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Is Crowd1 Legit or a Scam? A critical unbiased review!

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is Crowd1 legit

Is crowd1 legit?

Disclaimer: Just like everything on this website, this review is an opinion based on our observations. If you have other insights that we may have missed that would change our views, please bring them forth. Read additional disclaimer at the end of this article.

A lot of buzz, whether it is paid or organic, has been heard recently about Crowd1.  We had gotten few requests about our opinion on this project because of the ‘cryptocurrency’ payment aspect involved with the project.  

This article is an answer to those requests.  

What is Crowd1?

What does Crowd1 do?  

That depends on who you ask or where you get your information from.  

For instance, when you read up on their website BEFORE registering, this is how you see Crowd1 describing what Crowd1 does:

“Crowd1 is an internationally known online networking company that provides members with an opportunity to engage in the largest growing online sales force. Crowd1 provides tools for you to take part in international networking, the gig economy, and quality education. Achieving better digital equality in the world while building a network of motivated entrepreneurs remains at the heart of the operation. During the first 16 months, Crowd1 managed to grow a sales force of over 5 million Affiliates and counting.”

The vagueness is a wow factor in that entire paragraph.  AFTER you register, the true model is revealed to you and here it is, in their own words:

“Crowd1 brings you possibilities of a lifetime residual cash flow based on your team’s growth. The best way to utilise the crowd economy is to introduce your friends for free. You become a part of the cash flow created when your friend’s activities create cash flow in the crowd. Take the opportunity today and put yourself in the central position of a global movement.”

Notice the text that we highlighted in bold, those reek the stench of Multi-Level Marketing business which in many cases have been regarded as a PYRAMID scheme.

Their intro video is quite uneventful and useless, in our opinion.

CROWD1 – IMPOSSIBLE IS NOTHING!

Join the world’s fastest-growing network marketing company. Impossible is nothing! https://crowd1.com/

Products offered by Crowd1

Crowd1 offers 3 products and all of them are exclusive to Crowd1 members:

  • AffilGO

Affilgo crowd1This is an affiliate marketing site for the online gaming industry and eSports including “online casinos, slots, sports betting, lotteries, mahjong, poker as well as other Mobile Games.”  This space is not new and there are many established companies in the space.  Competition is fierce and adding an affiliate angle to this space is new but the success depends totally on how many of these referrals actually enjoy playing these games.

  •  MIGGSTER

Miggster Crowd1MIGGSTER is a mobile gaming platform exclusively accessible by Crowd1 members.  MIGGSTER lists out the global statistics related to the mobile gaming industry that are not entirely true about the actual potential of the mobile gaming space.  For example, the website refers to the 5 Billion Mobile users in the world, however, not all mobile phones are useful for the mobile games platforms to play. This reduces the total potential market size to 2.7 Billion smartphone users.  There are already many successful mobile gaming platforms, it might be a uphill battle to convince people to play on MIGGSTER, especially when the platform is only available to Crowd1 members, in our opinion.   

  • MyGritHub

MygrithubThis is the platform where all the educational packages are housed.  The site claims to be “World Class Marketing Real Estate Training”. Our impression is that the name is a clever rehash of the world’s famous site for developers, ‘Github’. 

The more we look at the platforms that are already out there doing the things (like affiliate marketing, online gambling and mobile gaming) that Crowd1 wants to exploit, the less we are convinced about the ‘successful execution’ of Crowd1’s vision.

What we don’t like about Crowd1?

There are so many things that we despise about this company for many reasons (listed below).  We have seen this before and were victims of such a MLM company which actually had products that we could use in our daily lives and that still failed miserably.  

Smell of Pyramid scheme

crowd1 Pyramid Scheme

This is a pure opinion of ours.  The whole set up of selling digital products based on membership level and ‘number of individuals’ you invite to your network to upgrade your own level sounds like a Pyramid Scheme.  Although, we do understand that not all pyramid schemes are ponzi.  

Merchandize

The merchandize section shows the products that are not that unique and something that you could get over Amazon for half the price.  As such, we are not sure if the listed merchandise will pick steam.  Obviously, with over 5 million users on their platform, there may be a market for their merchandise.

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Cost of entry

The basic plan starts at €99 and can run up to €2499.00. Below is the breakdown of each of their plans:

WhiteBlackGoldTitanium
€99€299€799€2,499
Education package from mygrithub.com Value €99Education package from mygrithub.com Value €299Education package from mygrithub.com Value €799
Education package from mygrithub.com Value €2,499
Crowd1 Rewards worth €100Crowd1 Rewards worth €300Crowd1 Rewards worth €1,000Crowd1 Rewards worth €3,500
Streamline up to level 4Streamline up to level 8
Streamline up to level 12

Streamline up to level 15
Matching bonus up to level 1Matching bonus up to level 3Matching bonus up to level 4Matching bonus up to level 5

Line of business

The main allure is developing your own ‘global gambling network’.  Many people might have moral issues with gambling business and some religions (and countries) specifically ban gambling activities.  We have no moral issue with gambling but it might be for many.

