Crypto, or crypto currencies, seem to be all the rage now. With new crypto millionaires one day, then broke the next as the crypto markets go through wild swings. Enter Dagcoin in 2017, the coin that according to their website is designed to be used to actually purchase goods and services. But, is it really, or is Dagcoin a SCAM designed to take your hard-earned money?
A cryptocurrency, crypto-currency, crypto, or coin is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. Cryptocurrencies are tradable digital assets or digital forms of money, built on blockchain technology that only exist online.
They use encryption to authenticate and protect transactions, hence their name. There are currently over a thousand different cryptocurrencies in the world. Over the last few years, cryptocurrency prices have risen and then fallen often dramatically.
You have probably heard of Bitcoin. It was the first “crypto currency” and has been publicly traded since 2009. It has seen wild swings in value, up and down, making millionaires as well as bankruptcies. And, like all cryptocurrencies, it has one flaw, there are very few places you can actually use it.
You need to convert your crypto currency into regular, government issued” hard currency to make a purchase. Dagcoin, according to their website, was designed to be used like regular money for buying and selling goods and services for Dagcoins. It’s been over 5 years now, so let’s see if they have delivered or is Dagcoin a SCAM.
Dagcoin is a crypto currency developed for use primarily in developing countries to be the first crypto currency designed to be used as actual money. It is not traded on any exchange and you can only purchase it through their website or their SwipeX crypto app. There was a multi level marketing aspect where you could earn Dagcoin by recruiting others to invest in Dagcoin.
Unfortunately there are only 1529 places in the entire world that accept Dagcoin as payment and there is no mechanism to convert your Dagcoins to hard currency. Also, the CEO of Dagcoin was a prominent leader and investor in the Onecoin ponzi scheme that took billions from investors. My recommendation: Steer clear of Dagcoin.
What Is Dagcoin?
Dagcoin is the first cryptocurrency designed for using, not trading – exactly the way money is supposed to be! Founded in 2017 in the country of Estonia, it is designed as a currency alternative for developing economies and for those without ready access to traditional banking.
- Company: Dagcoin
- Industry: Crypto Currency
- Website: dagcoin.org
- Origin: Estonia
- CEO: Nils Grossberg
- Recommended? Not Recommended
“We believe that cryptocurrencies are here to be a step up from regular money. This means improving the speed of transactions while reducing the cost, giving access to money to more people with lesser restrictions and limitations, giving more freedom to transact. And at the same time preventing fraud and illegal activities. Dagcoin was created to fulfill all of these criteria – to become a digital version of money that people can use all around the world.”
Like other crypto currencies, Dagcoin is a digital currency but, unlike bitcoin for example, Dagcoin is not publicly traded. There are only a few ways for you to purchase Dagcoins. Either purchase Dagcoins from Dagcoin’s internal SwipeX exchange, purchase a Dagcoin Gift Card directly from their website, or by accepting dags as payment in your business.
At one time, you could also earn Dagcoins from referring others to invest in Dagcoins as part of a multi level marketing structure. Their website is no longer promoting that option however. So it is unclear if that is still an option.
Instead of using blockchain technology, like most crypto currencies, Dagcoin is based on the Byteball database technology as a peer to peer tamper proof data storage. This technology is purported to facilitate much faster, and less expensive, transactions than those based on blockchain technology.
The CEO of Dagcoin is Nils Grossberg who is also one of the founders of the multi level marketing company Success Factory. He formerly was one of the “Dream Team” leaders and investors in the now defunct, Onecoin crypto currency scheme that took billions from investors.
So, consider this, the founders of Dagcoin are taking peoples hard currency in exchange for a digital crypto currency that is not publicly traded, only accepted at approximately 1500 locations worldwide, and the only way to make money with Dagcoin is to recruit others to invest their hard currency into Dagcoin.
Somebody is accumulating a ton of hard currency in exchange for a non traded digital currency that could disappear with the flick of a switch. Sound fishy to me, to say the least.
How Does Dagcoin Work?
Dagcoins, like any other cryptocurrency you purchase, are held in your personal crypto wallet where theoretically you can use them to pay for purchases with them. Currently there are only 1500 or so places in the entire world that accept Dagcoin as a form of payment.
Dagcoin claims to have over 720,000 users worldwide and their aim is to grow the community of users and merchants to strengthen the currency so more institutions and organizations will trust and accept it. Their stated goal is to make Dagcoin an alternative to physical money and credit cards.
