Crypster Review: Digital currency trading unregistered securities
When I added Crypster to our review list, the company was operating from two domains; “crypster.eu” and “crypster.rocks”.
The EU domain has since been abandoned. The ROCKS domain is still up but not accessible through a US IP address.
Crypster’s website provides no information on who owns or runs the business.
Crypster marketing videos feature Volker Wainig, who on LinkedIn identifies himself as Crypster’s founder.
According to his LinkedIn profile, Wainig (right) is based out of Austria.
Prior to founding Crypster, Wainig was Executive Sales Chief for Trevo and CEO of the FlexKom pyramid scheme’s US division.
Read on for a full review of the Crypster MLM opportunity.
Crypster Products
Crypster has no retailable products or services, with affiliates only able to market Crypster affiliate membership itself.
The Crypster Compensation Plan
Crypster affiliates sign up and invest 0.01 to 1 BTC, on an advertised 4% weekly average ROI.
On average, we have produced 4% for our Crypsters every week!
Commissions are paid when Crypster affiliates convince others to invest.
Crypster pays 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.
Crypster caps payable unilevel team levels at five. Note that only level 1 is available to new affiliates.
Levels 2 to 5 of the unilevel team must be unlocked as per the following qualification criteria:
- level 2 – generate 1 BTC of investment across level 1 of your unilevel team (personally recruited affiliates)
- level 3 – generate 5 BTC of investment across levels 1 and 2 of your unilevel team (no more than 2.5 BTC counted from any one unilevel leg)
- level 4 – generate 10 BTC across levels 1 to 3 of your unilevel team (no more than 5 BTC counted from any one unilevel leg)
- level 5 – generate 20 BTC across levels 1 to 4 of your unilevel team (no more than 10 BTC from any one unilevel leg)
Once qualified for, Crypster pays commissions on up to five unilevel team levels as follows:
- level 1 (personally recruited affiliates) – 8%
- levels 2 to 5 – 4%
Joining Crypster
Crypster affiliate membership is tied to a 0.01 to 1 BTC investment.
Conclusion
Crypster offers a passive investment opportunity, with returns purportedly derived via “digital currency trading”.
Crypster is the platform of choice for ordinary people getting involved in digital currency trading.
Crypster provides investors and the public with no specifics on its trading activities.
Furthermore Crypster’s passive investment opportunity quite obviously constitutes a securities offering.
Crypster affiliates sign up, dump money into the company and then collect a passive return.
We are also a platform for “Crowd-Trading” – meaning that our community can trade your assets for you, sharing the resulting profits.
You don’t have to actively engage in trading yourself, just watch how your assets grow in weekly trade sprints!
Crypster provides no indication it is registered to offer securities in any jurisdiction it solicits investment in.
In Volker Wainig home country Austria, securities are regulated by the Financial Market Authority.
In addition to securities fraud, Crypster also engages in pyramid fraud by way of recruitment commissions.
100% of Crypster’s MLM opportunity is tied to investor recruitment. Nothing is marketed or sold to retail customers.
At best Crypster is an illegal securities offering, at worst it’s yet another MLM crypto Ponzi scheme.
Either way, once affiliate recruitment dies down so too will new investment.
Given the high probability Crypster, one some level, is simply recycling newly invested funds, this will likely prompt a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
The Crypster.eu domain is working because there is a redirect from the rocks website for new account sign-ups.
There’s a Bucharest, Romania address in the rocks’ Terms of Use although whether the owners are actually based there is questionable.
The root domain had a website on it when I added Crypster to the review list.
Volker is a huge looser – who sold out on mr Asker to get the last dimes from CEO Cengiz and was one of the last to leave the Flexkom ship.
This guy would sell his grandma for a few dimes.
Humans are the only animals that will follow an unstable pack leader! Volker is the weakest of all..
Just an update. The compensation plan as described above has been updated so thought I would share it here.
To received trading profits on your own Bitcoin you have with them 0.01 BTC is required, you DO NOT NEED to introduce anyone to Crypster in order to receive a share of the weekly trading profits OR loss (yes this is trading so losses can be made as well as profits).
Not sure where the 4% return per week has come from but to date for the 3 months from Jan to March 2019 it’s approximately 4.5% and there has been 1 loss week for the year so far.
To unlock a trading profit share on any referrals you make (Level 1) you simply must have 0.01 BTC in trade yourself. You would then pick up 8% of the profit made on your referrals capital in trade.
To unlock Level 2 trading profit share (4%) you need to have 4 referrals on your level 1 at 0.01 BTC
To unlock Level 3 trading profit share (4%) you need to have 6 referrals on your level 1 at 0.01 BTC
To unlock Level 4 trading profit share (4%) you need to have 8 referrals on your level 1 at 0.01 BTC
To unlock Level 5 trading profit share (4%) you need to have 10 referrals on your level 1 at 0.01 BTC
Max you can put into trade is capped 1 BTC
I do know personally a corporate Lawyer who signed a Non disclosure agreement with Crypster to look behind the scenes who did end up speaking directly with the Licensed Traders and came back to us with green lights that they all checked out so I guess only time will tell if Volker will deliver.
There is a Price Waterhouse Coopers Audit due at the end of Q2 so I guess we will know sooner rather than later if this is all smoke and mirrors or the real deal!
Answers to a couple of other questions…Volker is based in Vienna Austria… and the corporate website is crypster.rocks
If Crypster isn’t registered with securities regulators in every jurisdiction it solicits investment in, then it’s committing securities fraud. Everything else is just smoke and mirrors.
it’s already known it’s not a ‘real deal’ so……….. sooner.
Rather than speculate one way or the other I think we should ask Crypster to clarify it’s position when it comes to the securities regulators don’t you think?
Let’s see what they come back with… will post here once have an answer.
Why? Their position doesn’t matter.
Either Crypster has registered in every jurisdiction they are soliciting investment in, or it is operating illegally.
You can’t “position” your way out of facts.