Rid­ing the Mcoin wave

The Sun (Malaysia) - - SUNBIZ - BY LEE WENG KHUEN

PETALING JAYA: Mcoin, a well­known 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 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 shoe 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” (one who does not do 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.

On an ar­gu­ment that the com­pany is the mar­ket maker, the agent said 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. Thirty per­cent is al­lo­cated for coin buy­back, 5% in Mpoint and the bal­ance go to com­pany ser­vice charges.

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