Lendium Review: LEN points ICO lending Ponzi scheme
Lendium provide no information on their website about who owns or runs the business.
The Lendium website domain (“lendium.tech”) was privately registered on January 11th, 2018.
At the time of publication Alexa show Russia as the only significant source of traffic to the Lendium website.
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.
Lendium Products
Lendium has no retailable products or services, with affiliates only able to market Lendium affiliate membership itself.
The Lendium Compensation Plan
Lendium affiliates acquire pre-generated LEN points from the company’s anonymous owners.
LEN points are sold to Lendium affiliates for 95 cents to $1.85 each.
Once acquired, LEN points are “lent” back to Lendium on the promise of a daily ROI
- invest $100 and receive a variable daily ROI for 179 days (capped at 48% a month)
- invest $1010 to $5000 and receive a variable daily ROI plus bonus 0.1% daily bonus rate for 149 days (capped at 51% a month)
- invest $5010 to $10,000 and receive a variable daily ROI plus bonus 0.2% daily bonus rate for 119 days (capped at 54% a month)
- invest $10,010 or more and receive a variable daily ROI plus bonus 0.3% daily bonus rate for 99 days (capped at 57% a month)
A 15 day “lending plan” is also available to Lendium’s “most loyal customers”:
- invest $100 to $5000 and receive a variable daily ROI plus bonus 0.05% daily bonus rate for 15 days
Marketing material suggests Lendium affiliates who invest large sums of money and don’t withdraw will be designated “most loyal customers”.
Lendium pay referral commissions via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Lendium cap payable unilevel levels at five, with commissions paid out as a percentage of invested funds as follows:
- level 1 (personally recruited affiliates) – 10%
- level 2 – 8%
- level 3 – 6%
- level 4 – 3%
- level 5 – 1%
Joining Lendium
Lendium affiliate membership is free, however free affiliates can only referral commissions.
Full participation in the Lendium MLM opportunity requires a minimum $100 investment.
Note that all payments within Lendium are made in either bitcoin, litecoin or ethereum.
Conclusion
Lendium claim to generate external ROI revenue through a “trading bot” and team of “professional traders”.
We have two ways to generate revenues for our customers: a trading bot and our expert team made up of professional traders and financial analyst with many years of experience in crypto currencies.
The trading bot has been made according to instructions of our expert team.
This bot have had succeed [sic] generating an average daily yield of 0.82% from 1 of January of 2018, taking into account the profitability target of our bot which is almost 0.50% daily.
In a matter of seconds it makes several hundred of transactions, obtaining great short-term results.
Our team of experts can get a higher profitability through market studies, fundamental analysis and technic [sic] analysis of crypto currencies.
The team invest in projects with greater runs achieving awesome medium and long-term results.
They are able to gain daily averages of 4.3% profitability under normal market conditions, it means that if we aggregate the yield obtained by the bot, we could reach up to 5% daily.
One thing that potentially differentiates Lendium from the plethora of collapsed or collapsing lending Ponzis doing the rounds is this:
Continuous information on the investments made by the Lendium Team of traders even before they are made.
Whether what’s ultimately provided to affiliates syncs with lending ROI rates remains to be seen.
In any event Lendium’s business model fails the Ponzi logic test.
Lendium represent that they already have a bot and team of traders capable of generating around 5% a day.
If this was true why do they need to solicit investment from randoms over the internet?
5% a day without compounding is an annual ROI of 1825%. Under those conditions even a modest $1000 investment turns into $18,250.
Scale up and the ROI gets into pretty ridiculous numbers.
Needless to say if the Lendium’s anonymous owners had access to such returns, they’d do the logical thing and keep it quiet and to themselves.
It makes zero sense to launch an MLM company and share generated revenue, on top of funds lost to referral commissions.
Getting back to Lendium’s business model, despite promises of sharing information, new investment is the sole verifiable source of revenue entering the company.
Using newly invested funds to pay existing affiliates a daily ROI makes Lendium a Ponzi scheme.
Lending ICO Ponzis like Lendium play out as follows:
Admins (who are typically anonymous) offload worthless pre-generated points in exchange for real money. In this case it’s LEM points.
Lendium’s admins then use some of this money to pay promised ROIs for as long as new affiliates sign up.
Once affiliate recruitment dries up so does Lendium’s ROI reserve.
When a predetermined threshold is reached, Lendium’s anonymous admins do a runner with what’s left.
Early Lendium investors make a bit of money (mostly via recruitment of new investors). But same as any other Ponzi scheme, the reality of such scams is that the majority of participants eventually lose money.
BitConnect and DavorCoin are recent examples of ICO lending Ponzi collapses in action.
Another “lender” for “losers”.