Facts to get you informed before investing in Crowd1.
There is a lot of controversy about Crowd1, I would say rightfully so.
This is a very touchy subject especially in South-Africa, seeing that so many South-Africans is taking part in this.
The main question on everyone’s lips are: Is Crowd1 a pyramid scheme or not?
I am not in the position to call it a pyramid scheme. But unfortunately, there are too many red flags. I am not here to make up your mind for you, that’s why I hope after reading this you will think hard and long about our decision.
What is Crowd1
Crowd1 in a nutshell
Crowd1 in a Multi Level Marketing company that is supporting online gaming and gambling. Crowd1 is about shares, also known as owner rights. You sign up under your recruiter and upgrade to one of the 4 packages. When you upgrade you get owner rights?
Crowd1 is one year old.
The founder is Jonas Eric Werner.
The swede Jonas Eric Werner founded Crowd1 in 2019, but this company is not his first. At the beginning of 2010’s he was one of the top people at Syncronice-Springlo. The company’s members accused it of being a pyramid scheme. When you look at Syncronice-Springlo business model, you will find that it was almost a replica of Crowd1. What you should know is that Synctonice-Springlo was only operational for three (3) years. The last time Synctonice-Springlo websites were live was April 2013.
After leaving Syncronice-Springlo he started to work for OPN-Sitetalk, which also had dissatisfied members with the talk in the media of a pyramid scheme.
COE of Crowd1 – Johan Stael von Holstein.
Johan Stael von Holstein is the CEO of Crowd1’s patent company Impact Crowd Technology. He’s career began in the mid 1990 at the Kinnevik Group. It was after this that he would create what he is still best known for: the consulting company Icon Medialab, a company with very big ambition – which during the peak of the dot.com bubble, was valued at over $480 million.
However, when the dot.com bubble burst this also meant the beginning of the end for Icon Medialab.
In my opinion I don’t see how this can be an opportunity for everyone. The joining fee is just too high.
Here is a breakdown of each level you can join.
White level–99 euros that equals to R1881.99
Black level–299 euros that equals to R5683.99
Gold level–799 euros that equals to R 15188.99
Titanium level–2499 euros that equals to R47505.99.
So how does Crowd1 make money?
The only way to of making money is to recruit, share your business on social media, and invite people to Crowd1.
Claim weekly owner rights.
To start earning you need minimum two people, which will be placed on the left and right side of you. Then you will start earning Binary bonus.
They have claimed to sell software created by foreign developers, so cutting out Google and Facebook as advertisers. But there are no signs that it does so at any significant scale. They also state that they are selling educational packages. I have not seen any educational packages up to this point. When you ask any member about the educational packages, they will only give you Packages that you can buy. That in my eyes has got nothing to do with educational. It has also both claimed to be involved in sports betting – with visual references to sport in South Africa and Kenya. While insisting it is not a gambling company
What is Affilgo?
Crowd1 affiliate site that members can generate money through the gaming companies that are participating, Crowd1 states it is not a gambling “business” but please read this and then decide for yourself
Miggster is an online mobile game and social media games that members will have to access to. That is all there is to the products that Crowd1 offers.
It all looks legit doesn’t it? Well I am not finished yet.
Let’s have a look at those red flags.
Their terms and conditions.
I think any terms and conditions is a dreadful thing to read through, even for me. But in my opinion, this is a must read if you are thinking of joining Crowd1. Here is just a few that caught my eye.
For the Affiliates
Page 4 point 6
Here it states that Crowd1 reserves the right to cancel your account and no form of refund will be given to you. So, in other words they can cancel your membership whenever they feel like it and any funds that is due to you, you now have lost.
Page 4 point 7
Crowd1 has the right to approve or deny the reactivation of an account. And they can do so without giving reason.
Page 4 point 11
They do not accept any liability or has any legal responsibility for arising out of use, any services provided, interpretation, or acceptance, of any information available on their or any third-party website. You have to agree to access their website at your own risk. And that they don’t provide any legal warranty that information on their website is absolutely accurate and reliable.
