BitRobot Review: 21% a month USD/crypto Ponzi scheme
BitRobot provides no information about who owns or runs the company on its website.
BitRobot’s website domain (“bit-robot.io”) was privately registered on March 11th, 2020.
In an attempt to appear legitimate, Bit Robot provides a UK incorporation number on its website.
The number corresponds with Robots Solutions Limited, incorporated on July 27th.
UK incorporation is dirt cheap and effectively unregulated. It is a favored jurisdiction for scammers looking to incorporate dodgy companies.
At the time of publication Alexa ranks BitRobot’s top three sources of website traffic as Bangladesh (15%), Russia (10%) and Iran (7%).
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.
BitRobot has no retailable products or services, with affiliates only able to market BitRobot affiliate membership itself.
BitRobot’s Compensation Plan
BitRobot affiliates invest USD and/or cryptocurrency on the promise of advertised returns:
- Basic – invest 0.02 to 0.19999999 BTC ($250 to $2499.99) and receive “around 14%” monthly
- Performer – invest 0.2 to 1.99999999 BTC ($2500 to $24,999.99) and receive “around 17%” monthly
- Supreme – invest 2 BTC ($25,000) or more and receive “around 21%” monthly
BitRobot caps returns at 200%.
Note that while only bitcoin and USD amounts are provided above, BitRobot solicits investment in bitcoin cash, dash, ethereum, litecoin, pivx, ripple and monero.
BitRobot Affiliate Ranks
There are nine ranks within BitRobot’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Rookie – invest $250
- Leader – invest $500 and generate $1000 in downline investment
- Manager – invest $750 and generate $3000 in downline investment
- Vice Director – invest $1500 and generate $10,000 in downline investment
- Director – invest $2500 and generate $30,000 in downline investment
- Vice President – invest $5000 and generate $100,000 in downline investment
- Chairman – invest $7500 and generate $300,000 in downline investment
- Platinum Chairman – invest $15,000 and generate $1,000,000 in downline investment
- Diamond Chairman – invest $25,000 and generate $3,000,000 in downline investment
Note that BitRobot only counts downline investment through nine levels of recruitment (unilevel):
- 100% of investment on level (personally recruited affiliates) is counted
- 50% of investment on level 2 is counted
- 30% of investment on level 3 is counted
- 15% of investment on level 4 is counted
- 10% of investment on level 5 is counted
- 5% of investment on level 6 is counted
- 2% of investment on level 7 is counted
- 1% of investment on levels 8 and 9 is counted
For more details on the unilevel team structure see “referral commissions” below.
BitRobot 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.
BitRobot caps referral commissions at nine, based on rank:
- Rookies earn 7% on level 1 (personally recruited affiliates) and 4% on level 2
- Leaders earn 7% on level 1, 4% on level 2 and 3% on level 3
- Managers earn 7% on level 1, 4% on level 2, 3% on level 3 and 2% on level 4
- Vice Directors earn 7% on level 1, 4% on level 2, 3% on level 3 and 2% on levels 4 and 5
- Directors earn 7% on level 1, 4% on level 2, 3% on level 3, 2% on levels 4 and 5 and 1% on level 6
- Vice Presidents earn 7% on level 1, 4% on level 2, 3% on level 3, 2% on levels 4 and 5, 1% on level 6 and 0.5% on level 7
- Chairmans earn 7% on level 1, 4% on level 2, 3% on level 3, 2% on levels 4 and 5, 1% on level 6 and 0.5% on levels 7 and 8
- Platinum and Diamond Chairmans earn 7% on level 1, 4% on level 2, 3% on level 3, 2% on levels 4 and 5, 1% on level 6, 0.5% on levels 7 and 8 and 2.5% on level 9
Rank Achievement Bonus
BitRobot rewards affiliates for qualifying at Leader and higher with the following one-time cash bonuses:
- qualify at Rookie and receive $75
- qualify at Manager and receive $250
- qualify at Vice Director and receive $750
- qualify at Director and receive $2000
- qualify at Vice President and receive $10,000
- qualify at Chairman and receive $20,000
- qualify at Platinum Chairman and receive $50,000
- qualify at Diamond Chairman and receive $150,000
BitRobot affiliate membership is free.
Full participation in the attached income opportunity however requires investment in USD or cryptocurrency (as detailed in the compensation section above).
BitRobot claims to generate ROI revenue through “automated trading”.
No evidence of trading activity taking place is provided, nor is there any evidence of external revenue being used to pay returns.
Furthermore, BitRobot’s business model fails the Ponzi logic test.
Despite not existing until a few months ago, BitRobot states on their website that
over the last 4 years, we have averaged 28.7% on a monthly basis.
Four years is forty-eight months, which compounded at 28.7% each month turns any capital amount into a fortune.
So why do BitRobot’s owners need your money for?
As it stands the only verifiable source of revenue entering BitRobot is new investment.
Using new investment to pay existing affiliates advertised returns makes BitRobot a Ponzi scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve BitRobot of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
Update 11th January 2021 – As of late December 2020, BitRobot has collapsed.