BeFargo Review: FargoCoin cryptocurrency & pyramid recruitment
BeFargo provide no information on their website about who owns or runs the business.
The BeFargo website domain (“befargo.com”) was privately registered on September 4th, 2016.
Much is made of BeFargo being a purported US company in affiliate marketing material, however the BeFargo website Terms and Conditions states:
Most of the BeFargo affiliate marketing material I came across was in Russian.
The main speaker at BeFargo’s California event was some guy who goes by Robert Steenburgh.
Steenburgh (right) was presented as a “cryptocurrency expert” and spoke at length about the proof of stake model FargoCoin is based on.
The man hosting the event was Koryaka Eli who, at least going by his accent, appears to be European.
The only other speaker name-tags I was able to ascertain were James Booze and Joe Reyes. I wasn’t able to find any footage of them speaking though so I’m not sure what his relationship to BeFargo is.
Outside of the BeFargo event, I was unable to find any information on Steenburgh, Eli, Booze or Reyes. This is highly suspicious.
Whether BeFargo is being run by Russians or someone in the US remains unclear.
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.
BeFargo has no retailable products or services, with affiliates only able to market BeFargo affiliate membership itself.
Once signed up, BeFargo affiliates can invest in one of seven offered affiliate packages.
These packages are bundled with “tokens”, which can be converted to FargoCoin through FargoBase, an internal exchange run by BeFargo.
FargoCoin is a “proof of stake” cryptocurrency that is publicly tradeable. CoinMarketCap currently cite a value of $6.53 per FargoCoin.
BeFargo charge affiliates a ‘0.2% – 1%. fee on every transaction performed by all users’ of the FargoBase exchange.
The BeFargo Compensation Plan
BeFargo affiliates invest in FargoCoins and are paid to recruit others who do the same.
Investment is made in FargoCoins itself, through one of seven offered affiliate packages:
- Silver – invest 10 FargoCoins and receive 100 tokens
- Gold – invest 40 FargoCoins and receive 400 tokens
- Diamond – invest 100 FargoCoins and receive 1000 tokens
- Platinum – invest 200 FargoCoins and receive 2000 tokens
- Titanium – invest 400 FargoCoins and receive 4000 tokens
- VIP – invest 1000 FargoCoins and receive 10,000 tokens
- Trader – invest 3000 FargoCoins and receive 30,000 tokens
Tokens are converted to FargoCoins through BeFargo itself.
BeFargo Affiliate Ranks
There are eight affiliate ranks within the BeFargo compensation plan.
Along with their respective qualification criteria, they are as follows:
- Affiliate – sign up and invest in a BeFargo affiliate package
- Fargo Junior – generate 6,000 points in total weekly binary volume and recruit at least two affiliates
- Fargo Senior – generate 10,000 points a week in weaker binary side volume, 40,000 points in total weekly binary volume and personally recruit at least two Fargo Junior or higher ranked affiliates
- Fargo Director – generate 40,000 points a week in weaker binary side volume, 80,000 points in total weekly binary volume and personally recruit at least three Fargo Senior or higher ranked affiliates
- Fargo Vice President – generate 80,000 points a week in weaker binary side volume, 200,000 points in total weekly binary volume and personally recruit at least three Fargo Director or higher ranked affiliates
- Fargo President – generate 200,000 points a week in weaker binary side volume, 500,000 points in total weekly binary volume and personally recruit at least four Fargo Vice President or higher ranked affiliates
- Fargo Council – generate 500,000 points a week in weaker binary side volume, 1,500,000 points in total weekly binary volume and personally recruit at least five Fargo President or higher ranked affiliates
- Fargo Diamond – generate 1,500,000 points a week in weaker binary side volume, 8,000,000 points in total weekly binary volume and personally recruit at least seven Fargo Council or higher ranked affiliates
BeFargo affiliates are paid a direct commission when they recruit new affiliates who invest.
- Silver to Titanium affiliates earn a 10% commission
- VIP affiliates earn 12%
- Trader affiliates earn 15%
BeFargo 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 that there is no limit to how deep a binary team can grow.
Each BeFargo affiliate package generates a set number of points. BeFargo do not disclose how many points are generated by each package.
Commissions are paid out as a percentage of points generated by the weaker binary side each week.