You say what now? How can you trust a website when its content is not accurate and reliable? And in Crowd1’s case it is much worse seeing that people’s money is invested into it.
Proprietary rights in the website
In this they state that you may not use or download video, graphics, designs, text, pictures, applications, software and other files. You may not modify, copy, distribute, frame, republish, post, transmit, download or sell in any form or by any means without prior written consent. They will terminate the affiliates rights and any unpaid and future bonuses will be forfeited.
That makes me wonder how many people, advertising Crowd1 actually took time to read these terms and conditions.
Prohibition to advertise
I think this goes along with the above mentioned. you have to have written consent to advertise in any way, shape or form. This includes promotions of any kind or any advertising links on social forums, such as blogs, or other marketing methodology designed to promote Crowd1’s free membership. Once again Crowd1 has the right to terminate the associated account, including any purchasing rights and/or owner rights. Associates may not create their advertising or marketing material to promote Crowd1’s “products” and “services”.
Another warning against Crowd1.
The Department of Competition and Consumer Protection warned that the business model of Crowd1, show signs of a pyramid scheme. They warned the public not to invest.
The South-African Reserve Bank (SARB) looking into Crowd1.
The SARB has been investigating Crowd1 for a month. Looking specifically into whether it is a deposit-taking organisation.
The Prudential Authority decided to start investigating the group after receiving several complaints from the public regarding its activities in South-Africa.
Although the investigation is ongoing, the Prudential Authority which governs banking, says it has “not issued any licence in terms of a financial sector law or in terms of the financial Sector regulations Act.
They did not tell investors not to invest in Crowd1, but they gave a warning that people should be careful when it comes to investing in an unregulated company.
No investigation from the National Consumer Commission (NCC).
Crowd1, a Spanish company run by Swedes, claim to be a network marketing firm. However, they rely on members constantly recruiting new members. No product is being sold therefor is seen as a pyramid scheme.
However, if it is a pyramid scheme – which is illegal- the NCC has not even started an investigation.
Again, they state that they are selling “educational” packages, but if so, why have they been band by the bank of Namibia?
Crowd1 claims that it is not a pyramid scheme. Given the negative feedbacks from a lot of people and countries, an inquiry by the NCC could clear this up, wouldn’t it?
BREAKING NEWS – 26 JUNE 2020
NCC TO INVESTIGATE CROWD1. https://www.algoafm.co.za/business/consumer-commission-to-investigate-crowd1
The National Consumers Commission has confirmed that it received its first complaint against the Business.
The NCC will now investigate the business to determine if there are grounds to launch a formal investigation.
Members of the public is warned to be cautious when it comes to Crowd1. Seeing that it is not an authorised financial service provider.
Vietnam’s Competition and consumer protection department has issued warnings against Crowd1.
As of June 12 2020, they removed Crowd1 from their company database given the fraud, scam and Ponzi warnings from top leaders in the direct selling industry as government institutions and regulators.
They are warning the public to exercise caution before dealing with Crowd1 and Impact Crowd Technology as they are not registe4red companies or financial service providers in N.Z.
The lottery Authority records that Crowd1 is being traded in a pyramid scheme.
Information was given that an individual or group of pe4rsons representing Crowd1 Asia Pacific Inc (Crowd1) are enticing the public to invest their money in the said entity with the promise of high monetary rewards of profit. Those who act as brokers, deale34rs or agents of the said entity may be held criminally liable under the section 28 of the SRC and penalized with a maximum fine of five million Pesos or imprisonment of twenty one (21) years or both pursuant to section 73 of the SRC (sec vs. Oudine Santos Gr no 195542, 19 March 2014).
SRC – The securities regulation code (Republic act no 8799) and other laws provide for the regulation of the issuance and trade of securities in the country. The purpose for the code is to broaden participation of ownership, encourage the growth of capital markets and protects investors.</p>
The core business activity of Crowd1 is to introduce new members of the public to its business practise. Participants are encouraged to recruit new members through promises of bonuses and additional owner rights the primary source of income for Crowd1 is generated through the recruitment of new members.
