Daisy AI Review: EndoTech launches securities fraud opp
DAISY is a portmanteau of “Decentralized AI System”. The company’s full name is Daisy AI.
Daisy AI is presented as an offshoot of EndoTech, a company whose website domain was registered in February 2018.
Despite not existing online till 2018, EndoTech claims on its website it was founded in 2012. The company pitches itself as a crypto trading bot firm, based out of Israel.
That said, the corporate address provided on EndoTech’s website appears to belong to a restaurant.
Heading up EndoTech is co-founders Anna Becker and Dmitry Gushchin.
Both have LinkedIn profiles that claim they are based out of Israel. Notably absent are employment histories.
From what little there is online about Becker, she seems to have spent the last few years coasting from one failed cryptocurrency project to another.
Dmitry Gushchin doesn’t appear to have any online footprint whatsoever. This is because he intentionally misspells his name on EndoTech’s website.
Gushchin’s actual surname is Gooshchin.
Other than playing chess a decade ago and selling “high-class antennas” through his company Fractom, Gooshchin doesn’t appear to have done anything professionally significant since.
I assume that like Becker, Gooshchin reinvented himself as a cryptocurrency expert sometime over the past few years.
Read on for a full review of Daisy AI’s MLM opportunity.
Daisy AI’s Products
Daisy AI has no retailable products or services, with affiliates only able to market Daisy AI affiliate membership itself.
Daisy AI’s Compensation Plan
Daisy AI affiliates invest funds on the promise of a daily return.
There are ten Daisy AI buy in investment tiers:
Returns are calculated based on how much a Daisy AI affiliate invests. Specifics aren’t provided but a Daisy AI marketing example depicts a 3% daily ROI:
The rest of Daisy AI’s compensation plan rewards affiliates for recruiting new affiliate investors.
Daisy AI affiliates earn 5% of buy in fees paid by personally recruited affiliates.
Daisy AI pays residual commissions via a 3×10 matrix.
A 3×10 matrix places an affiliate at the top of a matrix, with three positions directly under them:
These three positions form the first level of the matrix. The second level of the matrix is generated by splitting these first three positions into another three positions each (9 positions).
Levels three to ten of the matrix are generated in the same manner, with each new level housing three times as many positions as the previous level.
Eacy Daisy AI buy in level operates as an independent matrix tier. Affiliates can only earn residual commissions on buy in tiers they have bought into.
E.g. if you sign up at the $100, $200 and $400 tiers and recruit someone who buys in at $800, residual commissions on the $800 buy in will be paid to another affiliate who has bought in at $800.
With that qualification criteria in mind, residual commissions are paid out as a percentage of buy in investment, based on what level of the matrix the affiliate buying in is placed:
- matrix levels 1 and 2 – 4% of $100 to $6400 buy in tiers, 2% of $12,800 to $51,200 tiers
- matrix levels 3 to 8 – 3% of $100 to $6400 buy in tiers, 1.5% of $12,800 to $51,200 tiers
- matrix levels 9 and 10 – 4% of $100 to $6400 buy in tiers, 2% of $12,800 to $51,200 tiers
Note that to unlock level three of any buy in tier matrix, the following additional qualification criteria applies:
- to unlock matrix level 3 recruit three affiliates and generate $1000 in personally recruited affiliate buy in revenue
- to unlock matrix level 4 recruit six affiliates and generate $2000 in personally recruited affiliate buy in revenue
- to unlock matrix level 5 recruit nine affiliates and generate $4000 in personally recruited affiliate buy in revenue
- to unlock matrix level 6 recruit twelve affiliates and generate $8000 in personally recruited affiliate buy in revenue
- to unlock matrix level 7 recruit fifteen affiliates and generate $16,000 in personally recruited affiliate buy in revenue
- to unlock matrix level 8 recruit eighteen affiliates and generate $32,000 in personally recruited affiliate buy in revenue
- to unlock matrix level 9 recruit twenty-one affiliates and generate $64,000 in personally recruited affiliate buy in revenue
- to unlock matrix level 10 recruit twenty-four affiliates and generate $128,000 in personally recruited affiliate buy in revenue
These amounts seem steep but are presented as universal matrix level unlock requirements (across all buy in tiers).
Finally, if an affiliate unlocks a matrix level from level 3 in their first thirty days, they unlock the next tier as a bonus.
E.g. if you unlock level 3 within thirty days of signing up then level 4 is unlocked as a bonus.
If a Daisy AI affiliate unlocks all ten matrix tiers within their first thirty days, they receive a share in 1.1% of company-wide buy in investment.
Daisy AI affiliates are paid a 10% match on residual commissions earned by personally recruited affiliates.
