Bitfinite Review: BFC points ICO lending Ponzi scheme
Bitfinite provide no information on their website about who owns or runs the business.
The Bitfinite website domain (“bitfinite.co”) was privately registered on November 2nd, 2017.
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.
Bitfinite Products
Bitfinite has no retailable products or services, with affiliates only able to market Bitfinite affiliate membership itself.
The Bitfinite Compensation Plan
Bitfinite affiliates purchase pre-generated BFC points from the company’s anonymous owners.
BFC points are sold to Bitfinite affiliates for 75 cents to $1.15 each.
Once acquired, BFC points are “lent” back to Bitfinite on the promise of an advertised ROI of up to 45% a month:
- invest $100 to $1000 and receive a daily variable ROI plus 0.1% bonus daily ROI for 240 days
- invest $1010 to $5000 and receive a daily variable ROI plus 0.25% bonus daily ROI for 180 days
- invest $5010 to $10,000 and receive a daily variable ROI plus 0.35% bonus daily ROI for 150 days
- invest $10,010 to $50,000 and receive a daily variable ROI plus 0.40% bonus daily ROI for 120 days
- invest $50,010 and receive a daily variable ROI plus 0.45% bonus daily ROI for 90 days
Bitfinite pay 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.
Bitfinite cap payable unilevel levels at six, with commissions paid out as a percentage of funds invested across these six levels as follows:
- level 1 (personally recruited affiliates) – 3%
- levels 2 to 4 – 1%
- levels 5 and 6 – 0.5%
Joining Bitfinite
Bitfinite affiliate membership is free, however free affiliates can only earn referral commissions.
Full participation in the Bitfinite MLM opportunity requires a minimum $100 investment.
Conclusion
Bitfinite claim to generate ROI revenue through AI BOT trading software”.
No evidence of such a bot existing or external ROI revenue being used to pay affiliates however is provided.
This leaves new investment as the only source of revenue entering Bitfinite. Using newly invested funds to pay existing investors a daily ROI makes Bitfinite a Ponzi scheme.
Lending ICO Ponzis like Bitfinite play out as follows:
Admins (who are typically anonymous) offload worthless pre-generated points in exchange for real money. In this case it’s BFC points.
The admins then use some of this money to pay promised ROIs for as long as new affiliates sign up.
Once affiliate recruitment dries up so does the ROI reserve.
When a predetermined threshold is reached, the anonymous Bitfinite admins pull a runner with what’s left.
Early Bitfinite investors make a bit of money (mostly via recruitment of new investors). But same as any other Ponzi scheme, the reality of such scams is that the majority of participants eventually lose money.
A good case study in the collapse of an ICO lending Ponzi scheme is BitConnect.
Launched in early 2017, a year later BitConnect’s admins did a runner and the public value of otherwise worthless BCC points crashed.
Ultimately Bitfinite’s BFC points will go the same route.