CoinChain Digital Review: 20% a day bitcoin Ponzi scheme
CoinChain Digital provides no information on its website about who owns or runs the company.
In an attempt to appear legitimate, CoinChain Digital provides a UK incorporation certificate on its website.
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.
CoinChain Digital’s website domain (“coinchaindigital.ltd”) was privately registered on November 20th, 2020.
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.
CoinChain Digital’s Products
CoinChain Digital has no retailable products or services.
Affiliates are only able to market CoinChain Digital affiliate membership itself.
CoinChain Digital’s Compensation Plan
CoinChain Digital affiliates invest bitcoin on the promise of advertised returns:
- Bronze Plan – invest $20 to $10,000 and receive 20% after 24 hours
- Silver Plan – invest $1000 to $40,000 and receive 15% after 48 hours
- Gold Plan – invest $5000 to $100,000 and receive 20% after 78 hours
- VIP Plan – invest $5000 or more for an undisclosed hourly ROI rate
CoinChain Digital pays referral commissions on invested funds down three levels of recruitment (unilevel):
Regular CoinChain Digital affiliates earn:
- 5% on level 1 (personally recruited affiliates)
- 2% on level 2
- 1% on level 3
Representative CoinChain Digital affiliates earn:
- 10% on level 1
- 4% on level 2
- 2% on level 3
CoinChain Digital state that in order to become a Representative, an affiliate has
to have the ability to support and promote our project in your region via different ways, such as a personal blog, online / offline presentation, meetings with clients etc.
Joining CoinChain Digital
CoinChain Digital affiliate membership is free.
Full participation in the attached income opportunity requires a minimum $20 investment made in bitcoin.
CoinChain Digital Conclusion
CoinChain Digital represents it generates external revenue via “bitcoin mining”.
We are active in the Bitcoin mining market.
As a result, we can offer our numerous clients good investment opportunities.
No evidence of CoinChain Digital generating revenue via bitcoin mining is provided.
Nor is there evidence of CoinChain Digital paying withdrawals with any other source of external revenue.
As it stands, the only verifiable source of revenue entering CoinChain Digital is new investment.
Using new investment to pay a 20% daily return makes CoinChain Digital a Ponzi scheme.
Not withstanding 20% a day is completely ridiculous. If anyone was legitimately able to legitimately generate that sort of return, they certainly wouldn’t be selling you access for $20.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve CoinChain Digital of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.