LoanTech Review: 3% perpetual daily return Ponzi
LoanTech provides no verifiable company ownership information on its website.
Supposedly LoanTech was “founded by Chris Wright and his diligent team”.
Beyond Wright’s name appearing on LoanTech’s website and a photo of some guy looking off-camera, Wright doesn’t appear to actually exist.
LoanTech’s website domain (“loantech.top”) was first registered on August 24th, 2019. The private registration was last updated on February 2nd, 2020.
Despite not existing until late 2019 at the earliest, LoanTech falsely represents on its website it has been around since 2013.
In an attempt to appear legitimate, LoanTech provides a link to incorporation details for “Bright Future Loans LTD”.
Bright Future Loans was incorporated in the UK on October 19th, 2019.
Not withstanding whether Bright Future Loans even has anything to do with LoanTech, UK incorporation is dirt cheap and effectively unregulated. It is a favored jurisdiction for scammers looking to incorporate dodgy companies.
For the purpose of performing MLM due-diligence, UK incorporation is meaningless.
At the time of publication Alexa ranks Cuba (14%), Egypt (12%) and Venezuela (7%), as the top three sources of traffic to LoanTech’s 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.
LoanTech has no retailable products or services, with affiliates only able to market LoanTech affiliate membership itself.
LoanTech’s Compensation Plan
LoanTech affiliates invest $30 or more on the promise of a 3% perpetual daily return.
Withdrawals are locked for 22 days, after which up to 34% can be withdrawn at a time.
LoanTech pays referral commissions on invested funds down two levels of recruitment (unilevel):
- level 1 (personally recruited affiliates) – 10% to 15%
- level 2 – 2%
Level 1 commission rates vary based on how much a personally recruited affiliate invests:
- convince someone to invest $30 to $499 and receive 10%
- convince someone to invest $500 to $2999 and receive 12%
- convince someone to invest $3000 or more and receive 15%
LoanTech rewards affiliates who recruit with the following bonuses:
- recruit 50 affiliate investors and receive $100 plus a 3% level 1 referral commission rate increase (13% to 18% on level 1)
- recruit 100 affiliate investors and receive $300 plus a 5% level 1 referral commission rate increase (15% to 20% on level 1)
- receive another $500 for recruiting another hundred affiliate investors
LoanTech affiliate membership is free.
Full participation in the attached income opportunity however requires a minimum $30 investment.
LoanTech represents external ROI revenue is generated through “high frequency trading bots”.
No evidence of bot revenue is provided, nor is there any evidence of LoanTech paying returns with any other external revenue source.
LoanTech’s business model also fails the Ponzi logic test.
If LoanTech’s anonymous owner(s) were actually capable of legitimately generating a perpetual 3% daily return, what do they need your money for?
As it stands the only verifiable source of revenue entering LoanTech is new investment.
Using new investment to pay a 3% daily return makes LoanTech a Ponzi scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve LoanTech of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.