So, can a site really give away BitCoins and other online currency for free?
Not in fact it turns out a meat substitute,"Qoin", is a relatively new website supposedly giving away bitcoins, litecoins, feathercoins and a few others of the new virtual currencies, seemingly for free and without the need for any tech know-how, in this article will attempt to see if their claims can be true. Also attempt to discover how a website can seemingly give away for free Bitcoins and LiteCoins to users everyday for doing nothing other than have an account.
About a week ago I happened upon a site "qoin" in it's alpha phase, the site claimed to give users BitCoins, for free, amongst other e-Coins. On the site they had news of various stuff they were going to do and asking members to help find more members / testers. At the time there wasn't a single way of them making any money though, so was totally sold on the idea, they had said this was only phase one which was mainly server testing.
However yesterday they introduced "credits" which unlock new types of Coins, the two they have on offer at the moment at worldCoins and earthCoins both fairly new currencies, credits ingeniously I felt were acquired through sending an SMS meaning the company now have an automated revenue stream, no longer dubious of the idea,
So what exactly is the idea?
So as a member, when you join up you basically get issued a very small amount of about 5 virtual currencies, BitCoins being one of them, then also a much smaller amount every 24hrs without you having to do anything. All the site requires from you is to validate an active e-mail address nowt dodgy. After that, literally you don't have to do a thing, you could then not log back on again for a month and come back and your account will have credited with the various currencies.
So basically they pay you peanuts?
Well in short, yes, the amount currently issued automatically per day to your account is tiny, literally not even a cent, however each one of the virtual currencies could fluctuate wildly in value, so basically you're being paid a tiny amount at current exchange rates however with a few wild fluctuations a very tiny amount could be a worthwhile amount for no effort expended.
They also seem to increase one or two currencies rate of issue by about 5% every week or so. Though an increase of 5% of very little is still a very little. Plus add new currencies that are either unlocked through how many days the account has existed or through sending a SIM msg (their first revenue stream).
How can it be profitable for them?
Basically imagine setting up a site where you give your users free Coins in 5 different currencies. Then they had to pay $1 to unlock each new "tap" of currency. Now even if you only spent like 10% of that $1 on virtual currencies that you gave away to your users, as you're giving them virtual currencies that might jump up in value, you can already have a large "bank" of all the currencies.
Not only that (not that they have said they'll do this) you can also then also have a currency exchange where users can trade with each other and the company recoups a tiny fee per trade.
Whatever the company have planned it seems like an original idea which has legs.
Step-by-step guide for tech-no-phobes
1) You will need an active e-mail address make sure you remember your login, if you haven't got one free e-mail found at mail.com which gives you a simple @mail.com address.
2) Sign-up for an account at the qoin site.
3) To see your initial "gifted" coins you need to validate your e-mail address, check your inbox and you should have a mail from them, simply click the link in the mail and it will validate your account.
4) Your account should now be active, use the login name and password you chose when you made your account to login and select "balances" this will show your starting coins of the various currencies.
5) That's literally it, you're off and away and earning daily bitcoins and others, some unlock after a number of days. Even though it's a pretty tiny amount of ecoins to begin with, you can see the current exchange rates to real currencies such as the euro or dollar at a useful site, the various currencies found here upon it.
Qoin have now taken the next step of evolution and have now allowed the accounts to be used as an online wallet. This is a big step forward as it now means basically a free online wallet to purchase and transfer online currencies, plus they give you a little trickle of them for free, there are obviously minimum amounts needed before one can utilize the various currencies and it'll be pretty foreign operation to many users, it's no paypal yet, promising development definitely though.
Does it Work?
This is my data so far, ill also report how the withdrawl system functions when have enough, :
(day 1) 27/2/14 : beta coins value in Euros : 0.0038
(day 2) 28/2/14 : coins value in Euros : 0.0036 (even though granted more of the various coins, BitCoins fell 426 per coin to 400 euros a piece)
(day 4) 3/3/14 : Coins Value in Euro : 0.0039
(day 6) 5/3/14 : Coin Value in Euro : 0.0046 (almost all the currencies have jumped around 20% in 2 days)
(1 week) 6/3/14 : Coin Value in Euro : 0.0048
(2 week) 13/3/14 : Value in Euro : 0.005