Rumors about a scam

If you search for Crowd1 on the internet or YouTube, you will find 3 types of people:

  • Those who have never heard about Crowd1
  • Those who are current members and pimping it with their personal referral codes
  • Those who despise the company and call it a scam with their own version of the ‘proof’

For instance, Trijo News ran a piece stating that “beyond the polished surface, you find a suspected pyramid scheme veteran as the founder, and a concept that seems to be in the gray area of what is legal.”

Some crypto enthusiasts are comparing it with other Crypto Scams.

What’s working in favor of Crowd1’?

We tried hard to keep our preconceived notion about this company from the time we first landed on the website to the videos and the whole model.  

Quite honestly, it has been a big challenge.  Yet, here are few things that we think go in Crowd1’s favor:

CEO 

“Life is not fair and we should be grateful that it is not, if it were, we would be bored,” that’s the quote from Johan Staël von Holstein, CEO of Crowd1.  Whether you agree with that statement or not, Johan has a history of turning startups into billion dollar companies, however, he also has been associated with the companies that were wound up.  

For example: Icon Media Lab started by Johan and served as CEO for the first two years has gone public.  His second venture, Letsbuyit.com went public too.  However, his next two ventures namely, IQube & MyCube were both wound up.

We will have to see the fate of Crowd1 as to whether it goes public or gets wound up.

History

Many MLM companies are a big deal in the world.  For example, Amway, a company that has products sold exclusively to its members.

Industry

While gambling could have it’s own disadvantages,  it could also add the  advantage of  onboarding clients that play consistently on your platform, hence,  generating handsome recurring revenues.  This aspect could very well surprise everyone, including us, who are staying away from Crowd1.

Great combination of crowdfunding and network marketing

Many MLM companies are a big deal in the world.  For example, Amway, a multi-billion dollar company has a massive user base who buy and promote their products exclusively available for Amway members.  Crowd1 combines that MLM model in the digital space with the power of network marketing across 3 different spaces: gambling, affiliate marketing and digital education.

Work From Home in a post COVID world

Covid19 has changed the way we view work from home forever.  There are going to be a lot of job losses by the time we are done with this pandemic and that means, there will be a lot of scope for companies that promise the opportunities to become your own boss and that is one of the things Crowd1 sells.

We take a closer look at the Terms and Conditions

Generally, we do not dissect terms & conditions of a project but for this one, we are looking at the Terms and Conditions (T&C) of Crowd1, the entire 33 pages of it.

Right off the bat, this line in the T&C “Every “SUBSCRIBER” assumes sole legal responsibility for his or her decisions to follow suggestions made in any of the services the services offered on Crowd1.com,” is somewhat skewed in its formation and shifts the entire onus onto the unassuming consumers. [This is a standard practice in the industry, however, we would have expected some phrase where it says ‘we are vetting the products on our platform before they are offered, however, responsibility lies on you, etc., etc., but let’s move on.]

This caught our attention: “Company, “Crowd1.com”, and any of our subsidiaries, do not guarantee or represent that any “AFFILIATE”, who follow any suggestions or advice given in any of our services, will be making profits.”  

And here is where I believe the picture is worth a thousand words.

crowd1

Above screenshot is from the Google Play Store.  Look at the potential balance and the streamline level.  The indirect suggestion that someone could stand to gain that big of a ‘bonus’ at 1st level is quite astounding and yet the terms and conditions actually deny any claims of possibility to make any money.  From a legal standpoint, they are on point but their claims (although hinted indirectly), contradict to the T&C, in our opinion.

Let’s continue.

Another flag, although legally accurate I suppose, is this one: “understand and agree that Crowd1.com reserves the right to cancel my account at its absolute discretion, and no form of refund will be due to me for whatever reason”  and this one “In addition, Crowd1.com, reserves the right to approve or deny the reactivation of a canceled account. Moreover, Crowd1.com is under no legal obligation to disclose reasoning for such denials.”   

It doesn’t even refer to ‘violations leading to termination’, no, it explicitly says “absolute discretion and no disclosure of ‘reasons’”, talk about monopolizing the rights!

We are ready to quit right now, but we are only on page 3 of 33. 

