Lyfcoin Review: LYF token daily returns Ponzi scheme
Lyfcoin provides no information on their website about who owns or runs the company.
Lyfcoin’s website domain (“lyfcoin.club”) was first registered in October 2017. The registration was last updated with incomplete details in April 2019.
This is likely when the Lyfcoin’s current owners took possession of the domain.
An incomplete address in Estonia is provided on Lyfcoin’s website, suggesting the company is being operated out of Europe.
Supporting this is Lyfcoin’s terms and conditions, which state they are “governed by the laws in force in United Kingdom [sic]”.
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.
Lyfcoin has no retailable products or services, with affiliates only able to market Lyfcoin affiliate membership itself.
Lyfcoin’s Compensation Plan
Lyfcoin affiliates invest in LYF tokens on the promise of advertised monthly returns.
- Entry License – invest $100, receive $100 worth of LYF tokens and a 1% monthly ROI
- Starter License – invest $250, receive $250 worth of LYF tokens and a 2% monthly ROI
- Explorer License – invest $500, receive $500 worth of LYF tokens and a 3% monthly ROI
- Advanced License – invest $1500, receive $1500 worth of LYF tokens and a 4% monthly ROI
- Expert License – invest $3000, receive $3000 worth of LYF tokens and a 5% monthly ROI
- Professional License – invest $6000, receive $6000 worth of LYF tokens and a 10% monthly ROI
- Business License – invest $12,500, receive $12,500 worth of LYF tokens and a 9% monthly ROI
- Founders License – invest $25,000, receive $25,000 worth of LYF tokens and a 10% monthly ROI
Investment is locked for a minimum of five months. Lyfcoin affiliates are able to continue receiving returns for a maximum of twenty-four months.
Note that all returns are paid in LYF tokens.
LYF token has an internal value set by Lyfcoin itself.
At the time of publication Lyfcoin advertises a $1.60 internal LYF token value on their website.
Lyfcoin affiliates are paid a commission on funds invested by personally recruited affiliates.
Recruitment commission rates are determined by how much a Lyfcoin affiliate has invested:
- invest at the Entry or Starer License tiers and receive a 5% recruitment commission rate
- invest at the Explorer License tier and receive an 8% recruitment commission rate
- invest at the Advanced License or higher tiers and receive a 10% recruitment commission rate
Lyfcoin pays residual commissions via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
At the end of each day Lyfcoin tallies up new investment volume on both sides of the binary team.
Affiliates are paid 10% of funds invested on their weaker binary team side.
Once paid out on, volume is matched with the stronger binary team side and flushed.
Any leftover volume on the stronger binary team side is carried over into the following day.
Lyfcoin affiliate membership is tied to the purchase of a license:
- Entry License – $100
- Explorer License – $500
- Advanced License – $1500
- Founders License – $25,000
The difference between the licenses is income potential via Lyfcoin’s compensation plan.
Lyfcoin represents it generates external revenue via
staking (and) analysis of new ERC-20 smart contract and subsequent account management for merchants.
This begs the question that if they’re already engaged in such activities, what do they need your money for?
The answer is the only verifiable source of revenue entering Lyfcoin is new investment.
Think of Lyfcoin as a mobile app token Ponzi scheme, without the mobile app… (yet).
Lyfcoin’s anonymous admins generated 120 million LYF tokens out of thin air. They’re not offloading these tokens onto gullible Lyfcoin investors for $1.40 a pop.
That value is also plucked out of thin-air.
The Ponzi element of the business kicks in by way of paying returns in LYF tokens (again at no cost to Lyfcoin’s admins).
Thus a Lyfcoin affiliate acquires more LYF tokens than they initially invested in.
Conversion to fiat happens in Lyfcoin’s internal exchange. Either Lyfcoin affiliates buy up withdrawal requests or, more likely, Lyfcoin recycles previously invested funds to pay them.
Either way all money circulated within Lyfcoin is internal.
Thus Lyfcoin’s business model is a hybrid Ponzi pyramid scheme.
Lyfcoin holds its value because we have not been on any major exchanges yet.
The exit-scam for such schemes typically sees hype bombs dropped, a listing on some dodgy public exchange and then the admins doing a runner.
Victims of the scheme are left holding worthless tokens, the public value of which promptly plummets towards $0.
Although denial runs deep throughout the MLM cryptocurrency niche, standard Ponzi rules still apply:
The only people who make money in Ponzi schemes are early investors and those running them.
What will happen to the organizers, will they be charged or face trails?
Charged by who? The anon scammer police?
for example by SEC, it seems like it’s easy to escape from the trail due to the lack of regulations in this area. Which is very sad.
Many have been scammed and reported Lyfcoin to Action Fraud. It’s a shame as the agents involved pumped and dumped the coin onto hundreds of people across the country.
We believe in excess of 3 million has been defrauded by con artists back in 2018-19.
In particular Sakhi Rezaie who is now in the run and may have left the country taking refuge in has native country Iran. Sobir Malhotra (aka Sony) from London is also avoiding people and deactivated his phone number.
From the Metro:
Will UK authorities go after Sakhi Rezaie and higher up the food chain?
Unfortunately if history is anything to go by, probably not.