The CNV identifies Crowd1 as a securities offering. The regulator notes Crowd1 is not registered with the CNV and therefor operates illegally. It is also illegal to promote unregistered securities. Promoters of Crowd1 in Paraguay face up to three (3) years imprisonment or a fine.
The FSC hereby informs the public that Crowd1 and/or any individuals/representatives or promoter groups operating under this name are not and have not, at any point in time, been licensed and regulated by the FSC.
According to the Trijo News Crowd1 is months behind in payments to members in Sweden. CEO says that this is due to the Corona Virus! What? You got to be kidding me, right? Anyhow let’s carry on. He responded to Trijo News that in fact it is true. His reply on this was that their banking partners have problem with payments to bank accounts outside the SEPA area.
When he was asked how that could be possible, seeing that the country their sources are located, in fact is part of the SEPA (Single Euro Payment Area) area. His answer to this was that he misunderstood the question. I have no idea how he could have “misunderstand” a simple question like that.
Furthermore, the CEO Johan Stael von Holstein down plays his role in Crowd1. In a follow up email, the CEO states “I have nothing or very little to do with Crowd1, and have no real insights into deals like that”. He also states that he does not down play his role in Crowd1, he doesn’t play a part in THAT company. He is the CEO of ICT (Impact Crowd Technology) who is taking over the brand. In my opinion he is only saying this because of the payment issues. After all, if you watch a C1 video or go on their Facebook page, the main person you will see is Johan Stael von Holstein.
Members very disappointed.
15 May 2020 Pay-outs
The members was very excited for their first pay date, but this was all shattered came the pay-outs. Some of the members got as little as R7! That after “investing” between R1800 and R2000. You cannot even buy a bread with that money let alone feed a family. But still they had hope for the next pay date.
15 June 2020 Pay-outs
After the disappointment of the first pay-outs in May. I was carefully watching the excitement build up, people drinking campaign and counting their chickens before they have hatched. I woke up this morning eager to see how the Crowd1 movement is coming along.
I have to say with all honesty that I feel for these people. DISAPPOINTED AGAIN. Some of the members comment goes something like this “I can’t be making R19 in six months”, “guys I’m in Titanium package, and 18 down liners(recruits)…I received only R24”. Some of the members are selling their packages and, some are uttering the words “SCAM” and “PYRAMID SCHEMES”.
What blows my mind completely is that even with all this happening, some are still 100% behind them. The people are now supposed to go and explain to the people they recruited why they got almost nothing.
So, who is to blame for this? You never see any comments from the Founder or the CEO. They just sit in their mansions, creating promotions, and stealing people’s money with all the empty promises.
The tell-tale signs of a pyramid scheme.
Pyramid schemes are unsustainable businesses that requires you to recruit other members to recover your joining fee. In Crowd1 this can come from their fear of loss bonus. In 14 days, the new member has to recruit at least 4 new members under them to qualify for the feat of loss bonus.
Emphasis on recruiting
If a program focuses solely on recruiting new members for a fee.
No genuine product or service is sold
Be careful if what is being sold as part of a business is hard to value, like so-called “tech” services or products.
Promises of high returns in a short period
Be sceptical of promises of high return in a short period of time. That means commissions are being paid from the recruitment money of new members.
No demonstrated revenue from retail sales
When it comes to your hard-earned money feel free to ask to see documents, such as financial statements audited by a certified public accountant. Showing that the company generates revenue from selling its products or services to people outside the program.
Differences between a legit Multi Level Marketing and a Pyramid Scheme
On the surface, it’s hard to tell the difference between a legitimate MLM and a pyramid scheme.
The main difference between a legitimate MLM business model and a pyramid scheme is that a legitimate MLM is focused on selling products and a pyramid scheme is all about recruiting new members. For more information on scams please follow this link https://williebrits.co.za/social-media-scams-and-how-to-spot-them/
In my opinion this Crowd1 is n virus. It is draining the people’s livelihood, taking their money and feeling a damn about it. Once the mountain falls, they will be long gone, and who is left behind? I am going to ask you to please do all the research you can about Crowd1, and if you have no doubts at all then feel free to join. But for me personally, I will never join Crowd1 nor will I advice anyone else to join.