Artery Network Review: ARTR token Ponzi scheme
Artery Network provides no information on its website about who owns or runs the company.
Artery Network’s website domain (“artery.network”) was privately registered on July 7th, 2020.
A visit to Artery Network’s website reveals Russian is the default language.
Further research reveals this guy hosting Artery Network promotional events on the company’s official YouTube channel:
I was able to identify this individual as Mark Bogatyrenko, Artery Network’s founder, CEO and President.
According to his vKontakte profile, Bogatyrenko is based out of Moscow, Russia.
Possibly due to language-barriers, I was unable to put together an MLM history on Bogatyrenko.
To date Artery Network has held promotional events in Sochi, Russia (December 2020), Dubai (April 2021) and Las Vegas, Nevada (July 2021).
The events are in Russia and appear to predominately feature eastern Europeans attendees.
Artery Network’s primary website domain has experienced a dramatic slump in traffic over the past few months.
The company has a second website domain up at “artr-network.io”, registered September 3rd, 2021.
According to Alexa, 68% of traffic to Artery Network’s .io domain is from Russia.
On both its websites Artery Network provides a corporate address for Artery Network Corporation in Seychelles.
This appears to be a shell company as Artery Network has no actual ties to Seychelles.
Read on for a full review of Artery Network’s MLM opportunity.
Artery Network’s Products
Artery Network has no retailable products or services.
Artery Network affiliates are only able to market Artery Network affiliate membership itself.
Artery Network’s Compensation Plan
Artery Network affiliates invest in ARTR tokens.
Once invested in, ARTR tokens are parked with Artery Network. This is done on the promise of a monthly return.
- have a 1 to 999 ARTR investment balance and receive 16% a month
- have a 1000 to 9999 ARTR investment balance and receive 19% a month
- have a 10,000 to 99,999 ARTR investment balance and receive 22% a month
- have a 100,000 or more ARTR investment balance and receive 25% a month
The MLM side of Artery Network pays on recruitment of affiliate investors.
Artery Network Affiliate Ranks
There are nine affiliate ranks within Artery Network’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Lucky – sign up as an Artery Network affiliate
- Leader – recruit two affiliates who each have recruited two affiliates
- Master – recruit three affiliates who have each recruited three affiliates
- Champion – maintain three personally recruited affiliates who each have fifteen directly or indirectly recruited affiliates under them
- Businessman – maintain three personally recruited affiliates who each have sixty directly or indirectly recruited affiliates under them, each team must have invested in at least 150,000 ARTR
- Professional – maintain three personally recruited affiliates who each have two hundred directly or indirectly recruited affiliates under them, each team must have invested in at least 300,000 ARTR
- Top – maintain three personally recruited affiliates who each have five hundred directly or indirectly recruited affiliates under them, each team must have invested in at least 1,000,000 ARTR
- Hero – maintain three personally recruited affiliates who each have one thousand directly or indirectly recruited affiliates under them, each team must have invested in at least 2,000,000 ARTR
- Artery Champion, maintain three personally recruited affiliates who each have two thousand directly or indirectly recruited affiliates under them, each team must have invested in at least 5,000,000 ARTR
Artery Network pays referral commissions 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.
Artery Network caps referral commissions at ten unilevel team levels.
Referral commissions are paid as a percentage of ARTR tokens parked across these ten levels based on rank:
- Lucky ranked affiliates earn 5% on level 1 (personally recruited affiliates) and 1% on level 2
- Leader ranked affiliates earn 5% on level 1, 1% on levels 2 and 3 and 2% on level 4
- Master ranked affiliates earn 5% on level 1, 1% on levels 2 and 3, 2% on level 4 and 1% on levels 5 and 6
- Champion and higher ranked affiliates earn 5% on level 1, 1% on levels 2 and 3, 2% on level 4, 1% on levels 5 to 9 and 0.5% on level 10
Note that referral commissions are paid in ARTR tokens.
Artery Network charges a “tariff” fee. The fee appears to be a thirty-day subscription and doubles as an affiliate membership fee.
The tariff fee amount each Artery Network affiliate pays is not disclosed.
