LiteTrade Review: Three-tier bitcoin investment Ponzi scheme
LiteTrade provide no information on their website about who owns or runs the business.
The LiteTrade website domain (“litetrade.org”) was privately registered on December 19th, 2017.
LiteTrade provide a UK incorporation number on their website, which corresponds with LiteTrade Limited.
The address used to incorporate LiteTrade Limited actually belongs to London Office, a virtual office services merchant.
UK incorporation is dirt cheap and for the most part unregulated. It is a favorite for scammers looking to incorporate dodgy companies.
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.
LiteTrade has no retailable products or services, with affiliates only able to market LiteTrade affiliate membership itself.
The LiteTrade Compensation Plan
LiteTrade offer affiliates various investment tiers spanning cryptocurrency trading, mining and “innovations”.
- invest 0.05 to 1 BTC and receive a 110% ROI in 6 days
- invest 0.025 to 2 BTC and receive a 122% ROI in 11 days
- invest 0.01 to 5 BTC and receive a 136% ROI in 16 days
- invest 0.0075 to 10 BTC and receive a 152% ROI in 21 days
- invest 0.005 to 20 BTC and receive a 170% ROI in 26 days
- invest 0.0025 to 50 BTC and receive a 190% ROI in 31 days
- invest 0.001 to 0.01 BTC and receive a 120% ROI in 30 days
- invest 0.0101 to 0.1 BTC and receive a 126% ROI in 30 days
- invest 0.1001 to 1 BTC and receive a 132% ROI in 30 days
- invest 1 to 3 BTC and receive a 138% ROI in 30 days
- invest 3.0001 to 5 BTC and receive a 144% ROI in 30 days
- invest 5.001 to 50 BTC and receive a 150% ROI in 30 days
- invest 0.0025 to 10 BTC and receive a 300% ROI in 90 days
- invest 0.002 to 20 BTC and receive an 800% ROI in 180 days
- invest 0.0015 to 50 BTC and receive a 1500% ROI in 270 days
- invest 0.001 to 100 BTC and receive a 2400% ROI in 360 days
All LiteTrade affiliates are capped from withdrawing 1 BTC a day in ROI payments and/or referral commissions.
LiteTrade pay referral commissions on invested funds down three levels of recruitment (unilevel).
Referral commission percentages paid out are determined by how much the referring affiliate has invested:
- Junior User (sign up as a LiteTrade affiliate) – 3% on level 1 (personally recruited affiliates), 2% on level 2 and 1% on level 3
- Middle User (convince 10 people to invest) – 4% on level 1, 2% on level 2 and 1% on level 3
- Senior User (convince 25 people to invest) – 5% on level 1, 2% on level 2 and 1% on level 3
Recruited affiliates must have an active LiteTrade investment to count towards the above qualification criteria.
LiteTrade Representative affiliates can earn up to 10% on level 1, 5% on level 2 and 1% on level 3 in referral commissions.
Note that LiteTrade do not publicly disclose Representative affiliate qualification criteria.
LiteTrade affiliate membership is free, however participation in the attached income opportunity requires a minimum 0.001 BTC investment.
An ongoing active investment is required to continue to qualify for commissions.
LiteTrade claim to generate ROI revenue through cryptocurrency trading, mining and “innovations”.
Our contributions are aimed at development of equipment for mining and creating an entirely new own crypto currency and ICO.
You make long-term investments, we’re working to maximize profit.
No evidence of cryptocurrency trading, mining or ICO plans are provided.
Furthermore, LiteTrade’s business model fails the Ponzi logic test.
If LiteTrade’s anonymous owner(s) were able to consistently generate an annual 2400%+ ROI (without compounding), why would they be soliciting investment from randoms over the internet?
Even a moderate initial investment under those conditions would yield a small fortune across a relative short time period.
As it stands the only verifiable source of revenue entering LiteTrade is new investment.
Using newly invested funds to pay existing investors a ROI makes LiteTrade a Ponzi scheme.
As with all Ponzi schemes, once new affiliate recruitment dries up so too will new investment.
This will starve LiteTrade of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they inevitably collapse, the majority of investors lose money.