BitsTrades Review: BSS points ICO lending Ponzi scheme
BitsTrades provide no information on their website about who owns or runs the business.
The BitsTrades website domain (“bitstrades.com”) was first registered on July 20th, 2016.
The Wayback Machine reveals that the current BitsTrades website went live sometime after September, 2017. Prior to the latest iteration, BitsTrades was an “index trading investment” scheme.
Alexa traffic estimates for the BitsTrades website show an uptick from November, 2017, which is probably around the time the current BitsTrades website went live.
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.
BitsTrades has no retailable products or services, with affiliates only able to market BitsTrades affiliate membership itself.
The BitsTrades Compensation Plan
BitsTrades affiliates acquire pre-generated BSS points from the company’s anonymous owners.
BSS points can also be purchased directly from other BitsTrades affiliates via an internal exchange.
At the time of publication BSS points are trading internally for about €2.50 EUR each.
Once acquired BSS points are “lent” back to BitsTrades on the promise of a daily variable ROI.
- invest €100 to €1000 EUR and receive a daily ROI for 289 days
- invest €1001 to €2500 EUR and receive a daily ROI for 259 days
- invest €2501 to €5000 EUR and receive a daily ROI plus 0.1% bonus daily ROI for 229 days
- invest €5001 to €10,000 EUR and receive a daily ROI plus 0.2% daily ROI for 169 days
- invest €10,001 to €100,000 EUR and receive a daily ROI plus 0.25% daily ROI for 110 days
Referral commissions aren’t disclosed on the BitsTrades website.
Marketing material however suggests BitsTrades uses a ten-level deep unilevel compensation structure:
Our affiliate program helps you earn 10 level commissions from your referrals. You will earn 19% total referral income starting from 5%.
We offers [sic] invite based affiliate program, the more you invite, the more you earn.
This program earns you from 0.5% to 5% of each deposits your referral make. There are ten affiliate levels.
BitsTrades affiliate membership is free, however free affiliates can only earn referral commissions.
Full participation in the BitsTrades MLM opportunity requires a minimum €100 investment.
Prior to launching a BitConnect clone, BitsTrades operated as a forex trading Ponzi scheme.
Alexa traffic estimates suggest BitsTrades forex Ponzi began to collapse mid-2017, prompting the launch of their ICO lending Ponzi around November.
BitsTrades claim to generate external ROI revenue via “volatility software”.
A software is involved which calculates the interest rate occurred on your investment on a daily basis.
This is the same ruse BitConnect used. And like BitConnect, BitsTrades provide no evidence of any such software existing.
That leaves new affiliate investment as the only verifiable source of revenue entering BitsTrades.
Using newly invested funds to pay off existing investors makes BitsTrades a Ponzi scheme.
Lending ICO Ponzis like BitsTrades play out as follows:
Admins (who are typically anonymous) offload worthless pre-generated points in exchange for real money. In this case it’s BSS 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 BitsTrades admins pull a runner with what’s left.
Early BitsTrades 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.
BitConnect, which BitsTrades is clearly modeled on launched in early 2017.
A year later BitConnect’s admins did a runner and the public value of otherwise worthless BCC points crashed. Ultimately BitsTrades’ BSS points will go the same route.
Obvious Ponzi scheme but different company.
I remember I had to be careful with this one as it’s a common enough name that there are quite a few similarly named companies.