ArbiSmart Review: RBIS Ponzi points investment fraud
ArbiSmart provides no information about who owns or runs the company on its website.
ArbiSmart’s website domain (“arbismart.com”) was first registered in July 2018.
The domain registration was last updated in June 2019 and lists “ArbiSmart OU” as the owner. No further details are provided.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
ArbiSmart has no retailable products or services, with affiliates only able to market ArbiSmart affiliate membership itself.
ArbiSmart’s Compensation Plan
ArbiSmart affiliates invest €300 EUR or more on the promise of advertised returns.
- Beginner Level 1 – invest 300 to 500 EUR and receive 0.012 to 0.014 EUR a day plus 0.048 to 0.056 in RBIS tokens a day
- Beginner Level 2 – invest €501 to €1000 EUR and receive €0.013 to €0.015 EUR plus 0.052 to 0.06 RBIS tokens a day
- Beginner Level 3 – invest €1001 to €2500 EUR and receive €0.014 to 0.016 EUR plus 0.056 to 0.064 RBIS tokens a day
- Advanced Level 1 – invest €2501 to 5000 EUR and receive €0.02 to €0.024 EUR plus 0.08 to 0.096 RBIS tokens a day
- Advanced Level 2 – invest €5001 to 14,999 EUR and receive €0.024 to €0.028 EUR plus 0.096 to 0.112 RBIS tokens a day
- Advanced Level 3 – invest €15,001 to €30,000 EUR and receive €0.027 to €0.03 EUR plus 0.108 to 0.12 RBIS tokens a day
- Expert Level 1 – invest €30,001 to 50,000 EUR and receive €0.3 to €0.032 EUR plus 0.12 to 0.128 RBIS tokens a day
- Expert Level 2 – invest €50,001 to 100,000 EUR and receive €0.032 to €0.034 EUR plus 0.128 to 0.136 RBIS tokens a day
- Expert Level 3 – invest €100,001 to €250,000 EUR and receive €0.034 to €0.039 EUR plus 0.136 to 0.156 RBIS tokens a day
- Elite Level 1 – invest €250,001 to €500,000 EUR and receive €0.04 to €0.042 EUR plus 0.16 to 0.168 RBIS tokens a day
- Elite Level 2 – invest €500,001 to €1,000,000 EUR and receive €0.043 to €0.046 EUR plus 0.172 to 0.184 RBIS tokens a day
- Elite Level 3 – invest €1,000,001 to €2,500,000 EUR and receive €0.046 to €0.075 EUR plus 0.184 to 0.2 RBIS tokens a day
VIP plans are also available but specifics are not disclosed on ArbiSmart’s website.
In addition to RBIS token returns paid out above, ArbiSmart also offers additional RBIS token amounts.
These RBIS tokens are placed in a “saving account” and cannot be withdrawn.
ArbiSmart pays referral commissions on invested funds via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
ArbiSmart caps payable unilevel team levels at five.
Referral commissions start at 5% on level 1 (personally recruited affiliates). ArbiSmart however fails to provide specific percentage amounts for levels 2 to 5.
Our five-tiered commission structure enables affiliates to earn up to 5% on every direct referral and then a further percentage for each subsequent level reached.
A 25% back-office balance bonus is also offered when ArbiSmart affiliates reinvest returns instead of withdrawing.
ArbiSmart affiliate membership is tied to a minimum €300 EUR investment.
One of the first thing visitors to ArbiSmart’s website see is that the company is supposedly “EU Regulated”.
This is not a thing.
What ArbiSmart is referring to is their shell company incorporation in Estonia, through which they’ve obtained local virtual currency exchange and virtual currency wallet licenses.
That’s great if ArbiSmart was only engaged in those activities, but they’re not.
ArbiSmart is offering a passive investment opportunity. It’s right there in the company’s own marketing material:
ArbiSmart’s powerful, automated system is able to monitor multiple exchanges simultaneously, 24 hours a day, to find the best prices for buying and selling your chosen cryptocurrencies, risk is dramatically reduced.
There is no emotion involved in automated investing and the system can execute a huge volume of trades at once, so no opportunities are lost.
An MLM company offering a passive investment opportunity constitutes a securities offering, which ArbiStar is not registered to offer in Estonia, or anywhere else on the planet.
This means that despite the instance it’s “EU regulated”, ArbiStar is in fact operating illegally.
For their part Estonia allows shell company registration online. It takes a few minutes and costs next to nothing.
Regulation of registered shell companies is practically non-existent, making it an emerging favorite for scammers.
Scammers like the anonymous admins behind ArbiSmart.
ArbiSmart represents that it generates external revenue via arbitrage activities.
ArbiSmart is fully automated crypto arbitrage system uses advanced algorithms to scan multiple cryptocurrency exchanges at once, responding instantly to the market to get the highest possible returns on investment.
Naturally no evidence of trading revenue being used to pay affiliates is provided. Nor is there any other verifiable source of revenue identified.
To drive home a point, one of the key difference between the virtual currency licenses ArbiSmart obtained and that of a securities offering, is that a registering with a financial regulator would require ArbiSmart to provide audited accounting.
This requires a third-party firm to verify ArbiSmart are actually trading and using that revenue to pay affiliates.
Comparatively, the virtual currency licenses ArbiSmart has obtained are a joke.
The only integration of cryptocurrency by ArbiSmart pertains to their eventual exit-scam.
Once all the tokens have been sold, ArbiSmart will organize a conference for all of our clients, where we will launch our buy-back program.
At this point we estimate that the token price will have risen substantially and token holders who wish to trade the tokens on exchanges will be welcome to do so.
For clients who wish to cash out without going through an exchange, we will allocate a portion of our profits in order to buy back the tokens from our clients.
As above, taken from ArbiSmart’s website FAQ, the plan is to pay out as little EUR as possible and dump generated on demand RBIS tokens on investors.
RBIS is an ERC-20 shit token that isn’t worth anything and is not publicly tradeable.
ArbiSmart has or plans to generate 450 million tokens to flog off, after which the usual “dump on a public exchange and exit-scam” plan kicks in.
That’s of course assuming ArbiSmart ever sells 450 million tokens. It’s likely far more plausible the company’s anonymous owners will just cut and run when new investment prematurely dries up.
Either way ArbiSmart affiliate investors chasing Ponzi dreams lose out.
The only people who make money in MLM crypto Ponzi schemes like ArbiSmart are those running the scam and top recruiters.