AreszCoin Review: ARC points ICO lending Ponzi
AreszCoin provide no information on their website about who owns or runs the business.
The AreszCoin website domain (“areszcoin.com”) was registered on November 13th, 2017. Hong Kong is listed as the registrant country but other than that the registration details appear to be bogus.
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.
AreszCoin Products
AreszCoin has no retailable products or services, with affiliates only able to market AreszCoin affiliate membership itself.
The AreszCoin Compensation Plan
AreszCoin affiliates acquire pre-generated ARC points from AreszCoin’s anonymous owners.
ARC points currently sold to AreszCoin affiliates at an internal exchange rate of 21 cents in bitcoin per point.
Once acquired, ARC points are “lent” back to AreszCoin on the promise of an advertised ROI.
- invest $100 to $1000 and receive a daily variable ROI for 239 days
- invest $1010 to $5000 and receive a daily variable ROI plus a 0.2% bonus daily ROI for 179 days
- invest $5010 to $10,000 and receive a daily variable ROI plus a 0.25% bonus daily ROI for 99 days
At the time of publication AreszCoin advertise an average daily ROI of 1.55%.
AreszCoin pay 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.
AreszCoin cap payable unilevel levels at five, with commissions paid out as a percentage of funds invested across these five levels:
- level 1 (personally recruited affiliates) – 7%
- level 2 – 3%
- level 3 – 1%
- level 4 – 0.5%
- level 5 – 0.1%
Joining AreszCoin
AreszCoin affiliate membership is free, however free affiliates can only earn referral commissions.
Full participation in the AreszCoin MLM opportunity requires a minimum $100 investment.
Conclusion
AreszCoin don’t even try to mask the fact that all they are doing is recycling newly invested funds.
AreszCoin affiliates sign up and hand over real money in bitcoin to the company’s anonymous owners.
They get pre-generated ARC points in return, which cost AreszCoin’s owners next to nothing to generate.
ROIs are “paid out” in ARC points, which affiliates then cash out through the exchange.
The idea is that new investment covers these withdrawals, failing which AreszCoin’s owners can inject bitcoin paid directly to them back into the system.
Eventually however withdrawals (sell orders) exceed new investment (buy orders), at which point AreszCoin collapses.
As we recently saw with BitConnect, when a lending ICO collapses most investors lose money and things get messy pretty fast.