GainBTT Review: BitTorrent Token Ponzi scheme
GainBTT provides no information on its website about who owns or runs the company.
GainBTT’s website domain (“gainbtt.io”), was privately registered on May 24th, 2021.
In an attempt to appear legitimate, GainBTT’s provides basic UK incorporation details for GainBTT LTD.
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.
Alexa currently ranks top sources of traffic to GaintBTT’s website as India (36%) and Sri Lanka (31%).
There’s a high probability whoever is running GainBTT is from one or both of these countries.
The language GainBTT’s website would appear to support this:
GainBTT is a best experienced people’s community where they can build social plateform and gives best opportunity to you & your career.
GainBTT also uses the term “crores” in its marketing:
A crore denotes ten million. The denomination is predominantly used in India but is also common in surrounding countries.
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.
GainBTT has no retailable products or services.
Affiliates are only able to market GainBTT affiliate membership itself.
GainBTT’s Compensation Plan
GainBTT affiliates invest BitTorrent Token (BTT), on the promise of advertised returns:
- invest 2250 BTT and receive 225%
- invest 4500 BTT and receive 250%
- invest 9000 BTT and receive 270%
- invest 45,000 BTT and receive 300%
- invest 90,000 BTT and receive 360%
GainBTT represents returns are paid daily between 1% to 10%, until the above caps are reached.
The MLM side of GainBTT pays on recruitment of affiliate investors.
GainBTT affiliates earn 25% of BTT invested by personally recruited affiliates.
GainBTT 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.
Residual commissions are paid as 10% of invested funds on both sides of the binary team.
Note that the first residual commission paid out is a 2:1 matching ratio.
I.e. for a GainBTT affiliate’s first residual commission run, there must be double the amount matched on one side of the binary team.
E.g. $10 on one side matched with $20 on the other side. $20 matched with $40 on the other side etc.
After that first run, matched funds are matched 1:1 on both binary team sides.
GainBTT affiliates who have five hundred affiliates on both sides of their binary team, earn a bonus 3% residual commission rate.
This is referred to as qualifying at Manager.
To retain Manager qualification, a GainBTT affiliate must recruit affiliates who invest at least 40 SH points each week.
For an explanation of SH points, refer to “rewards” below.
GainBTT rewards affiliates with bonus BTT when they reach binary team investment milestones.
These milestones are tracked via invested packages and “SH points”:
- a 2250 BTT investment generates 1 SH point
- a 4500 BTT investment generates 2 SH points
- a 9000 BTT investment generates 4 SH points
- a 45,000 BTT investment generates 20 SH points
- a 90,000 BTT investment generates 40 SH points
Rewards qualification criteria sees SH points tallied up on both sides of the binary team:
- generate 4 SH points on both sides of the binary team and receive 450 BTT
- generate 20 SH points on both sides of the binary team and receive 1800 BTT
- generate 40 SH points on both sides of the binary team and receive 3600 BTT
- generate 200 SH points on both sides of the binary team and receive 18,000 BTT
- generate 400 SH points on both sides of the binary team and receive 72,000 BTT
- generate 2000 SH points on both sides of the binary team and receive 360,000 BTT
- generate 4000 SH points on both sides of the binary team and receive 1,800,000 BTT
- generate 20,000 SH points on both sides of the binary team and receive 3,600,000 BTT
- generate 40,000 SH points on both sides of the binary team and receive 10,000,000 BTT
- generate 100,000 SH points on both sides of the binary team and receive 50,000,000 BTT
GainBTT affiliate membership is free.
Full participation in the attached income opportunity requires a minimum 2250 BTT investment.
GainBTT solicits investment via an in house app.
GainBTT is a simple MLM crypto Ponzi scheme.
Affiliates sign up and invest BitTorrent Token. This is done on the promise of advertised returns:
GainBTT has no verifiable source of revenue other than new investment. It is the use of this new investment to pay returns that makes GainBTT a Ponzi scheme.
The MLM side of GainBTT recycles invested fund to pay recruitment commissions, adding a pyramid layer to the scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve GainBTT of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
It is noted that the current iteration of GainBTT is being marketed as “2.0”:
This suggests the original GainBTT Ponzi model already collapsed. This is noteworthy, seeing as the scheme itself is only a few months old.