First Scrap Review: Recycling themed Boris CEO Ponzi
First Scrap provides no information on its website about who owns or runs the company.
First Scrap’s website domain (“firstscrap.com”), was first registered in November 2020. The private registration was last updated on July 2nd, 2022.
In an attempt to appear legitimate, First Scrap provides a random residential address in Canada on their website. For the purpose of due-diligence, this is meaningless.
First Scrap’s website went live in mid 2021, coinciding with a launch on or around June.
In late May 2022 First Scrap picked up their marketing game, with the introduction of “John Ronald”:
“John Ronald” is in fact Daniel Pulyakh (Данил Пулях), an actor based out of Moscow, Russia.
Since the May 2022 promo vid, Russian scammers have hired additional actors to play the rest of First Scrap’s executive team.
The above FaceBook post suggests a rented office Boris CEO marketing video is on the way.
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.
First Scrap’s Products
First Scrap has no retailable products or services.
Affiliates are only able to market First Scrap affiliate membership itself.
First Scrap’s Compensation Plan
First Scrap affiliates invest USD and cryptocurrency on the promise of advertised returns:
- Bronze – invest $100 to $10,000 and receive a 1.55% daily ROI
- Silver – invest $10,001 to $35,000 and receive a 1.85% daily ROI
- Gold – invest $35,001 to $60,000 and receive a 2.15% daily ROI
- Platinum – invest $60,001 to $100,000 and receive a 2.45% daily ROI
Note that First Scrap charges a 7% fee on all withdrawal requests. First Scrap affiliates are also only able to withdraw twice a month.
The MLM side of First Scrap pays on recruitment of affiliate investors.
First Scrap affiliates earn a commission on funds invested by personally recruited affiliates.
- Bronze tier affiliates earn a 6% referral commission
- Silver tier affiliates earn a 7% referral commission
- Gold tier affiliates earn an 8% referral commission
- Platinum tier affiliates earn a 9% referral commission
First Scrap 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 Frist Scrap tallies up new investment volume on both sides of the binary team.
Affiliates are paid 8% of funds invested on their weaker binary team side.
- Bronze tier affiliates can earn up to $1000 a day
- Silver tier affiliates can earn up to $3500 a day
- Gold tier affiliates can earn up to $7500 a day
- Platinum tier affiliates can earn up to $10,000 a day
Once paid out on, volume is matched against the stronger binary team side and flushed.
Any leftover volume on the stronger binary team side is carried over.
Joining First Scrap
First Scrap affiliate membership is free.
Full participation in the attached income opportunity requires a $100 to $100,000 initial investment.
First Scrap solicits investment invest in USD through Perfect Money, as well as various cryptocurrencies.
First Scrap Conclusion
First Scrap’s represents it generates external revenue via recycling operations.
First Scrap is a business division of First Scrap Corporation Limited.
A world leading Private Limited metal recycler, our operations encompass the buying, processing and selling of ferrous and non-ferrous recycled metals.
Like First Scrap’s fictional executives, its recycling operations don’t exist.
What we have here is a typical Boris CEO Ponzi scheme.
As with all MLM Ponzi schemes, once affiliate recruitment runs dry so too will new investment.
This will starve First Scrap of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.