Coin Nuggets Review: Two-tier 1 cent subscription cycler
The Coin Nuggets website identifies Michael Weber, CEO of I-Affiliate Marketing Inc., as owner of the company.
Weber first appeared on BehindMLM in 2015 as admin of the X100K pyramid scheme.
After collapsing a number of times X100K was abandoned in early 2016. Weber (right) returned later in the year with PIF2Cash, a Ponzi cycler.
Alexa traffic estimates for the PIF2Cash website suggest the scheme began to collapse in February.
Read on for a full review of the Coin Nuggets MLM opportunity.
Coin Nuggets Products
Coin Nuggets has no retailable products or services, with affiliates only able to market Coin Nuggets affiliate membership itself.
Once signed up, Coin Nuggets affiliates purchase matrix positions to participate in the attached income opportunity.
Bundled with these matrix position purchases is access to a “marketing and downloads package” and advertising credits.
The Coin Nuggets Compensation Plan
Coin Nuggets affiliates purchase 1 cent positions in a two-tier matrix cycler.
Matrix sizes used in the Coin Nuggets cycler are 2×4 and 2×5.
A 2×4 matrix places a Coin Nuggets affiliate at the top of a matrix, with two positions directly under them:
These two positions form the first level of the matrix. The second level of the matrix is generated by splitting these first two positions into another two positions each (4 positions).
Levels three to four of the matrix are generated in the same manner, with each new level housing twice as many positions as the previous level (8 and 16 positions respectively).
A 2×5 matrix expands the matrix by one level, adding another 32 positions to the matrix.
A Coin Nuggets affiliate signs up and purchases a 1 cent position in the 2×5 “Coin Matrix”.
As positions are purchased by other Coin Nuggets affiliates, eventually level one of the matrix fills up.
This triggers a “cycle”, which pays out a commission and unlocks the next level of the matrix.
Once all five levels of the Coin Matrix are filled, the position then cycles into the “Nugget Matrix”.
The Nugget Matrix operates in the same manner as the Coin Matrix, requiring positions at each level to be filled to trigger a cycle commission.
Cycle commissions paid out across Coin Nugget’s two-tier cycler are as follows:
- Coin Matrix level 1 (positions cost 1 cent) – 1 cent commission and cycles into level 2
- Coin Matrix level 2 – 4 cents commission, generates a new Coin Matrix level 1 position and cycles into Coin Matrix level 3
- Coin Matrix level 3 – 20 cents commission, generates a new Coin Matrix level 1 position and cycles into Coin Matrix level 4
- Coin Matrix level 4 – $3.75 commission, generates a new Coin Matrix level 1 position and cycles into Coin Matrix level 5
- Coin Matrix level 5 – $256 commission and cycles into Nugget Matrix level 1
- Nugget Matrix level 1 – $5 commission and cycles into Nugget Matrix level 2
- Nugget Matrix level 2 – $20 commission and cycles into Nugget Matrix level 3
- Nugget Matrix level 3 – $375 commission and cycles into Nugget Matrix level 4
- Nugget Matrix level 4 – $6100 commission and cycles into Nugget Matrix level 5
Referral commissions are paid when personally recruited affiliates cycle levels three to five of the Coin Matrix and levels two to four of the Nugget Matrix.
- Coin Matrix level 3 – 5 cent referral commission
- Coin Matrix level 4 – 45 cents referral commission
- Coin Matrix level 5 – $24.50 referral commission
- Nugget Matrix level 2 – $5 referral commission
- Nugget Matrix level 3 – $20 referral commission
- Nugget Matrix level 4 – $475 referral commission
Note that new Coin Nuggets cycler position purchases and withdrawal requests must leave a minimum $20 in an affiliate’s account.
This $20 is slowly drained by the automatic daily purchase of a new 1 cent Coin Matrix position.
Joining Coin Nuggets
Coin Nuggets affiliate membership is $45.05.
$25.05 is put towards 1 cent matrix subscriptions and the remaining $20 is used to fund the initial $20 reserve minimum balance.
Conclusion
Coin Nuggets is basically a convoluted attempt to draw blood from a stone.
On the raw numbers side of the matrix cycler you’ve got each 1 cent position generating a potential $7285 ROI.
That’s a minimum of 728,500 positions per complete ROI payout. More once you factor in that the company-wide Coin Nuggets matrix doesn’t fill in a linear fashion.
And unless I’m missing something, the numbers behind the Coin Matrix don’t add up. On level 4 you’re paid $3.75, having only generated 20 cents per eight positions on level 3.
Then this magically turns into a $256 commission once level 5 is filled? How does 1 cent turn into $256 by a factor of five?
You’d have to “steal” money from another matrix to make up the difference, which then raises the question of how is that matrix going to get paid out?
And that’s on top of referral commissions and phantom level 1 positions created via cycling levels 1 to 3.
In any event, with nothing marketed or sold to retail customers, Coin Nuggets operates as a Ponzi scheme.
Once affiliate recruitment dies down, Coin Nuggets’ matrix cycler will stall. This will effectively freeze ROI payouts, resulting in the majority of Coin Nuggets affiliates losing money.
If the wonky math on the backend is to be believed, Coin Nuggets might even collapse before recruitment stalls.
So once the money slows or stalls he just draws up yet another scheme to pull money from his members.
Is this linked with X100k as he seems to link all his new offerings to push x100k cycling lines along.
Looks like he gets to keep a huge amount of the funds for himself no matter what.
Every cycler (micro-ponzi) works this way. Once one stalls, the owner launch another one. It’s such easy money, there are firms in India and Pakistan specialize in churning these out with templates.
You have left out one important factor…. in order to be in the 1 cent first paying matrix, one must become a Pro member spending 45.05 and the break down is 25.00 for the matrix, and 20.00 RRS to cover your 5 cent a day Pro subscription.
Thanks for that DJanet, wasn’t mentioned in the Coin Nuggets comp plan.
Yesterday, Michael Weber has been arrested along with Mendy Zicherman and Shrage Posen (former Brooklyn Financial Group CEO) in relation to the fraudulent Vitae coin.
europol.europa.eu/newsroom/news/europol-helps-belgian-and-swiss-authorities-unravel-vitae-ponzi-scheme
Note that the press-release doesn’t confirm Weber’s arrest.
AFAIK Weber is in the US. The five arrested were Belgian residents. Weber’s status is unconfirmed.
Two arrested Vitae executives named, Michael Weber MIA