Scams and Ponzis are easy to come by in the world of cryptocurrency. It is, unfortunately, the price we pay for a popular industry in the financial sector. DavorCoin is one of those projects which draws a lot of parallels to BitConnect, another Ponzi scheme which recently shut down after a few months of action. A daily variable ROI for altcoin lending is not impossible to achieve, but it is highly unlikely DavorCoin offers the real deal in this regard.
What is the Deal With DavorCoin?
On the surface, the DavorCoin project looks like a rather solid investment. More specifically, it provides a high daily rate of return, even though the actual return percentage is quite variable as of right now. That is only to be expected, as there is no such thing as legitimate fixed daily returns in the world of cryptocurrency or finance. Any project claiming to offer a fixed return is, by default, either a scam or a Ponzi scheme waiting to collapse.
While it is smart of DavorCoin not to offer any fixed returns right now, that doesn’t make the project more legitimate per se. The company never explains how it attempts to make money or why the value of its “currency” should increase over time. Without this basic information, it is only normal that people will start to question the legitimacy of such projects. The way things stand right now, there is no reason for this entity to raise any money or offer any investment opportunities to other people.
Looking at the investment options, it becomes evident DavorCoin has very few honest intentions. Guaranteeing that investors will see some form of ROI for anywhere from 89 to 299 days on end is pretty spectacular, but also utterly fake. Moreover, people who invest more funds will make a lot more money and even receive a daily bonus of up to 0.35%. While this sounds appealing, the company never explains how this money is generated or why anyone should trust them with their funds. It is a classic Ponzi approach, by the look of things.
As it turns out, there is no real need to invest in DavorCoin if you want to make money. Those who pride themselves on being referral marketers – also referred to as “shills” – can make a fair bit of money without ever investing in DavorCoin themselves. This does limit the amount of money which can be earned, but there is still a fair commission for every investment made by one’s referrals. With a five-level-deep affiliate program in place, things can get very interesting for such marketers. Assuming, that is, that people will trick others into investing in a Ponzi scheme without feeling bad about doing so.
Even though DavorCoin claims to be a cryptocurrency, it is unclear what blockchain it uses or how many coins will ultimately be in circulation. It will not dethrone Bitcoin or Ethereum, but it could certainly outclass BitConnect because the two seemingly belong in the exact same category. It seems all “mining activity” is done internally and kept under close wraps. It also appears this is an ERC20 token, although it is possible investors are just buying vaporware first and foremost.
The risk associated with cryptocurrency-oriented lending opportunities should never be underestimated. DavorCoin acknowledges it provides a very risky investment opportunity, but it is evident there are some very shady aspects about this company. Considering how it is not officially registered in any jurisdiction, it should not even be able to offer any form of investment opportunity right now.