Brend2 Review: 1% a day BTC-based Ponzi scheme
There is no information on the Brend2 website indicating who owns or runs the business.
Instead, the company only serves up the following vague description of itself:
Brend2 is a networking community that (is) established on the basis of mutual donation between members.
The Brend2 website domain was registered on February 2nd 2016, however the domain registration is set to private.
Of note is that at the time of publication, Alexa estimate that some 76.4% of visitors to the Brend2 website originate out of India.
This strongly suggests that whoever is running Brend2 is also based out of India.
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.
The Brend2 Product Line
Brend2 has no retailable products or services, with Brend2 affiliates only able to market Brend2 affiliate membership itself.
The Brend2 Compensation Plan
The Brend2 compensation plan rewards affiliates for investing and recruiting other affiliates who do the same.
Brend2 affiliates receive a 1% daily ROI on invested funds.
Note that based on how much an affiliate invests, the following weekly ROI caps apply:
- Silver ($100) – $500 a week
- Gold ($500) – $1500 a week
- Platinum ($1000) – $2500 a week
Brend2 affiliates are paid to recruit new affiliates.
How much of a recruitment commission is paid out is determined by how much a Brend2 affiliate invested when they signed up:
- sign up as a Silver affiliate ($100) – 5%
- sign up as a Gold affiliate ($500) – 8%
- sign up as a Platinum affiliate ($1000) – 10%
Residual commissions in Brend2 are paid out via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
Positions in the binary are filled via the recruitment of new affiliates, with each new level of the binary holding double the positions as the last.
Theoretically, a binary team can extend down an infinite depth.
Commissions are paid out as a percentage of investment volume tracked on both sides of binary.
How much of a percentage is paid out is determined by how much a Brend2 affiliate invested when they signed up:
- Silver affiliate ($100)= 10%
- Gold affiliate ($500) = 8%
- Platinum affiliate ($1000) = 5%
Brend2 affiliates who encourages others to invest are rewarded with the following cash bonuses:
- $10,000 invested on both sides of the binary = $500 bonus
- $100,000 invested on both sides of the binary = $5000 bonus
- $250,000 invested on both sides of the binary = $12,500 bonus
- $500,000 invested on both sides of the binary = $25,000 bonus
- $1,000,000 invested on both sides of the binary = $50,000 bonus
Affiliate membership with Brend2 is tied to an investment of between $100 and $1000:
- Silver – $100
- Gold – $500
- Platinum- $1000
The more an affiliate invests the more they earn through the Brend2 compensation plan.
Going off the similar sounding rhetoric plastered all over the Brend2 website, my guess is that someone in India is trying to start their own MMM Global Ponzi clone.
“Together we change the world!” is the catch-cry of MMM Global Founder Sergei Mavrodi, with a close-enough approximation appearing on the Brend2 website:
Together with Brend2 we can changes (sic) the world!
The official Brend2 Facebook page has also left likes on numerous MMM Global Facebook pages (mostly within the Asia region).
In a nutshell, Brend2 affiliates invest on the promise of advertised ROIs and recruitment commissions.
Nothing is marketed or sold to retail customers, meaning all funds circulated within the scheme are sourced from affiliate investment.
This makes Brend2 a Ponzi scheme.
Most likely the admin(s) of the scheme have heavily preloaded the ROI side of the business with positions. This combined with their sitting at the top of the company-wide binary ensures they’ll receive the lion’s share of invested funds.
Once recruitment dies down so too do funds able to be paid out, with mathematics guaranteeing most investors will lose money.
The use of BitCoin is particularly nefarious, as recovery of funds in the event of a collapse or regulatory shutdown is particularly complicated.
Just as the anonymous Brend2 admins intend it to be.
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