P2 Tron Review: Power of 2 smart-contract Ponzi cycler
P2 Tron provides no information on its website about who owns or runs the company.
P2 Tron’s website domain (“p2tron.com”) was privately registered on August 19th, 2020.
P2 Tron’s official Facebook group has one admin, Shawn Kim. Frank Trenado is the group’s sole moderator.
One of Kim’s posts references “Richmond” a P2 Tron co-creator.
Whether Shawn Kim is an actual person or the account or was recently purchased is unclear.
Similarly, Frank Trenado’s Facebook profile hasn’t been dormant since 2013.
There is a YouTube channel bearing Trenado’s name. It features a Primerica marketing video uploaded in September 2015.
Trenado features in the video at [0:34]:
The other video on Trenado’s channel is a promo for the Eyeline Trading Ponzi scheme.
As per their respective Facebook profiles, both Kim and Trenado are based out of California.
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.
P2 Tron’s Products
P2 Tron has no retailable products or services, with affiliates only able to market P2 Tron affiliate membership itself.
P2 Tron affiliate membership provides access to a digital marketing library.
P2 Tron’s Compensation Plan
P2 Tron affiliates invest $10 worth of TRON into a split cycler and pyramid compensation plan.
$5 of the initial P2 Tron buy-in is spent on a matrix cycler position. P2 Tron refer to their 2×1 matrix cycler as “Xfactor”.
A 2×1 matrix is simple in nature, requiring only two positions to be filled to trigger a cycle.
The cycler pays a $5 ROI (100%), received by filling the first matrix position in the 2×1 matrix.
Filling the second matrix position triggers a cycle, creating a new 2×1 matrix position.
Through repeated cycling, a P2 Tron affiliate is able to receive more than their initial $5 cycler position investment.
In addition to the first $5 tier, P2 Tron offers another nine cycler tiers:
- tier 2 – $10 worth of tron
- tier 3 – $20 worth of tron
- tier 4 – $40 worth of tron
- tier 5 – $80 worth of tron
- tier 6 – $160 worth of tron
- tier 7 – $320 worth of tron
- tier 8 – $640 worth of tron
- tier 9 – $1280 worth of tron
- tier 10 – $2560 worth of tron
The math on each tier is the same as tier 1:
- invest the required amount;
- steal money from the first position filled under you; and
- the second position revenue is used to generate a new position on the same cycler tier.
Mathematically this equates to a 100% ROI per cycle.
P2 Tron pays recruitment commissions out via a unilevel compensation structure. The unilevel structure is named “Prime”.
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.
Recruitment commissions are paid as 10% of funds paid into Prime, capped down ten levels of recruitment.
An official P2 Tron marketing video uploaded a week ago suggests Prime has the same ten buy-in tiers as Xfactor.
This suggests that the ten levels are tied, meaning effective buy-in at each level is double (the total amount required to buy-in).
Joining P2 Tron
P2 Tron affiliate membership is tied to a minimum $10 investment in tron.
P2 Tron marketing material suggests full participation in the attached income opportunity costs $5115.
Note that all payments in P2 Tron (both paid and received) are made in tron.
Using the cliche “crowdfunding” ruse, P2 Tron runs a simple Ponzi scheme.
New affiliates sign up, invest in cycler positions and that money is paid to existing affiliates who’ve previously invested.
This is as classic a Ponzi scheme as you can get.
Seeing as P2 Tron’s Ponzi scheme requires recruitment of new investors to stay afloat, you have the pyramid recruitment component of the comp plan.
Affiliates get recruited, they invest and commissions are paid. Again, a simple pyramid model.
P2 Tron being a smart contract on the tron blockchain is neither here nor there. It’s just another vehicle to commit same old fraud through.
As with all MLM Ponzi schemes, once affiliate recruitment dies down so too will new investment.
This will starve P2 Tron of new investment, eventually resulting in its matrix cycler stalling.
It should be noted that matrix cyclers primarily benefit their owners and those who get in early.
Through one or more preloaded admin positions, cycler admins receive the majority of invested funds.
This occurs because their positions cycle through the upper tiers first. This is where the lion’s share of invested funds is stolen.
Top recruiters get what’s left. And for this to happen, the majority of P2 Tron affiliates must lose money.
Such is the math behind Ponzi schemes, be they on “the blockchain” or any other platform.