Do You Earn With DasCoin?
DasCoin has no product or services sold. Like an affiliate program, you earn money with every member encouraged to invest into DasCoin.
You choose a package (listed below), and you receive varying cycles and upgrades:
- Standard – invest €100 EUR and receive 1265 cycles and 1 upgrade
- Manager – invest €500 EUR and receive 6325 cycles and 1 upgrade
- Pro – invest €2000 EUR and receive 27,600 cycles and 1 upgrade
- Executive – invest €5000 EUR and receive 74,750 cycles and 2 upgrades
- Vice-President – invest €12,500 and receive 247,500 cycles and 2 upgrades
- President – invest €25,000 EUR and receive 373,750 cycles and 3 upgrades
Once you receive the NetLeaders software license, you don’t get all your DasCoins in one go. Since the company claims that only 8.5 billion units of DasCoin will ever be minted (or produced), DasCoins are rewarded with a corresponding number of DasCoin whenever a licensee successfully refers a new investor. The amount of DasCoins a member receives depends on the type of package bought by your referral.
Cycles is the term used when DasCoin adds new nodes to its network. The more people purchase NetLeaders’ licenses, the higher frequency DasCoin mints (produces) new DasCoins.
Each cycle lasts around an average of 2 to 3 months. The current generation supposedly operates at 100% efficiency/difficulty level, but is expected to decrease to 50%. When this happens, an upgrade occurs. Those who haven’t used their Upgrade tokens are qualified to “double the number of available cycles” during an upgrade. DasCoin claims this is how its system ensures the price of existing DasCoins “keep rising in value” and “prevent volatility.”
DasCoins also offers commission and bonus payouts. There are three parts to the compensation plan for Advocates:
- 10% Direct Sales Bonus Paid on all direct sales of NetLeaders licenses. Total of 10% = 6% commission paid to Cash Account + 4% incentive deposited to Reserve Account.
- 10% Network Bonus Paid on weak leg volume in binary matrix. Qualification: At least €500 Direct Sales on Left and €500 in Direct Sales on Right. Total of 10% = 6% commission paid to Cash Account + 4% incentive deposited to Reserve Account.
- 10 – 30% Matching Bonus Paid on up to 5 Enrollment Levels of Network Bonuses. Qualification: At least €500 Direct Sales on Left and €500 in Direct Sales on Right + Qualifying Title. Qualifying Titles: See Table Below. – Source netleaders.com
The claimed benefits of DasCoin are:
- CENTRALIZED EMISSIONS – A fixed supply of coins are released as a reward for providing the necessary resources for a dedicated network to exist and expand.
- PERMISSIONED BLOCKCHAIN – Only verified participants are enabled to transact in the ledger system, creating an atmosphere of integrity among users.
- DISTRIBUTED NETWORK – All data travels across a global network of computers.
- DECENTRALIZED ECOSYSTEM – The combination of blockchain and distributed network creates an autonomous ecosystem that offers integrity, security and performance.
- DYNAMIC PROVISIONING – Additional infrastructure is automatically allocated to support network growth based on current demand levels.
- INSTANT TRANSACTIONS – Trades and transactions take place instantly and are non-repudiated providing maximum efficiency and integrity.
- ROBUST MARKETING – The best of corporate marketing together with the best of decentralized affiliate marketing vastly extends interest and activity related to DasCoin.
- FRICTIONLESS EXCHANGE – Dynamic fee generation based on bandwidth allocation results in no-cost and low cost transactions and world-class performance and scale.
- FULL COMPLIANCE – Bank-level Know Your Client (KYC) and Anti-Money Laundering (AML) compliance creates a stable transactions environment of verified individuals.
- PRIVACY WITH TRANSPARENCY – Identification content within all transactions recorded to the blockchain is obfuscated, providing privacy yet maintaining the integrity of the history of transactions.
- SUSTAINABILITY – Resources for network growth are provided through the provisioning platform by individual licensees, and the network is able to maintain itself through its share of exchange fee revenue. The network delivers real-time transactions at virtually no cost, yet ensures that everyone is properly served. This is achieved by the measured way the network expands and how it intelligently monitors utilization.
- SIMPLICITY – At the core of the currency is its simplicity and ease of use. DasCoin works closely with WebWallet to make the experience of transacting and trading with DasCoins as simple as possible. The digital wallet system incorporates a number of innovations aimed at providing a range of additional functionality through a very easy user interface, and conveniently available on your phone, tablet or laptop.