Note that the match is only paid on matrix levels that an affiliate and their personally recruited affiliate have both unlocked.
Daisy Infinity Club
The Daisy Infinity Club pays a match on returns paid to downline affiliates.
The Daisy Infinity Club is tracked 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.
The Daisy Infinity Club pays 1% on returns earned by affiliates directly and indirectly recruited into an affiliate’s unilevel team.
A 100% ROI match is paid on the first Daisy Infinity Club qualified affiliate in each unilevel team leg. 50% is paid on the second.
Note that to qualify for the Daisy Infinity Club, a Daisy AI affiliate must either:
- generate $1,000,000 in downline buy in volume within their first thirty days; or
- generate $10,000,000 in downline buy in volume (no time limit).
Up to 50% of required buy-in volume can be counted from any one unilevel team leg.
Part of a Daisy AI affiliate’s buy in is put towards a trading account.
It sounds like this account generates an addition ROI but this isn’t clarified in Daisy AI’s marketing material.
In any event, the Trading Bonus pays a percentage of funds withdrawn from the payment of “trading rewards”.
Exact percentages are tracked across the same 3×10 matrices used to pay residual commissions (same level unlock criteria too):
- level 1 – 3.5% match
- levels 2 to 10 – 1% match
Daisy AI runs a share pool funded by new investment.
Affiliates receive shares in the pool based on how much they sign up with:
- buy in for $100 and receive one share
- buy in for $200 and receive three shares
- buy in for $400 and receive seven shares
- buy in for $800 and receive fifteen shares
- buy in for $1600 and receive thirty-one shares
- buy in for $3200 and receive sixty-three shares
- buy in for $6400 and receive one hundred and twenty-seven shares
- buy in for $12,800 and receive two hundred and fifty-five shares
- buy in for $25,600 and receive five hundred and eleven shares
- buy in for $51,200 and receive one thousand and twenty-three shares
Joining Daisy AI
Daisy AI affiliate membership starts at $100.
Full participation in the attached income opportunity costs $102,300.
Note that Daisy AI only accepts tether (USDT).
Update 3rd January 2020 – Since launching Daisy AI is reported to have switched to TRON. /end update
Daisy AI pitches its MLM opportunity as an “equity crowd funding model”.
That’s scamspeak for “AI trading”, which in turn is MLM crypto scamspeak for “Ponzi scheme”.
Basically there’s nothing in Daisy AI that you haven’t heard before. The same trading bot bullshit every MLM crypto scam comes up with:
Her teams of AI scientists have more than 20 proprietary AI systems in operation and serve as the AI investing backbone of trading at more than 150 investment firms across the United States, Europe and Asia.
When all they’re doing is recycling invested funds.
Taking a step back, quite obviously Daisy AI is offering passive returns. I’m not going to even touch the equity rubbish because neither Daisy AI or EndoTech are publicly listed companies.
MLM + passive returns = a securities offering.
Be it Israel or anywhere else in the world, neither EndoTech, Daisy AI (or any other company name derivitive), Anna Becker or Dmitry Gushchin/Gooshchin are registered to offer securities.
This means that at a minimum, Daisy AI and anyone promoting it is committing securities fraud.
Fully aware of what they’re doing, Daisy AI offers up the following laughable pseudo-compliance:
Purchasing the Daisy Crowd Fund packages is a contribution to the equity crowd fund for the Daisy ai development and not a trading investment.
Endotech is giving both shares of stock in the company and profit sharing from trading results, to each contributor as crowd funding rewards.
Daisy AI and EndoTech can call their passive returns whatever they want. At the end of the day affiliates deposit funds on the representation of passive returns, however convoluted the wording may be.
Oh and there’s also this:
Always amusing when scammers trip on their own nonsense.
The link to EndoTech is interesting, not because of waffle marketing but because it appears to be a standalone non-MLM trading bot scheme.
We develop and distribute high performance, AI driven trading strategies and bots.
It’s the usual con, hook up your trading account and we’ll generate passive returns for you.
If I had to guess that scam is on the rocks and so they’ve decided to go full MLM and launch a reload with Daisy AI.
Alexa currently estimates a whopping 96% of traffic to EndoTech’s website originates out of Spain. There’s probably something in that, as opposed to two nobodies running the show out of Israel.
Regardless, you know how this ends. Math guarantees the majority of Ponzi investors lose money when said Ponzi inevitably collapses.
Daisy AI and EndoTech won’t play out any different.
Update 26th January 2021 – In response to the implication that Anna Becker’s former ties to The Financial Commission lends legitimacy to Daisy AI, The Financial Commission has put out a statement distancing itself from Becker.