Giftobit Review: Two-tier matrix cash gifting
There is no information on the GiftoBit website indicating who owns or runs the business.
The GiftoBit website domain (“giftobit.com”) was registered on the 20th of June 2016, however the domain registration is set to private.
Update 11th September 2016 – After this review was published, the GiftoBit website was updated to reflect it is owned by Carlene and Daniel Spiteri:
Giftobit Foundation was founded in July 2016 by Carlene Spiteri and Daniel Spiteri, a mother and son team.
According to Carlene Spiteri’s bio on Coinxion, a cryptocurrency crowdfunding platform that appears to have flopped, she’s worked for ‘two online global digital payment systems‘ that were consecutively shut down by government regulators in 2008 and 2012.
Daniel Spiteri identifies himself as an “online gamer and online trader” who “manage(s) a number of online chat rooms”.
Carlene Spiteri was a prominent GCR Marketing affiliate. GCR Marketing solicited funds from affiliates in exchange for the worthless GCR Coin cryptocurrency.
Read on for a full review of the GiftoBit MLM opportunity.
The GiftoBit Product Line
GiftoBit has no retailable products or services, with affiliates only able to market GiftoBit affiliate membership itself.
Once signed up, GiftoBit affiliates can purchase 0.05 BTC matrix positions to participate in the attached MLM opportunity.
Bundled with each position purchase is access to an “Online Education Program” GiftoBit claims will ‘teach you about bitcoin and other cryptocurrencies‘.
The GiftoBit Compensation Plan
The GiftoBit compensation plan sees affiliates purchase a 0.05 BTC position in a two-tier 5×3 matrix cycler.
An affiliate can also receive a position by recruiting five affiliates who each purchase at least one 0.05 BTC matrix position.
Every five personally recruited affiliates generates a new 0.05 BTC matrix position.
A 5×3 matrix places an affiliate at the top of a matrix, with five positions directly under them:
These initial five positions form the first level of the matrix, with the second level generated by splitting the five positions into another five positions each (25 positions).
The third and final level of the matrix is generated by splitting each level 2 position into another five positions each (125 positions).
A complete 5×3 matrix houses 155 positions, with positions filled via direct and indirect recruitment of affiliates.
Commissions are paid as matrix positions are filled in both tiers of the matrix cycler as follows:
Plan A Matrix (tier 1)
- level 1 (positions cost 0.05 BTC) – receive 0.05 BTC from five affiliates
- level 2 (0.1 BTC fee) – receive 0.1 BTC from twenty-five affiliates and receive six new level 1 positions
- level 3 (0.2 BTC fee) – receive 0.2 BTC from one hundred and twenty-five affiliates
Plan B (tier 2)
- level 1 (1 BTC fee) – receive 0.5 BTC from five affiliates
- level 2 (1.5 BTC fee) – receive 1 BTC from twenty-five affiliates and receive two new level 1 positions
- level 3 (3 BTC fee) – receive 2 BTC from one hundred and twenty-five affiliates and ten new level 1 positions
Note that GiftoBit keep 25% of all commissions paid out.
GiftoBit affiliate membership is free, however affiliates must acquire at least one matrix position to participate in the attached MLM opportunity.
A matrix position can be purchased for 0.05 BTC or acquired via recruitment of five affiliates who each purchase a position.
GiftoBit sees affiliates pay eachother in bitcoin, with payments tracked through a two-tier matrix cycler.
GiftoBit skim a bit of the top of each position as it cycles, along with 25% of all withdrawal payouts. That’s pretty hefty, even for an MLM underbelly scheme.
Considering GiftoBit has affiliates engage in cash gifting, the attached “online education platform” is neither here nor there. The platform serves only as pseudo-compliance, in a weak attempt to legitimize cash gifting.
In addition to a 25% withdrawal fee, the math behind GiftoBit is pretty bad too.
One complete cycle across both matrix tiers generates no less than eighteen phantom matrix positions, in that no money is paid in to create them. And this is on top of the positions created by affiliate recruitment.
These positions provide nothing into GiftoBit but see affiliates who own the positions extract funds via attached gifting payments.
Considering the size of the company-wide matrix (which is just an extended 5×3 matrix), just a few positions cycling will blowout the cycle time for the rest of the GiftoBit affiliate-base.
Needless to say the only positions cycling through will be those pre-loaded by the anonymous GiftoBit admin(s). Ditto phantom positions, with everybody else stuck waiting for gifting payments that never come (beyond a few paid out at the lower levels).
GiftoBit affiliates will be able to spot the collapse by way of positions taking longer and longer to fill, which will correspond with recruitment slowing down.
Eventually recruitment will drop such that the cycler stalls altogether, at which point GiftoBit will have completely collapsed.
At that point anyone who hasn’t received more than they’ve spent on matrix positions loses out. Most GiftoBit affiliates won’t qualify for their initial position via recruitment as it’s easier to just purchase a position.
In order for the GiftoBit admin(s) and a few early affiliates to get paid, the majority of GiftoBit affiliates must lose money.