Company Name: Dagcoin
Costs: $100+ (initial investment)
Do I Recommend Dagcoin?
Cryptocurrencies are extremely popular right now, especially as some have managed to be very profitable. Dagcoin itself is also a little different in overall approach – a factor that makes it stand out somewhat in the market.
Nevertheless, most people simply wouldn’t be able to make money with Dagcoin. Instead, the company is mostly an MLM pretending to be a cryptocurrency and is far more likely to cost you money than let you earn it.
What Products Does Dagcoin Sell?
Dagcoin is a type of cryptocurrency and, like many, it cashes in on the success of Bitcoin. For anyone unfamiliar, this means that Dagcoin acts as an electronic measure of value, kind of like gold in a digital form.
The approach means that cryptocurrency becomes a form of investment. For example, if you had put significant money into Bitcoin right at the beginning, you could be a millionaire right now.
Success isn’t just limited to Bitcoin either. Instead, some other cryptocurrencies have been profitable, especially in the short term. One of those was Ether, which produced a 16x return in a relatively short space in time and options like Ethereum are rapidly becoming more successful as well.
With that in mind, the key product that Dagcoin offers is currency. So, as an investor looking for a return, you should be looking at the possibility that people will want to use Dagcoin in the future as a way to store and trade value. They claim that it has fast transactions and low transaction fees, while being open-source, all which are positive things.
The company does suggest that they have (or will have) an educational program and this may offer a different way of earning the coins. But, there is no evidence that the program is actually active at present.
If that currency is good enough, Dagcoin may be worth considering. After all, some cryptocurrencies are successful and getting involved with one of those at the beginning would be powerful. But, is Dagcoin any good?
What Makes Dagcoin Special?
One of the most important considerations about any cryptocurrency is what makes it stand out? After all, there are countless different options on the market, with more being introduced as time goes on. And certainly, the company’s claims that it is amazing don’t help – as most have similar concepts.
A key difference is the underlying mechanism. Basically, Dagcoin is promoted as being a blockchain-free cryptocurrency. Instead, the process operates through a process called directed acyclic graph (DAG). This approach means that any new transaction made can confirm one, or more, previous transactions.
In theory, the DAG approach could make transactions faster and reduce latency, while potentially decentralizing some aspects of mining for the currency. As a result, blockchain-free approaches may make it more viable for people to mine the currency, even if it becomes popular and widespread.
The end result is that Dagcoin is somewhat unusual, although there are other companies working on alternative approaches as well. However, unusual can be good and bad. At this point, no one really knows how Dagcoin will perform in the market or whether it will be sustainable in the long-term. The currency could work but there is a decent chance that it would simply fail as well.
Furthermore, despite the DAG idea, there isn’t any evidence that people can actually mine the coins. Instead, the only way to get them appears to be to pay actual money, which isn’t a good sign. This would make it more difficult to earn money and also considerably lowers the legitimacy of Dagcoin.
Is Dagcoin A Good Business Opportunity?
At face value, Dagcoin simply looks like a cryptocurrency company. But, there is also a strong focus on recruitment. This means that members are expected to buy the coins and also get other people into the company.
From the purchasing perspective, there are various ranks, going from Starter up to Investor. Each rank requires a specific level of investment and you receive dagcoins based on how much you spend. At the initial level (Starter), you get 100 dagcoins for $100, while the highest level (Investor) offers 35,000 dagcoins for $25,000.
So, you get more coins for your money at the higher tiers. But, of course, that outcome is only useful if the currency increases in value and that is almost impossible to predict.
The investment that you put in takes 8 months to mature and you can’t do anything with it until after then. During that point, you’re earning 3% per week as interest on that investment – but you still can’t touch anything until those 8 months are up.
This aspect alone would be frustrating. You have no way to know how the value of the currency will change within that window and you won’t have the ability to take advantage of any positive changes. For that matter, there is no guarantee that the company will even be around in 8 months, or that they will pay out at the end of it. That’s a long time to wait for the hope of a return.
