Bitalium Review: Trading ruse Ponzi scheme
Bitalium provides no verifiable information on its website about who owns or runs the company.
The broken English corporate bio for “Sam Walch” is hardly confidence inspiring.
In 2015 Sam Walch started cryptocurrency trading cooperative with a group of his fellow traders.
Further research lead me to
an Adam’s Family episode a marketing video, purportedly featuring Bitalium CEO “Samuel D. Walch”.
No idea where Bitalium dug this guy up from but he’s a strong candidate for a Boris CEO.
Walch doesn’t have a digital footprint outside of recently published Bitalium marketing material. You can also see the actor’s eyes reading a script in the linked marketing video above.
Bitalium’s website domain (“bitalium.com”) was privately registered on February 10th, 2020.
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.
Bitalium has no retailable products or services, with affiliates only able to market Bitalium affiliate membership itself.
Bitalium’s Compensation Plan
Bitalium affiliates invest funds on the promise of an advertised return.
- Basic – invest $100 to $999 and receive a daily ROI for 180 days
- Premium – invest $1000 to $4999 and receive a daily ROI for 210 days
- Business – invest $5000 to $14,999 and receive a daily ROI for 240 days
- Platinum – invest $15,000 to $30,000 and receive a daily ROI for 270 days
Bitalium’s advertised return rate is up to 1.4% a day.
Commissions are paid on the recruitment of new Bitalium affiliate investors.
Residual Binary Commissions
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.
Residual binary commission are paid as a percentage of 33% of funds invested on both sides of the binary team.
Residual binary commission rates are calculated based on how much a Bitalium affiliate has invested:
- Basic tier affiliates receive a 12% residual binary commission rate
- Premium tier affiliates receive a 15% residual binary commission rate
- Business tier affiliates receive an 18% residual binary commission rate
- Platinum tier affiliates receive a 21% residual binary commission rate
Bitalium’s compensation material doesn’t specify how frequently residual binary commissions are paid out.
Residual Unilevel Commissions
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.
Bitalium caps payable unilevel team levels at five.
Residual unilevel commissions are paid out as a percentage of 33% of funds invested across these five levels as follows:
- level 1 (personally recruited affiliates) – 15%
- level 2 – 12%
- level 3 – 9%
- level 4 – 6%
- level 5 – 3%
Bitalium rewards affiliates with prized for generating downline investment volume as follows:
- generate $25,000 in accumulated binary team volume and receive an iPhone 11 Pro Max
- generate $100,000 in accumulated binary team volume and receive a MacBook
- generate $200,000 in accumulated binary team volume and receive an “exotic trip”
- generate $500,000 in accumulated binary team volume and receive a Rolex Datejust 36 watch and access to Bitalium’s “office program”
- generate $2,000,000 in accumulated binary team volume and receive a “unique car fund” and “ambassador contract”
- generate $8,000,000 in accumulated binary team volume and receive a “premium car fund” and access to Bitalium’s “shareholding program”
- generate $15,000,000 in accumulated binary team volume and receive a “luxury villa on [sic] Bali worth $500,000”
Note that binary volume is only 33% of total funds invested. Bitalium don’t specify whether required volume is counted from one side of the binary team or both.
Bitalium’s Office Program pays partial rent costs for a rented office space.
The Ambassador Contract provides a “stable monthly salary”. And the Shareholding Program allows affiliates to ‘become shareholders of (Bitalium’s) exchange’.
No further details are provided.
Bitalium affiliate membership is tied to a $100 to $30,000 initial investment.
How much an affiliate invests directly impacts their income potential through Bitalium’s compensation plan.
Bitalium is your typical trading bot Ponzi scheme.
The company represents it generates external revenue via day trading and scalping trading.
A trading bot they’ve named “Gilgamesh” will supposedly also be made available to affiliates at some point.
Bitalium provides no evidence of trading revenue being used to pay affiliate returns.
Instead of registering their passive investment opportunity with financial regulators and filing audited reports, Bitalium provides pseudo-compliance marketing slides like this:
Putting aside the fact that Bitalium didn’t exist until a few months ago, this is not a substitute for audited financial reports.
By failing to register their securities offering, Bitalium are committing securities fraud and operating illegally the world over.
The only reason MLM companies opt to commit securities fraud is because they’re operating as Ponzi schemes.
In Bitalium’s case it’s pretty obvious that all that’s happening on the back end is recycling of invested funds to pay daily returns.
Bitalium’s admin(s) take their cut and what’s left is used to fund the compensation plan.
In addition to running a Ponzi scheme, Bitalium’s commissions are tied to recruitment. This adds an a pyramid layer to the scheme.
Looking forward, Bitalium’s “project time line” references “Bitalium token” launching in Q3 2020. This is followed by ‘placement of Bitalium Token on various cryptocurrency wallets.’
This is known as the public exchange exit-scam. First affiliate returns and possibly commissions will be switched over to Bitalium Token.
Bitalium Token costs the company little to nothing to generate on demand, and will initially only exist within the company.
For some time Bitalium Token withdrawals will still be honored through an internal exchange.
When the time comes to exit-scam, Bitalium Token will be announced on one or more dodgy exchanges.
The token launches, the value pumps due to marketing hype, Bitalium’s owner(s) and top investors sell off what they can, and Bitalium Token’s price will dump.
Gullible investors are eventually left bagholding a worthless token they can’t do anything with.
By this time Bitalium’s owners have disappeared. And promoters who lead recruitment efforts company-wide will have moved onto their next scams.
The math behind Ponzi schemes guarantees the majority of investors will lose money. One way or another, Bitalium won’t play out any different.
Update 15th October 2020 – Bitalium has collapsed. As predicted, withdrawals are now only possible in Bitalium Token.