What is disclosed is Artery Network takes these fees and uses them to pay tariff commissions.
Tariff commissions are paid out using the same ten-level deep unilevel team used to pay referral commissions (see above):
- Lucky ranked affiliates earn a 15% tariff commission level 1 (personally recruited affiliates) and 10% on level 2
- Leader ranked affiliates earn a 15% tariff commission on level 1, 10% on level 2 and 7% on levels 3 and 4
- Master ranked affiliates earn a 15% tariff commission on level 1, 10% on level 2 and 7% on levels 3 to 6
- Champion and higher ranked affiliates earn a 15% tariff commission on level 1, 10% on level 2, 7% on levels 3 to 7, 5% on level 8 and 2% on levels 9 and 10
Each month Artery Network rewards the affiliate with the highest number of indirectly recruited level 2 unilevel team affiliates.
This reward is referred to as the “Promo Bonus” and conists of an iPhone.
The affiliate with the second largest level 2 team receives a set of Apple AirPods.
Note that the Promo Bonus appears to be limited to new affiliates (capped at 1000).
This is likely to prevent older affiliates with the largest teams collecting the Promo Bonus each month.
Artery takes 5% of company-wide invested funds and uses it to fund the Bonus Pool.
The Bonus Pool is split into five smaller pools, paid out monthly based on rank:
- Businessman and Professional ranked affiliates receive an equal share of a smaller 2% Bonus Pool
- Top ranked affiliates receive an equal share of a smaller 3% Bonus Pool
- Hero ranked affiliates receive an equal share of a smaller 4% Bonus Pool
- Artery Champion ranked affiliates receive an equal share of the full 5% Bonus Pool
Note that the smaller pools aren’t separate pools. Higher ranked affiliates receive shares in these pools up to the pool corresponding with their rank.
E.g. Artery Champions receive a share in the 2% Businessman and Professional Pool, the 1% Top Pool, the 1% Hero Pool and the 1% Artery Champion Pool (together these pools add up to the 5% set aside).
Upon qualifying at Hero, “a car is given as a gift within 3 months”.
Specific details, such as what car, are not provided.
Businessman and higher ranked Artery Network affiliates qualify for “access to travel fees”.
Specific details are not provided.
ARTR affiliate membership appears to be tied to an undisclosed rolling 30-day “tariff fee”.
Full participation in Artery Network’s income opportunity requires investment into at least 1 ARTR token.
Artery Network do not disclose the current internal ARTR token value. Nor is ARTR publicly traded at time of publication.
Artery Network is your typical MLM token Ponzi scheme.
Sign up, invest in ARTR tokens, park them with the company (“dElEgAtInG”), collect a monthly return in ARTR of up to 25% a month, cash out tokens for subsequently invested funds.
This is a variation of the “lending” model, pioneered by the notorious BitConnect Ponzi scheme.
Being a passive investment scheme, Artery Network’s investment opportunity constitutes a securities offering.
Arterty Network provides no representation it has registered with financial regulators, in Russia or anywhere else in the world.
This means that at a minimum, Artery Network is committing securities fraud.
The MLM side of Artery Network is a pyramid scheme. 100% of commissions paid out are tied to affiliate investor recruitment.
The ruse behind Artery Network’s token Ponzi scheme is cloud storage and a VPN service – neither of which exists.
You upload any files from photos to documents and provide them with complete security.
When loaded, they are automatically encrypted, divided into small parts and sent to dozens of devices (nodes) on the network for storage.
The device that accepts your file will receive a reward for storing it.
Your files will remain completely confidential and no one will be able to view them, since they will be split into encrypted parts and only you have a special key for their reverse recovery!
When Artery VPN is enable, your internet connection is completely secure.
All your traffic will go through the same devices (nodes) on the network as in Artery Storage. Nodes, in turn, will also receive a reward for this.
According to an Artery Network roadmap, the company’s VPN product is coming in Q4 2021.
Launching an investment scheme before having any product is ass-backwards, by design.
Ultimately it doesn’t matter what Artery Network attach to their token investment investment. It started as a Ponzi scheme and will end as one.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve Artery Network of revenue, leaving them unable to pay affiliate withdrawal requests.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.