BitWings Review: BWN token securities fraud
Bitwings provides no information on its website about who runs the company.
Bitwings markets itself as a division of Wings Mobile,
a Spanish virtual mobile operator founded in 2007, focused on the development of innovative software, smartphones and laptops.
Bitwings is mentioned on Wings Mobile’s website, however it’s not featured on the company’s homepage. Why Wings Mobile has tucked away Bitwings is unclear.
Of note is Wings Mobile having its own affiliate program, but as far as I can tell it’s not MLM.
Wings Mobile’s website does have a “who we are” section, however no company ownership details are provided.
A few Google searches led me to Antonio Milio (right), who is CEO of both Wings Mobile and Bitwings.
According to his LinkedIn profile, Milio is based out of Spain and has a history in telecommunications dating back to 1998.
Bitwings appears to be Milio’s first venture as an MLM executive.
Read on for a full review of Bitwings’ MLM opportunity.
Bitwings sells a cellphone they’re calling MinePhone WX.
As per the image above, MinePhone WX is limited to two thousand units and sell for 6000 Bitwings Token (BWN).
Bitwings sell BWN for 20 cents a token, so the cost of MinePhone WX appears to be $1200.
Note that Bitwings’ official presentation is dated 2020, so I believe the pre-order date is July 1st.
Bitwings’ Compensation Plan
Bitwings affiliates who purchase a MinePhone WX can participate in mining and Pool Rewards (detailed below).
The MLM side of Bitwings’ compensation plan sees affiliates pay a fee. The more a new Bitwings affiliate invests, the more BWN tokens they receive.
- Bronze – invest $100 and receive 526 BWN
- Silver – invest $300 and receive 1610 BWN
- Gold – invest $500 and receive 2710 BWN
- Sapphire – invest $1000 and receive 5474 BWN
- Emerald – invest $2000 and receive 11,052 BWN
- Ruby – invest $5000 and receive 28,421 BWN
- Diamond – invest $10,000 and receive 57,895 BWN
Commissions are paid when Bitwings affiliates recruit new affiliates, who also invest in BWN tokens.
MinePhone WX Mining
According to Bitwings’ marketing material, the MinePhone WX can mine up to 0.2 ETH a month.
There’s also an option to mine BWN tokens.
Bitwings affiliates can sell up to 10% of their generated BWN tokens every month.
Bitwings pays 19 cents per BWN token sold back.
If a Bitwings affiliate ‘choose(s) to receive credits in BWN, you will be part of the Bitwings Pool’.
The Bitwings Pool is made up of 5% of Bitwings’ company-wide revenue. Shares are paid daily with all affiliates opting to be paid in BWN.
Bitwings affiliates receive 25% of funds invested by personally recruited affiliates.
Bitwings pays residual 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.
Bitwings caps payable unilevel team levels at seven. Residual commissions are paid as a percentage of funds invested across these levels.
How many levels a Bitwings affiliates is paid residual commissions on is determined by how much they invested when they signed up:
- Bronze tier affiliates earn 25% on level 1 (recruitment commissions only)
- Silver tier affiliates earn 25% on level 1 and 1% on level 2
- Gold tier affiliates earn 25% on level 1 and 1% on levels 2 and 3
- Sapphire tier affiliates earn 25% on level 1 and 1% on levels 2 to 4
- Emerald tier affiliates earn 25% on level 1, 1% on levels 2 to 4 and 5% on level 5
- Ruby tier affiliates earn 25% on level 1, 1% on levels 2 to 4, 5% on level 5 and 1% on level 6
- Diamond tier affiliates earn 25% on level 1, 1% on levels 2 to 4, 5% on level 5 and 1% on levels 6 and 7
Bitwings affiliate membership is tied to an initial $100 to $10,000 investment.
The more a Bitwings affiliate invests when they sign up, the higher their income potential.
Bitwings’ MinePhone WX is essentially a gimmick for what is otherwise a fraudulent investment opportunity.
As a retail customer I don’t see the appeal in buying a phone, only to thrash it month after month for “up to” 0.2 ETH.
MinePhone WX resale value is pretty much non-existent and I doubt the hardware will be good for much beyond twelve months.
None of that really matters though, as it is BWN tokens that Bitwings is really selling.
I’m not sure if Wings Mobile is in a downward spiral or if they’re just looking for easy “crypto tech” profits.
Whatever the reason, Bitwings began chasing the crypto hype train in 2017.
After less than a year into its new business strategy, implemented in 2017, the company received the ALCI AWARD for “Best Technology Design” for its next-generation smartphones that were created with a focus on innovation, security and price.
Given that was the same year of the infamous ~$20,000 bitcoin bubble, I’m going with “easy crypto tech profits”.
BWN is a token Bitwings has created out of thin air and, at least for now, attached a 20 cent cash out value to.
Beyond 20 cents, Bitwings markets BWN as having potential to go up in value.
This is the primary reason anyone signs up a Bitwings affiliate and invests.
It is this passive investment opportunity that makes Bitwings’ MLM opportunity a securities offering.
Bitwings is not registered to offer securities in Spain, or anywhere else in the world.
This means that at a minimum Bitwings is committing securities fraud. Depending on how Bitwings funds its Wings Pay internal exchange withdrawal requests, there’s also the potential for Ponzi fraud.
It goes without saying that commingling BWN investment with Wings Mobile jeopardizes the entire business.
The BWN end-game is the public exchange exit-scam, as detailed in Bitwings’ presentation roadmap.
This exit-scam model will see BWN dumped on public exchanges.
Marketing hype will pump BWN as high as it will go, allowing Bitwings and early investors to sell off as many coins as they can.
BWN then dumps, leaving the majority of affiliate investors holding the bag.
This exit-scam model has played out time and time again in the MLM cryptocurrency space.
And that is of course assuming BWN even makes it that far. Bitwings could just shut their internal exchange and stop paying out.
One could make the argument that Bitwings will be able to sustain BWN through Wings Mobile.
WE GUARANTEE 100% OF THE TOKEN’S VALUE
We can guarantee that your BWN is worth $ 0.20 in all Wings Mobile stores – online and offline.
That however raises the question of if Wings Mobile’s business operations were going well, why risk everything
- launching a mining phone sideshow; and
- committing securities fraud?
Be careful of falling into the trap of not being able to answer the above question, and equating that to legitimacy.
Bitwing’s BWN investment scheme is very much illegal. How illegal is up to regulators to sort out, namely the CNMV.
Based on previous securities fraud warnings, I can confirm both unregistered securities and running a pyramid scheme are illegal in Spain.
If Bitwings launches in the US later this year as per their roadmap, the SEC could also come into play.
As a potential affiliate investor the usual MLM Ponzi rules apply;
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve Bitwings of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.