To purchase Dagcoins, you select a set amount to invest, and you will get an equal or greater amount of Dagcoins in return depending on the current Dagcoin ecosystem value. Current value is $.94 so for every $100 you get approximately 106 Dagcoins.
In the recent past, you could earn commissions through referrals. Once you referred someone who purchased Dagcoins, you got a 10% commission. Paid to you in Dagcoins however. Then, like most multi level marketing opportunities, you earn commissions of the referrals of your referrals (your downline). Again paid to you in Dagcoins.
Then there are matching bonuses, weekly rewards, and rank achievement bonuses. All of which are only paid in Dagcoin, not hard currencies. You should start to see a disturbing pattern. People are exchanging their hard currencies for Dagcoins, earning commissions, paid in Dagcoins, for getting other people to exchange hard currency for Dagcoins.
Where does all the hard currency, standard money, government issued money, end up? In the bank accounts of the founders of Dagcoin I suspect. It looks very much like a classic MLM ponzi scheme, very similar to the Onecoin ponzi scheme.
What is the Value of Dagcoin?
Currently, according to the official DagCoin website, 1 DAG is worth .94 USD. But since Dagcoin is not publicly traded, you have to find private buyers if you want to sell for cash. The current cash price quote for Dagcoin, if you can find a buyer, is .09 USD. Oh well, at least you can spend your Dagcoins on the Dagcoin Ecosystem right?
The Dagcoin Ecosystem
On the Dagcoin website there is an area labeled as “Ecosystem”. Which are investment and loan opportunities built into the Dagcoin platform itself.
1. Dagcoin Grow
This is their “risk-free” investment offer where you can choose from a 12, 24, or 36 month period. It claims to store the invested Dagcoins in cold storage so it is “highly-protected’ and can’t be hacked. And, it pays 1, 2, or 3% and you can’t take an early withdrawal and your interest is paid again in….. you guessed it, Dagcoins.
2. Dagcoin ATM (Automated Teller Machine)
ATM where you can exchange your hard currency for Dagcoins. Not get cash, only purchase Dagcoins. So, don’t think of it as a traditional ATM where you withdraw cash, here you put in cash to purchase more Dagcoins. They promote it as a way to get Dagcoins where you may not have access to the internet to purchase more coins.
3. Cyrpto Loans
Touted as a way to use your Dagcoins as collateral for a low interest loan with no background checks or personal guarantee. However, it is “still in the works” and not available as yet.
4. Health and Life Insurance
Buy health and life insurance with your Dagcoins? Sounds great right? Well guess again, it’s not available yet either. Like most of the services on their website, it is “still in the works”. Very few actual services. Very limited places to actually use Dagcoins And the only way to make your “money” grow is by referring others to trade their hard currency for Dagcoins.
Let me simplify it. You take your hard currency, currency that you could pay for food, shelter, medical care, things you need to survive every day, and trade it for Dagcoin that is only accepted in about 1500 places worldwide and is not publicly traded so you have no means to convert back to hard currency it you get in a bind.
Previously, you could “earn” Dagcoins from your referrals in their MLM opportunity, but again, where are you going to use them? You can’t buy groceries with them.
You can’t buy gas for your vehicle. Your doctor won’t take Dagcoins. Your landlord doesn’t want them either.
With no way to exchange them for hard currency, your “investment” has little to no real value. But the founders of Dagcoin have all of your hard currency.
Is Dagcoin a SCAM?
I’ll let you decide that for yourself. But if it walks like a duck, and quacks like a duck and looks like a duck, most likely it’s a duck. Dagcoin is very similar in structure to the now defunct Onecoin crypto currency ponzi scheme that lost billions for it’s members. Some of the same players are involved too.
Dagcoin is over 5 years old and is still only accepted at only 1500 merchants worldwide. Much of their “Dagcoin Ecosystem” is just ideas and “still in the works”. The only means of making money with Dagcoin is through their multi level Marketing plan and even then it pays you with Dagcoins.
If you purchase Dagcoins, you have very few options for using them, the value is only within the Dagcoin Ecosystem and if you need to exchange for hard currency, you will be hard-pressed to find a buyer. And even if you do, they will only offer you a fraction of what you paid.
Is the Dagcoin a Pyramid Scheme (Ponzi Scheme)?
A pyramid or ponzi scheme is where you pay to join and then earn money by recruiting new people to join the system. No real product changes hands and the money gets divided upwards through commissions.
