Lira Coin Club Review: LIC token lending Ponzi scheme
Lira Coin Club provides no information on their website about who owns or runs the business.
In fact at the time of publication, the Lira Coin Club website is nothing more than an affiliate login form.
The Lira Coin Club website domain (“liracoin.club”) was initially registered in August 2017.
The domain registration details were updated with private information on August 12th, 2018.
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.
Lira Coin Club Products
Lira Coin Club has no retailable products or services, with affiliates only able to market Lira Coin Club affiliate membership itself.
The Lira Coin Club Compensation Plan
Lira Coin Club affiliates invest in LIC tokens.
Once acquired Lira Coin Club affiliates “lend” their LIC points back to the company, in exchange for an advertised monthly ROI.
- first year 0 to 180 days – 3% monthly ROI
- first year 181 to 360 days – 2.5% monthly ROI
- second year 0 to 180 days – 1.5% monthly ROI
- second year 181 to 360 days – 1% monthly ROI
- third year 0 to 180 days – 0.75% monthly ROI
- third year 181 to 360 days – 0.5% monthly ROI
- fourth year 0 to 180 days – 0.4% monthly ROI
- fourth year 181 to 360 days – 0.3% monthly ROI
- fifth year onward – 0.25% monthly ROI
I’m aware there’s 365/366 days in a year, however the figures above are presented as they appear in Lira Coin Club’s compensation plan.
Returns are paid as long as LIC tokens are parked with Lira Coin Club.
When an affiliate wants to withdraw, they opt to do so and either sell their LIC tokens back to the company or via Lira Coin Club’s internal exchange.
LIC tokens debuted at a $1 internal price in 2018. The current internal value of LIC tokens is unknown.
In addition to the lending investment scheme, Lira Coin Club also runs a mining investment scheme.
Lira Coin Club affiliates invest $100 to $10,800, on the promise of advertised annual returns:
- Miner – invest $100 and receive a $216 return over 360 days
- B-Miner – invest $300 and receive a $702 return over 360 days
- S-Miner – invest $1200 and receive a $3024 return over 360 days
- M-Miner – invest $3600 and receive a $9461 return over 360 days
- G-Miner – invest $7200 and receive a $19,440 return over 360 days
- T-Miner – invest $10,800 and receive a $31,104 return over 360 days
A 5% direct referral commission is paid on mining returns investment made by personally recruited affiliates.
Lira Coin Club affiliates who invest in mining returns are eligible to receive residual commissions.
Lira Coin Club pays residual 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.
Residual commissions are paid on mining returns funds invested across the unilevel team.
How many unilevel team levels a Lira Coin Club affiliate earns residual commissions on is determined by how much they’ve invested, and how many investors they’ve personally recruited.
- invest at the Miner tier and recruit at least two mining returns investors = 15% on level 1 (personally recruited affiliates)
- invest at the Miner tier and recruit at least three mining returns investors = 15% on level 1 and 10% on level 2
- invest at the Mining tier and recruit at least four mining returns investors = 15% on level 1, 10% on level 2 and 5% on level 3
- invest at the B-Miner tier and recruit at least five mining returns investors = 15% on level 1, 10% on level 2 and 5% on levels 3 to 5
- invest at the S-Miner tier and recruit and maintain at least five mining returns investors = 15% on level 1, 10% on level 2, 5% on levels 3 to 7 and 2% on level 8
- invest at the G-Miner tier and recruit and maintain at least five mining returns investors = 15% on level 1, 10% on level 2, 5% on levels 3 to 7, 2% on level 8 and 1% on levels 9 and 10
- invest at the M-Miner tier and recruit and maintain at least five mining returns investors = 15% on level 1, 10% on level 2, 5% on levels 3 to 7, 2% on level 8 and 1% on levels 9 to 11
- invest at the T-Miner tier and recruit and maintain at least five mining returns investors = 15% on level 1, 10% on level 2, 5% on levels 3 to 7, 2% on level 8 and 1% on levels 9 to 12
Joining Lira Coin Club
Lira Coin Club affiliate membership is free.
Full participation in the attached MLM opportunity however requires a minimum $100 to $10,800 investment.
Costs of additional investment in LIC tokens is not disclosed.
Lira Coin Club combines BitConnect lending model with straight Ponzi investment.
The lending side of the business model is referred to as “staking” – but the concept is the same.
You acquire LIC tokens from Lira Coin Club’s anonymous owners, park the tokens with the company and receive more tokens.
Then you scam people who join after you when it comes time to cash out via the internal exchange.
Lira Coin Club itself might honor some withdrawals early on, but typically they rely on subsequent investors to fulfill sell orders.
LIC itself is just a worthless altcoin vehicle to commit financial fraud through.
It has no value outside of Lira Coin Club, and is marketed on typical “we’re gonna be the next bitcoin!” hype.
Lira Coin Club’s mining returns scheme is more of a traditional Ponzi scheme.
Investors dump money in plans on the promise of specific annual returns.
The ruse behind the returns is crypto mining of some sort, but no evidence of mining is provided.
Furthermore Lira Coin Club are clearly offering multiple passive investment opportunities.
This requires them to register with securities regulators in every jurisdiction they solicit investment in.
Neither on their website or in their marketing material is there any indication Lira Coin Club has done so.
With no products or services sold to retail customers, referral commissions add an additional pyramid layer to the scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dies down so too will newly invested funds.
This will starve Lira Coin Club of return revenue, eventually prompting a collapse.
Being a lending scheme, Lira Coin Club’s owners will do a runner long before investors are aware the company has collapsed.
They’ll only cotton on when withdrawal requests through the internal exchange are left unfulfilled.
By that time it’s of course too late, leaving Lira Coin Club affiliates holding another BitConnect “sorry for your loss” worthless scam coin.
Update 7th June 2019 – The Italian financial regulator CONSOB has temporarily suspended promotion of LiraCoin Club due to investment fraud.