- Silver to Titanium affiliates earn a 10% binary commission
- VIP affiliates earn a 12% binary commission
- Trader affiliates earn a 15 binary commission
Note that how much a BeFargo affiliate has invested directly impacts how much they can receive weekly via binary commissions:
- Silver – 70 FargoCoins
- Gold – 280 FargoCoins
- Diamond – 700 FargoCoins
- Platinum – 1400 FargoCoins
- Titanium – 2800 FargoCoins
- VIP – 7000 FargoCoins
- Trader – 21,000 FargoCoins
BeFargo affiliates receive a Matching Bonus on commissions paid to their downline.
The Matching Bonus is tracked 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.
BeFargo pay the Matching Bonus down five levels of recruitment, depending on how much an affiliate has invested:
- Silver affiliates do not receive a Matching Bonus
- Gold affiliates receive a one level Matching Bonus
- Diamond affiliates receive the Matching Bonus down two levels of recruitment
- Platinum affiliates receive the Matching Bonus down three levels of recruitment
- Titanium affiliates receive the Matching Bonus down four levels of recruitment
- VIP and Trader affiliates receive the Matching Bonus down five levels of recruitment
Note that BeFargo do not disclose the percentage amount that is matched.
Rank Achievement Bonus
BeFargo pay affiliates the following Rank Achievement Bonuses when they qualify at the Fargo Senior and higher ranks for the first time:
- Fargo Senior – $350
- Fargo Director – $1000
- Fargo Vice President – $5000
- Fargo President – $25,000
- Fargo Council – $125,000
- Fargo Diamond – $1,000,000
BeFargo affiliates membership is 5 FargoCoins plus investment into one of seven offered affiliate packages:
- Silver – 10 FargoCoins
- Gold – 40 FargoCoins
- Diamond – 100 FargoCoins
- Platinum – 200 FargoCoins
- Titanium – 400 FargoCoins
- VIP – 1000 FargoCoins
- Trader – 3000 FargoCoins
The first thing that should strike you as odd about BeFargo is that the affiliate packages themselves are only purchasable with FargoCoin.
I believe the company has affiliates sign up and convert real money into FargoCoin, which is then used to invest into a package.
The Package comes with tokens, which are used to acquire more FargoCoins from the company itself. Basically BeFargo are getting affiliates to invest real money for FargoCoins and then reinvest it again for a higher FargoCoin balance.
This is the only verifiable source of revenue entering BeFargo, the use of which to pay ROIs on the set value of FargoCoins makes BeFargo a Ponzi scheme.
The cryptocurrency angle is smoke and mirrors. All that happens in BeFargo is an affiliate invests real money, BeFargo gives the affiliate points (FargoCoins), set the value of the points higher than the initial amount invested and then pays the affiliate a ROI if they cash out.
All of this is done through BeFargo and FargoBase, with no external revenue sourced throughout the process (100% invested affiliate funds).
The rest of the BeFargo compensation plan is pyramid recruitment, as without a constant stream of new affiliate investors BeFargo won’t have any funds to pay ROIs with. Recruitment commissions by nature are also of course dependent on recruitment itself.
What happens outside of BeFargo’s FargoBase exchange is ultimately irrelevant, as long as the company itself pays a ROI using newly invested funds.
According to the FargoCoin blockchain, the current value of the coins (as set by BeFargo) is $5.96 USD each. CoinMarketCap list a total supply of 434,848,903 FargoCoins.
At the CoinMarketCap rate of $6.53, that’s a market capitalization of over 2.8 billion dollars.
BeFargo naturally have generated and hold most of the FargoCoins, which they’re handing out through FargoBase (the cost to generate the coins was little to nothing).
Real affiliate money flows in, FargoCoins that cost little to nothing to generate are exchanged and… that’s pretty much all there is to it.
FargoCoins have no real-world application beyond the BeFargo MLM opportunity, with affiliates likely the only the traders of the coin.
Once BeFargo affiliate recruitment dies down, the value of FargoCoin will collapse along with it.
The same as any other pump and dump scheme, BeFargo affiliates will be left holding a worthless altcoin they can’t do anything with (except trade among themselves).
Oh and uh, there’s also this:
FargoCoin’s so fabulous, that coin is so fabulous, that coin is the beeeeest coin, yeaaaaah.