In this Crowd1 review, we dive deep to investigate whether is mobile platform is a scam if it is a legitimate business that you can trust.
If you are reading this, you have probably encountered Crowd1 through an online channel such as Facebook or YouTube, and want to know whether this is a legitimated investing opportunity or a waste of your time.
I conducted a good amount of research into this Crowd1 to determine whether it is safe for you to invest in or not.
Crowd1 Review Summary
Crowd1 is a company that recruits members (known as associates) into their company with promises of making large amounts of money through investing into mobile gaming applications. The company had its pre-launch early in 2019 and was officially launched in August of the same year.
The business model follows the template of a multi level marketing, with no identifiable product and focusing primarily of on the recruiting of new members into a network and earning commissions on select purchases the referrals make.
What Is Crowd1
Crowd 1 is a company that is currently collecting money to fund two website, Affiglo and Miggster. The value that is being proposed is that these two websites are
The company is has a huge footprint in developing countries in Africa, with its biggest market being in South Africa where 30 percent of its traffic comes from. It is also expanding into Asia, having recently opened a branch in the country of Philippines.
Crowd 1 is owned by Erik Wener, who runs the company from Sweden through a shell company. The face of the company Stelios Piskopianos of Crowd1 Network Europe Ltd, through an address in Cyprus. The company has been operating since 2019.
What Does Crowd1 Offer?
The “business opportunity” offered to you as an investor is that you will have a networking business that works in support of these two applications and if those companies grow, you will own shares in those companies and earn from those shares.
How exactly you are going to make money is not clear.
According the company:
The Crowd1 business model is the first to allow millions of people the opportunity to take part in one of the world’s largest and most lucrative industries. Everyone who likes the business model will from day one be able to be a part of our global affiliate gaming network. Its an Online network company piggy backing onto the gambling market and the gaming market with 2 million + people and growing.
After hours of digging, I finally found the official explanation for Crowd 1 under their terms and conditions.
Crowd1 is a closed membership club by invitation only. The membership (“Membership”) is free and as a free Associate (“Associate”) you will be allowed to upgrade to a paid Membership, that includes several internal and external features, that Crowd1 from time to time offer their. Associates to join and potentially earn money from. If you choose to be an Associate with a paid Membership, Crowd1 may provide you with Ownership rights (see section 2 of these terms & conditions), that
can be exchanged for blockchain-based smart-contract ownership rights at a later stage at a predetermined price. There is no guarantee that you will earn money or make profits and your Ownership rights may lose all their value.
How Crowd1 Works
There are 4 memberships on the Crowd 1 Platform.
White – Investment cost of €99 and you receive €100 worth of owner rights
Black – Investment cost of €299 and you receive €300 worth of owner rights
Gold – Investment cost of €799 and you receive €1000 worth of owner rights
Titanium – Investment cost of €799 and you receive €1000 worth of owner rights
The amount the that you pay is supposedly going to be invested in these gaming platforms, and in turn, you will own a stake worth that amount of money you have purchased. This is quite unusual because ownership of a legally registered company is usually denoted in shares.
What the company claims is that when you join Crowd1, you receive the owner right that are equal to your membership grade. They also have what they call a Streamline bonus, which is apparently that as more people join after you have joined, the value of your owner right increases.
When assessing whether something is legit or not, I always look at the product to understand what its value is. For example, a popular MLM company that we all know is Tupperware. If I invest in Tupperware, I get household products in the form of plastic storage containers that I can use myself. That value is simple to see. Outside of the business model, there is value in the product itself.
With Crowd1 I found it impossible to see what the value of the product is. They say they are building online and gambling apps but outside bringing other people onboard, what is the value?
How Do You Join Crowd1
To join Crowd1, you need to be referred to someone, who is then referred to as your sponsor. That sponsor will either give you a link, or direct you to their website, where you will enter your details as well as the details of the person who has referred you (your sponsor)
Once you have signed up, you will receive a welcome email and then you have to buy one of the investment packages.
What do you get after you have signed up.
Once you are part of the platform, you get educational training on topics such as real estate and marketing among other. These educational packages come from GitHub, which is a free online development platform.
The touted value is access to their two platforms, Affilgo and Miggster. According to the company:
Affilgo – A brand new crowd marketing site where you can build your global gaming network on a world class platform with real money paid directly from gaming companies. All Crowd1 members get exclusive access to Affilgo
Miggster – Miggster is an online mobile game and social media games that members will have access to. The game genres that Miggster focuses on are the monetized genres such as online gambling, sports betting, mahjong and the like.
