According to their official website, Crowd1 offers people an opportunity to participate in Crowdfunding initiatives:
“Crowd1 has established a business model where average people, without taking a huge financial risk, may be able to benefit from the new trends of Crowd-funding and Share Economy”.
But, what exactly does this mean?
What is Crowdfunding?
According to Wikipedia, “Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet”.
Here’s an example of how crowdfunding works:
She posted her business idea on Kickstart and asked the general public for donations with a promise to send them some toys once she made them. (You can see the complete pitch on the Kickstart website).
In the following example, donors were promised a set of three toys when they pledged $75…
How do Crowd1 Members Benefit from Crowdfunding?
In the Animoodles example, donors understood exactly what they were funding.
…And the benefits for their participation were clear …They would get some toys.
In Crowd1, it is not clear what the rewards for “donors” will be…
During their pre-launch phase (early 2019), Crowd1 offered people an opportunity to buy shares into Crowd1.
The promised reward was that members will benefit from Crowd1’s future partnerships in the Online Gambling and Mobile Gaming sectors.
This was to be done through Crowd1’s AffilGO and Miggster platforms.
However, it is not clear how members will benefit from these “partnerships”.
“…The Amazing Opportunity to Gamble…”
Most of the people who bought into Crowd1 operate under the assumption that they will earn dividends from Crowd1’s gaming and gambling partnerships. What most of them don’t realize is that they will still need to recruit people into these “partner” programs before they can earn commissions.
On 12th December 2019, Crowd1 announced its first Online Gambling partner, Betway.
And, consider this note in AffilGO’s “Terms and Conditions”…
- Betway in Ghana, Kenya, Nigeria, Uganda or Zambia;
- ComeOn! in India;
- Codere in Colombia and Mexico and
- Premier Bet in Mozambique.
All of them have their own Affiliate Programs and the same “Terms and Conditions” as Betway apply… If you’re a Crowd1 member, you cannot ask them any questions related to their partnerships with Crowd1.
And if you take a look at these companies, you will notice they are not your typical start-up businesses. Therefore, it is unlikely that there is any “Crowdfunding” happening in their “partnerships” with Crowd1.
The only start-up business that seems to benefit from any “Funding” by a “Crowd” is Crowd1 itself.
Are Members Paying to be Someone Else’s Product?
As I was reading through Crowd1’s “About” page, I came across these worrying statements:
“Members will …be part of a large group of people who will be presented to different Crowdfunding opportunities, managed by the best and regulated Crowdfunding companies.”
“The crucial part of crowdfunding is to establish the crowd. Crowd1 will be one of the largest crowds of people interested in crowdfunding”.
Notice that it says “Crowd1 members will be presented to the Crowdfunding opportunities”…not “…presented with”…or “…given an opportunity to participate in…”.
What’s wrong with these statements?
Well, if you ignore the flowery words and misdirections, this is what they’re saying:
- (Crowd1’s product) will be “the largest crowds of people” (who sign up to become members).
- When enough people have signed up (and paid), Crowd1 will present them to partners (Betway, Premier Bet, etc) as potential “players” (gamblers).
What’s Your Take?
I personally think Crowd1 is a well-crafted Ponzi Scheme. But I know there’s a lot of people out there who think it’s a Great Opportunity. I’d like to hear your thoughts…Please share them in the “Comments” section below.