Riding the Mcoin wave

PETALING JAYA: Mcoin, a well-known digital currency founded in Penang, has been gaining traction over the years as investors are tempted by its high yield that is far above most other investments.

Mcoin comes under under MBI Group, which is involved in various businesses including property, convenience stores, clothing, electronics, to name a few. MBI was founded by Tedy Teow in July 2009 and former inspector general of police Tan Sri Musa Hassan is a consultant for the group.

The activities of Mcoin are undertaken by MFace International Sdn Bhd, which posted a narrowed net loss of RM510,632 for the financial year ended Dec 31, 2013 compared with RM916,158 a year before, according to its last filing with the Companies Commission of Malaysia.

MFace’s directors are Wong Wen Torng, Kau Fong Seng and Teow Ee Meng.

Mcoin is accepted at many places in Penang, including its “flagship store” M Mall, which is adjacent to Penang Times Square. For some stores, they can impose an additional 10% on product prices for purchases through Mpoint due to a lower profit margin.

“Therefore, paying cash will be slightly cheaper compared with the point redemption,” said a staff member at a shoes store at M Mall. A certain amount of Mpoints will be given to members according to the packages, between US$100 (RM414) and US$15,000, subscribed.

An investor told SunBiz that he joined the scheme three years ago and has made handsome returns from it.

“Three years ago I subscribed to a US$5,000 package and now its value has surged to US$35,000 through networking,” he said.

An agent who declined to be named said an investor – who prefers to be a “quiet member” – (without doing networking) might need to wait for more than a year to see a significant return.

“They’ve to keep the coins for a longer period. Typically, there will be a split for the coins every six to eight months, whereby the value of the coins will be halved,” he said.

However, he said unlike the stock market, the attractive part of the coins is that its value will always rebound to its previous level.

“In other words, the value of the coins will only go up, hence making it an interesting appeal to the investors,” he added, noting that Mcoin has 90 million members globally.

On an argument that the company is the market maker, the agent said that the coins have gradually shifted to the supply and demand dynamics.

The Mcoin business model is said to be sustainable due to the everlasting amount of Mcoins that you have, as only 55% from the sale of the coins will be realised in the form of cash. 30% is allocated for coin buy back, 5% in Mpoint and the balance as the company service charges.