The other aspect is recruitment, which follows an MLM model. As such, the idea is to recruit individuals who then recruit others and so on down the line. Dagcoin itself offers very little information about this side of things – a pattern that I always find concerning.
But, for the most part, the company is using a binary system, where the goal is to build two individual legs of your team. You can then earn 10% of the investment from anyone you directly recruit, along with residual commissions from the weaker of the two legs.
As with other MLMs, there are also various ranks to progress through, starting with Affiliate and going all the way up to Crown Ambassador. Each rank offers more potential to earn money but also comes with various requirements. Some of those are tied into sales volume. To reach the higher levels, you have to get people to invest millions of dollars (literally!). That’s tremendous pressure, especially when you’re basically promoting an investment opportunity, rather than an actual product.
You also don’t get commissions immediately. Instead, these are converted into dagcoins and have to go through that same maturation cycle. Once again, there is no guarantee about what you would get at the end of it all.
Making Sales And Recruiting
As a general rule, direct sales is much more difficult than most people realize. It’s tough to convince people to buy something, especially in cases where they weren’t really interested in the product or service to begin with.
But, this process gets considerably more challenging with something like Dagcoin. In particular, you need people who are willing to invest and wait 8 months before they see any return at all. Even if you can find individuals who can afford to do so, many would think the whole idea sounds like a scam.
In contrast, there are many product-based MLMs out there, like Steeped Tea and Motives Cosmetics. These do still have some similar limitations, especially as you have to rely on recruitment. Nevertheless, at least they let you promote items that people are actually interested in. Doing so has a higher chance of success, particularly if you are selling items that suit your local audience.
Making Money With Dagcoin
So then, there are two components of Dagcoin – buying the currency and recruiting others. Either of those areas could be ways to make money, providing Dagcoin is successful. But, it’s easy to see the potential for problems. After all, you could be investing thousands of dollars (if not more) and it takes 8 months to see any financial return at all.
You’re also meant to be actively recruiting during this period. So, the idea is to get people to join before you’ve even made any money yourself.
Like any cryptocurrency, Dagcoin heavily relies on the idea of growth over time. And, some cryptocurrencies have been successful, earning their members considerable income. The problem is that many others haven’t. In fact, there have been many more failures than successes, just like in a conventional business start-up.
For example, if you had invested in Google when it was a baby company, you could be rich today. But, what about investing in something like Ask Jeeves? There were countless other companies that were equally popular early on – but are now simply relics. Distinguishing between those options at the beginning would have been almost impossible. Instead, you would have had to take a gamble.
That’s really what cryptocurrencies come down to as well. You can’t know which ones are going to be successful and there are countless different options available, many of which are basically clones of one another.
What’s more, Dagcoin isn’t mineable. Instead, the only way to get the coin is to buy it from the company, which maintains complete control over it. This also means they have a strong hand in what the coins are worth. If nothing else, there’s a considerable risk that the company would decrease the value close to the time that your investment matures – a process that would leave you out of pocket.
One final consideration is trading, which is an alternative way to earn money with cryptocurrency and tends to be a common approach. With this idea, people buy the coins in much the same way that they do penny stocks and then trade one for the other through exchanges.
Doing so is fairly similar to making investments and trading with stocks. So, if you know what you’re doing and have a little luck, then making money is possible. However, many people do lose money with penny stocks, just like most people lose money with crypto trading.
Lastly, let's not forget that this “cryptocurrency” has been linked to the OneCoin ponzi scheme.
Dagcoin is promoted as the next Bitcoin but there is little evidence that this is the case. Instead, the currency is a considerable risk and your potential to make money is limited.
For the vast majority of people looking put their dollars to work as passive income, traditional investments like a low-cost index fund is going to be the smarter choices. Even trading stocks is going to be less risky than investing in cryptocurrencies.
If you do want to get involved in the crypto world, and especially altcoins, be sure to do your homework. Know the developer, read the white paper, and invest only what you can lose. Above all, my recommendation is to avoid coins where the main value is derived from recruiting new members.
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