As of late, a new cryptocurrency started to stir up the crypto world, digital currency forums, and even multi-level marketing (MLM) blogs. Going by the name of YoCoin is a new type of altcoin which can be earned through a process called ”scrypt” mining.
“Scrypt” mining is basically a stripped-down version of the complex and resource-intensive mining process used for Bitcoin. And, because of that, it’s worth a lot less than investors might expect from a new cryptocurrency.
Whether you call YoCoin a scam or a good opportunity, we will list different facts below for users to form the correct opinion at the end of the article.
Unfortunately, YoCoin closed its business and website in 2020.
What Is YoCoin?
According to the official website, YoCoin is a “fully decentralized platform. Its main function is an opportunity to create and place smart contracts and the decentralized applications on its basis.”
Before we go even further, it’s important to note that YoCoin as a project does not offer much to reassure potential investors in regards to its legitimately, as various aspects such as who owns the company, how it runs it, where it is based, where it has been founded, and even if the project has a “mission” or a goal or not, are not clearly disclosed.
However, the project puts a great emphasis on the fact that users can cut out the middleman in exchange transactions. YoCoin also aims to ensure its potential investors that when the time comes to vote on what to do with the capital, the votes will be tamper-proof.
What does YoCoin offer?
The most intriguing part of YoCoin is the fact that it does not offer any type of product or service. This means that affiliates only have the membership and affiliate program to sell and market potential buyers and investors.
To be more precise, potential investors are offered an opportunity to invest in the company’s cryptocurrency, the YoCoin (YOC). One would not be frowned upon for comparing YoCoin’s marketing model with a pyramid scheme.
The only way for any affiliate to earn a commission is the act of enlisting other individuals in the YoCoin affiliate program. Plainly said, one can make money only based on how many people he or she can get to sign up, and that’s about it.
How does the YoCoin affiliate program/compensation plan work?
Anyone willing to join this affiliate program is required to pay $50 to buy YoCoin. Once an affiliate makes the said investment, he or she must wait for 30 days before they can hope to receive any YoCoins of their own. After this period, affiliates will be able to earn a return of investment of 5% of coins that they invested in each week.
If by chance, they get someone to sign up, then they are rewarded with a 15% cut of that new investor’s commission. If it sounds too good to be true, then please note that there are some rules. In short, 30% of what anyone makes off of a new “recruit” needs to be reinvested into the company. Think of this as a mandatory reinvestment.
In addition, once an investor has made money aka YoCoin, and wants to withdraw it in order to turn it into real money, he or she must pay a fee of 10% for all the funds. And, then there’s the situation with the Yo Club. YoCoin takes 1% total of all the investments made in the company and places them in a “pool.”
The YOC token
Interestingly enough, since it was picked up by CoinMarketCap somewhere around January 2016, the YOC coin has seen an increase in the value of almost 86%. Currently, the coin is ranked 823rd with a total market cap of $1,464,821 and a circulating supply of 112,194,700 YOC out of a maximum of 171,704,700 YOC.
When it comes to acquiring options for YOC, investors can either choose to mine the said crypto or to purchase it from various exchanges such as Instant Bitex, Livecoin, STEX, OOOBTC, and BTC-Alpha.
As a crypto project, YoCoin is not what you would call exciting, or innovative for that matter. The same goes for the YoCoins which are not appealing on their own. The only reason for an investor to invest money in the said company is associated with the company’s MLM program. So, just as long new affiliates continue to come on a regular basis, the company should strive. However, we can’t get past the fact that this business model is a flawed one.
So, is YoCoin a scam or just a good opportunity? It’s very difficult to give a straight-up answer, but it’s probably none of the above. At the very most, it’s a very risky business proposition.