So How Do you Make Money With Crowd1
The short answer to that question is that you earn more owner rights in Crowd1 by recruiting more people to join.
There are 3 main ways of possibly making earnings.
- Streamline Bonus
- Binary Education Package Sales Bonus
- Matching Bonus
The way streamline bonus works is that if you have referred people, and more people continue to join after that, you get a certain amount of owners rights per week. The different rates that you are supposed to earn are indicated in the table below.
So if you referred 2 people, and 750 more people join after you, you earn 7.50 euros for as long as more people keep joining.
While binary is a complex concept to understand, a simplified way of explaining is that when you recruit 2 people, when each of buys one of the products, you get 10% from the spend which is the lesser of the two.
Matching Bonus is somewhat related to the Binary Pay. How it works is that if your recruits recruit their own network, for every 4 people that you recruit, you earn 10% of the binary points of the points that they earn from the binary system.
Can You Make Money With Crowd 1?
Sure you can. In fact, some people will definitely make money, but those are the people who get in early if you are getting in now only, then your chances of making money are next to non existent, unless you recruit a lot of people.
And that’s how a ponzi scheme works. You get your money not from an investment, but from the people that you bring in. Some people are fine with that, though, and that’s how businesses like this continue to operate.
People from the USA are not allowed to join – A lot of ponzi schemes focus on developing countries because the regulations against these schemes are weak in developing countries and there are no ramifications for scamming people. If the USA is banned, it’s because they are avoiding the stringent laws that the US has against pyramid schemes.
Here is the most worrisome things hidden in Crowd1’s terms and conditions.
“Crowd1 has the right, in its sole discretion, to suspend or cancel, at any time and for any or no reason, an Associate’s Membership and access to the Crowd1 website and Back-Office. In such an event, all e-wallet balances, owner rights and/or Purchase Rights will be subject to suspension.”
This means that if you can lose your money at any time and you can’t do anything about it because you have agreed to these terms.
The companies that Crowd1 is reportedly partnering with, Affiglo and Miggster, are owned by the same person who owns Crowd1
Crowd1 in the news
Crowd has had quite a few brush ups with the law of recent as more and more people join and people complain about having lost money. According to an article from Busines Insider, Crowd1 has been banned in Namibia. As a result, if you promote it in that country, you can be prosecuted by law and face a fine of R1 million or 10 years in prison.
The company is also being investigated in Norway by the Lottery Authority, which is probing Crowd1 for operating as a pyramid scheme
In January 2020, 17 people were arrested in Burundi for promoting Crowd1, with authorities labeling it a get-rich-quick scheme and the Central Bank saying that its operations are illegal.
How I Research If Something Is A Scam:
How long has it been around – Trustworthy businesses stand the test of time. This does not mean that anything new is a scam, but it but that you need to do further research to find out if it is legitimate.
Find customers who are actually using the product – Find outside opinions before you invest large amounts of money in anything. We live in the age of Google where information is freely available.
How does the company itself make money – There is no underlying business behind Crowd1. The gaming apps they are talking about have not materialized yet and they operate solely on the money of recruits.
Exit strategy – With any investment, you want to take your money out when it has appreciated. There are currently numerous complaints from South Africans (the biggest market for Crowd1) who are unable to take their money out of Crowd1.
What am I left with if the company stops tomorrow? – Using examples of other MLMs like Avon or Tupperware, if those businesses stop operating, you are left with products that you can consume or use yourself or even sell. With Crowd1, if it stops today, you are left with nothing.
Is Crowd1 A Scam?
Crowd1 is, without a doubt, a pyramid scheme and a scam. It has a lot of legal issues and been banned in a few countries. The fact that it does not allow users from the USA to join is also a big red flag because in the USA they are known to have rigorous laws and crack down on ponzi schemes.
Couple that with a whole bunch of legal issues and being banned in certain countries, you are better off avoiding this scam. Some people have even been arrested because of Crowd1 so that’s not a risk you want to take. There are are far better ways of making money that are legitimate and don’t come with this kind of risk.
Here is a better way to make money
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It’s by far the best place to learn how to make money online and you should give it a look.
What have your experiences been with Crowd1? If you have your own story to share, good or bad, or have any questions about the program, let me know the comments below.