It only survives as long as their are new people to recruit into the scheme. Eventually it collapses when people figure out the scheme and quit joining.
|For More on Pyramid Schemes|
|Read: What is an MLM Scheme|
On the surface, Dagcoin is a crypto currency like any other, except it is not publicly traded so there is no market to cash out if you need to. And, there are very few goods or services you can exchange Dagcoins for.
It’s when you get to their former Muli Level Marketing or money earning part of the Dagcoin opportunity that you start to see indications of a possible pyramid scheme.
You earn commissions and bonuses, paid out in Dagcoins, when you recruit new members to purchase Dagcoins. You earn Dagcoins by getting others to purchase Dagcoins, but you can’t exchange your Dagcoins for any other currency and there are very few places that accept your Dagcoins as payment.
Somewhere, somebody is collecting a lot of hard currency that they can spend anywhere in the world. My Guess is the founders of Dagcoin are getting rich.
Is Dagcoin Legit?
Within it’s own ecosystem Dagcoin is a legit crypto currency. However outside of the Dagcoin ecosystem, it has almost zero value. And, even within their own ecosystem, there are very few products and services that you can purchase with Dagcoin. Add to that, the CEO of Dagcoin was one of the lead promoters of the Onecoin Crypto Currency ponzi scheme.
As an investment or money making opportunity, Dagcoin resembles a multi level marketing opportunity where you earn commissions and bonuses based on recruiting new people to purchase Dagcoins. But, the commissions and bonuses are paid in Dagcoins that again, have little to no value outside of the Dagcoin ecosystem.
The founders of Dagcoin are taking members hard currency in exchange for a crypto currency with little or no value. So, in my opinion, Dagcoin is not a legit investment or money making opportunity.
How Much does Dagcoin Cost?
The Dagcoin ecosystem is frequently changing. Currently you can purchase Dagcoins directly from their website in the form of gift cards. You will pay the current Dagcoin ecosystem rate for each coin. Currently about $.94 each. This value is calculated based on the number of members plus the number of merchants that accept Dagcoin as a form of payment.
You can get Dagcoin gift cards with different values ranging from 10, 50, 100, or 250 Dagcoins ($9.40 to $235).
For larger purchases, you can use Dagcoins SwipeX crypto exchange app. And, if you are a merchant, you can join the Dagcoin ecosystem and begin accepting Dagcoins as a form of payment.
Now at one time, Dagcoin had an educational platform called Success factory which was basically a multi level marketing plan for promoting Dagcoin. If you go to the Success Factory website today, you will not find anything about Dagcoin. In fact, the only thing on the site is a Forex Trading course.
So what happened? I don’t know. Maybe their experience with Onecoin made them drop the multi level marketing plan. The Dagcoin website makes no mention of Success Factory or earning Dagcoins. They did have YouTube videos like the one you will see below that explained the MLM compensation plan. Very odd and another red flag for me.
What do you get with Dagcoin?
When you purchase Dagcoins you get crypto currency that you can exchange for goods and services withing the very limited Dagcoin ecosystem ( approx. 1500 merchants). They claim you can trade Dagcoins for Bitcoins on their SwipeX crypto exchange app. Some altcoin exchanges will trade Dagcoin but at a significant discount.
Some of their videos on YouTube cover DagUniversity and Success Factory where you could earn Dagcoins by referring or recruiting new members to purchase Dagcoins.
The compensation plan was a standard Multi Level Marketing structure. And the DagUniversity Compensation plan is still available on YouTube:
|For More on Multi Level Marketing|
|Read: Is Multi Level Marketing Ethical?|
Now on their website when you go to purchase Dagcoin gift cards, they list the following notice: “Please note that DagCoin Gift Card is not connected with the Success Factory compensation plan and bonuses”
So, is the MLM and or affiliate opportunity discontinued? If it is, it sucks for those who invested in it. The whole Dagcoin operation keeps changing and evolving. But, the bottom line is you have a crypto currency that has little to no value outside of the limited Dagcoin ecosystem
Is Dagcoin Worth It?
Dagcoin is not worth it for me. But you do your own due diligence. With limited merchants accepting it as payment and no convenient way of converting it back to hard currency, it is very risky investment in my book. After 5 years much of their Dagcoin ecosystem is “still in the works”.