The system DasCoin uses is nothing new – it has been used by many MLM scams in the past, but without DasCoin’s cryptocurrency angle. The product sold here is the NetLeaders’ license, which is required for any member to enter the DasCoin program and receive commissions based on the number you recruit, and people (or downlines) you successfully build in your own DasCoin network.
Who are the People and Company behind DasCoin?
DasCoin was launched in 2015 alongside the CoinLeader platform, where investors purchase licenses. In early December, in lieu of database issues with its third-party IT team, DasCoin announced that the company is shifting from CoinLeaders affiliate program to the NetLeaders network marketing program created by its in-house development team.
What’s interesting about CoinLeaders/NetLeaders and DasCoin is that all information is listed, but not in plain sight. For example, NetLeaders website states that it is operated by Singapore-based CLAIMANT Singapore Pte. Ltd., but then CLAIMANT Singapore is wholly owned by Dubai-based Coin Leadership Limited.
John Pretto is the CEO of NetLeaders. While Pretto’s bio involves a wide range of companies from enterprise Wi-Fi company R66T, to streaming media tech company Hello Network, the website didn’t disclose that John Pretto was one of the big players actively promoting the OneCoin scam in early to mid-2015.
The DasCoin Board of Directors are Eberhard Wedekind, Soon Hock Lim, Terry O’Hearn, and Michael Mathias, who serves as DasCoin CEO. Like John Pretto, Mathias was also an active promoter of OneCoin. He even hosted the U.S. launch of OneCoin on July 7, 2015. However, it is unknown if whether Pretto and Mathias are still involved in OneCoin today.
Is DasCoin a Scam?
The DasCoin and NetLeaders website both uses extremely-general and vague terms. If you’re new to cryptocurrency, you will definitely get confused.
There are several reasons to stay away from DasCoin. These include:
1. OneCoin players – OneCoin has a very similar program to DasCoin, except OneCoin sells educational materials (that costs 100 to 118,000 euros) for trading. With your purchase, you also receive “tokens” that are assigned to “mine” OneCoins. Promoted by offshore companies
OneCoin Ltd (Dubai) and OneLife Network Ltd (Belize), both of which are led by Ruja Ignatova, OneCoin continues to face legal issues in countries like Italy, Germany, India, Belize, and Vietnam (among others) and has been called a pyramid scheme by several governments.
During the first quarter of 2016, affiliates have been reporting OneCoin issues, such as unsuccessful coin withdrawals and non-renewed contracts with its banking networks.
The fact that two people involved in OneCoin are also key players in DasCoin is highly questionable.
2. No real product – No information is available that shows DasCoin has an external source of income. All data available points to affiliate commissions as the only way DasCoin investors earn or get back their money. When new members dry up, then, where will these
investors generate income from?
3. Bitcoin killer and other hyped up names – Bitcoin is a worldwide cryptocurrency and widely-accepted digital payment system. It has been around since 2009, and is used to buy/sell services and products in the black market. Unlike OneCoin, DasCoin and other altcoins that claim to be the “next Bitcoin killer,” the Bitcoin network is accepted by over 100,000 merchants (as of 2015).
DasCoin, meanwhile, only works within its own network, and is not considered a digital asset.
DasCoin even claims that it is “to be accepted by over 60 million merchants,” but no list of merchants is available. Hyped-up claims to dethrone Bitcoin, which you can see on many of its DasCoin ads and paid reviews, are straight-up dubious.
4. No Refund Policies – Both the DasCoin and NetLeaders websites do not state any refund policies or money-back guarantees. The only mention of a refund relates to gift codes used in purchasing licenses, which is non-refundable.
Should You Join DasCoin?
No. In my opinion, DasCoin is a Ponzi scheme that uses MLM recruiting to increase the amount of people that are brought into this scam. They do not offer a legitimate cryptocurrency. People at the top of this company were involved in promoting the OneCoin scam. The system DasCoin uses is nothing new – it has been used by many MLM scams in the past, but without DasCoin’s cryptocurrency angle. The product sold here is the NetLeaders’ license, which is required for any member to enter the DasCoin program and receive commissions based on the number you recruit, and people (or downlines) you successfully build in your own DasCoin network. I would avoid the DasCoin scam.