Ilgamos Review: OPR Ponzi points & the Ilcoin cryptocurrency
Ilgamos launched a few years back and on their website claim to be
a group of young, dynamic and innovative marketing companies established in the United Arab Emirates, Germany and Hong Kong.
The Ilgamos website domain (“ilgamos.com”) was registered on the 28th of November 2012, with Geza Kapitany listed as the domain owner.
An address belonging to “TK Mentor GmbH” in Germany is provided in the domain registration, suggesting that out of Germany, the UAE and Hong Kong, that Germany is primarily where Ilgamos is being operated from.
Kapitany (right) meanwhile is credited as CEO of Ilgamos on their website. As per Kapitany’s Ilgamos corporate bio;
Over the past 35 years, Geza has built up an invaluable international business experience in top management positions with several international corporations.
He has successfully developed companies in various multi-billion dollar industries (oil and gas, telecommunications, renewable energies and, more recently, precious metals) in Russia, Germany and the Middle East.
I wasn’t able to put together an MLM history on Kapitany, suggesting Ilgamos is likely his first MLM venture as an executive.
Read on for a full review of the Ilgamos MLM business opportunity.
The Ilgamos Product Line
Ilgamos has no retailable products or services, with affiliates only able to market Ilgamos affiliate membership itself.
On the Ilgamos website, Ilgamos affiliate membership is marketed as ‘different gold accumulation programs carrying a money back guarantee’.
This is more of a side-component of the income opportunity however, with the real drawcard the Ilcoin cryptocurrency.
Ilcoins are marketed by Ilgamos as a competitor to BitCoin.
The Ilgamos Compensation Plan
The Ilgamos compensation plan revolves around affiliates paying €45 to €5000 EUR to sign up, and then recruiting others who do the same.
In order to qualify for commissions, all Ilgamas affiliates are required to pay a €15 EUR fee every 28 days.
Recruitment Commissions (direct)
When a new Medium affiliate (€595) or higher is recruited, the affiliate who recruited them earns a 10% commission.
Recruitment Commissions (cash gifting)
Recruitment commissions are paid when new Ilgamos affiliates are recruited.
When new Entry (€45) and Basic (€210) Ilgamos affiliates are recruited, 100% of their membership fees are paid to the affiliate who recruited them or their upline.
These commissions are paid out via a perpetual 1up compensation model, seeing an affiliate’s even-numbered recruitment commissions (the 2nd, 4th, 6th etc.) passed up to their upline.
So it follows then that recruited affiliates, when they recruit new affiliates, also pass up their even-numbered recruitment commissions to the affiliate who recruited them.
A 50% matching bonus is also paid out on pass-up commissions earned by all personally recruited affiliates.
Recruitment Commissions (binary)
Every Ilgamos affiliate who signs up is placed in a binary compensation structure.
A binary compensation structure places an affiliate at the top of two binary teams, split left and right:
Positions in both teams split to form new levels, with each binary team extending down as far as there are affiliates recruited into both teams.
Only affiliates who have bought in at the Medium affiliate level or higher can actually earn binary commissions in Ilgamos.
Positions in both binary teams are filled via direct and indirect recruitment of new Ilgamos affiliates, with their affiliate membership fees generating sales volume across both sides.
A commission is paid out on he sales volume generated on the weaker side of the binary each week, with sales volume on the stronger leg carried over.
How much of a weekly commission is earned is determined by how much an Ilgamos affiliate spent on their own affiliate membership:
- Medium affiliates (€595) earn 5%
- Business affiliates (€1150) earn 10%
- Smart affiliates (€5000) binary commissions are not disclosed
A matching bonus is paid out on binary earnings of recruited affiliates, paid out down five levels of recruitment.
Again, how much of a matching bonus is earned is determined by how much an Ilgamos affiliate spent on their own affiliate membership:
- Medium affiliates earn a 5% matching bonus
- Business affiliates earn a 10% matching bonus
- the Smart affiliate matching bonus is not disclosed
The ultimate goal of Ilgamos affiliate membership, as represented in Ilgamos corporate marketing presentations, is to acquire Ilcoins.
When an Ilgamos affiliate signs up at the Basic or higher level, they are given a fixed number of Optional Purchase Rights (OPR) points:
- Basic (€210) – 200 OPR points
- Medium (€595) – 600 OPR points
- Business (€1150) – 1500 OPR points
- Smart (€5000) – 7500 OPR points
Affiliates can acquire additional OPR points by trading with other Ilgamos affiliates. Ilgamos control the price of OPR points and claim they will never reduce selling price.
Also note that 30% of all Ilgamos commissions paid out are awarded in OPR points, based on the current rate of exchange as set by Ilgamos.
The Ilgamos compensation plan materials and corporate presentation repeatedly mentions an affiliate’s “gold commitment”.
This is marketed as
the right to purchase physical gold for a total through (Ilgamos) any time at our special discount prices and have such gold home delivered immediately or stored at no cost.
No further specifics are provided.