The promise of faster transactions and lower fees sounds good, but if you can’t find a merchant that accepts Dagcoins, then fast transactions and low fees are not much help. It always bothers me when someone promotes something as an alternative to hard currency, but want your hard currency in exchange for it.
They end up with money they can spend anywhere and you end up with Dagcoins that you can’t spend anywhere but those limited number of merchants within the Dagcoin ecosystem. And, even if they still have their multi level or Affiliate program, you earn commissions that are paid in Dagcoins so you have the same problem.
Does Dagcoin Have a Refund Policy?
Dagcoin has no refund policy. If you should want to get your money back, you will have to find someone to purchase your Dagcoins from you. Currently there are some, but usually at a very steep discount so, at best, you will only get back a fraction of your initial investment.
According to their website, you can exchange your Dagcoins for Bitcoin on Dagcoin’s SwipeX app. There are some altcoin platforms that exchange Dagcoins, but again, at a steep discount.
Who is Dagcoin For?
Dagcoin claims it is designed for developing economies where people may not have access to standard banking or the banking system may risky and or corrupted. The DAG and Byteball technology hold the promise of faster and less expensive crypto transactions than the standard blockchain crypto currencies.
Currently however, with it’s limited ecosystem, It has very little to offer. Over 5 years and only 1500 merchants taking Dagcoin as a form of payment makes it of little use for anyone. Until they can gain more merchant acceptance and the ability to convert back to hard currency if needed, then I would not recommend Dagcoin for anyone.
Dagcoin Frequently Asked Questions
1) What is Dagcoin? Dagcoin is a non-publicly traded cryptocurrency that has also been a Multi-Level Marketing level opportunity. The company started in 2017 and was founded by Nils Grossberg. Dagcoin is based out of Estonia.
2) How do you make money here? There’s two ways to make money here – the first is to invest money into Dagcoin and as they add members and or merchants then the value of your Dagcoins increases You can also save you Dagcoins in their Dagcoin Grow account and earn from 1 to 3% depending on the length of time you save. At one time you could earn Dagcoin by recruiting others to purchase Dagcoins.
3) Are there any red flags? The biggest red flag is this company is a clone of a very well-known scam called Onecoin. In fact, the CEO of Dagcoin was a leading promoter and investor in Onecoin. Also, Dagcoin has no real value outside of the Dagcoin ecosystem and they are very difficult to exchange for hard currency.
4) What is Dag University and Success Factory? Success Factory is an “education” company that’s also a MLM. This company, however, is nothing more than a front to get people to invest in Dagcoin. DagUniversity was the predecessor to Success Factory.
Dagcoin Overview and Final Thoughts
I have a lot of concerns about Dagcoin. The concept of a crypto currency designed to be used and not traded, on the surface sounds good, but when you have very few places to actually use it, the value is greatly diminished. In order to purchase Dagcoins you need hard currency, that is accepted everywhere, and in exchange you get a crypto currency that is accepted almost nowhere.
And, since it is not publicly traded, there is no convenient mechanism to convert your Dagcoins back into hard currency should the need arise. At one time they had an affiliate or multi level opportunity associated with Dagcoin that is no longer mentioned on their website. What happened to those members who signed up for the MLM opportunity?
Your Dagcoins only have value inside their Dagcoin ecosystem which, while it lists some attractive platforms, most of them are “still in the works”. In other words, lots of promises, not much delivery.
There are much more stable and accepted crypto currencies, and yes they can have big price fluctuations. But, you can exchange them for hard currency and they have a much wider acceptance as a form of payment.
In my opinion, Dagcoin is very risky at best. You are not going to get rich with Dagcoin, there are very few places that accept it as payment and the CEO has a past history with the Onecoin ponzi scheme.
Be very careful, do your own due diligence and maybe take a wait and see attitude. Maybe it will grow into a viable ecosystem, or maybe it will crash and burn. Is Dagcoin a SCAM? I’ll let you decide.
My #1 Recommendation
Rather than investing your hard-earned money into a risky crypto currency or MLM opportunity, I recommend you take a look at affiliate marketing. It’s a proven business model that has been around for decades and continues to grow as the internet and online commerce continue to increase.
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Crypto Affiliate Programs
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P.P.S. If you have any questions, or are unsure of anything, I am here and I promise I will get back to you on all of your questions and comments. Just leave them below in the comment section. Follow me on Twitter: @onlinebenjamin1, Instagram: dotcomdinero, and Facebook: Online Benjamins