Before being closed, Coinreum was operating from Coinreum.com. The company claimed that it was an investment company being managed by a team of professional cryptocurrency traders. Coinreum claimed that its operations were both trustworthy and legitimate. The company claimed that it was focusing on long-term investments. I tried to determine where Coinreum.com had its offices. This information proved impossible to find. This is because the company website is currently offline. When I tried accessing Coinreum.com, I was redirected numerous times. I ended up on a page that had nothing to do with cryptocurrency trading. When I searched the domain Coinreum.com on whois.com, I was able to verify that the domain address was registered on 5th August 2017. Unfortunately, the team behind the website used a privacy package. This means that even whois.com does not have many details about the website apart from when it was registered.
I tried to determine who was behind the company. However, I could not find any individual or corporate entity that assumed responsibility for Coinreum.com. Coinreum had zero information regarding the operators, the investors, or the pioneers who were involved in the creation of the company. I tried to determine the number of users who had been using Coinreum before it was closed. I could not find this information.
Coinreum was serving a wide range of cryptocurrencies. The main cryptocurrencies offered on the website included:
- Bitcoin cash
I could not determine the countries where Coinreum was accepted. Also, it was impossible to determine all the languages Coinreum.com supported. What I was able to determine is that the default language was English. I assumed that this could have been the only accepted language. However, I could not rule out the fact that Coinreum.com may have supported other languages.
Coinreum.com was a web-based platform. This means that the only thing a user needed to be able to access it was a web browser and an internet connection. This suggested that every device that could access the internet was supported. Coinreum.com users could have accessed the website on their computers and mobile devices. I could not determine whether Coinreum was partnering with any cryptocurrency exchanges. The absence of its website made it impossible to get most of the website crucial information.
It was impossible to determine the withdrawal options offered by Coinreum. However, I was able to determine the payment methods the Coinreum.com users were allowed to use. For a user to become a member, he or she was supposed to complete a payment using any one of the following ways:
- Bitcoin Cash
Customers were not offered any instant method of contacting the Coinreum customer support team. They were either supposed to leave a message and the customer support team would reply via the email or they could have used the company’s email address. The company’s email address was [email protected] Companies which have a live chat or a phone number are usually more appealing than companies which force the customer to wait for a reply for an unspecified period of time.
How Does Coinreum Work?
The method of operation of Coinreum.com was similar to that of pyramid and Ponzi schemes. The reason why I have compared Coinreum.com to pyramid and Ponzi schemes is that the site did not have any business model that could have been referred to as sustainable. The only source of income being channeled into Coinreum.com was the deposits that the investors made. The company was using these deposits to pay the affiliates after taking their own huge share. They also took a share from the affiliates. In the end, Coinreum.com was the main benefactor in the whole operation.
There was no information regarding how customers were supposed to trade or how the money withdrawal was supposed to take place. The information I found was about the 3 investment plans offered by Coinreum. The plans had what I can only refer to us outrageous ROIs (Return on Investments). None of the of the plans or their ROIs could be verified. I have described the plans below:
- The Daily Plan – This had a 3.20% daily return. It had a period of 50 days. The total expected return was 160%.
- Weekly Plan – This had a weekly return of 25% and had a period of 10 weeks. The total return expected at the end of the 10 weeks was 250%.
- Monthly Plan – This had a monthly return of 115% and took three months. At the end of the three months, the customers expected to have an overall return of 345%.
The Coinreum.com ROIs were simply too good to be true. On average, genuine and legitimate bitcoin operations never generate an ROI that exceeds 20 to 25% annually.
Coinreum.com Features and Services
When I tried determining the services Coinreum was offering I could not find any. The company did not have anything tangible to offer. The only thing I would assume that Coinreum.com was offering is the chance to generate some cash using less than legitimate ways as the scammers waited for the perfect time to disappear with the customers’ money. The absence of the Coinreum website made it impossible for me to determine the features that the company had.
Despite my effort to try and determine the amount of money the customers were supposed to pay in order to join Coinreum.com, I came up empty-handed. This information could have been available on the company’s website. Lack of access to this website means that there was no way to determine whether this information was available. Coinreum focused more on displaying the benefits the customers would enjoy. This can be seen on its homepage where the company has a huge banner telling customers that they can earn up to 3.8% on a daily basis without having to work.
Just as you would expect with other scams which focus on taking advantage of their customer’s trust, Coinreum was paying its customers initially. However, it reached a point when the company stopped paying. This can be verified by 2 reviews I found online. The reviews were written by the same customer. I have the 2 reviews below:
Initially, Dextro reported that he was very glad that Coinreum was paying in BTC. His investment was growing with the price of Bitcoin. The initial payment he had made had already grown and by the time he was crafting the review, it was valued at $140. He had received a successful payout from Coinreum a few days before writing the review. He was about 10 days from the break-even date which would leave him with about 20 days of making a profit. He was impressed by the fact that Coinreum was offering a wide range of deposit options. The reviewer claimed that the onsite exchanges were great. He attached a screenshot as evidence of his investments, profits, and the fact that he had been able to withdraw.
After a while, the reviewer came back with a different testimonial. He reported that Coinreum.com did not appear to be paying anymore. He had made a withdrawal and it had been pending for 36 hours. Reports about withdrawals being impossible were already piling up on the Coinreum Facebook page. He ended up losing a total of $50.
From the above testimonials, it is safe to say that Coinreum was a scammer. In order to make customers trust the company, they focused on paying the customers their money initially. After coming to a point where they thought the users had trusted the company enough, they disappeared with the customers’ money. The fact that Coinreum is not online anymore means that customers will not get scammed by the company unless it comes back online. However, crypto enthusiasts can learn that not all digital money trading websites are genuine. Those that look trustworthy may end up violating the trust and stealing from the customer.
Coinreum.com had numerous red flags even when it was operating. The first red flag I noticed is the fact that the website did not have a sustainable business model. This made it a Ponzi or a pyramid scheme. Most of the people who joined Coinreum.com could have missed all the red flags because the website was promising very high returns.
Initially, customers were getting paid. However, this was just a strategy to make the customers think that they are dealing with a genuine company. The reviewer who wrote about his experience with Coinreum claimed that a large number of customers lost their money when Coinreum.com was shut down suddenly. Coinreum.com had too good to be true ROIs. The company suggested that it would give an ROI that takes legitimate bitcoin operations a whole year to get within 7 days. Instead of falling for huge benefits promises, it is advisable for crypto enthusiasts to consider how genuine a company is.