Affiliate membership with Ilgamos costs between €45 and €5000 EUR:
- Entry – €45
- Basic – €210
- Medium – €595
- Business – €1150
- Smart – €5000
From what I’ve been able to piece together, Igamos initially launched as a straight-up recruitment scheme, hidden behind the ruse of affiliates purchasing gold.
Back then Ilgamos also offered virtual shares in the company through… wait for it, “Optional Purchase Rights”.
Don’t believe me?
Here’s an explanation of Ilgamos OPRs from an official compensation plan document dated November, 2012:
Ilgamos offers the opportunity to all leaders to eventually become a part owner of the company.
The harder Ilgamos partners work and the more commissions and bonuses they make, the more OPRs they receive and the greater the potential.
Optional Purchase Rights (OPRs) are an extra bonus provided, as a free gift, by Ilgamos to its partners with a Business Pack.
Each time a partner with a Business Pack earns a bonus from the trinary system (ie. Referral Bonus, Trinary Bonus, Matching Bonus and Gold Bonus), Ilgamos credits OPRs to that partner’s OPR account.
The amount credited is 25% of bonuses earned, calculated in € at the prevailing price of the OPRs.
Partners may accumulate their OPR holdings over the longer term and convert those OPRs into company shares, thus becoming a shareholder in Ilgamos.
Naturally, the greater number of OPRs Partners have, the higher percentage of the company’s ownership they will receive.
Partners have a choice at the time of their registration with Ilgamos whether to accept OPRs as a free gift from the company or refuse to take them.
Back then it was virtual shares, with Ilgamos deciding to repurpose OPRs by attaching them to their Ilcoin cryptocurrency.
Quite obviously the offering of Ilgamos shares flopped, and so now, riding on the coattails of BitCoin, Ilgamos are now trying to position themselves as yet another upcoming MLM cryptocurrency.
On the compensation plan side of things, Ilgamos offer up a hybrid gifting pyramid scheme.
There are also strong elements of “pay to play” built into the Ilgamos compensation plan, with initial investment amounts dictating income potential through the binary component of the income opportunity.
The lower tiers of Ilgamos affiliate membership are qualification to a €45 – €225 gifting scheme, with participation payment qualifying an affiliate to receive gifts from subsequent participants.
The higher affiliate levels, through the binary compensation structure, merely pay affiliates to recruit new Ilgamos investors.
And those investments bring us to Ilcoin.
This is basically another rehash of the Zeek Rewards Ponzi points business model, with OPR points serving as the “collectible”.
The idea is that Ilgamos affiliates invest in and collect OPR points, with more points awarding them more Ilcoins.
Ilcoins as it stands are completely worthless (ditto OPR points), but through heavy pushing of BitCoins short-lived rise to $1000+, Ilgamos claim the same thing will happen to Ilcoin.
Putting aside the issue of unregistered securities (investment in OPR points and ultimately Ilcoins, on the expectation of a passive greater than 100% ROI), Ilcoin as a cryptocurrency is destined to fail.
ILCoin is a global digital currency developed by Ilgamos exclusively for Ilgamos partners.
Furthermore Ilgamos corporate marketing presentations state that Ilgamos will not put Ilcoin up for public trade until “80-85% of Ilcoins have been mined”.
The concept behind all of these closed-loop MLM cryptocurrencies is fundamentally flawed.
Think about it for a second. Let’s say Ilgamos go about soliciting investment in Ilcoin and a few years down the track and artificially peg a value to the coin (relative to how much has been invested by affiliates).
First and foremost, what public exchange is going to buy into what is essentially a Ponzi scheme? You’ve got all these virtual points issued (be it OPR points or Ilcoins themselves), pegged to nothing more than funds invested by those holding the points.
And even if an exchange takes the bait (or Ilgamos give up and launch their own), then what? The public are going to pay whatever exorbitant price Ilgamos have convinced their investors Ilcoins are worth?
What happens is the only people interested in Ilcoins are Ilgamos affiliates, and only because they’ve been lead to believe they’ve invested in the next BitCoin.
There’s no external demand or need for Ilcoin, with it serving only as a vehicle for Ilgamos to solicit affiliate investment through (in the exact same manner they did when they offered virtual company shares prior to Ilcoin).
That of course won’t stop them assigning imaginary value to Ilcoins, nor will it stop Ilcoin investors from hyping up the imaginary value of the coin in order to attract new Ilgamos affiliate investors.
At the heart of Ilgamos in its current incarnation is the transfer of funds from new affiliates to those who have previously invested. This is achieved through cash gifting, recruitment commissions and the sale of OPR points and Ilcoins to new investors, in exchange for real cash.
As with all schemes of this nature, once new affiliate investment dries up, Ilgamos will no doubt continue to permit affiliates to cash out through their inhouse trading system – but once whatever reserve’s they’re holding are exhausted, the scheme collapses.
Real money goes in, a bunch of comparisons to BitCoin are made and at the end of the day everyone is sitting on a bunch of completely worthless and functionally useless monopoly money points.
The MLM cryptocurrency niche is starting to sound like a broken record…