MMM Red Dragon Review: Sanctioned MMM Global clone?
There is no information on the MMM Team Red Dragon website indicating who owns or runs the business.
The MMM Team Red Dragon website domain (“teamreddragon.info”) was registered on October 24th 2012, however the domain registration is set to private.
On their website, MMM Team Red Dragon claim to be
the only independent structure, appreciated by Honorable Sergey Mavrodi.
Sergey Mavrodi is the owner of MMM Global, a bitcoin-based cash Ponzi scheme.
According to MMM Team Red Dragon, their scheme was launched following the collapse of MMM2011, a precursor Ponzi to MMM Global.
Team Red Dragon is basically an Independent Structure which is based on the idea of MMM.
It is existing from the times of MMM2011 and earlier it was just an education system. It is in-fact a successful team of leaders in MMM2011.
Even in the times of calm mode in MMM2011, Team Red Dragon was working at its best.
Later in June 2012, our ideal honorable Sergey P. Mavrodi, officially declared MMM2011 as collapsed.
The reason for this was mass panic and the less inflow of new Mavro Buyers in the system.
He also closed the branches who were not growing the idea of MMM even being paid for continuous months. But it was too late.
Later, In the same month of June, 2012. Honorable Sergey P. Mavrodi announced the launch of new MMM2012.
He explained that MMM2012 will pay the debts of MMM2011. But Team Red Dragon didn’t had any single Debt and neither Team Red Dragon wanted to pay the debts of upper or the parallel MMM branches.
Team Red Dragon was growing rapidly in the way it has been explained by the Father of MMM. All the existing members were also not willing to close the successful running structure and that is why Team Red Dragon did not entered into the new MMM2012.
Not wanting to deal with the fallout of participating in a Ponzi scheme (confronting the victims you stole from), MMM Team Red Dragon chose instead to start their own.
Alexa currently estimate that India and Pakistan make up 66% of traffic to the MMM Team Red Dragon website. This strongly suggests those running the scheme are based out of one or both countries.
Owing to MMM Global and Sergey Mavrodi’s connections to Russia however, there is somebody from Russia placed at or close to the top of the scheme.
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.
The MMM Team Red Dragon Product Line
MMM Team Red Dragon has no retailable products or services, with affiliates only able to market MMM Team Red Dragon affiliate membership itself.
The MMM Team Red Dragon Compensation Plan
The MMM Team Red Dragon website sees affiliates gift between $20 and $10,000 in bitcoin to other affiliates, on the expectation of an advertised 1% daily ROI.
This daily percentage can be increased to 2.33%, upon completion of assigned “web tasks”.
Initially MMM Team Red Dragon pay a 5% referral commission on investments down one level of recruitment.
This can be increased via qualification as a Manager.
Residual referral commissions are paid out to Manager ranked affiliates 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. 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.
How much of a residual referral commission is paid out is determined by what level of a unilevel team an investment is made.
- level 1 (personally recruited affiliates) – 5%
- level 2 – 3%
- level 3 – 2%
- level 4 – 1%
- level 5 – 0.5%
- level 6 – 0.1%
- level 7 onwards – 0.01%
To qualify as a Manager, a MMM Team Red Dragon affiliate must gift at least $500 and personally recruit and maintain at least seven affiliates, each of whom have gifted at least $100.
Joining MMM Team Red Dragon
Affiliate membership with MMM Team Red Dragon is free, however affiliates need to invest at least $20 to participate in the MLM income opportunity.
Under the guise of “a community where people help each other”, MMM Team Red Dragon operate a Ponzi scheme.
Atypical of modern day Ponzi schemes, MMM Team Red Dragon openly acknowledge their financial fraud business model.
How can you ask where the profit comes from? It is obvious – the money from the most recent participants provides and pays the gaining for the previous users.
The number of people coming In, must be more than number of people going out with help or at-least in equilibrium.
The feigned legitimacy of MMM Team Red Dragon appears to hinge on two points:
- the lack of a ROI guarantee and
- that MMM Team Red Dragon are transparent about the source of their ROI revenue
On the first point, anyone can visit the MMM Team Red Dragon website and see advertised ROIs. This is the basis of affiliate investment and constitutes an unregistered securities offering.
What should I say if the authorities want to interrogate me?
Nothing! Tell them honestly that you are participating in Team Red Dragon- Global Mutual Help, that’s all. And nobody can forbid you from exchanging your money with other people as Help, with no promises or guarantees.
The last phrase is very important.
Whether the ROIs are guaranteed or not is neither here nor there.
On the second point, since when did acknowledgement of crime negate it?
If you call up a bank, inform them you’re about to conduct a heist and then follow through, that doesn’t serve as a defense if you are arrested.
Ditto warning someone you’re about to murder them, and then do the deed.
I don’t know where this notion of “if we tell you we’re committing financial fraud then said financial fraud is legal” originated from, but it is utter nonsense.
To understand why Ponzi schemes are illegal, one need only examine the collapse of MMM2011.
In MMM Team Red Dragon’s own words, this Ponzi scheme collapsed due to a lack of new investment. When a reload scheme was proposed, those in MMM Team Red Dragon, who had likely profited handsomely in MMM2011, wanted no part of it.
Why? They understood that it was being pitched as a reload scheme that would make victims of MMM2011 whole. Investor confidence in such schemes is low, with a “run on the bank” triggered almost immediately after launch.
Rather than lose funds they’d systematically stole from MMM2011 victims (victims can’t seed a reload Ponzi scheme, it has to be net-winners), MMM Team Red Dragon’s owner(s) started a new Ponzi scheme based on the same model.
Obviously by placing themselves at ground-zero in the new scheme, the admin(s) understand they will walk away with far more than they made in MMM2011.
And despite instrumentally contributing to its collapse, they get to wash their hands of MMM2011’s collapse.
With MMM Team Red Dragon following the same Ponzi ROI model as MMM2011, here’s how they address the inevitable mathematical collapse of the scheme:
And what will happen when the flow of new users comes to the end? But, why would it if all the payments are punctual?
On the contrary, the flow of new users will grow and grow, as more people get to know of our marvelous System. So, just become a participant and don’t be scared. 🙂
That’s right folks, infinite recruitment of new victims. So stop asking questions already and hand over your money.
MMM2011 collapsed, and so did the reload scheme MMM2012. Sergey Mavrodi has had moderate success with MMM Global, but all that means is when it inevitable collapses, the number of victims is probably going to number well over a million.
MMM Team Red Dragon itself is probably looking worse for wear this far in, as evidenced by the recent emergence of almost word for word clones.
The use of bitcoin in MMM Team Red Dragon means recovery for victims is next to impossible, just the way the scammers running the schemes intend it to be.
But uh yeah, if you honestly believe in infinity returns paid to you by an endless supply of victims, go nuts.
With both MMM Global and MMM Team Red Dragon likely long in the tooth, and Mavrodi having already served jail time for Ponzi fraud – how this is going to end has already been written.