AWS Mining Review: Cloud mining unregistered securities Ponzi
AWS Mining provides no information on their website about who owns or runs the business.
According to a 2018 business presentation hosted on the AWS Mining website domain, the founders of the company are Daniel Beduschi (COO) and Alexandre Campos (CFO).
Daniel Beduschi maintains two Facebook profile. In one he claims to live in Sydney, Australia and the other in Santa Catarina, Brazil.
Prior to BBOM Beduschi was an Amway Brazil affiliate.
Possibly due to language-barriers, I was unable to put together an accurate MLM history on Alexandre Campos.
The AWS Mining website domain (“awsmining.com”) was registered on April 8th, 2018.
“AWS Mining Pty Ltd” is listed as the owner, through a residential address in NSW, Australia.
AWS Mining Pty Ltd’s corporate registration ties the company to MyCoinDeal. MyCoinDeal appears to have something to do with bitcoin withdrawals through AWS Mining.
For all intents and purposes, AWS mining Pty Ltd appears to be a shell company. AWS Mining doesn’t seem to have any actual physical business operations in Australia.
Supporting this is Brazil cited as the top source of traffic to both the AWS Mining and MyCoinDeal websites (Alexa).
Read on for a full review of the AWS Mining MLM opportunity.
AWS Mining Products
AWS Mining has no retailable products or services, with affiliates only able to market AWS Mining affiliate membership itself.
The AWS Mining Compensation Plan
AWS Mining affiliates invest funds on the representation they’ll earn a daily ROI:
WHAT IS MY EXPECTED RETURN ON INVESTMENT?
Cryptocurrency mining depends highly on the prices and difficulties of the coins you mine.
AWS Mining marketing strategy is to reward our customers with as much as possible and as soon as possible.
Advertised investment contracts on the AWS Mining website are as follows:
- 0.1 CMP – $40
- 1 CMP – $400
- 3 CMP – $1200
- 5 CMP – $2000
- 10 CMP – $4000
Each investment is charged a monthly 20% fee, which is taken out of ROI payments.
AWS Mining Affiliate Ranks
There are seven affiliate ranks within the AWS Mining compensation plan.
Along with their respective qualification criteria they are as follows:
- Miner – sign up, invest and recruit at least two affiliates who also invest
- Coordinator – generate $10,000 in downline investment volume
- Supervisor – generate $50,000 in downline investment volume
- Manager – generate $100,000 in downline investment volume
- Director – generate $500,000 in downline investment volume
- Vice President – generate $2,000,000 in downline investment volume
- President – generate $10,000,000 in downline investment volume
AWS Mining affiliates are paid 10% of funds invested by personally recruited affiliates.
A 1% bonus ROI rate is also applied per affiliate recruited.
To qualify for residual commissions, each AWS Mining affiliate must recruit at least two affiliates who invest.
AWS Mining pay residual commissions via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
At the end of each day AWS Mining tallies up new investment volume on both sides of the binary team.
Affiliates are paid between 4% to 10% of matched volume, based on how much they have invested:
- affiliates who have invested in the 0.1 CMP contract receive a 4% residual commission rate
- affiliates who have invested in the 1 CMP contract receive a 6% residual commission rate
- affiliates who have invested in the 3 CMP contract receive an 8% residual commission rate
- affiliates who have invested in the 10 CMP contract receive a 10% residual commission rate
Note the AWS compensation plan doesn’t specify how much affiliates who have invested in the 5 CMP contract earn (9% would be an educated guess).
How much an AWS Mining affiliate can earn in daily residual commissions is capped based on rank:
- Miners can earn up to $500 a day
- Coordinators can earn up to $700 a day
- Supervisors can earn up to $1000 a day
- Managers can earn up to $1500 a day
- Directors can earn up to $2000 a day
- Vice Presidents can earn up to $2500 a day
- Presidents can earn up to $5000 a day
Maintenance Fee Commissions
AWS Mining take 20% of contract fees and use them to pay a commission.
Maintenance Fee commissions are paid out 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.
AWS Mining cap Maintenance Fee commissions at five unilevel team levels.
How many levels Maintenance Fee commissions are earned on is determined by how much an AWS Mining affiliate has invested:
- 0.1 to 0.9 CMP worth of investment = commissions on levels 1 and 2
- 1 to 2 CMP worth of investment = commissions on levels 1 to 3
- 3 to 4 CMP worth of investment = commissions on levels 1 to 4
- 10 or more CMP worth of investment = commissions on levels 1 to 5
Note that the sum total of CMP invested in is the total number for each plan an affiliate has invested in.
E.g. Three separate 0.1 CMP investments of $40 would result in 0.3 CMP worth of investment.
The AWS Mining compensation plan doesn’t state the exact percentage payouts for each level.
If we assume the 20% is split evenly, the maximum percentage payout on each unilevel team level would be 4%.
Rank Achievement Bonus
AWS Mining reward affiliates for qualifying at Coordinator and higher ranks with a one-time Rank Achievement Bonus:
- Coordinator = $100 bonus
- Supervisor = $400 bonus
- Manager = $800 bonus
- Director = $4000 bonus
- Vice President = $10,000 bonus
- President = $100,000 bonus
Joining AWS Mining
AWS Mining affiliate membership is free.
To participate in the attached income opportunity however, a minimum investment of $40 to $4000 is required.
AWS Mining claim to generate external ROI revenue through cloud mining operations.
From the AWS Mining website FAQ;
WHERE ARE YOUR MINING FARMS LOCATED?
For safety reasons, we don’t provide this information. However, since April 2016, we have been operating some mining farms that are located in Europe, America and Asia.
In true MLM cryptocurrency fashion, the only “evidence” AWS Mining provide of mining operations are YouTube videos of mining hardware featuring “AWS Mining” stickers.
What would be conclusive is required regulatory disclosures, which AWS Mining does not provide.
AWS Mining do not disclose specifics of their mining operations in their ASIC filings. It’s pretty much the equivalent of a pointless UK incorporation.
In markets it’s actually active in, primarily the US and Brazil, AWS Mining is not registered to offer securities.
This tells you all you need to know about the legitimacy of AWS Mining’s supposed mining operations.
And while some token mining might be taking place, you can bet it’s not enough to sustain AWS Mining’s compensation plan and pay affiliates a daily ROI.
For an explanation on that you need only look at co-founder Daniel Beduschi’s Ponzi past.
The only verifiable source of revenue entering AWS Mining is new investment. Using new investment to pay existing investors a daily ROI makes AWS Mining a Ponzi scheme.
On top of that nothing is marketed or sold to retail customers, which adds an additional pyramid layer to the business model.
As with all MLM Ponzi schemes, once affiliate recruitment dies down so too will new investment.
This will starve AWS Mining or ROI revenue, eventually prompting a collapse.
The math behind a Ponzi scheme guarantees that when it collapses, the majority of investors lose money.
Update 24th April 2019 – AWS Mining has officially collapsed. The company is planning to reboot as AWS Capital on or around May 1st, 2019.