BitClub Network terminate early investor contracts
BitClub Network’s original premise saw affiliates invest on the promise of a 1000 day ROI.
When the anonymous owners of the scheme realized they were going to run out of newly invested funds long before 1000 days was up, they changed the ROI maturity period to 600 days.
The idea was that affiliates who initially invested would re-invest after 600 days, giving BitClub Network more breathing room.
Evidently this change wasn’t enough, with the company now set to dump early investor contracts.
In a move BitClub Network acknowledge “members are not going to like”, the company has affiliates who invested between September 14th 2014 and June 30th 2015 will no longer receive a ROI.
Within the context of BitClub Network’s 1000 and 600 day ROI maturity period, September 14th 2014 was 714 days ago today. June 30th 2015 was 425 days ago.
BitClub Network claim the reason behind the dumping of early contracts is because affiliates who invested early have ‘made back a substantial return‘.
By eliminating these early shares it will boost the daily payout on a per share basis for everyone else.
It will also allow us to go back to paying for 1,000 days on all the contracts instead of 600 days.
The return to 1000 day contracts will likely see BitClub Network reduce the rate newly invested funds are used to pay off existing investors, once again giving them more breathing room.
If you purchased a share that was only good for 600 days you will see an extra 400 days added to your mining time.
The takeaway from the changes is that if BitClub Network’s mining operations were as profitable as represented, there simply wouldn’t be a problem.
BitClub Network solicit investment from affiliates, purportedly put all of it towards mining equipment and mine bitcoin. Whatever bitcoin is mined is distributed among affiliates, with hardware upgrades acquired as needed.
While this does happen to some extent (certainly not with all invested funds), what BitClub Network have come to terms with is that under this model current investors are screwed.
In addition to bitcoin mining, BitClub Network have obviously padded ROI payouts to early investors with subsequently invested funds.
This drain on the system over time likely means, under the current distribution formula, recent BitClub Network investors are not going to see a ROI on their initial investments.
Scrap early investor positions that have been paid off and hope that subsequent investment plus a return to a 1000 day maturity period works out.
The problem with Ponzi math however is that it doesn’t add up.
Online Ponzi schemes typically crash around the two-year mark, which BitClub Network is fast-approaching.
BitClub Network’s token mining operations have never 1:1 accounted for the ROI it pays its affiliates.
Instead the company continues to hope that
eventually the market will adjust and either the price of Bitcoin will shoot up, or the difficulty will drop making large scale operations like ours more profitable.
The stretching out of existing contracts to a 1000 day maturity period was primarily done so in the hope that one of the above happens. Otherwise BitClub Network is inevitably going to run out of invested funds to distribute and collapse entirely.
There’s only so much pre-mined ClubCoin the company can palm off before affiliates realize the coins aren’t actually worth anything.
A new attempt to solicit more investment from existing affiliates is the introduction of five “trading pools”.
BitClub Network affiliates invest $500 to $25,000 into the pools, with BitClub Network promising an 18 month ROI.
Each day you will decide if you want to trade for the day, all you need to do is login and click a simple button that says “Yes, Trade My Bitcoin Today”.
After 18 months in the pool you will begin to receive a portion of your initial Bitcoin back that will begin to be paid back monthly over the next 10 months.
Just like our mining pools we have forced re-purchases on all monthly profits.
Sounds like a convenient way to capture a sizeable percentage of funds paid out to early BitClub Network (to pay off new affiliates).
We want to make it very clear that you could end up losing your principal and there could be negative profits allocated against your account in any given month.
And they’ve even given affiliates a convenient “pre-excuse” should the whole thing fall apart.
Hell of a roundabout way of saying “We paid out too much, have almost run out of invested funds and need some of the ROI money we paid out back”.