Chip2Wealth Review: Semiconductor ruse MLM Ponzi
Chip2Wealth fails to provide verifiable ownership or executive information on its website.
Chip2Wealth’s website domain (“chip2wealth.com”), was privately registered on August 14th, 2024.
Chip2Wealth names Kane Tanakka as its CEO. A presumably made-up bio is provided, as Tanakka doesn’t exist outside of Chip2Wealth’s website.
In another attempt to appear legitimate, Chip2Wealth provides company registration details for Chip2Wealth LTD.
Chip2Wealth LTD was registered as a UK company on August 21st, 2024.
An MLM company operating or claiming to operate out of the UK is a red flag.
UK incorporation is dirt cheap and effectively unregulated. On top of that the FCA, the UK’s top financial regulator, do not actively regulate MLM related securities fraud.
As a result the UK is a favored jurisdiction for scammers looking to incorporate, operate and promote fraudulent companies.
For the purpose of MLM due-diligence, incorporation in the UK or registration with the FCA is meaningless.
Of note is Chip2Wealth’s official marketing materials being authored by “Parshvi Sanghavi”.
A Google search for this name reveals ties to India. This in turn suggests whoever is actually running Chip2Wealth has ties to India.
Supporting this is the use of the Indian rupee symbol in Chip2Wealth’s official marketing:
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.
Chip2Wealth’s Products
Chip2Wealth has no retailable products or services.
Affiliates are only able to market Chip2Wealth affiliate membership itself.
Chip2Wealth’s Compensation Plan
Chip2Wealth affiliates invest funds on the promise of advertised passive returns:
- Nano – invest $49 to $999 and receive 1.25% a day for 250 days
- Micro – invest $1000 to $9999 and receive 1.5% a day for 225 days
- Terra – invest $10,000 to $49,999 and receive 1.75% a day for 210 days
- Giga – invest $50,000 to $99,999 and receive 2% a day for 200 days
Note that Chip2Wealth charges a 10% withdrawal fee.
The MLM side of Chip2Wealth pays on recruitment of affiliate investors.
Referral Commissions
Chip2Wealth pays a 10% referral commission on funds invested by personally recruited affiliates
Residual Commissions
Chip2Wealth pays residual commissions 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):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
At the end of each day Chip2Wealth tallies up new investment volume on both sides of the binary team.
Affiliates are paid 8% of new investment on their weaker binary side.
Once paid out on, volume is matched against the stronger binary team side and flushed. Any leftover volume on the stronger binary team side carries over.
Franchise Commissions
Chip2Wealth affiliates can pay a fee to receive “franchise” income:
- pay $10,000 and receive 1%
- pay $25,000 and receive 2.75%
What the percentages are paid out on isn’t specified but is assumed to tie into downline investment (possibly restricted by geo-region).
Joining Chip2Wealth
Chip2Wealth affiliate membership is free.
Full participation in the attached income opportunity requires a minimum $49 investment.
Chip2Wealth solicits investment in USD and various cryptocurrencies.
Chip2Wealth Conclusion
Despite only launching a few months ago, Chip2Wealth would have consumers believe it is a major player in the “semiconductor space”.
Unfortunately that’s as far as Chip2Wealth’s semiconductor marketing goes. Returns are purportedly derived via “attractive investment opportunities”.
As it stands, the only verifiable source of revenue entering Chip2Wealth is new investment.
Using new investment to pay ROI withdrawals would make Chip2Wealth a Ponzi scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve Chip2Wealth of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.