One way gift certificates, as per the T&C, “REFUNDS on Gift Certificates – The original owner of the gift certificate cannot receive a cash refund on the Gift Certificate but it can be deposited back to their account. The party who has received the gift certificate to join the C1 opportunity will not be able to redeem or request a refund for the Gift Certificate. There are no cash refunds for gift certificates.”

Some concerns on how the confidential information is handled are noticed in here: “Company may supply to Independent Affiliates confidential information, including, but not limited to genealogical and Downline reports, customer lists, customer information developed by Company or developed for and on behalf of Company by Independent Affiliates (including, but not limited to, credit data, customer and Independent Affiliate profiles and product purchase information), Independent Affiliate lists, manufacturer and supplier information, business reports, commission or sales reports and such other financial and business information which Company may designate as confidential.”

In our opinion, this is all coming together as a big ‘make money for us, not for you’, for instance, here is a term in the T&C: “No commissions are paid on the purchase of Sales materials or for Sponsoring Independent Affiliates.”

Refund policy seems a bit wanky.  For instance, how are you to test a product without actually using it?  In our limited interpretation, that is what it sounds like based on these terms in the T&C lifted directly:

“When you purchase a Crowd1 Education Package, you have a 14-day cooling off period which means that you can regret your purchase entirely and get a refund of your money. This cooling off period will be terminated and cancelled immediately if you: 

  1. Choose to use any of the features in your Crowd1 website 
  2. Have used your Crowd1 products including but not limited to Education Packages”

We have never seen a company saying that you are entitled to a refund as long as you do not open the package or use the product.

I think we are done with looking at their twisty Terms & Conditions. Here are their Terms and Conditions if you would like to give it a full read.

Their tagline, “Impossible is nothing” is quite corny because of its fallacy.  For example, you cannot bring dead back to life or turn the time even by a split second or the list goes on where things by their very nature are impossible.  And, it is just a rehash of the most overused motivational line “Nothing is Impossible” which I always thought was a foolish statement used by people dreamers with no plan or execution.  

Count us unimpressed, so far.  

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Issue with the countries that are banned

The other aspect that we thought was interesting is the countries that are not allowed to participate, including the United States.

If this is truly a global company and has digital products that can be made available anywhere in the world, what’s stopping them from allowing the US participants?

We assume that the rules are much more stringent in the US in terms of investor protection.  Especially when it comes to a business model that looks like a pyramid scheme and the one that directly deals with the online gambling industry.

We understand that not all States in the US allow businesses associated with online gambling, and maybe that’s why they are not allowing participants from the US.  Well, if this were true, how come the company is registered in Dubai, UAE that has a ban on gambling and gambling related businesses (?).  This is merely posed as a question for someone learned enough to educate us.

Is it a scam?

Bitcoin fraud alertWe do not think that Crowd1 is a scam.  Following reasons support this assessment:

  • A company with actual products (irrespective of whether they are good or not) 
  • Team with history and background of running business
  • Online gaming is expected to be an exciting space in the coming years
  • The digital marketing line that is expected to grow leaps and bounds in the post-COVID world

The assessment that this may not be a scam is not a guarantee that your investment is safe.  We cannot provide that kind of assurance from our limited research.

Is it a Pyramid scheme?

In our opinion, Crowd1’s business model comes very close to a pyramid scheme, albeit we could categorize it as Multi-Level Marketing like Amway.  

The key variance between a business like Amway and Crowd1 is that Crowd1 exclusively deals with digital products like online gaming, affiliate referrals and educational packages made available to only its members instead of physical products.

Conclusion

We are not able to convince ourselves to invest in Crowd1 and for that very reason we cannot recommend it to others. Like we said earlier, we have been victims of similar ‘boisterous promises’ before and when we finally gave in to buy into the package, we couldn’t con others to be suckers like us.

Crowd1 may very well be a great opportunity for those who are good at convincing people irrespective of the product they are marketing. 

We could be wrong!

It is absolutely possible that we completely got this concept and the company wrong and we might be losing on a once in a lifetime opportunity.  

That is fine with us. 

We just don’t want you to lose on an opportunity if you think this is the best thing on the internet. Do your own due diligence and do not listen to some random guy on the internet.

For our own investment, we are staying away from Crowd1.  Do what suits you.

Thank you for reading and sharing this article. Stay safe and healthy!

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IMPORTANT DISCLAIMER

We have used referral codes where available.

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Why this bull run has no precedence? ONE key metric to rule them all

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bull run 2020

Everyone is singing the praises for the bulls’ arrival in the crypto space.

Some say that 2020 will mark the biggest bull run in cryptos’, albeit short, history.  

