PipCoin Review: 35% a month Ponzi points ROI
The PipCoin website identifies David Schwartz and Red Wayne as founders of the company.
The inception of the idea can be credited to David Schwartz and the inception of the algorithm and mathematics behind to Ref Wayne, a 21 year old South African
Ref Wayne Nkele appears to be the face of the company, I couldn’t find any information on David Schwartz.
Wayne (right) seems to have made a name for himself as a forex trader through “The Forex Institute”.
Honestly speaking- I am the ONLY trader in South Africa who has all the material things that traders claim to have.
Countless houses and cars. I generate millions every month.
Teaching you for free is just what I’ll be doing for fun really… I’ll teach you REAL things not this nonsense that is being taught to people at high cost.
Today The Forex Institute website is offline and the domain parked. Not sure what the story is there.
On their official Facebook page, PipCoin describe themselves as a ‘bank/financial institution (in) Johannesburg, South Africa‘.
South Africa appears to be the primary source of traffic to the PipCoin website, with Alexa estimating it accounts for 90.5% of all traffic.
Read on for a full review of the PipCoin MLM opportunity.
The PipCoin Product Line
PipCoin has no retailable products or services, with affiliates only able to market PipCoin affiliate membership itself.
The PipCoin Compensation Plan
The PipCoin compensation plan sees affiliates invest in PipCoins and get paid when they recruit others who do the same.
PipCoin Investment ROI
PipCoin affiliates invest in PipCoin on the promise of a 35% a month ROI.
The ROI is paid out in PipCoins, with PipCoin affiliates required to “leave their coins in the system” in order to receive the monthly ROI.
If a PipCoin affiliate invests within 24 hours of joining the company, they receive a 5% bonus.
PipCoin affiliates withdraw their ROI by cashing out PipCoins via the company’s internal exchange.
The current price of PipCoin is not provided on the PipCoin website.
PipCoin affiliates who recruit new affiliates are paid a percentage of the funds newly recruited affiliates invest.
This percentage commission is paid out 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 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.
PipCoin cap payable unilevel levels at four, with affiliates paid a percentage of funds invested by affiliates in their unilevel team.
- level 1 (personally recruited affiliates) – 10%
- level 2 – 5%
- level 3 – 2.5%
- level 4 – 1%
Introducing Broker Commissions
Introducing Broker commissions use the same unilevel compensation structure as referral commissions.
Rather than being capped at four levels however, Introducing Broker commissions are paid down an unlimited number of levels.
- level 1 (must have a downline of at least ten affiliates who have invested) – 10%
- level 2 (must have a downline of at least 100 affiliates who have invested) – 5%
- level 3 (must have a downline of at least 1000 affiliates who have invested) – 4%
- level 4 (must have a downline of at least 10,000 affiliates who have invested) – 3%
- level 5 (must have a downline of at least 100,000 affiliates who have invested) – 2%
- level 6 onwards (unlocked along with level 5) – 1%
Affiliate membership with PipCoin is free, however affiliates must invest in PipCoins or recruit new affiliates who do if they wish to participate in the attached income opportunity.
The current value of PipCoin will determine how much is spent when investing in PipCoin.
At the time of publication, PipCoin do not provide the current value of PipCoin on their website.
With PipCoins being completely worthless outside of the PipCoin MLM opportunity and funded by new affiliate investment, they are effectively Ponzi points.
There’s only so much funds being invested in PipCoins, with the company’s 30% monthly ROI generating an ongoing liability out of thin air.
As PipCoin affiliates withdraw their PipCoins into real money at ever-increasing numbers, eventually withdrawals will exceed new investment and trigger a collapse.
The value of PipCoin meanwhile appears to be completely arbitrary, with PipCoin setting the value itself.
This is probably going to wind up being another “can not go down in value” fake cryptocurrency type schemes.
The rest of the PipCoin compensation plan is geared towards affiliate recruitment, with pyramid scheme commissions used to incentivize recruitment.
This is important because as the rate of new investment into PipCoin slows down, the timeline for a collapse speeds up.
Being based out of South Africa also doesn’t do PipCoin any favors, with the area a hotbed of cryptocurrency investment fraud at the moment.
From what I’ve been able to ascertain, PipCoin seems to have gone through a few launched already this year.
Currently the PipCoin website is advertising a “transformation to full cryptocurrency and price increase” in two days.
Why the previous launches of PipCoin didn’t go anywhere is unclear.
The funny thing is though, you can pretty much plot Ref Wayne’s increasingly ostentatious boasts of wealth on Facebook with each of PipCoin’s failed launches.
You can draw your own conclusions as to what that likely means.