In this Crowd1 review we will look more into the token side of their business, the ownership. There are plenty of MLM reviews of the concept out there, so if you want to learn more about their income opportunity you can for example check out the review on behindmlm.com. The ownership financials, as expected, does not add up. The math simply dont work, no matter how optimistic we are, if you want to learn more read on.
The ownership in Crowd1
When you purchase the so called educational packages you receive ownership in Crowd1. The education is of course worthless, this is the typical setup for most MLM scams, and it should be your first warning signal. You are paying for the ownership and being sold like this means it is an illegal investment offer.
- White – invest €99 EUR and receive €100 EUR worth of owner right
- Black – invest €299 EUR and receive €300 EUR worth of owner rights
- Gold – invest €799 EUR and receive €1000 EUR worth of owner rights
- Titanium – invest €2499 EUR and receive €3500 EUR worth of owner rights
The price started at €0.1 back in December 2018 but the business did not pick up before long after this so we have reason to believe most people have paid a lot more for their ownership. In January 2019 the price was €0.2, in July €1.0, September €1.5 and now when the sale is close to done, €2.0. The price goes up for no particular reason, but it leaves early members to believe they have made a ton of money. They have also given out a lot of ownership for free.
They have recently issued their tokens on the Ethereum blockchain, 59 806 346 tokens. Members now have to signup for a crypto wallet and claim their ownership, receive the real tokens. Strangely enough, on the Ethereum network their tokens are issued with a value of zero, but I guess this reflect their own opinion on the value. You can view there tokens on the etherscan webpage >>
In our Crowd1 review we have not been able to figure our how much of Crowd1 is backing the tokens, clearly the tokens dont represent the whole business, so if the ownership is for 10% or 50% of the company no one seem to know.
Ownership in AffilGO and Miggster
Crowd1 is sold by the idea that you can only buy into the company during their pre-launch, and it eventually had to end (end of 2019 it seem). But it seem they haven’t made enough money, now they will duplicate the model of Crowd1 and sell ownership in their two main business (Crowd1 does not have any business, they are not even trying to pretend there is a business within Crowd1).
AffilGO is their online gambling affiliate company, which is claiming to shortly starting to work with several of the well known brands within online gambling. If this is true this company will have a working business model. Start price for this token is €2 and it is of course set to grow like crazy (the growth is pre-set, so no matter how little business this company will have the price will keep going up).
Miggster is a mobile game platform of some sort. So not a gambling, which mean its easier to promote as there is no licensing. Mobile gaming is huge, so this business might as well have a working business model. This token is starting at €0.5, and as above, the price will just sky rocket for no reason. Its magic.
But as with Crowd1 there is no details about how much people will own in these companies. or how many tokens they will sell. Our guess, they will sell as many tokens as possible.
The token exchange
Crowd1 got one thing right, you need an exchange if people are to buy and sell their tokens. So they have created one, NOVAPAGO OÜ which is licensed in Estonia – novapago.com. Getting a crypto exchange license in Estonia is extremely easy and cheap, but still this is a good move to make their business seem more real. The company was setup in May 2019, and this is also one of the very few places you can find a name behind Crowd1, Erik Robert Holst Jakobsson from Sweden. Which confirm what we believe, the people behind Crowd1 are from Sweden (some sites refer to Cyprus but all Cyprus companies use Nominee Directors).
When you purchase your ownership (tokens) this does not take place with the exchange, which is strange as the exchange legally can accept payments for tokens – instead these payments are done to an account in the name of Crowd1 with Phoenix Payments Ltd (emoney, Malta license).
Sales and membership numbers
Crowd1 has used one of the most basics tricks to generate a small hype, they generate fake members. They are getting close to 900 000 members, but this is just a fantasy number, our guess is closer to 90 000 members, which is still good.
Looking at their tokens, the data is after all public, we can do some simple estimates based on the number of tokens held per wallet:
- How many bought the Titanium package, €2499: less than 100 people.
- How many bought the Gold package, €1000: Less than 400.
- How many bought the Black package, €1000: a few thousand, possibly as many as 10 000
- Which mean the majority bought the €99 packaged, which makes sense when you target Africa as your key market.
A huge number of the tokens issued have been given away for free, and as with the membership numbers they are also generating fake token accounts, far from all transactions are real (you can use the etherscan link above and see how tokens are claimed 24/7 none stop, 7 days a week – humans dont behave like this, computers does).
This mean it is pretty hard to see how money they have raised, but there is no doubt we are talking about millions of euro. If we use an average price of €0.5 they have sold tokens for €30 million. This is probably not far off, but if we are completely wrong and they in fact have sold all the tokens, and maybe with a price of €1 then we are talking about close to €60 million.
It dont really matter much what people paid for their tokens, today when the price is set at €2 people expect to get a return based on this price. So how much revenue must Crowd1 generate to create a decent return for their 59 806 346 tokens?
First if all we dont know how much of the company is backing the tokens, but lets assume 50%. Then we need to figure out their income. Sorry, they dont have any revenue as their entire business is based around the sale of tokens. Which mean the pay out per token will be zero. Nada. None.
But we will be nice to the guys and use their own sales pitch, income will be generate from online gambling, their affiliate business. In our example we will leave out the fact that AffilGO also will have to pay their token holders, which will eat up more or less any funds that can generate an income for Crowd1. So this example is very theoretic and will not work in real life, well maybe for AffilGO but surely not for Crowd1:
Online Gambling market size 2018; 50 billion dollars
Lets assume affiliates receive 10% the revenue = 5 billion dollars
Crowd1 grow mega successful and take 10% of the affiliate market = 500 million
They then need to pay commissions, lets say 50% = 250 million
The guys behind this business will want to get some money = 50 million
This leaves 200 million to the owners
How much does the token holders receive?
If they own 100% of Crowd1; 200 million / 59 806 346 tokens = 3.34 euro per token
If they own 50% of Crowd1; 200 million / 59 806 346 tokens = 1.67 euro per token
or maybe the only own 10% of Crowd1; 200 million / 59 806 346 tokens = 0.33 euro per token
It might not look to bad, you could potentially get a return. But, sorry, there is a but: there is no way Crowd1 will take 10% of the affiliate market, 1% would be a miracle. Best case return is then €0.34 – if the token holders own 100% of Crowd1. Now add to this that the token holders of AffilGO want their return first, and Crowd1 might only receive 50% of the 1% – your token best case return is now €0.16.
Crowd1 review – Summary
We dont believe there is any real business behind Crowd1. And if there is they have oversold it so that people will never get what they where promised. Add to this the fact that they are illegally selling securities and it does not look good at all. But we will admit, in a world of crypto scams where the most of ‘to good to be true’ offers are clearly a scam, Crowd1 is more difficult to classify as a scam. It has all the right elements of a scam, but it could well be that they are able to generate some affiliate sales for the gambling industry. Our guess is that Crowd1 will slowly die, but AffilGO might be around for some time. But as an investment, it is a terrible deal, we would not recommend anyone to put their money into this.