We are already in October so we doubt any fireworks will take place now since there is a lot of uncertainty about the US elections.

Add the uncertainty around the stimulus bills, unemployment trends, soon to be lifted forbearances and the list goes on.

2020 still has another 2.5 months to go but most of these uncertainties will take a while to show their true impact.

For instance, what will a Biden presidency mean for the economy and cryptos?  

How many people will be forced to sell their homes once the forbearance’s are lifted?

What happens if the next stimulus bill does not pass through?

When will the vaccine become available?

These are some of the unique situations that we have no precedence for. Do not let anyone convince you that we know what’s going to unfold, because no one does.

Yes, everyone has theories, like the ones we are presenting here, but that is all they are: theories.

The BIGGEST metric that crypto community is not considering

We are no economists nor can we run any fancy charts to impress a point on you.  

We are just good observers and have common sense to deduce a few things based on data.  

For instance, between 2007 and 2010 consumer spending dropped by an overall .2% and we know what that meant for the economy.

Personal consumption expenditure

In 2020, people have literally cut down on their spending.  Some of it is forced due to the restrictions imposed by external forces and most of it is self imposed.

I am sure the spending on marijuana, liquor and food have gone up but what about other spending?

2020 also saw a spike in the savings balances.  

Economy is not stimulated by people hoarding their money. People need to exchange value for the economy to thrive.

What happens to the spending behaviors when the true stats around evictions, lost jobs (that are not coming back) and small businesses that are shutting down permanently are out?

Our guess is that people are going to be weary of spending money in the short to medium term. If we were forced to pick a timeline – we would say about 12-16 months (assuming we get a vaccine in Q1 2021).

When is the next bull run? 

Based on what we have seen in 2007 through 2010 and observing the consumer spending habits in recent times, we think that Bitcoin (and cryptos) will not find their true peak until next halving.

We know this is not what you came to hear.  

If the bull run in your mind is hitting the 2017 highs then we do not think you have to wait until the next bull run.

If the bull run means a $100,000 bitcoin then we stand by our opinion on when that is going to be.

A case for bull run

In spite of what is going on in the street, following factors are acting as strong bull market signals for the crypto space. 

Hype: Crypto space (specifically Bitcoin) has been gathering a lot of steam in terms of brand awareness and mass penetration.  This is great for the long game.

Adoption: More than ever, private and public enterprises are becoming serious about bitcoin and underlying blockchain technology.  What is good for bitcoin is good for blockchain and vice-versa.  MicroStrategy investment, Paul Tudor Jones getting involved with bitcoin are some examples.

Tech explosion: Crypto space is home to some of the brilliant minds in the tech space. Add Big Techs interest in the crypto space and you have a perfect recipe for monumental shifts in crypto perception. Tech giants like Microsoft, Google, Twitter, Facebook are all getting involved with blockchain and cryptocurrencies in some shape or form.

Retail demand: More and more retail investors are looking for alternative investments and they are waiting on the sidelines to get involved with Bitcoin.  As soon as companies like Fidelity or other brands offer crypto investment through retirement plans – there would be a massive influx into this space.

DeFi: DeFi in its current state might be infested with shittty projects but as a concept and technological shift to turn the current banking system upside down – it holds great potential. Any demand to DeFi brings more demand to bitcoin, ethereum and blockchain in general.

Conclusion

The debate around when is the next bull run will hinge on how the market recovers from this pandemic. How soon will we get the vaccine and how many of the lost small businesses and jobs are we going to resurrect?

From a macro perspective, Bitcoin and few select cryptocurrencies will continue their upward trajectory so if you looked back to 2020 five years from now, you might think bitcoin was on sale.  

Question is: how many people have that kind of patience?

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

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Is Cryptocurrency driven by fundamentals or hype?

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Fundamentals or Hype

During the early 2000s India experienced a massive real estate bubble. With a lot of western companies opening their outsourcing centers in India, the land prices shot up 2x, 5x, 10x, and even 100x.

You read that right. 

Have you heard about 100x in Real Estate?

To be sure, the demand was exponentially growing in the major cities like Bangalore, Hyderabad, etc., which were quickly turning into back offices for the many western companies.

The hype in these cities was somewhat justified.

However, here is the kicker.  Many remote places which did not directly benefit from this influx of foreign direct investment started seeing their prices go up in similar fashion.

In a crazy case of trickle effect and super-hype created by the real estate agents, properties were just trading from one party to another for unbelievable markups and the prices constantly went up.

Today, that massive bubble is still intact minus the crazy multipliers.

