Powercoins — Review

This is  SCAM project already! Do not invest there anymore!

Powercoins is another company based in The United Kingdom.  It is new and came online on February 6, less than a week ago.  However, the company claims to have been in business since January 2013.  The website provides a copy of the company’s registration papers which indicate that the full name of the company is Power Supply And Technology Coins LTD.  The nature of the business is given as “Financial Management” (which doesn’t fit too well with the name of the company).  At one point the website indicates that they are involved with “startup investing, fundraising, and crowdfunding for specific projects” while at another point it indicates that “beginning 2015 we have decided to focus in the BitCoin mining industry and built few exclusive mining centers from industry-leading equipment based on world-class standards to miner in the best condition with the lowest power cost.”  Investment and building mining equipment are very different fields.  This said, diversification appears to be the name of the game with Powercoins.

At one point in the website, concerning the staff on Powercoins, it was indicated that they “became one of the major leaders in the wholesale trading market by boasting professional traders and a highly experienced engineering team with well-diversified areas of expertise to allow for participation in the business market within a safe and non-risk investment environment.”  At first I was wondering what the engineers had to do with “financial management.”  But, maybe they are the guys that are developing the mining hardware?  All this isn’t very clear.  But this is typical of the business descriptions often given in the HYIP industry.

It is also interesting to read the incorporation papers of Power Supply and Technology Coins LTD.  The company has one director, a Peter Benson, and he is the single share holder (of one share that he bought for one GBP).  The papers go into great detail describing directors’ authority, meeting procedures, voting procedures, salary, etc. as well as the same for shareholders.  All of this is kind of silly, of course, as the company is a one man show; no meeting or voting or division of powers is involved!  I wonder why this silly document was made public on the website.  If I were Mr. Benson, I would have kept it a secret!  But, on to the Powercoins investment programs…

There are three of them.  None of them return your principal at the end of the investment term.  Rather, it is returned to you as part of your earnings.  You can withdraw your earnings at any time as long as your request is above the minimum requirement.  Withdrawals are “instant,” something I always question, especially when Bitcoin is one of the withdrawal methods.

The first program is called the “Life-Time” plan.  The minimum deposit is $10 and the maximum is $50,000.  You earn 1.8% daily on this plan.  As the name implies, after you make an investment, you keep earning forever.  This is a great arrangement if the program is a survivor.  Since you are earning 1.8% per day, you simply divide 100 by 1.8 to get the number of days to break even — 56 days, or close to two months.  Of course, this applies no matter how much you invest.  After this, everything you earn is profit.  So, for a $100 investment, you would earn $1.80 per day.  After this initial two month period, you would earn $54 (1.8 x 30) per month (30 days) in pure profit.

The second plan is called the “Daily” Plan.  For this plan the minimum is increased to $25 but the maximum is the same at $50,000 (I don’t expect that here will be too many investors at this level no matter what the plan!).  For this plan you earn a much more generous daily interest rate of 4.5% over the plan length of 30 days.  By the end of this period, you will have earned a total of 135%  (4.5 x 30) of your investment.  Since your principal is not returned, you earn 35% profit.  So, for an investment of $100, you will come out $35 ahead after 30 days — one month.  If you divide 100 by 4.5, you can get the number of days it takes to break even — around 22 days.  After that, you are earning pure profit.

The last plan is called the “Hourly” Plan and, as the name applies, your interest earnings of 0.25% are paid to you on an hourly basis.  For this plan the minimum investment is increased still more to $100 while the maximum remains the same at $50,000.  Since there are 24 hours per day, the effective interest that you earn per day is 24 times 0.25% or 6%.  So, for 30 days, you will earn 180% (6 x 30) of your investment.  Since your principal is not returned your profit is 80% and, again, if you invested $100, you would have earned $80 in pure profit in the 30 day period.  At a 6% interest rate, you will break even in only around 17 days (100/6).  After that is when your pure profit begins.

One way to compare the three Powercoins investment plans is to compare the profits that each of them will generate on roughly a monthly (30 day) basis.  For the first plan, you don’t earn anything for two months.  After that, you earn $54 per month.  For the second plan you earn $35 per month.  And, for the third plan, you earn $80 per month.  Here it is in chart form:

Life                  $54/month (beginning third month)

Daily                $35/month

Hourly             $80/month

Clearly, on the basis of monthly income, the Hourly plan is the way to go.  The Daily and Hourly plans also give you profit in the first two months while the Life plan doesn’t.  So, it would seem that the Daily and Hourly programs are more profitable than the Life plan.  However, since they require a greater initial investment than the Life plan, you place more cash at risk.  On the other hand, no matter how little you invest in the Life plan, you won’t see any profit until your third month.  Hmmm.  Plenty to think about!

Powercoins has a four level referral program which is a tad better than most other HYIPs.  It pays 5%, 3%, 2%, and 1% of deposits made by people in the first four levels of your downline.  You don’t have to make a deposit yourself in order to participate in the referral program.  So, there is a potential for significant risk-free earnings if you are an aggressive recruiter.

Powercoins has all the popular payment processors covered which are Bitcoin, Perfect Money, and Payeer.   They indicate that bank transfer will be added soon.

For support, Powercoins provides the usual email address and contact form.  A United Kingdom phone number is given that you might want to try.  I’d like to think that their phone support will be better than most HYIPs.  You will have to find that out for yourself.  Unfortunately, there is no live chat.  I clicked on the link to Facebook, but nothing happened.  Maybe that will be activated later?  A Facebook group can be a very useful resource.

In closing, this is a more or less typical HYIP.  There is some question about what the company does to earn money as well as about the administrative structure of the company.  The investment programs are medium to long term and provide respectable earnings.  How long they can be sustained is anybody’s guess.  Everything considered, you might want to add Powercoins to your investment portfolio.  As usual, use caution and never invest more than you can afford to lose.  A diversified portfolio is always good advice.  Good luck!