GoArbit Review: 200% ROI crypto ruse Ponzi scheme
GoArbit provides no information about who owns or runs the company on their website.
GoArbit’s website domain (“goarbit.com”) was privately registered on January 26th, 2020.
In their compensation material, GoArbit cites Maximo Martinez as founder and CEO of the company:
Martinez is supposedly based out of the Dominican Republic.
Possibly due to language barriers, I was unable to find an MLM history on Martinez.
His GoArbit corporate bio is generic and doesn’t provide anything that can be independently verified.
I was close to writing Martinez off as a Boris CEO actor but he does appear GoArbit marketing videos.
Past MLM companies Martinez has been involved in remain unknown.
Read on for a full review of GoArbit’s MLM opportunity.
GoArbit has no retailable products or services, with affiliates only able to market GoArbit affiliate membership itself.
GoArbit’s Compensation Plan
GoArbit affiliates invest funds on the promise of an advertised 0.5% to 1.5% daily ROI.
- Go tier affiliates invest $50 to $50,000 and receive 0.5% a day
- Silver tier affiliates invest 2.5% over Go and receive 1% a day
- Gold tier affiliates invest 5% over Go and receive 1.5% a day
Returns are paid Monday through Friday and capped at 200% per investment.
The additional percentages for Silver and Gold are in addition to what a Go tier affiliate might invest.
E.g. If a GoArbit affiliate was to invest $100 at the Go tier, they could invest $102.50 to qualify for Silver or $105 to qualify at Gold.
Note that GoArbit charges a 10% fee on all ROI and commission withdrawals.
GoArbit pays a referral commission on funds invested by personally recruited affiliates.
- Go tier affiliates receive a 5% referral commission rate
- Silver tier affiliates receive a 7% referral commission rate
- Gold tier affiliates receive a 10% referral commission rate
GoArbit 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 commission volume is generated via investment on both sides of the binary team.
Residual commissions are paid out as a percentage of investment volume on the weaker binary team side.
- Go tier affiliates receive a 5% residual commission rate
- Silver tier affiliates receive a 7% residual commission rate
- Gold tier affiliates receive a 10% residual commission rate
GoArbit affiliates are paid a 2% bonus on withdrawals made by personally recruited affiliates
GoArbit’s compensation plan references a “Retirement Commission”.
No further details are provided as per the screenshot above.
Rank Achievement Bonus
GoArbit rewards affiliates for qualifying at certain ranks as follows:
- Executive (generate $10,000 in accumulated weaker binary team side volume) – receive an iPhone Pro 256GB
- Manager (generate $20,000 in accumulated weaker binary team side volume) – receive a MacBook Air
- Director (generate $60,000 in accumulated weaker binary team side volume) – receive a Rolex watch
- National Director (generate $400,000 in accumulated weaker binary team side volume) – receive a BMW 235I 2020 model
- Ambassador (generate $2,000,000 in accumulated weaker binary team side volume) – receive an Audi R8
Just a note on required volume, GoArbit’s compensation plan provides these volume percentages:
The compensation plan cites “points” for rank advancement.
What’s unclear is whether the points percentages above refer to
- points counted on downline investment (a percentage of the amount invested); or
- a points bonus on downline investment (a bonus percentage in binary volume).
I’ve gone with $1 = 1 point to keep things safe but depending on what the provided percentages correspond to, actual required points for rank advancement might be slightly off.
GoArbit affiliate membership is tied to a minimum $50 investment.
GoArbit represents it generates external ROI revenue via cryptocurrency arbitrage, mining and trading.
No evidence of any of these activities is provided. Nor is there any evidence of external revenue of any kind being used to pay returns.
GoArbit’s business model also fails the Ponzi logic test.
If Maximo Martinez was able to legitimately generate a consistent 1.5% daily ROI, what does he need your money for?
Even a small capital amount compounded at 1.5% a day will soon enough turn into a fortune.
As it stands the only verifiable source of revenue entering GoArbit is new investment.
Using newly invested funds to pay daily returns to existing affiliates makes GoArbit a Ponzi scheme. Paying recruitment commissions in the absence of retail also adds a pyramid layer to the scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dies down so too will new investment.
This will starve GoArbit of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
Update 15th April 2022 – Maximo Martinez has fled central America for Dubai.
GoArbit is/was in the process of rebranding to Gofintech Group, however things haven’t gone to plan.
Update 18th February 2023 – GoFinTech Group flopped, prompting Maximo Martinez to reboot again as GoArbit v3.0.
You can make a LOT more in the stock market if you know what you’re doing. 1.5% daily is NOTHING. He is most likely … (Ozedit: snip, see below)
Cool story bro. But it’s all bullshit with audited financial reports.
MLM + securities fraud = Ponzi scheme. Stop making excuses for scammers.
haha, it is always the same, great opening of Goarbit Dubai
but what is interesting is the disclaimer, which translates to:
An MLM crpyto Ponzi “opening in Dubai” two years after launch = “we’re now officially on the run from authorities”.
Ah I see what they’ve done. Fled to Dubai and rebooted as GoFintech Group.