The reason we like the comparison of what happened in Indian Real Estate market to the crypto is that a genuine need in a specific space has been exploited to translate that hype onto anything tagged with the name. 

In India that hype tag was ‘land’ and in crypto that hype tag could mean anything from ICOs to DeFi.

Ask any crypto enthusiast they will make you believe that crypto is all about fundamentals.  However, anyone who has spent even a few months in the space quickly realizes that crypto prices don’t follow fundamentals.  

This is one place where Crypto space shares its similarities with the stock market as well.

Stock market is completely distanced from the economy and it too acts irrationally, that is, when people are losing jobs and businesses are shutting down permanently, the stock market rallies higher and higher.

Similarly, crypto space, to its own detriment, is ignoring the projects that have amazing fundamentals while pumping other projects solely based on the hype.

Long term vs. Short term

Hype is short lived. Fundamentals are a long game.

That is why we emphasize that anyone interested in the crypto space does their own research in finding the projects that meet their fundamental criteria.

Once you know that a project has fundamentals (team that can execute, problem worth solving, solution that can solve, market demand, etc.,) then you just ignore the FOMO and FUD.

This will help you sleep better and use your spare time and energy in quality endeavors like taking care of yourself or spending time with family, etc.,

If you get on the hype train – it will be difficult to catch the right wave and this constant lookout for the next big thing is going to rob you of all the peace.

And, if you find yourself on the right side of the wave – you will be decimated and drowned.

DeFi defies all common sense

That is what happened with a lot of people who tried to ‘time’ the DeFi market.  

Don’t get us wrong. Many people made a ton of money (and good for them).  However, remember, crypto at this point of its evolution is a zero sum game.  That means, for everyone who made a million someone lost that million.

Unless you got on a project quite early keeping your risk level low or you have some insider information (not to mention this being illegal), you can generally not ‘time’ the market.

Many veteran traders have lost their shirts in chasing the market.

Conclusion: does this mean I should stay away from DeFi?

We cannot tell you that.  That is something you got to decide for yourself.

By market cap, Yearn Finance is considered one of the top DeFi projects. It lost over 67% in less than a month.   

Personally, if the top most project is still trying to find the ground while other projects are losing 99% of their value in a matter of a day, that means one thing:  the space needs time to mature.

We will continue to learn about DeFi. We will continue to invest what we can afford to lose when we find the right project that meets our fundamentals criteria.

That is our strategy at the moment. You have to find a strategy that suits you.

While crypto space is riding on the hype at the moment, we continue to believe in fundamentals.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Will India Ban Cryptocurrency Trading?

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Cryptocurrrency Ban India

India keeps playing with the emotions of the crypto community in India with constant back and forth of change in rules.

First it was a complete ban of crypto transactions. RBI forbids banks from serving any clients that deal in cryptocurrencies. Thanks to the Supreme court decision, RBI had to back off.

Now, there is a renewed effort to place a ban on crypto again.  

Is Crypto Ban a good thing for India’s financial future?

No, Cryptocurrency is here to stay according to many financial investors and billionaires. As nations prepare for a hyper-inflation cycle to sweep the world, Cryptocurrency can act as a hedge in addition to gold and silver.

If the government is concerned about illegal activities with cryptos then they can relax because most crimes happen in fiat cash transactions, not crypto which is traceable.

Crypto traders generally are not the ones that take part in illicit trades.  It is those who introduce illegal ICOs and OTC trades.

How about regulations?

Instead of banning crypto trades, how about bringing clear regulations to provide a framework for the crypto trading.

Such a framework should include stricter guidelines for ICOs and OTC trades.  

Crypto exchanges can relay the trading information directly to the tax authorities (instead of needing to be subpoenaed) so that there is transparency.

Will India Ban Cryptocurrency Trading?

That depends on whether India wants to be in the ranks of the United States, Switzerland, South Korea, etc., or if it wants to be counted among China, Russia and North Korea.

The United States, South Korea and Switzerland (along with other countries) are doing everything to stay ahead in the blockchain and crypto race.

Other countries we stated above are working to stomp on the innovation. 

A better question is: Can India ban cryptocurrency trading?  

The answer is NO.  

To ban cryptocurrency trading – India will have to shut down the internet.  

In the event of an actual law that bans Indians from participating in the cryptocurrency trading, the only people that will be impacted by those are the ‘honest’ citizens because the crooked ones will still find ways to trade using VPN or alias names.

For a country that wants to be at the forefront of technological revolution a ban would be a very backward decision.

We urge the Indian government to NOT punish the honest citizens by introducing a ban.  Rather, introduce a sensible legal framework for everyone to operate in.

This will bring more businesses to India and take India’s platforms to the world.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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